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Illinois hemp businesses owners call for regulation and taxation, not prohibition

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Illinois hemp businesses owners call for regulation and taxation, not prohibition


The last thing most business owners want is to be taxed and regulated, but hemp business owners are asking for just that — as a way to keep their industry alive.

Hemp entrepreneurs came out Tuesday in favor of a state legislative proposal to license hemp sales, require testing and labeling of their products, prohibit products that look like well-known snack brands, and limit sales to those 21 and over. The bill would create 10% wholesale and a 10% retail sales taxes, and an unlimited number of $500 licenses.

That proposal stands in contrast with a bill backed by the Cannabis Business Association of Illinois, which would prohibit sales of hemp-derived intoxicating products.

Jennifer Weiss, founder and CEO of Cubbington’s Cabinet in Chicago, which sells hemp products, fears that the opposing bill would set such strict limits that it would even prevent sales of non-intoxicating products such as CBD.

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“We would have to shut our doors, as well as hundreds of other Illinois companies,” she said. “Let’s not go backward with out-of-touch prohibitions.”

Potentially at stake is the future direction of the cannabis industry in Illinois. Currently, a split between state and federal law has created a stark contrast between the marijuana and hemp industries.

Both marijuana and hemp are grown from the same cannabis plant. State law has legalized marijuana, which gets users high through a component called delta-9-THC. Marijuana remains illegal federally. In 2018, Congress legalized hemp, which is defined as cannabis having less than .3% delta-9-THC, and so was meant to allow sales of non-intoxicating products like CBD.

But hemp processors figured out how to synthetically derive other intoxicating cannabinoids from the plant, such as delta-8 or delta-10, or even delta-9-THC. The CDC issued a health advisory in 2021 warning of adverse events involving consumption and insufficient labelling of delta-8, similar to delta-9 intoxication.

State weed licenses remain very limited and expensive, and are subject to strict testing and labeling requirements, meant to ensure their purity and potency. In contrast, unlicensed hemp is being sold in vape shops, corner stores and gas stations across the country, with no age or other restrictions.

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As a result, sales of hemp products have exploded into a $28 billion industry, even larger than the legal cannabis market, by one estimate. The recent move by federal regulators to relax restrictions on cannabis would not likely affect the hemp THC conundrum. As a result, some licensed cannabis businesses have even resorted to selling hemp-based products.

Last month, some lawmakers and the Cannabis Business Association of Illinois, which represents the licensed cannabis industry, called for a ban on intoxicating hemp products until an advisory committee can recommend how to proceed.

Tiffany Chappell Ingram, the association’s executive director, issued a statement again calling for a “pause” of hemp intoxicant sales pending further studies.

“We look forward to working with legislators to find a path forward that empowers consumers, protects minors and ensures the state’s adult-use cannabis law lives up to its full promise, including uplifting social equity license holders and communities disproportionately impacted by the war on drugs,” she said.

State Rep. La Shawn Ford, a Chicago Democrat and chief sponsor of the bill to regulate hemp, said lawmakers shouldn’t kill a multi-billion dollar industry, and create an illegal market.

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“Prohibition doesn’t work, and Illinois should reject going backward,” he said.

John Murray, CEO of Sustainable Innovations in Rockford, said his company is using its larger hemp business to help finance its licensed cannabis venture.

While licensed dispensary owners could be undercut by hemp businesses, they could operate in both spheres, he said.

“We believe we can do both, and we are doing both,” he said.



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Illinois

PPP Loan Scandal Busts Joliet Woman Working For Illinois Department Of Corrections: AG Kwame Raoul Reveals

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PPP Loan Scandal Busts Joliet Woman Working For Illinois Department Of Corrections: AG Kwame Raoul Reveals


JOLIET, IL —Attorney General Kwame Raoul issued a press release on Monday is alleging a Will County woman fraudulently received a Paycheck Protection Program (PPP) loan for more than $20,000 while employed by the Illinois Department of Corrections.

The Attorney General’s office charged Jamilah Franklin, 48, of Joliet, with one count of loan fraud of more than $10,000, a Class 2 felony punishable by up to seven years in prison; and three counts of forgery, Class 3 felonies punishable by up to five years in prison. Sentences are ultimately determined by the court. Franklin’s first court appearance is June 18.

“Federal assistance programs served as a lifeline for small businesses and unemployed Americans during the COVID-19 pandemic, and it is unacceptable that government employees would abuse that vital support,” Raoul said. “I will continue to collaborate with other agencies to hold public workers accountable for abusing these programs.”

