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A First Reading of an Ordinance Amending Chapter 8 (“Business Licensing”) of the Oak Park Village Code Prohibiting the Sale of Intoxicating Hemp and Kratom Products to Underage Persons
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Introduction
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At the October 8, 2024, Regular Meeting, the Village Board reviewed a recommendation from the Oak Park Board of Health to ban the sale of unregulated THC derived from hemp (“intoxicating hemp”). After discussion, the Village Board directed staff to draft legislation to regulate the sale of these products to persons under 21 years of age. On February 11, 2025, the Village Board further reviewed the matter and asked for the adoption of the legislation by March 18, 2025.
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Recommended Action
This is a First Reading only. A Second Reading and final adoption is expected on March 18, 2025.
Prior Board Action
At the October 8, 2024, Regular Meeting of the Village Board, the Board of Health discussed their recommendation to ban the sale of intoxicating hemp in Oak Park.
The Village Board provided the following direction after the above-noted discussion:
• A majority of the Village Board desired regulation over a ban on intoxicating hemp products
• Wait for the outcome of the State of Illinois 2025 Spring General Assembly session that has pending legislation on this topic
• Research draft legislation to regulate the sale of intoxicating hemp sold in Oak Park to only those over 21
• Evaluate the option for a business license fee or business registration fee and strict fines for non-compliance
• Evaluate a tax on the sale of intoxicating hemp products
• Create an education campaign about intoxicating hemp
• Meet with individual local business owners who may sell intoxicating hemp products
At the February 11, 2025, Regular Meeting, the Village Board further reviewed the item and decided not to wait for the outcome of the State of Illinois 2025 Spring General Assembly session and instead adopt legislation by March 18, 2025, to regulate the sale of intoxicating hemp and allow the sale only to those over the age of 21.
Background
The Board of Health provided a summary of their research on Delta-8 products at the October 8, 2024, Village Board Meeting. Intoxicating hemp is often sold in the form of Delta-8 and has known adverse health impacts, and the products are not approved by the FDA. Adverse health effects include hallucinations, vomiting, tremors, and confusion. In addition to these effects, many intoxicating hemp products are labeled and packaged like popular snacks, which increases their appeal to children. Currently, intoxicating hemp products can be purchased by people of any age.
The Village Board provided direction for a proposed ordinance on October 8, 2024, and February 11, 2025. The current proposed ordinance limits the sale of these products only to persons over the age of 21. The proposed ordinance also:
• Regulates the sale of Kratom products as well as intoxicating hemp products, as Kratom is an unregulated product that produces similar psychoactive effects as intoxicating hemp
• Requires identification by an intoxicating hemp dispensing establishment prior to sale
• Requires the intoxicating hemp to be displayed behind a sales or services counter that no person can access without assistance from an employee
• Prohibits the sale of intoxicating hemp that is packaged with labeling appealing to children
• Requires signage stating that the sale of intoxicating hemp is prohibited by law to those under 21
• Provides an enforcement commencement date of June 1, 2025
In the coming months, staff will bring forward amendments to the proposed ordinance based on additional issues the Village Board discussed that are still under research and review. Additional regulations to be introduced by amendment may include:
• A business license fee to cover the cost of development
• A tax on the sale of the products
• Require signage that states the potential health effects
• Educational campaign materials about intoxicating hemp
• Review of regulations for infused intoxicating hemp products, such as those sold in bakeries
Timing Considerations
A second reading is proposed on March 18, 2025.
Budget Impact
Staff is evaluating the cost of enforcement, which will be proposed along with a business license fee to cover the cost of enforcement. Staff is also exploring options for a tax on the sale of intoxicating hemp.
Staffing Impact
Staff is evaluating if existing staff can enforce the regulations under discussion or if added resources will be required. Staff is also exploring any potential partnerships for enforcement such as support from Cook County.
DEI Impact
Some small and/or minority-owned businesses who were unable to enter the state-regulated cannabis industry due to barriers such as high upfront costs began to sell intoxicating hemp products instead. A ban or strict regulations could have a negative impact on these businesses. However, the purpose of this proposed legislation is driven by the harmful health effects of the products because they are unregulated and intoxicating.
Community Input
Prior to the final adoption of the ordinance on March 18, 2025, staff is sending a notice to all the registered businesses regarding this proposed ordinance and the new requirements. Staff is also making an in-person visit to all businesses currently selling intoxicating hemp to explain the new requirements in the proposed ordinance. Staff estimates there are approximately 8-10 businesses selling intoxicating hemp. Staff also created a fact sheet about the requirements of the proposed ordinance that is posted on the Village website and will be shared with all businesses. After the Village Board’s discussion on February 11, 2025, staff also provided an update to the Business Association Council.
Staff Recommendation
This ordinance is consistent with the Village Board’s direction.
Alternatives
There are no alternatives at this time, as this is a First Reading only.
Anticipated Future Actions
Staff will return in the coming months with a discussion and amendment to the proposed ordinance on the topics of a business license fee to cover the cost of enforcement, potential tax options on the sale of intoxicating hemp, and potential requirements to post health warnings or notices at the point of sale.
Prepared By: Greg Olsen, Public Health Director
Reviewed By: Ahmad Zayyad, Deputy Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
(1) Draft Ordinance
(2) Fact Sheet for Businesses Selling Intoxicating Hemp