Chicago Mayor Vetoes City Ban on Hemp THC Products

Chicago Mayor Brandon Johnson last week vetoed a measure that would have banned sales of most hemp THC products within city limits. The Chicago City Council approved the ban, which included an exception for hemp THC beverages, by a vote of 32-16 at a meeting last month.

Johnson vetoed the ordinance establishing the ban on Friday, according to a report from the Chicago Sun-Times. Had he signed it, the measure would have immediately prohibited sales of intoxicating hemp products to those under 21 years of age. On April 1, a total ban on hemp products except beverages and topicals would go into effect, prohibiting their sale outside of licensed cannabis dispensaries. 

The carve-out for hemp THC drinks was notable, clearing the way for Chicago’s premier entertainment venue United Center to offer THC beverages at concerts and other live performances to its patrons through a multi-year partnership with Señorita and RYTHM.

Veto Comes Ahead of Federal Hemp THC Ban

Johnson’s veto comes as a federal ban on intoxicating hemp products is set to go into effect in November. Some lawmakers in Congress have proposed legislation to extend the deadline, while others are hoping to eliminate the ban, which was included in legislation to reopen the federal government after a six-week shutdown.

“I continue to have significant concerns around the current proposal and the potential negative impacts this prohibition-style ban could have on our city,” Johnson said in a statement about his veto. “As we await additional guidance and rules from the federal government, this ban is premature and requires further collaboration with our small business community.”

Johnson said that he shares concerns with city council members about hemp THC products, including packaging that is attractive to children. He also called for regulations requiring age verification, responsible packaging and clear enforcement standards that include no tolerance for retailers who sell intoxicating hemp products to minors.

“However, the ordinance passed by the City Council would effectively function as a broad ban on many small hemp retailers by limiting sales to licensed cannabis dispensaries and

certain liquor-licensed establishments,” the mayor said in his statement. “The ordinance protects some establishments at the expense of many of our small businesses who have been following the law and deserve to have a seat at the table.”

“Many of these businesses are Black- and brown-owned. Many are operated by entrepreneurs who were shut out of the expensive cannabis licensing process and turned to federally legal hemp as a pathway into the marketplace,” Johnson added. “We cannot claim to support equitable economic development while advancing policies that concentrate the market in the hands of a few large entities.”

Chicago Alderman Marty Quinn, the author of the hemp ban ordinance, said that he will not pursue an override of Johnson’s veto, which would need 34 votes to succeed.

“I don’t have the votes… I’m at 32. I don’t have 34. That’s where it’s at. It’s not going to change,” said Quinn.

Stakeholders React to Johnson’s Veto

Jeremy Dedic, owner of Cubbington’s Cabinet in the Chicago neighborhood of Roscoe Village, said that sales of hemp products allow him to keep his doors open for business.

“If the veto wasn’t in place, we’d be in liquidation mode, and we’d be informing customers that April 1 would be the first day we’d be closed for business,” Dedic told WGN-TV news.

The small business owner said that he is relieved by Johnson’s veto of the hemp products ban, but he plans to continue urging his customers to contact their city council representative and ask them to protect hemp retailers.

“You need to understand policy before you vote for it,” he added. “Otherwise, you end up with a harmful policy coming into place that’s harmful for consumers, i.e. voters, as well as the economy.” 

Representatives of the regulated cannabis industry, however, view Johnson’s veto differently. David Craig, CMO for multistate operator Illicit Gardens, says that Chicago’s mayor has thwarted an opportunity to bring parity to the market for THC products.

“We’re disappointed to see policymakers step back from creating real clarity in a marketplace that desperately needs it. Intoxicating hemp products are being sold with far fewer safeguards than state-regulated cannabis, despite the strict compliance, testing, and age-verification requirements licensed operators follow every day,” Craig writes in an email to IgniteIt. “Letting loosely regulated products compete against that system undermines responsible businesses and leaves consumers without the protections they expect.”