It takes just one look in a kid’s lunch box or backpack to know what tasty snacks they crave — chips, gummy worms and cookies, all in bright, colorful packaging with cartoon graphics that catch their eye. So, it’s nothing short of reprehensible how some companies use similar packaging for hemp-derived products that are intended only for adult consumption. This isn’t just irresponsible marketing; it’s a dangerous tactic, designed to appeal directly to kids and teens. Anyone who sells hemp products to kids should be put out of business.
Residents, officials, parents and even responsible hemp businesses are asking: Why haven’t we addressed this public health issue? Why haven’t any of the multiple bills proposed in Springfield to ban sales of these products to anyone younger than 21 been enacted?
Largely, this is due to the Big Cannabis conglomerates and the billionaires who own most cannabis businesses. They want the government to do the dirty job of eliminating their competition by banning hemp entirely. And the easiest way for them to do that is to exploit the fear of kids getting hurt by unregulated hemp products rather than protecting kids by regulating these products.
I agree with the recent Tribune editorial that it’s time to deal with this problem. But we must be intentional in our efforts. As the alderman of Chicago’s 6th Ward, my top priority is protecting our children and families. As chair of the City Council Revenue Committee, my other priority is working on developing sustainable sources of new revenue for the city. We should start by implementing a strict licensing and regulation regime to protect children and consumers. Any business that sells these products to minors should be fined and shut down. In addition to protecting our children, we have the opportunity to be a leader in a new revenue opportunity by developing regulations that ensure the hemp industry pays its fair share of taxes, just like other industries such as alcohol, tobacco and gambling.
Without state or national regulations, stores across Chicago can sell adult-use hemp products as if they’re harmless snacks, making it easy for minors to get their hands on items that contain psychoactive ingredients. We need urgent action to implement a clear regulatory framework for these products, including a strict 21-and-older age restriction, product testing, labeling and packaging rules, dosing caps and chain-of-custody requirements. I have a comprehensive draft ordinance ready for my colleagues to review to ensure a safe and more prosperous city for everyone, putting Chicago at the forefront of public health and this exciting new industry.
Beyond safety considerations, with consumable-hemp sales in Chicago projected to exceed $300 million in 2025, my proposed 4% tax would yield more than $15 million in revenue in the first year alone. Additionally, a framework that provides regulatory certainty would spur new business investment and expansion and would create conditions for the industry to thrive and grow. And as the hemp industry grows, so would our tax rate and revenue. By 2029, the tax rate would increase to 12%, bringing in $73 million from packaged beverages, $51 million from on-premise hospitality and consumption and $21.8 million from packaged products for retail and e-commerce. At that point, the total projected tax revenue collected in 2029 would exceed $140 million.
At a time when the city of Chicago faces a $1 billion budget deficit, this revenue could help address pressing local needs, supporting essential programs that make Chicago safer, healthier and more resilient while lightening the tax burden on Chicago taxpayers and homeowners.
Hemp product regulation would be a win for public health and safety and a win for Chicago taxpayers. Indeed, this is a rare policy solution that allows Chicago to do good and to do well. To create a safer, more prosperous city for everyone, let’s move quickly to strictly regulate and tax hemp products and to protect public health, while developing a new sustainable revenue stream for the city of Chicago.
Let’s make Chicago a global leader by doing hemp regulation right.
Ald. William Hall represents Chicago’s 6th Ward and is chair of the City Council’s Subcommittee on Revenue. He also is senior pastor at St. James Community Church.
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