CHICAGO – A collective of predominately Black, brown and women social equity cannabis license holders joined Ald. Gilbert Villegas (36th Ward) at City Hall today to urge members of the Chicago City Council to reject attempts to legitimize intoxicating hemp, which is endangering consumers and undermining the state’s legal cannabis market, threatening investments in minority communities.
This comes Ald. William Hall (6th Ward) explores proposals to tax hemp-derived intoxicants sold in Chicago. Such an effort would legitimize intoxicating hemp products in exchange for a quick cash grab by the city. Instead of setting up separate rules for Chicago, city officials should work with the General Assembly to implement a statewide solution that regulates intoxicating hemp in a similar manner as legal cannabis.
“We need to take a moment to pause and reassess the legitimate market that already exists for cannabis and apply similar guardrails and guidelines to the grey market that hemp dominates,” said Ald. Villegas. “Many questions need to be answered and any form of incentivizing its use for a quick payout needs to be severely reconsidered. The city should work with state officials to outline a more structured, fair, and safe way of moving forward.”
Given the complexity of the state’s legal cannabis system – with more than 12 agencies overseeing the cannabis market – it is unlikely the city can meaningfully oversee intoxicating hemp on its own. There are also serious questions about how much money would really be captured, because legitimizing intoxicating hemp would only to cannibalize existing cannabis tax revenues. To see additional cannabis revenues to support city operations, the city should consider streamlining internal processes to make it easier for licensed cannabis business to locate in Chicago.
When Illinois launched its adult use cannabis program five years ago, it came with the promise of providing opportunities to those who have been disproportionately impacted by the War on Drugs. That included expungements for cannabis convictions, investing in violence prevention and youth development programs, and creating opportunities to participate in the legal cannabis industry. But just as many of these businesses are finally becoming operational, with more continuing to struggle, they are being pushed aside in favor of a gray market selling intoxicating hemp products.
“We are proud to operate in Illinois and want to continue to grow and invest in our businesses, but doing so is becoming increasingly unsustainable due in large part to the unregulated grey market,” said Akele Parnell, CEO of Umi Farms. “Without meaningful efforts to rein in the intoxicating hemp market, officials are turning away from the promise of our legal cannabis market and the investments made by small minority businesses owners across Illinois. It’s time Illinois lived up to the promises it made.”
Licensed cannabis businesses regulated by the state have gone through countless steps to ensure they are operating safely and adhering to detailed rules—including product quality control and testing, a strict ban on sales to anyone under 18, and numerous zoning guidelines such as those that prohibit dispensaries from opening next to schools. Intoxicating hemp products should be held to the same strict standards.
“As responsible cannabis license holders, we have invested significant resources, time, and effort to comply with the regulations and standards,” said Ted Parks, Executive Director of the Independent Third-Party Carriers Association and owner of Moetta’s Transport. “We as an industry adhere to strict protocols for cultivation, processing, and distribution to ensure the safety and well-being of our consumers and the integrity of this industry. The hemp industry has none of these same rules and no one holds them accountable. Why should they be allowed to write their own rules?”
Not only are those selling intoxicating hemp able to bypass strict requirements to operate a dispensary, but their market is also profiting from our communities without giving back. Illinois sets aside 25 percent of adult-use cannabis tax revenue to fund the Restore, Reinvest, Renew grant program. To date, roughly $250 million in R3 grants have been awarded to support legal aid, economic development, re-entry, violence prevention and youth development programs in communities impacted by the War on Drugs. The unregulated market supports no such programs.
“Cannabis operators are proud of the programs our revenue supports, including legal aid, economic development, reentry programs, and violence prevention,” said Ambrose Jackson, Chairman and CEO of Parkway Dispensary and The 1937 Foundation. “This work benefits our entire city, lessening the dependency on public support. This is the real-world benefit of our state’s cannabis program, and it’s missing from the unregulated hemp market.”