Attorney General Raoul’s office alleges Franklin was employed by the DOC as a lieutenant when she fraudulently applied for a PPP loan from the U.S. Small Business Administration by falsely claiming she owned a business. According to Raoul’s office, Franklin received $20,516 in 2021 as a result.

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The Attorney General’s office is prosecuting this case based on a referral by the Office of Executive Inspector General and following an investigation by the Illinois State Police Division of Internal Investigation.

“The Illinois State Police pursues any state employee committing criminal behavior and will continue to work with Attorney General Raoul’s office to hold employees accountable and ensure justice,” said ISP Director Brendan F. Kelly.

Raoul’s office has prosecuted dozens of individuals for PPP loan fraud and referred other investigations to the appropriate state’s attorneys for further evaluation.

Deputy Chief Jonas Harger is prosecuting the case for Raoul’s Public Integrity Bureau.





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The Weekly: Illinois detention centers, Canvas breach and AI policies

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The Weekly: Illinois detention centers, Canvas breach and AI policies


The Daily Northwestern · The Weekly: Illinois detention centers, Canvas breach and AI policies   WALLIS ROGIN: Last week, The Daily reported on Illinois legislation defining where “detention center facilities” can be located, Northwestern professors’ policies on artificial intelligence and a Canvas hack that targeted over 9,000 schools. From The Daily Northwestern, I’m Wallis Rogin….



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Thousands of birds could migrate over the Chicago area this week, and here’s how to protect them

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Thousands of birds could migrate over the Chicago area this week, and here’s how to protect them


Thousands upon thousands of birds are expected to cross over Illinois as part of their spring migrations in coming days.

Thursday night saw the highest migration totals of the season so far, but researchers at Cornell believe that Sunday and Monday nights could see even more avian traffic in the skies over the Chicago area, with hundreds of thousands of birds expected to traverse the area.

According to estimates from Birdcast, Sunday night and into Monday morning there could be “medium” activity for migrating birds, with thousands of birds per kilometer flying over the area.

Even more birds are expected to take flight Monday night and into Tuesday morning thanks to favorable weather conditions, with a “high” number of birds expected to take to the skies over the Chicago area.

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According to estimates, up to 383 million birds could be in flight over the central United States during the peak of the migration overnight.

On Thursday night the Chicago area experienced its busiest night of the spring migration season so far, with more than 367,000 birds having been estimated to have passed over Cook County alone.

In all, more than 23,000,000 birds are believed to have crossed the state of Illinois so far during the spring migration.  

Among the primary birds expected to be flying through the area are American Redstarts, Magnolia Warblers, Baltimore Orioles and Indigo Buntings, according to researchers at the CornellLab.

As millions of birds continue visiting the Chicago area, here are some steps that residents can take to keep them safe.

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When do birds typically migrate?

Peak migration for birds over the state of Illinois occurs in mid-to-late May, with hundreds of different species heading north for the summer breeding season.

Those migration flights for songbirds and other species typically take place in the overnight hours. According to experts, birds typically take flight 30-to-45 minutes after sunset, with the greatest number of birds in flight typically seen approximately two-to-three hours later.

When should residents turn lights off?

One of the best ways to help protect birds is to turn off lights during peak migration times.

According to Birdcast, the best time to turn off or dim exterior lights and interior lights is between the hours of 11 p.m. and 6 a.m., when most birds are active.

Bright lights can disorient and attract birds, making them vulnerable to collisions and to predators on the ground, according to the website.

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Hundreds of millions of birds are killed each year in collisions with buildings, and residents and businesses are being asked to do their part to keep the creatures safe.

In addition to turning off unneeded exterior lights, residents and businesses are also asked to dim or turn off lights in lobbies, and to draw blinds to help keep light from escaping through windows.

Finally, exterior lights should be aimed downward and be well-shielded so that birds aren’t attracted to them.

Are there other steps?

Another key step in protecting birds is to bring pet cats inside during overnight hours.

According to the American Bird Conservancy, cats kill an estimated 2.4 billion birds in the United States every year, and during migration season those impacts can be even more devastating, as exhausted birds typically seek refuge in plants and trees to rest on their journeys, making them vulnerable to attack.

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Since cats like to hunt at night, active migrating birds can be a target, leading to experts asking residents to keep animals inside when possible.



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