Illinois ban on hemp-derived THC drinks paused for businesses part of federal lawsuit

A new Illinois law was set to take effect this week, threatening to pull most hemp-derived THC drinks from traditional retail shelves. 

However, just days before that deadline, several hemp businesses filed a lawsuit, and now, the state has agreed to temporarily hold off on enforcement against those covered by the lawsuit.

It's the last call for hemp-based THC drinks at Illinois breweries and liquor stores. A new state law, set to go into effect on Nov. 12, will pull most of these products from traditional retail shelves — leaving businesses scrambling to figure out what's next.

"It's become a huge part of the habits of our customers," said Stephen Bossu, owner of Hopewell Brewing.

At Hopewell Brewing in Logan Square, Bossu says THC drinks now account for 10% to 20% of their overall revenue — depending on the season, with many customers turning to them as an alternative to alcohol.

"It was really disappointing to see that instead of choosing sensible regulation, they chose a ban," Bossu said.

The law would require businesses to sell no higher than a 0.4 milligram product. The lowest Hopewell sells is 3 milligrams.

Bossu says losing that could mean difficult decisions, including potential layoffs.

"We're a small business, right? We can't absorb hits all the time. We're a small family business."

The Illinois Healthy Alternatives Association has filed a lawsuit challenging the law, arguing the restrictions will hurt businesses and limit consumer access.

Glenn McElfresh, with the Hemp Beverage Alliance and CEO of Chicago-based Plift, says the state should focus on sensible regulation instead of pushing these products out of traditional retail.

"The shelves at your favorite grocery store, like Binny's, Target, and Circle K, are just bone dry," he said.

McElfresh says the law could force smaller brands to put expansion plans on hold and move sales into dispensaries. 

Supporters of the restrictions, however, say stronger oversight is needed to protect consumers, especially kids.

McElfresh says it's up to government to regulate and not erase the industry.

"So if this is a problem, and it is, you they know where these products are being purchased. They know where this packaging is coming from, and I'm not saying it's easy, but I'm saying they can do it if they have the willpower."

So for now, some businesses have a little breathing room. 

The state has agreed not to enforce the new law against the businesses involved in the lawsuit and members of their industry association for an extra week, through Thursday, Nov. 19. That's when a federal judge is scheduled to hear arguments over whether to temporarily block the law while the case moves forward.