SPRINGFIELD – The Cannabis Business Association of Illinois released the following statement regarding efforts to regulate intoxicating hemp products:
“We are disappointed by the House’s failure to pass common-sense regulations for hemp consumer products such as CBD while halting the sale of dangerous synthetic hemp-derived intoxicants like delta-8 that are sickening children and adults,” said Tiffany Chappell Ingram, Executive Director of the Cannabis Business Association of Illinois. “Without action, the unregulated intoxicating hemp market will continue to operate with no rules or regulations guiding the production or sale of these products. This leaves consumers at risk and undermines the state’s carefully regulated cannabis market, particularly social equity cannabis license holders who face extensive rules and regulations while those selling intoxicating hemp continue to get off easy. We thank Gov. Pritzker for his strong leadership, as well as lawmakers in both chambers who championed this issue. We remain committed to working with the administration and legislators to rein in this unregulated market, empower consumers, protect public health and ensure our state’s legal cannabis industry can reach its full potential.”
SPRINGFIELD – The Cannabis Business Association of Illinois is celebrating the five year anniversary of the legalization of adult use cannabis, which has created tens of thousands of jobs and generated billions of dollars in sales, much of which has been re-invested in communities impacted by the War on Drugs.
Adult use cannabis sales first began on January 1, 2020 and now account for nearly 80 percent of cannabis sales in Illinois, with the remainder sold for medical use. Statewide, there are now more than 230 dispensaries operating across Illinois, including 100 dispensaries operated by social equity license holders. There are also licensed cultivators, infusers, craft growers, transporters and numerous ancillary cannabis businesses that support the industry.
In Fiscal Year 2024 alone, adult-use cannabis sales generated over $457 million in state tax revenue. Tax dollars generated by those sales help support numerous state initiatives, including the Restore Reinvest Renew grant program, which supports organizations that work on violence prevention, economic development, youth development and citizen reentry in communities impacted by the War on Drugs.
Notably, Illinois has led the nation on expungements for cannabis offenses, recognizing the negative impact of cannabis criminalization, especially in Black communities. Illinois’ efforts led to pardons of federal marijuana convictions and calls for other states to pardon those convicted for marijuana possession at the state level.
“Like all new programs, there have been challenges in establishing the state’s legal cannabis market, but there have also been great successes,” said Tiffany Chappell Ingram, Executive Director of the Cannabis Business Association of Illinois. “While there is more that can be done to strengthen the industry in Illinois, we have come a long way in five years, especially when it comes to reducing the stigma around cannabis. We look forward to working collaboratively with Gov. JB Pritzker and members of the General Assembly to ensure the state’s cannabis industry can realize its full potential.”
Key areas of opportunity include:
INCREASING DIVERSITY Illinois’ cannabis program is unique in that it centers diversity and equity. While the number of women and minority owners has increased in recent years, more can be done. A major hurdle is securing capital, especially for social equity license holders. In the absence of federal banking standards for the cannabis industry, the Illinois Department of Commerce and Economic Opportunity (DCEO) has grant and loan programs to support small businesses, but it’s not sufficient to support needed growth. A Disparity Study conducted by the Cannabis Regulation Oversight Office recommended broadening the availability of financing through DCEO’s Cannabis Business Development Fund, which serves as an important revenue stream for social equity license holders.
REGULATE INTOXICATING HEMP The proliferation of intoxicating hemp products is undermining Illinois’ carefully crafted legal cannabis market. State licensed cannabis dispensaries adhere to strict protocols for cultivation, processing, and distribution to ensure the safety and well-being of consumers. The unregulated market faces no such rules. By evading regulatory oversight and taxation, unlicensed operators can undercut prices and unfairly compete with legitimate cannabis businesses, undermining the economic viability of the cannabis industry. Lawmakers can act by passing HB4293, which will license and regulate hemp consumer products such as CBD while banning the sale of dangerous synthetic hemp-derived intoxicants like Delta-8 that are sickening children and adults.
LOWERING TAXES Cannabis taxes in Illinois are among the highest in the nation. As neighboring states legalize adult use cannabis, Illinois consumers are crossing state lines to purchase cannabis in states like Missouri and Michigan where lower tax rates result in more affordable products. Illinois should focus on ways to lower taxes to keep sales within our state’s economy without sacrificing the support that the industry provides to so many state programs.
REGULATORY CHANGES More than a dozen agencies regulate the cannabis industry in Illinois, creating a burdensome patchwork of policies and procedures. This can be streamlined by creating one body charged with oversight of the industry. Other changes should focus on reducing barriers of entry to employment; adoption of alcohol-model for vendor non-payment, which would require dispensaries to pay growers for product within 30 days or deliveries would be suspended; as well as other changes related to regulations on growing operations.
