After the 2018 Federal Farm Bill legalized hemp products in the United States, the industry rapidly expanded—often in unexpected directions. Manufacturers soon discovered ways to chemically convert hemp-derived compounds into psychoactive products that largely escaped regulation. Now, after several years of legislative gridlock, Governor Pritzker and the Illinois General Assembly are once again attempting to find a compromise on regulating these products during the current veto session.
We spoke with James Swartz, Ph.D., a professor at the University of Illinois Chicago’s Jane Addams College of Social Work, about the origins of the issue, the barriers to reform, and the stakes for Illinois consumers and policymakers.
What is the main problem these proposed regulations are trying to address?
Swartz: The loophole in the 2018 Farm Bill allowed hemp producers to convert their crops into products that can be as potent—or even more potent—than the cannabis products sold in licensed dispensaries.
There are two main problems with that. First, the state loses significant cannabis tax revenue when consumers buy unregulated hemp-based alternatives. Second, because these hemp products aren’t regulated, they’re being marketed and sold to underage consumers who wouldn’t normally have access to legal cannabis.
Why is there a regulatory gray area around hemp, and how are these psychoactive products being produced?
Swartz: The intent of the 2018 legislation was to permit the cultivation of hemp for legitimate industrial uses—rope, paper, textiles, and so on. It’s the same species as cannabis but bred to contain very low levels of THC. The assumption was that hemp couldn’t be used to make psychoactive products.
What no one anticipated was that processors could chemically alter the plant’s compounds after harvest—converting non-psychoactive cannabinoids into intoxicating forms like delta-8 THC or even delta-9 THC, the main psychoactive ingredient in legally sold cannabis. These products technically comply with the letter of the law, but not with its spirit.
Why has this issue stalled for so long despite the Governor’s advocacy and apparent agreement among some stakeholders?
Swartz: At the federal level, the Farm Bill was due for renewal in 2024, and revisions were drafted to close this loophole. But with the 2024 election and a shifting political climate, the issue fell off the priority list for the current administration.
In Illinois, the politics are more complex. Both the hemp and cannabis industries are now well-funded and have conflicting interests. The hemp industry actually supports regulation—but only on its own terms. They want lighter oversight and fewer licensing requirements than cannabis dispensaries face. Meanwhile, the cannabis industry sees unregulated hemp as unfair competition and is pushing for tighter controls.
Governor Pritzker favors stricter licensing, but so far, no proposal has satisfied both camps enough to move forward.
Swartz is open to further comment and can be reached at jaswartz@uic.edu.
