The Illinois General Assembly passed a bill that will have significant implications for small businesses that sell hemp without a cannabis license. Here is a summary of the legislation:
0.4 Milligram Potency Cap
The legislation prohibits businesses without a cannabis license from selling hemp products with more than 0.4 milligrams of total THC. This limit applies to the entire container, not just a single serving. Items with cannabinoids that have similar effects (or are marketed to have similar effects) as THC, like THCA, are also included in the cap.
Most psychoactive hemp products (like gummies or oils) contain significantly more than 0.4mg of THC per package. These products will now be legally classified as “cannabis” and will be confined to licensed cannabis dispensaries.
Ban on Synthetics
The legislation prohibits the manufacture or sale of hemp products containing cannabinoids that are synthesized or manufactured outside of a Cannabis Sativa L. plant in all quantities, even if those cannabinoids can occur naturally. Businesses will no longer be able to sell Delta-8, Delta-10, or HHC.
Packaging and Labeling Requirements
The legislation sets strict labeling standards for hemp products. Products must include a QR code linking to a Certificate of Analysis (COA) proving that they have been batch-tested by an approved laboratory for potency and contaminants.
Retailers are also restricted from using packaging that might appeal to minors. Packaging cannot include images of cartoons, fruit, toys, or animals, nor anything that imitates commercial non-hemp candy or snacks. All products must be sold in sealed, child-resistant containers.
Oversight and Enforcement
The legislation subjects retailers to increased state oversight. The Department of Agriculture, the Department of Public Health, and the Illinois State Police are authorized to enter and inspect retail premises during ordinary business hours to ensure compliance.
Violations of the Act carry significant financial and legal risks for businesses. Retailers face fines of up to $500 for a first violation and $1,000 for subsequent offenses within a 24-month period. The state may issue mandatory recalls for non-compliant products. Violations can be enforced by the Attorney General.
To continue selling hemp-derived cannabinoids after November, small businesses will need to restrict their inventory and maintain records to demonstrate that every item on their shelves meets the state’s new safety and potency definitions.
You can read the legislation in its entirety here.