EXPANDING ACCESS Too many consumers do not have easy access to legal cannabis dispensaries. Focus should be placed on expanding access to consumers, including licensing dispensaries in cannabis deserts, allowing curbside pickup and drive thru purchases for adult use cannabis, as well as allowing medical patients to make purchases at any licensed dispensary. Consideration should also be given to streamlining licensing procedures to expand lounges allowing for social consumption.
The Cannabis Business Association of Illinois released the following statement regarding Gov. JB Pritzker’s call for regulations on intoxicating hemp products:
“A federal loophole has allowed for the proliferation of intoxicating hemp products such as Delta 8, which use potentially harmful chemicals to alter the composition of hemp to get consumers high. This is happening outside the structure of the state’s legal cannabis industry, meaning there are no rules or regulations guiding the production or sale of these products – which the Federal Drug Administration warns have not been evaluated for ‘safe use in any context.’ This not only leaves consumers at risk, it also undermines the state’s carefully regulated cannabis market, particularly social equity cannabis license holders who face extensive rules and regulations to operate while those selling intoxicating hemp continue to get off easy,” said Tiffany Chappell Ingram, Executive Director of the Cannabis Business Association of Illinois.
“We applaud Gov. JB Pritzker’s call to protect consumers and rein in this gray market. We urge lawmakers to take swift action, as Illinois is already falling behind other states that have adopted meaningful regulations. Senate Majority Leader Kimberly A. Lightford, House Assistant Majority Leader Kam Buckner and House Assistant Majority Leader Barbara Hernandez have been strong legislative champions, and we look forward to working collaboratively to put in place a measure that will empower consumers, protect public health and help ensure our state’s legal cannabis industry can reach its full potential.”
Tiffany Chappell Ingram, Executive Director of the Cannabis Business Association of Illinois, released the following statement regarding a proposal put forth by Sixth Ward Ald. William Hall, which would legitimize the sale of dangerous intoxicating hemp-derived products such as Delta-8 in Chicago:
“Unscrupulous sellers have taken advantage of a federal loophole to profit off the sale of intoxicating hemp-derived products, using chemicals to alter the composition of hemp to create a wide-range of products that get consumers high. This is happening outside the structure of the state’s legal cannabis industry, meaning there are no rules or regulations guiding the production or sale of these products – some of which have been found to contain fentanyl. It’s little wonder children and adults are getting sick from these products, which the FDA has warned have not been evaluated for ‘safe use in any context.’
“While we appreciate efforts to rein in this gray market, we are concerned the proposal put forth today by Ald. Hall would legitimize dangerous products in exchange for a quick cash grab by the city. There’s a reason other municipalities across Illinois have banned these products, and Chicago should take heed. Those selling intoxicating products should not be able to draft their own rules to the detriment of consumers and licensed cannabis operators. Failing to put in place stringent regulations on these products would be particularly harmful to social equity cannabis license holders, who face extensive rules and regulations to operate while others continue to get off easy.
“There is a way to do this correctly. We do not have to sacrifice consumer safety for revenue generation. We can live up to the promises made to our communities impacted by the War on Drugs, including social equity cannabis licenses holders. But it requires real regulation and oversight of the hemp industry, not a rubber stamp. We’re glad this conversation is taking place, and look forward to working collaboratively with Ald. Hall, City Council members and stakeholders to find a comprehensive solution.”
Cannabis Business Association of Illinois Chooses New Board Members and Officers
CHICAGO – The Cannabis Business Association of Illinois (CBAI), the state’s leading cannabis trade group, elected a diverse, new line-up of industry executives to serve two-year terms on the board of directors during its recent annual meeting. In addition, the group selected several members to serve in board leadership positions.
“Our board members reflect the diversity of our membership,” said CBAI Executive Director Pam Althoff. “We take seriously the state’s pledge to create an equity focused recreational cannabis program. Our leadership, together with our members, will continue to support policy recommendations to help the state live up to its pledge on equity.”
Board Chair Jeremy Unruh, senior vice president of PharmaCann Inc, said CBAI will advocate for state legislation in 2023 to streamline the confusing multi-agency oversight of the state’s cannabis program and eliminate the use of a federal tax penalty that prohibits cannabis businesses in Illinois from deducting normal business expenses such as rent and payroll.
