Mayor Johnson Vetoes Chicago Hemp Ordinance, Citing Impact on Small Businesses (Chicago, IL) – Mayor Brandon Johnson has vetoed a proposed City Council ordinance that would have imposed new restrictions on the sale of hemp products in Chicago, a move supporters of the industry say protects small and minority-owned businesses and preserves a growing source of local tax revenue.
The veto followed weeks of advocacy by hemp retailers, trade associations and consumers who argued the measure would have disproportionately harmed small, locally owned businesses while benefiting larger cannabis and alcohol corporations.
Craig Katz, president of the Illinois Healthy Alternatives Association, said the mayor’s decision reflects support for entrepreneurship and economic equity.
“We are very pleased that the mayor has decided to support small businesses and a growing industry in the city,” Katz said in a statement. “However, we know there is still much work to do, and we look forward to working with the mayor and City Council to craft responsible regulations that protect consumers and children while allowing businesses to thrive.”
Industry advocates said the proposed ordinance threatened hundreds of retailers across the city, many of which are owned by Black and brown entrepreneurs. They also highlighted potential job losses and disruptions to consumers who use hemp products for personal or pet health purposes.
Members of Chicago’s hemp community organized press conferences, a town hall meeting and media outreach to raise awareness about the issue. Organizers said they also held meetings with the mayor’s office and City Council members to point out what they described as fundamental flaws in the legislation, including a lack of consultation with the hemp industry during its drafting.
Supporters of the veto emphasized the economic significance of hemp sales in Chicago. According to industry estimates, hemp retailers generate approximately $475 million in annual sales, contributing about $30 million per year in city sales tax revenue. Licensing fees add an estimated $5 million to $7.5 million annually.
Opponents of the ordinance argued it was structured in a way that favored large cannabis and liquor companies over smaller hemp businesses. They credited Alds. Rossana Rodríguez-Sánchez and Byron Sigcho-Lopez with leading early efforts to delay and block the measure in the City Council.
The advocacy campaign included participation from multiple organizations and consulting groups, including the Illinois Hemp Coalition, Illinois Healthy Alternatives Association, Illinois Hemp Business Association, Illinois Black Hemp Association and several public relations and policy firms.
With the veto in place, industry representatives said they hope to work with city leaders on revised regulations that balance public safety concerns with economic growth and fairness for small businesses.
Mayor Johnson Vetoes Chicago Hemp Ordinance, Citing Impact on Small Businesses
