Summary as Introduced
Creates the Hemp Consumer Products Act. Sets forth provisions concerning definitions; prohibitions and compliance; applications and licensing for hemp consumer product manufacturers; requirements for licensees; registration of hemp consumer CBD products; requirements of hemp consumer CBD products; packaging and labeling of hemp consumer CBD products; testing requirements; marketing and sale of hemp consumer CBD products; penalties; the administration and enforcement of the Act and rulemaking, including emergency rulemaking, by the Department of Agriculture; and other matters. Amends the Cannabis Regulation and Tax Act. Provides that a violation of provisions concerning unlicensed practice is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Sets forth penalties for unlicensed practice as a cultivation center, infuser, or craft grower. Sets forth provisions concerning the use of hemp in cannabis-infused products. Allows a craft grower and infuser to purchase a hemp-derived intoxicating product from a hemp consumer product manufacturer and offer a hemp-derived intoxicating product for sale to another cannabis establishment, after which the product is considered cannabis and the craft grower or infuser must ensure the product meets all the requirements of the Act. Makes other changes. Amends the Illinois Administrative Procedure Act, the Illinois Procurement Code, the State Finance Act, the Industrial Hemp Act, the Cannabis Control Act, and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes. Effective immediately.
Staff Analysis
Bill as Introduced
Creates the Hemp Consumer Products Act. Sets forth provisions concerning definitions; prohibitions and compliance; applications and licensing for hemp consumer product manufacturers; requirements for licensees; registration of hemp consumer CBD products; requirements of hemp consumer CBD products; packaging and labeling of hemp consumer CBD products; testing requirements; marketing and sale of hemp consumer CBD products; penalties; the administration and enforcement of the Act and rulemaking, including emergency rulemaking, by the Department of Agriculture; and other matters. Amends the Cannabis Regulation and Tax Act. Provides that a violation of provisions concerning unlicensed practice is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Sets forth penalties for unlicensed practice as a cultivation center, infuser, or craft grower. Sets forth provisions concerning the use of hemp in cannabis-infused products. Allows a craft grower and infuser to purchase a hemp-derived intoxicating product from a hemp consumer product manufacturer and offer a hemp-derived intoxicating product for sale to another cannabis establishment, after which the product is considered cannabis and the craft grower or infuser must ensure the product meets all the requirements of the Act. Makes other changes. Amends the Illinois Administrative Procedure Act, the Illinois Procurement Code, the State Finance Act, the Industrial Hemp Act, the Cannabis Control Act, and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes. Effective immediately.
Senate Floor Amendment 1
The amendment would make sweeping changes to Illinois cannabis, hemp and CBD laws by creating a new CBD Consumer Products Act and significantly revising the State’s medical and adult-use cannabis regulatory framework. The proposal would prohibit the sale of consumable hemp-derived cannabinoid products unless sold by a registered CBD product registrant, while also modifying taxation, licensing, product testing, dispensing and enforcement requirements across multiple statutes. The legislation updates provisions related to medical cannabis patients and dispensing organizations, allows pickup and drive-through dispensing locations, revises criminal penalties involving cannabis possession amounts, and changes hemp and cannabis definitions in several State laws. The measure also includes tax-related changes affecting cannabis-related revenues and expressly prohibits home rule counties and municipalities from imposing their own cannabis taxes.
For counties, the legislation could create significant operational, regulatory and fiscal implications. The amendment to Section 5-1009 of the Counties Code would add explicit language stating that home rule counties are prohibited from imposing a tax “on cannabis in any of its forms” unless otherwise specifically authorized within the statute. While existing law already broadly restricts home rule counties from imposing taxes on the sale, use or purchase of tangible personal property without statutory authorization, this amendment directly singles out cannabis taxation as an expressly prohibited area of home rule authority.
From a county perspective, the amendment would strengthen and clarify the General Assembly’s intent to preempt independent local cannabis taxation by home rule counties. The language would limit the ability of counties to pursue new cannabis-related revenue streams outside of those specifically authorized under State law and could reduce local flexibility in responding to cannabis market growth or regulatory costs. The amendment also reinforces the State’s preference for a uniform statewide cannabis tax structure rather than a patchwork of locally imposed cannabis taxes.
Counties may also experience impacts on law enforcement, courts and correctional systems due to revised cannabis possession thresholds, updated criminal penalties and changes to expungement provisions involving minor cannabis offenses. County public health departments and zoning, licensing and enforcement personnel could see additional administrative responsibilities tied to the regulation of CBD products, medical cannabis dispensing operations and expanded retail practices such as drive-through pickup locations. In addition, counties participating in intergovernmental public health or cannabis oversight activities may need to coordinate with State agencies regarding confidential information sharing, regulatory compliance and implementation of the revised cannabis framework.