Illinois Proposal Balances Cannabis Expansion With Stricter Oversight Of Hemp Products

Jelena MartinovicBy , Featured Writer
Burn After Reading The 30-second intel for operators and investors

Illinois House Bill 5784 would drop the requirement that dispensaries hire third-party security firms and raise possession limits, while tightening hemp rules. Hemp advocates say the THC cap of 0.4 mg per container would remove effectively 95% of hemp products from shelves.

  • Operators: Dispensaries could shed third-party security costs and gain drive-through pickup and other changes. Hemp retailers selling CBD, Delta-8 and hemp beverages face a tight THC cap and a licensing pathway, and some say they may have to halt operations.
  • Investors: The bill ties Illinois cannabis rules to possible federal changes and would pull hemp products toward the regulated market. Its sponsor is drafting a revised version, so final terms remain uncertain heading into the session's last days.
  • Do now: Review which products in your Illinois portfolio or inventory exceed 0.4 mg THC per container, and watch for the revised version of HB 5784 before the session ends.
Short on time? You’re done. Want the numbers?Keep reading ↓

Illinois lawmakers are pushing to ease the state’s cannabis regulations by reducing the financial burden on dispensaries in preparation for potential federal marijuana policy changes.

House Bill 5784 seeks to remove the mandate requiring dispensaries to employ third-party security firms while also increasing cannabis possession limits. It also imposes reforms related to access to medical marijuana, licensing, product testing, taxes, drive-through pickup, and social equity programs.

But the biggest controversy has been around the provision that would create pathways for hemp businesses looking to enter the state’s regulated cannabis market.

This would tighten oversight of products like CBD gummies, Delta-8 THC, hemp beverages, and CBD pet products. Even though the proposal would bring hemp products closer to the regulated cannabis market, while limiting unlicensed sales, owners of small businesses are worried the policy change could force them to halt operations.

“We’re pushing for and advocating for regulation of the hemp industry,” Jeremy Dedic, co-founder of Cubbington’s Cabinet, said as reported by NBC 5 Chicago. “But not in a way that wipes it out.”

Dedic operates a shop in Roscoe Village that sells CBD products for people and pets. His primary concern is a provision in the bill that would limit THC content in his products to 0.4 milligrams per container, or 0.3% based on dry weight.

Rachel Berry, the founder and CEO of the Illinois Hemp Growers Association, said the bill would take off the shelves “effectively 95% of the hemp products” if it becomes law.

However, the bill’s sponsor, Rep. Will Guzzardi, says the new measure is closing “a loophole that was created in federal law about 10 years ago.” His push comes as the federal government is also taking steps to regulate the hemp and cannabis industries.

Guzzardi said he is taking feedback from businesses and stakeholders into account and is currently working on a revised version of the bill.

He hopes both chambers of the Illinois General Assembly will advance his bill in the final days of the legislative session.

Related coverage

Image
Jelena Martinovic
May 28, 2026
Covers cannabis news, markets and regulation for IgniteIt. Previously wrote about financial markets for Benzinga and Insider Monkey.
Share: