The Agriculture Improvement Act of 2018 (“2018 Farm Bill”) legalized hemp by removing the crop and its derivatives from the definition of marijuana beneath the Controlled Substances Act (“CSA”) and by supplying a detailed framework for the cultivation of hemp. The 2018 Farm Bill provides the US Division of Agriculture (“USDA”) regulatory authority more than hemp cultivation at the federal level. In turn, states have the selection to keep key regulatory authority more than the crop cultivated inside their borders by submitting a program to the USDA. This federal and state interplay has resulted in several legislative and regulatory adjustments at the state level. Certainly, most states have introduced (and adopted) bills that would authorize the industrial production of hemp inside their borders. A smaller sized but increasing quantity of states also regulate the sale of solutions derived from hemp.

In light of these legislative adjustments, we are presenting a 50-state series analyzing how every jurisdiction treats hemp-derived cannabidiol (“ Hemp CBD”). Every Sunday we will summarize a new state in alphabetical order. So far, we’ve covered Alabama, Alaska,  Arizona,  Arkansas,  California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii and Idaho. Right now we turn to Illinois.

Overview. Because 2016, Illinois has restricted the cultivation of industrial hemp by the Illinois Division of Agriculture (“IDA”) and institutions of larger studying for analysis purposes only. Nonetheless, on August 26, 2018, Governor Bruce Rauner signed SB 2298, which expanded the state’s industrial hemp regulations to cover industrial activity. SB 2298 updated Illinois’ industrial hemp laws to permit men and women and entities to cultivate hemp by registering with the IDA and removed industrial hemp from the definition of cannabis.

Earlier this year, the IDA adopted short-term guidelines beneath SB 2298. Beneath the guidelines, “Industrial Hemp” signifies

the plant Cannabis sativa L. and any component of that plant, no matter whether increasing or not, with a delta- tetrahydorcannabinol (THC) concentration of not additional than .three% on a dry weight basis that has been cultivated beneath a license issued beneath the Act or is otherwise lawfully present in this State and incorporates any intermediate or completed item produced or derived from industrial hemp.

Production of Hemp and Hemp- CBD Merchandise. Pursuant to Illinois law, only licensed growers and processors could sell or transfer living hemp plants or viable hemp seeds to (1) other IDA licensees, or (two) other people outdoors of Illinois so lengthy as the sale is authorized by a state agency in the location state.

The IDA also permits the sale and transfer of “stripped stalks, fiber, dried roots, nonviable seeds, seed oils, floral and plant extracts (excluding THC in excess of .three%) and other marketable hemp solutions to members of the common public, each inside and outdoors the State of Illinois.” Note that neither the bill nor the IDA guidelines define “marketable hemp solutions.”

Nonetheless, Section 25 of SB 2298 delivers the following provision:

Nothing at all in this Act shall be construed to authorize any particular person to violate federal guidelines, regulations, or laws. If any component of this Act conflicts with a provision of the federal laws relating to industrial hemp, the federal provisions shall manage to the extent of the conflict.

Accordingly, due to the fact there is no permissive language that enables for Hemp- CBD solutions and due to the fact of Section 25, the sale of these solutions is illegal at worst, and unregulated at ideal.

In addition, only registered processors can procedure Hemp- CBD grown beneath the plan. Nonetheless, practically nothing in SB 2298 nor the IDA guidelines expressly prohibit the introduction of hemp solutions lawfully processed beneath a further state program.

Possession. Pursuant to SB 2298, “[n]othing in this Act shall alter the legality of hemp or hemp solutions that are presently legal to possess or personal.” Consequently, the possession of Hemp- CBD solutions appears restricted to these authorized by the FDA or that meet the requirements set by IDA guidelines (i.e., containing no additional than .three% THC and that satisfy other specifications).

Transportation. Only a licensed grower or registered processors could transport hemp so lengthy as the hemp includes no additional than .three% THC. Note that the IDA guidelines state that the transportation of Hemp- CBD solutions is not restricted immediately after sold to a member of the public.

Advertising and marketing or Marketing Restrictions. As of the date of this post, the state has not enacted regulations governing the advertising or marketing of Hemp- CBD solutions.

Bottom Line. Despite the fact that the production and sale of Hemp- CBD solutions is not clearly authorized or restricted, Illinois is authorizing the cultivation of the crop and has not taken any enforcement actions against these solutions. For these motives, Illinois ought to be regarded as a hemp friendly state. That getting stated, there is a possibility that items could adjust upon the adoption of final guidelines by IDA.