Chicago City Council Ponders Restrictions on Sale of Hemp-Derived THC Products

2 min readPublished On: September 18th, 2023By

CHICAGO CITY- In a bid to address what is being termed as “a public health crisis” related to the unregulated sale of hemp-derived products containing THC variants like delta-8, delta-10, and THC-O, the Chicago City Council is weighing a proposal that would significantly restrict the sales of these products. According to the Chicago Sun-Times, the proposal suggests that only businesses possessing a state-issued cannabis license should be permitted to vend these types of products.

Proposal Highlights

The draft ordinance, spearheaded by Second Ward Alderman Brian Hopkins, who also chairs the council’s Public Safety Committee, stipulates stringent controls on the advertising and sale of THC products by businesses without a cannabis license. Such businesses would still be permitted to sell hemp products that contain insignificant quantities of delta-9 THC but would be prohibited from advertising THC sales, using imagery synonymous with cannabis, or referring to themselves as dispensaries.

Penalties for violation of this ordinance could be severe, encompassing fines of up to $5,000 and even encompassing the possible suspension or revocation of the business’s city-issued license. The ordinance also grants the Chicago police the authority to seize products found in violation of the stipulated norms.

Divergent Views on the Proposal

State Representative La Shawn Ford, a Democrat who had earlier advocated for the statewide regulation of delta-8 products through legislation (which ultimately did not pass in the state legislature), expressed apprehensions that the proposed ordinance could potentially spur the creation of an illicit market for hemp-derived THC products. Ford also voiced concerns over potential job losses and a decrease in tax revenues that the city sorely needs at this juncture.

Arguing for a more balanced approach, Ford urged for the regulation and safe governance of these products rather than an outright ban, thereby preserving potential tax revenues for the city. “The city of Chicago should not be banning and eliminating tax revenue,” Ford said, emphasizing the city’s pressing revenue needs and his objective to foster safe regulation.

Implications and Next Steps

As the city grapples with the rising popularity and unregulated sale of these products, the proposal aims to instate a framework that ensures public safety while governing the sale and advertisement of hemp-derived THC products in the city.

It remains to be seen how this proposal will be received by other stakeholders in the city and whether it will successfully navigate through the legislative corridors to become law, setting a precedent for potential similar moves in other jurisdictions.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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