“The maze of regulatory hurdles at the state level is a significant challenge to success in the Illinois cannabis market,” Unruh said. “For social equity entrepreneurs especially, the additional burden of crippling tax penalties makes it nearly impossible to get their businesses off the ground.”
The newly elected directors chosen at the board’s Thursday meeting are: Ambrose Jackson, chairman and CEO of 1937 Group; Laura Jaramillo Bernal, director of special projects for NuEra Cannabis; Portia Mittons, cofounder and vice president of Bridge City Collective; Ngiste Abebe, vice president at Columbia Care; Ted Brunsvold, founder and owner of Nature’s Treatment; Gabe Mendoza, executive vice president at 4Front Ventures; and Terry Peterson, CEO of Progressive Treatment.
They join current board members whose terms run through 2023: Unruh (PharmaCann); Scott Golden (Cresco Labs); James Leventis (Verano Holdings); Tim O’Hern (Nature’s Grace and Wellness); Frank Perullo (Ascend Wellness); and Don Williams (Curaleaf).
The CBAI also appointed the following board members to leadership positions for the 2023-2024 term: Portia Mittons to serve as treasurer, Tim O’Hern to serve as vice chair, and Don Williams to serve as second vice chair. Those new officers join Chair Unruh, Secretary Leventis and immediate Past Chair John Sullivan as the organization’s executive committee.
The CBAI board of directors is elected from member companies with operational Illinois cannabis licenses. Here are bios of the CBAI board of directors:
Jeremy Unruh/PharmaCann Jeremy Unruh is the Chair of CBAI’s Board and senior vice president of regulatory and external affairs for PharmaCann Inc., which operates more than sixty licensed cannabis facilities, including dispensaries and cultivation centers. He is responsible for the company’s external matters, including legislative policy and public affairs; media relationships; organized labor, and coordination with state and local regulators. Jeremy also oversees the development of the PharmaCann social equity and corporate responsibility program. A former prosecutor, Jeremy also went into private practice focusing on commercial litigation, internal compliance investigations and product liability defense.
Ngiste Abebe/Columbia Care Ngiste Abebe is Vice President of Public Policy at Columbia Care, one of New York’s first medical cannabis operators. She crafts equitable cannabis policy and partnership strategies, and leads industry associations in New York, DC and Illinois. Ngiste previously co-founded Undaunted Ventures, a political consulting firm that specializes in innovative narrative, training and leadership coaching services.
Ted Brunsvold/Nature’s Treatment Ted Brunsvold is founder and owner of Nature’s Treatment of Illinois, with locations in Milan and Galesburg. Ted is also the President/founder of Illinois Governmental Consulting Group, LLC, a consulting and lobbying firm that works with the Illinois General Assembly, City of Chicago, Cook County and U.S. Congress. He has been a member of CBAI since its inception in 2019 as well as CBAI’s precursor Medical Cannabis Alliance of Illinois.
Ambrose Jackson/1937 Group Ambrose Jackson is the Chairman and CEO of the 1937 Group, a parent company of several businesses in the cannabis industry, including cultivation, processing, infusion, transportation and retail. He has 12 years of experience in healthcare business management, leading departments responsible for regulatory compliance, patient safety and quality improvement. He has also worked at recognized organizations like Cleveland Clinic and Advocate Aurora Health and has served on the Board of Directors for the America College of Healthcare Executives and Big Brothers Big Sisters of Northeast Ohio.
Laura Jaramillo Bernal/NuEra Cannabis Laura Jaramillo Bernal is the Director of Special Projects for NuEra Cannabis, where she has navigated the Illinois and Michigan cannabis industries, working on everything from securing zoning approvals to supervising buildout projects. Before joining the cannabis industry, Laura served as COO of NAIM Media Group, a DC-based media company that develops, produces and distributes content. She also served as Executive Producer of Efecto Naim, an Emmy-winning weekly international affairs show broadcast throughout the Americas. She has been selected as a World Economic Forum Global Shaper, as one of Huffington Post’s 40 under 40 Latinos in Foreign Policy and as a Michael Rockefeller Memorial Fellow.
