Chicago's Hemp Businesses Face Tough Times After Federal Ban

A recent federal bill has put a damper on Chicago's hemp industry. The bill, which ended a government shutdown, also closed a loophole that allowed hemp products with small traces of THC to be sold as drinks, edibles, vapes, and more. This has left many businesses in a tough spot. Hemp business owners now have a year to remove these products from their shelves before they become illegal under federal law. This could mean the end of a debate that has been going on in the City Council and statehouse about what to do with these products. Unlike licensed dispensaries, these businesses don't have to deal with steep taxes, security, or testing regulations. Many local business owners turned to selling hemp products after the state legalized marijuana in 2020. However, the rollout of licenses was limited, making it difficult for small- and minority-owned businesses to get involved. Jason Knight, a lifelong South Sider, built a half-million-dollar online retail business selling THC-infused ice creams and sorbets derived from hemp. He had been looking into opening a storefront when news of the federal bill "killed my deals right on the spot. " Recipients of the state's social equity dispensary licenses have said that hemp products undercut their prices, years of investment, and health standards. Some members of the City Council have passed bans of hemp products in their wards. Akele Parnell, a social equity license holder and owner of ÜMI Dispensary, called the federal hemp ban "inevitable. " Ed Marszewski, owner of Marz Brewing, said many breweries have been making THC-infused hemp drinks as the craft beer business has contracted following the pandemic. The drinks have became "too much" of Marzewski's business. Knight said his business in Illinois is "certainly dead" as he considers pivoting to a state that already has its own laws regulating intoxicating hemp products. Talks in the Illinois statehouse stalled after Gov. JB Pritzker pushed for the products to be only sold in dispensaries. Knight said, "We wanted regulations. " In his proposal to close a $1. 19 billion budget gap, Mayor Brandon Johnson banked on raising $10 million by taxing hemp products. Following the federal bill's passage, Johnson's office has "removed the revenue for hemp" from its proposal. State Rep. La Shawn Ford, a leading supporter for the hemp industry, said it would be more "difficult to pass a