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SB 1766

HEMP BEVERAGE COMMISSION

104th Regular Session Introduced by Bill Cunningham

Creates a state-regulated framework and taxes for hemp beverages, licensing, labeling, THC limits, and preempts local rules.

Rule 3-9(a) / Re-referred to Assignments
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WeVote Research Nonpartisan
Bill Summary · SB 1766

Summary — SB 1766 (HEMP BEVERAGE COMMISSION)

Status: Introduced Feb 28, 2025. Referred to multiple committees; ultimately reported as indefinitely postponed/withdrawn and listed as “died in Governmental Oversight and Accountability” (May–June 2025).

Primary sponsors: Sen. Bill Cunningham; Rep. Ingoglia (primary listed).

Purpose

SB 1766 would add a regulatory and taxation framework for "hemp beverages" by amending the Illinois Liquor Control Act of 1934. It creates a Hemp Beverage Commission within the Illinois Liquor Control Commission, establishes licensing/registration categories for hemp beverage businesses, sets product and labeling rules (including THC limits), and imposes excise taxes on hemp beverages. The bill also preempts local (home rule) regulation of hemp beverages under the Act.

Key provisions

  • Creation of the Hemp Beverage Commission as part of the Illinois Liquor Control Commission; specifies its powers and duties to regulate hemp beverages and registrants.
  • New registration categories: hemp beverage manufacturer, hemp beverage distributor, hemp beverage importing distributor, hemp beverage non‑resident dealer, and hemp beverage retailer.
  • Rules for issuance of registrations, fees, testing, labeling, advertising, and disciplinary actions for registrants.
  • Product THC limits:
    • No hemp beverage may be given, sold, transferred, or delivered to persons under age 21.
    • A single container (of at least 7.5 ounces) may not contain more than 10 mg total THC.
    • Multi‑serving/unit packages may not contain more than 60 mg total THC per package.
  • Manufacturing, labeling, and testing standards (general provisions included in the bill text).
  • Preemption: municipalities/home rule units would be preempted from separately regulating hemp beverages and registrants under the Act.

Taxes and fees

  • Imposes excise taxes on hemp beveragemanufacturers and importing distributors. The bill establishes tiered per‑gallon rates based on total THC concentration in the product:
    • $8.55 per gallon for products containing 70–80 mg THC per gallon (text describes “80 mg or less and not less than 70 mg”),
    • $7.48 per gallon for <70 and ≥60 mg,
    • $6.41 per gallon for <60 and ≥50 mg,
    • $5.34 per gallon for <50 and ≥40 mg,
    • $4.27 per gallon for <40 mg.
  • The bill also references an additional flat surtax (as drafted) — historically analogous language imposing a per‑gallon surcharge (noted in text as 48¢ per gallon on hemp beverages) — and requires retailers/distributors to account for and remit applicable additional taxes in prescribed inventory/accounting manners.

Prohibitions and consumer protections

  • Bans "happy hour" promotions for hemp beverages.
  • Prohibits delivery of a hemp beverage in combination with an alcoholic beverage.
  • Prohibits distribution/sale of intermediate hemp products to anyone who is not a hemp beverage manufacturer (restrictions on supply chain).
  • Age restriction: sale or transfer to persons under 21 prohibited.

Who would be affected

  • Hemp beverage manufacturers, distributors, importing distributors, non‑resident dealers, and retailers operating in Illinois.
  • Consumers (age‑restricted), local governments (preempted from additional rules), and state regulatory and tax authorities (administration/enforcement responsibilities).

Effective date and procedural notes

  • Bill text states “effective immediately” if enacted.
  • Legislative actions: introduced and referred to multiple committees in February–March 2025; committee deadlines and re‑referrals reported in March–April. The bill was listed as indefinitely postponed/withdrawn (May 3, 2025) and later noted as “died in Governmental Oversight and Accountability” (June 16, 2025).

Considerations / potential impacts

  • Establishes a state‑level regulatory and excise tax regime specific to hemp beverages, likely increasing compliance costs for producers and distributors but creating a licensing framework and defined product standards.
  • Preemption of home rule authority centralizes regulation at the state level.
  • THC limits and age restrictions align hemp beverage rules closer to alcohol controls but also create unique product dosing limits that may affect product formulation and packaging choices.

Compiled from official sources — confirm details with the bill’s official record.

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