Good morning and happy Friday.
Before you check out for this summer weekend, be sure to tune in to This Week in Cannabis Live with the crew from High Spirits and Cannabis Musings as they break down a busy July week in cannabis-world. Find us on YouTube » and LinkedIn ».
Let’s get to it.
-JB, JR, ZH
Today’s newsletter is 1,345 words or about a 10-minute read.
THIS NEWSLETTER MADE POSSIBLE BY:
💡 What’s the big deal?
HEMP
Hemp’s late shot-clock reprieve?
Driving the news: Reps. Andy Barr and Angie Craig filed a new bipartisan bill that could help save the hemp-derived THC industry with less than four months left on the clock.
The representatives serve districts in Kentucky and Minnesota respectively, which have been major markets for production and retail of hemp products. The bill is an attempt to block a near-total ban on hemp-derived THC set to start November 12.
The ban, which was passed through an agriculture appropriations bill last year, closed the “loophole” created by the 2018 Farm Bill which allowed hemp-derived THC and synthetic cannabinoids to explode across the U.S..
What they’re saying: "Their leadership on the Lawful Hemp Protection Act reflects a clear-eyed recognition that prohibition is the wrong path, and that American farmers, small businesses, manufacturers, retailers, and consumers deserve a workable federal framework built on responsible regulation," Jonathan Miller, General Counsel of the U.S. Hemp Roundtable said in a statement.
And also: “The hemp industry is united in supporting an extension of the November 12 deadline that would otherwise recriminalize the $40 Billion domestic hemp market,” said Midwest Hemp Council President Justin Swanson.
“An extension will give lawmakers the time needed to enact a regulatory framework that unleashes opportunities for American farmers, meets consumer demand, and protects public health and safety,”
New guard rails: The new bill would create separate regulatory frameworks for consumable and industrial hemp.
Consumable products with hemp-derived cannabinoids would have strict packaging and testing requirements, and could only be sold to those 21 and over. Synthetic cannabinoids would be prohibited.
If passed, legal hemp would cap THC to 1% of total dry weight, which is over three times the amount the 2018 Farm Bill originally allowed. Consumable products would be taxed at 5% of the retail price, with an additional 5-cent tax per milligram of THC.
Hemp beverages would require a three-tier production and retail system preventing a single company from operating across the entire supply chain.
The bill would direct the FDA to set federal serving limits. If it doesn’t within a year, a limit of 5 mg of THC for drinks or edibles would kick in, along with 50 mg for “inhalables,” which are vapes or joints.
On the other hand: While the hemp industry is hoping for a late-hour legislative lifeline, not all cannabis industry groups are in favor.
“Congress overwhelmingly voted in November to close the loophole that allowed synthetic THC products to proliferate across the nation, often without regulation and available to minors,” American Trade Association for Cannabis and Hemp lobbyist Cory Harris said in a statement shared with Cultivated.
“Unfortunately, Rep. Barr is trying to reopen the matter with a proposal that would protect synthetic drugs, so long as they're derived from hemp. Congress doesn’t want to legalize knock-off marijuana and synthetic THC, and that's exactly what Rep. Barr's new bill would do.”
-ZH
🗨️ Quotable
“I also once again urge you to take needed action to prevent mass disruption of the hemp industry due to the federal hemp definition change passed by Congress last year,” Wisconsin Gov. Tony Evers writes to the state’s Congressional delegation, urging them to support hemp-friendly legislation in advance of the November ban.
“As Wisconsin’s federal delegation, I urge you to ensure the Farm Bill remedies this issue and encourage you to pursue a science-based federal framework that supports innovation, protects lawful businesses, and allows Wisconsin farmers and producers to compete in a rapidly evolving marketplace.”
Evers’ preferred vehicle is reformulating the new Farm Bill. The old one expires on September 30, giving Congress a hard target.
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⏩ Quick hits
Nebraska university poll found support for legalization in the state is on the rise 🗳️
A University of Nebraska-Lincoln survey found 47% of Nebraska adults now support legalizing cannabis for both medical and recreational use, up from 44% in 2024, with medical support at 84%, while 15% of respondents said they had purchased cannabis legally out of state, up from 11% in 2024.
Maryland found a hemp vending machine selling mushroom chocolates ⚖️
The Maryland Alcohol, Tobacco and Cannabis Commission is testing products from a Lutherville convenience store vending machine that sells pre-rolls, hemp flower, lollipops, mushroom chocolates, and honey marketed for hallucinogenic effects, after determining that the machine's facial recognition age-verification system does not satisfy the state's face-to-face transaction requirement.
Bipartisan senators file bill to protect insurers covering cannabis businesses
Sens. Kevin Cramer (R-ND) and Ruben Gallego (D-AZ) introduced the CLAIM Act, which would bar federal regulators from penalizing insurers, brokers, or agents for serving state-licensed cannabis businesses. It's the fourth Congress in a row the measure has been filed, with text largely unchanged from prior versions.
⏪ In case you missed it
Jeremy sat down with Rove CEO Paul Jacobson on Thursday’s Cultivated Live, about building and scaling a cannabis vape brand to 16 states and $100 million in revenue.
📊 Chart of the day
The NuggMD-Cultivated Cannabis Consumer Economic Anxiety Index 📊
Consumer anxiety keeps easing. In the latest NuggMD-Cultivated Cannabis Consumer Economic Anxiety Index, 57% of 510 consumers polled said the economy would have no impact on their cannabis spending over the next three months, up from 55% last quarter and 52% in Q4, though 36% said they'd spend less, compared to 37% last quarter and 40% two quarters ago.
🤝 Deals, launches, partnerships
Fluent to divest in New York ahead of Vireo acquisition
FLUENT Corp. agreed to sell its New York Registered Organization license and associated operating assets to a third-party operator, a move that clears a regulatory hurdle for its pending all-stock merger with Vireo Growth. $CNTMF ( ▼ 14.29% )
🧪 Science & research
Colorado ran a one-patient workers' comp cannabis study 💰
Colorado's Division of Workers' Compensation successfully navigated a medical cannabis claim through the insurance system for a single injured worker, who reported reduced pain and a modest opioid reduction over the year-long study period, in what the labor department believes is the first state-administered test of cannabis reimbursement under workers' comp.
Studies show dream suppression is not just a stoner trope
A Washington Post explainer drawing on decades of sleep research appears to show THC suppresses REM sleep, which is the stage tied to memory consolidation, emotional regulation, and dreaming. Taking a tolerance break can often lead the brain to overcorrect with an intense "REM rebound" that can trigger vivid or distressing nightmares severe enough to drive relapse in some people with cannabis use disorder. For operators and formulators, the takeaway is that the widespread consumer belief that cannabis improves sleep might be at odds with objective lab measures.
📰 What we’re reading
Opinion: Rescheduling cannabis is not legalization | Concord Monitor