Quincy Sunmed Among Hemp Businesses Backing Federal Challenge to New Illinois Law

QUINCY, Ill. A legal fight over Illinois’ sweeping new hemp restrictions now has a direct Quincy connection.

Sunmed Modern Wellness in Quincy is a member of the Illinois Healthy Alternatives Association, the trade organization that filed a federal lawsuit this week seeking to stop major provisions of the Illinois Hemp Act from taking effect Nov. 12.

The association filed its lawsuit Thursday, Nov. 5, along with an emergency motion seeking a temporary restraining order and preliminary injunction against Illinois officials.

For Sunmed owner Matt Anderson, the court fight comes after months of warning that the new law could eliminate products currently sold by responsible hemp retailers while dramatically changing the way Illinois regulates the industry.

Products potentially impacted by New Illinois Hemp Laws (Photo submitted by Matt Anderson, Owner of Quincy Sunmed)

Quincy Current previously spoke with Anderson about the approaching Nov. 12 deadline and the effect he believes it could have on his downtown Quincy business.

Sunmed Quincy is a member of the Illinois Healthy Alternatives Association and is among the Illinois hemp businesses represented through the organization’s challenge to the law. ILHAA is the named trade-association plaintiff in the federal case.

The lawsuit argues that portions of Illinois’ new hemp regulatory system improperly interfere with interstate commerce and could prevent companies from selling hemp-derived cannabinoid products that the plaintiffs contend remain federally lawful.

ILHAA and the other plaintiffs are asking a federal judge to temporarily block enforcement while those constitutional claims are litigated.

As of Nov. 6, publicly available docket information showed that the complaint and request for a temporary restraining order had been filed, but did not show that the court had granted the requested emergency relief.

That distinction is critical for businesses such as Sunmed because, unless a court intervenes, the new state rules remain scheduled to take effect Thursday.

Beginning Nov. 12, Illinois will classify consumable or topical products containing more than 0.4 milligrams of total THC per container as cannabis rather than hemp. Products exceeding that threshold generally may be sold to consumers only through businesses licensed under Illinois’ Cannabis Regulation and Tax Act.

The standard also applies to cannabinoids with effects similar to THC, including delta-8 THC, THC-P, HHC and THC-O. Products that remain classified as final consumer hemp cannabinoid products will face additional testing, labeling and packaging requirements.

Anderson has previously told Quincy Current that one of his central concerns is the 0.4-milligram-per-container threshold.

He said that standard does not necessarily distinguish between products marketed primarily for intoxication and full-spectrum CBD wellness products containing small amounts of naturally occurring THC.

β€œA 0.4-milligram-per-container line doesn’t distinguish between a gas-station delta-8 gummy and a compliant full-spectrum CBD tincture carrying only trace, non-intoxicating THC,” Anderson previously told Quincy Current. β€œOne is the problem the governor described. The other is irrational collateral damage.”

Anderson pointed to Sunmed products such as Trim and Sleep as examples of wellness products he believes could effectively disappear from the Illinois retail market under the new standard.

β€œThe law’s answer for products over the line is β€˜sell them through dispensaries,’ but dispensaries stock intoxicating THC products, not non-intoxicating wellness supplements,” Anderson previously said. β€œSo these products don’t change channels, they disappear.”

The state has defended the new law as a consumer-protection measure.

Gov. JB Pritzker’s administration has said the legislation is intended to keep intoxicating hemp products away from minors, establish stricter testing and labeling requirements and move products containing higher levels of intoxicating cannabinoids into Illinois’ regulated cannabis market.

Anderson has repeatedly said he supports many of those goals, including age restrictions, laboratory testing and responsible packaging. His objection has focused largely on how broadly the new THC threshold reaches.

That debate is now moving from the legislature to federal court.

According to its announcement of the lawsuit, ILHAA says it represents approximately 250 Illinois companies employing more than 5,000 people across hemp farming, manufacturing, processing, distribution and retail.

The association describes Illinois’ legal hemp sector as a roughly half-billion-dollar industry generating more than $30 million in state revenue. Those figures are claims made by ILHAA and have not been determined by the federal court.

The association argues that enforcement of the new law would cause immediate harm to businesses throughout the state and has asked the court to intervene before Nov. 12.

Illinois, however, is telling businesses to prepare for enforcement.

The Illinois Department of Revenue has advised retailers to review their inventories and develop plans for products that will no longer qualify as hemp. The department says businesses continuing to possess or sell products newly classified as cannabis without the appropriate licenses could face civil or criminal violations, product seizure, taxes, penalties and interest.

State officials have also made clear that Illinois intends to begin enforcement Nov. 12 despite a delay in implementation of related federal hemp restrictions.

For Sunmed Quincy and other ILHAA members, that creates a rapidly approaching deadline.

Unless the federal court grants emergency relief, the regulations Anderson has spent months warning about will become enforceable next week.

The legal dispute now means a statewide fight over the future of hemp-derived wellness products is no longer an abstract issue for Quincy.

A local business is among those represented by the trade association asking a federal judge to stop the new rules before they reach store shelves on Nov. 12.

Quincy Current previously reported on how Illinois’ new hemp law could affect local businesses, including Sunmed Quincy, as the Nov. 12 enforcement deadline approaches. Read our previous coverage here: https://quincycurrent.com/new-illinois-hemp-law-threatens-products-sales-for-quincy-businesses-as-nov-12-deadline-nears/

 

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