Business
Chicago Small Business Owners Oppose Ban on Intoxicating Hemp, But Support Regulation
A group of alderpeople led by 13th Ward Ald. Marty Quinn is pushing an ordinance to ban the sale of hemp-derived cannabinoid products in Chicago.
Quinn criticized the recent meteoric rise of hemp products and smokeshops, calling them “shady storefronts” that “prey on kids” with products that look like candy.
The ordinance passed out of the Licensure and Consumer Protection Committee last Wednesday on a 10-6 vote, drawing sharp criticism from Chicago manufacturers and distributors of hemp-derived cannabis.
The 2018 Agriculture Improvement Act — known as the Farm Bill — legalized hemp but limited harvested plants to no more than 0.3% Delta-9 THC, according to University of Illinois Chicago social work professor James Swartz.
But “enterprising chemists” have found ways to modify hemp-infused products to increase the amount of THC after the fact, Swartz said.
“There was no regulation since hemp was removed from the scheduling of drugs, there was no effective regulation on it as there was with cannabis and that’s how we got here,” Swartz said. “There just is no regulation of these products at all, at any level.”
Not all manufacturers and distributors of intoxicating hemp products take advantage of this loophole, though.
Josh Deth, the owner of Revolution Brewing Company, a Chicago-based craft brewery, sells hemp-infused sparkling water beverages at 5mg and 10mg dosages — in line with individual serving size caps for marijuana-derived products.
Deth has called for proper regulation of hemp-derived cannabinoids in lieu of complete prohibition, which could put a dent in hundreds of small businesses across Chicago and outright shutter others.
Deth said the three-tier alcohol system — made up of licensed producers, wholesalers and retailers — is a useful model for lawmakers weighing how to regulate hemp products.
“That’s (the three-tier system) the kind of system that we need to put in place,” Deth said. “In the cannabis sector there’s a similar type of regulatory framework to regulate everything and that’s the kind of framework you have in place that has safeguards in there to make sure stores aren’t selling to anyone under 21.”
Ald. Nick Sposato (38th Ward) is a member of the Licensure and Consumer Protection Committee and voted against the hemp ban ordinance.
Sposato said he understands Quinn’s concerns but wanted to protect small businesses.
“Some of my colleagues … banned this in their ward, I was not one of them,” Sposato said. “It was never an issue in my community so I just didn’t wanna destroy the small business owners that are legitimately trying to do the right thing.”
Quinn has not said when the hemp ban ordinance might come up for a vote before the full City Council. Sposato said he could be in a position to support the ban by the time it reaches City Council for a vote.
“Ald. Quinn’s a pretty level-headed guy,” Sposato said. “I’m sure he’ll come up with something to help businesses … and keep this stuff out of the hands of kids. We’re working on a compromise right now that I’m pretty confident I’ll be able to support.”
