Chicago mayor vetoes controversial hemp ban amid concerns from small businesses

Mayor Johnson vetoes hemp ban

Mayor Johnson vetoes the controversial hemp ban.  Supporters of the proposal want to regulate the growing industry.  But business owners warned it would force them to close.

CHICAGO - Chicago Mayor Brandon Johnson on Friday vetoed a controversial ban on hemp products.

The move came a day after business owners rallied in support of a veto of the proposed ban on intoxicating hemp products. They warned the measure would force small businesses to close, eliminate jobs and disproportionately affect minority-owned establishments.

"This ordinance is premature. The most responsible path forward for the city's hemp regulation is to align with the forthcoming federal guidance rather than acting prematurely in a rapidly shifting regulatory landscape. With preliminary federal rules forthcoming, it is essential that the City position itself to respond coherently once national standards are clarified," the veto reads in part. 

Mayor's statement:

Johnson issued a statement explaining his decision.

"I made the decision to veto this ordinance because I continue to have significant concerns around the current proposal and the potential negative impacts this prohibition-style ban could have on our city. As we await additional guidance and rules from the federal government, this ban is premature and requires further collaboration with our small business community.  

"I want to be clear: I share the concerns raised about intoxicating hemp products, especially when it comes to packaging that may appeal to children or sales practices that lack proper safeguards. We must have strict age verification, responsible labeling, and clear enforcement standards. There must be zero tolerance for businesses that market or sell these products to minors. 

"However, the ordinance passed by the City Council would effectively function as a broad ban on many small hemp retailers by limiting sales to licensed cannabis dispensaries and certain liquor-licensed establishments. The ordinance protects some establishments at the expense of many of our small businesses who have been following the law and deserve to have a seat at the table.  

"Many of these businesses are Black- and brown-owned. Many are operated by entrepreneurs who were shut out of the expensive cannabis licensing process and turned to federally legal hemp as a pathway into the marketplace. We cannot claim to support equitable economic development while advancing policies that concentrate the market in the hands of a few large entities. 

"As the ACLU of Illinois has noted, after decades of failed "War on Drugs" policies, we’ve seen first-hand that criminalization does not eliminate demand. Instead, these approaches push commerce into unregulated, black-market spaces where products are more difficult to regulate and control. Our responsibility is to pass thoughtful regulation, not to legislate entire segments of neighborhood business corridors out of existence. 

"For these reasons, I am vetoing this ordinance and calling on the City Council to work with my administration, public health experts, community leaders, and industry stakeholders to craft balanced legislation and a responsible regulatory framework. We can protect young people, ensure safe packaging and responsible sales, and provide clear enforcement mechanisms without dismantling small businesses which make up the fabric of our neighborhoods. 

"Chicago can lead with fairness, safety, and opportunity at the same time. I look forward to building a better policy together," the statement reads.

Town hall on hemp ban ordinance

Chicago's hemp industry is trying to stop the city from banning their products. The City Council already passed a ban. Businesses are appealing to a higher authority. Joanie Lum is live in the South Loop.

What we know:

Members of the hemp industry rallied Thursday in an effort to save their businesses from the looming ban.

Before the veto, the ban on intoxicating hemp products was set to take effect April 1 in Chicago. Business owners said it would force the closure of small businesses, including Chi’Tiva Lounge in the South Loop.

The Hemp Coalition gathered Thursday for a rally, urging Johnson to issue a veto.

Customers must be 21 to enter Chi’Tiva, where infused drinks and edibles are served and events such as bingo nights are held. The business says it maintains high standards for product safety and self-regulation.

Still, owners said uncertainty over the ordinance has created anxiety.

Under the proposed ban, hemp products could be seized and owners could face thousands of dollars in fines.

Business owners said they support safety standards and regulations but argued that an outright ban would eliminate jobs, reduce tax revenue and dismantle the communities built around their lounges.

They urged Johnson to veto the ordinance.

Chi’Tiva owner Charles Wu described the situation as a nail-biter.

"Our entire business would shut down," Wu said. "Employees would be laid off. And then there are the leases. I just can’t walk away from leases."

Ald. Byron Sigcho Lopez, 25th Ward, said he supported a mayoral veto.

"Time after time, minority business owners get left behind, they are not allowed a fair shot," Sigcho Lopez said.

Hemp users said businesses such as Chi’Tiva offer an alternative to traditional bars. Owners also argued that established alcohol and cannabis industries are pushing hemp retailers out of the market.