Gabriel Mendoza/4Front Ventures Gabriel Mendoza is Executive Vice President of Retail Operations at 4Front Ventures, where he shepherds retail projects into and through every stage of the business life cycle. He is also the cofounder of Chicago NORML, a non-profit that worked to help shape the equity provisions of Illinois’ cannabis legislation. A lifelong Chicagoan, Gabriel got his start in the Illinois cannabis industry in 2014 when he applied for and won one of the medical cannabis cultivation licenses and one of the sixty medical cannabis dispensary licenses.
Portia Mittons/Bridge City Collective Portia Mittons is the cofounder and Retail Vice President of Bridge City Collective, a multi-state cannabis business with a focus on education and wellness. She is also co-chair of CBAI’s Minority Access Committee, where she works to help social equity applicants thrive in the cannabis industry. Portia co-owns the cannabis dispensary Coughie Pot in Sumpter, Oregon and is actively engaged in numerous cannabis symposiums and conferences focusing on social equity issues, careers in cannabis and CBD guidance.
Terry Peterson/Progressive Treatment Solutions Terry Peterson is the CEO of Progressive Treatment Solutions, a licensed medical cannabis cultivation and manufacturing facility. He previously served as Vice President for Corporate and External Affairs at Rush University Medical Center, Chairman of the Board for the Chicago Transit Authority and CEO of the Chicago Housing Authority. Terry has also spent time in public service, serving as Alderman of Chicago’s 17th Ward and Executive Assistant to Mayor Richard Daley.
Scott Golden/Cresco Labs Scott Golden is the Vice President of Public Affairs at Cresco Labs, one of the first medical cannabis license holders and an original CBAI member. He supports Cresco’s government affairs, social equity and community integration teams, as well as Cresco’s legislative and regulatory priorities. Scott has assisted CBAI in crafting draft legislation, including HB1443 and the federal Cannabis Administration and Opportunity Act. Prior to joining Cresco, Scott worked as a litigator in private practice and as a government attorney.
James Leventis/Verano James Leventis is Vice President of Legal, Head of Regulatory, Compliance and Government Affairs at Verano Holdings. Since its formation, James has helped the company grow from a single-state operator to a publicly traded corporation with vertically integrated operations across twelve states. Prior to joining Verano, James developed an extensive background in the cannabis industry during his time in private practice, where he was an integral part of helping several applicants develop and operate medical licenses in Illinois.
Tim O’Hern/Nature’s Grace and Wellness Tim O’Hern is Chief Operating Officer and general counsel at Nature’s Grace and Wellness, a cannabis cultivator based on the O’Hern family farm in Vermont, Illinois. Tim previously practiced law in St. Louis, serving as a litigator for insurance bad faith claims, employment claims, wrongful deaths and more. In addition to his legal experience, Tim has been actively involved in all areas of Nature’s Grace operations, including cultivation, extraction, packaging, operations management, product development, equipment and materials sourcing, facility design and development and sales lead generation.
Frank Perullo/Ascend Wellness Holdings Frank Perullo is the cofounder and Chief Strategy Officer of Ascend Wellness Holdings, which owns and operates state-of-the-art cultivation facilities. He is also the founder of Novus Group and Sage Systems, one of the leading providers of web-based campaign management software. Sage’s ListManager tool empowered thousands of campaigns across the country to make data driven micro-targeted decisions. Frank has served as the general consultant and pollster on hundreds of successful campaigns and has been named by Campaigns and Elections as one of the nation’s most powerful political influencers.
Don Williams/Curaleaf Don Williams is Vice President of Government Relations for Curaleaf, a medical and recreational marijuana dispensary that operates in more than 20 states. He joined Curaleaf in 2019 and covers the company’s Central and West Regions of the United States. Don previously worked in the private and public sector for over 30 years. He started his corporate career at McDonald’s Corporation in training, operations and government relations.
About CBAI The Cannabis Business Association of Illinois was originally established in 2015 as the Medical Cannabis Alliance of Illinois. We have grown alongside our members and today, the Cannabis Business Association of Illinois (CannaBiz IL or CBAI) is a non-profit statewide association that represents cannabis businesses licensed by the state of Illinois as well, ancillary businesses, and industry supporters. CBAI’s Board of Directors of is composed of owners and operators of Illinois’ cultivation centers, MSOs, and independently owned dispensaries.
Recent Comments