Illinois Lawmakers File 561-Page Cannabis Omnibus Bill to Regulate Hemp Products, Expand Possession Limits and More

A 561-page cannabis omnibus bill was filed today in Illinois by a group of seven lawmakers. The proposal would regulate hemp-derived CBD products, double legal marijuana possession limits, expand medical access and more.

House Bill 5784 was filed by State Representative Will Guzzardi (D), with State Representatives Lisa Davis (D), Justin Slaughter (D), Bob Morgan (D), Kevin Olickal (D), Barbara Hernandez (D) and Sharon Chung (D) joining as sponsors. The measure is titled the Cannabis Omnibus and would take effect immediately if enacted.

Among the most consequential provisions, HB 5784 would create the CBD Consumer Products Act, establishing new rules for hemp-derived cannabinoid products intended for human or animal consumption. Under the bill, CBD products could only be sold by registered CBD product registrants, with physical and online sellers required to register with the Department of Revenue.

To qualify as a CBD product, an item would need to contain naturally occurring cannabinoids derived from hemp, be intended only for oral ingestion or topical absorption, and contain no more than 0.3% total THC on a dry weight basis. It also could contain no more than 0.4 milligrams of total THC per container. Products exceeding those limits would be regulated as marijuana under the Cannabis Regulation and Tax Act, regardless of whether they were derived from hemp, industrial hemp, natural sources or synthetic sources.

The bill would also impose packaging, labeling, testing and advertising requirements for CBD products, including required warnings and a ban on marketing that appeals to those under 21. Unregistered retailers selling products that meet the CBD definition would face a $500-per-day fine, while registrants could face additional penalties for violations.

HB 5784 would also double Illinois’ possession limit for residents 21 and older from 30 grams to 60 grams of marijuana flower, from 500 milligrams to 1,000 milligrams of THC in infused products, and from 5 grams to 10 grams of concentrate. The measure would also update criminal law provisions tied to minor marijuana offenses, raising the threshold from 30 grams to 60 grams.

The legislation would also create a clearer line between low-THC CBD products and intoxicating hemp-derived products. Any product above the bill’s THC limits would be treated as cannabis under state law, regardless of whether it was made from hemp, industrial hemp, natural sources or synthetic sources. The measure would also allow the Department of Agriculture to update its list of cannabinoids it considers THC twice each year, on or before January 1 and July 1.

For medical marijuana patients, the proposal would allow qualifying patients, provisional patients, designated caregivers and Opioid Alternative Patient Program participants to purchase their adequate medical supply at any dispensary licensed by the Department of Financial and Professional Regulation. The bill would also allow adult-use dispensaries to apply at no cost for a medical marijuana dispensing organization license, without those licenses counting against existing caps.

The proposal includes a series of regulatory changes for licensed operators. It would allow dispensaries to offer pickup or drive-through service, increase allowable craft grower canopy from 5,000 square feet to 14,000 square feet, establish transfer site storage endorsements for certain transporters, and make changes related to business development, social equity loans, fee waivers, licensing, relocation, investigations, security and testing.

On taxes, HB 5784 would allow public reporting of certain local marijuana tax allocations, remove a tax exemption for CBD food products and prohibit home-rule counties and municipalities from imposing additional marijuana taxes outside those allowed by state law.

Illinois legalized adult-use marijuana in 2019, with the first licensed recreational marijuana stores opening in January 2020. The state currently allows adults 21 and older who are Illinois residents to possess up to 30 grams of marijuana flower, 500 milligrams of THC in infused products and 5 grams of concentrate, limits that would be doubled under HB 5784.

The full text of the bill can be found by clicking here (PDF).