Chicago Council Committee to Consider Ordinance Restricting Hemp THC Sales to Licensed Dispensaries

On Wednesday, a Chicago council committee will discuss and potentially vote on an ordinance that would prohibit all non-dispensary businesses from selling hemp-derived cannabinoid products, limiting sales exclusively to state-licensed cannabis stores.

The measure, sponsored by Alderman Marty Quinn, would repeal the city’s existing cannabinoid ordinance and replace it with a stricter framework. The proposal creates a broad definition of “hemp-derived cannabinoid product,” covering any intermediate or final product made from hemp that contains cannabinoids of any kind, whether natural, synthetic, or manufactured. It includes items intended for inhalation, ingestion, or topical use. It also defines “concealment” as knowingly hiding or preventing the discovery of these products.

Under the proposed language, no licensed business—except for state-licensed cannabis establishments—would be allowed to possess, sell, give away, barter, exchange, or furnish any hemp-derived cannabinoid product on their premises. The ordinance also bans any act of concealment involving these products. Violations would carry fines between $2,000 and $5,000 per offense, with each day the violation continues counted as a separate offense. Repeated violations could trigger license suspension or revocation.

The Illinois Healthy Alternatives Association announced its opposition ahead of Wednesday’s hearing, arguing that the measure goes too far and would disrupt businesses offering non-intoxicating hemp products.

“We all recognize the importance of implementing responsible regulations to prevent these products from reaching minors,” said Craig Katz, President of the Board for the Illinois Healthy Alternatives Association. “Our members are actively collaborating at both the state and federal levels to create a regulatory framework that safeguards minors and ensures product safety. We can achieve these objectives while still enabling our members to offer their customers the healthy alternatives they require. We are eager to partner with the City Council to find effective solutions.”

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Author: HP McLovincraft

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