Key House committee moves federal intoxicating hemp ban forward 😬

HEMP 
A potential federal intoxicating hemp ban moves forward 😬

Driving the news: Both state-level and congressional lawmakers want to rein in hemp-derived THC. 

State-level fights over intoxicating hemp have recently taken center stage — just ask Texas Gov. Greg Abbott and Lt. Gov. Dan Patrick, who are on opposite sides of the issue. Abbott vetoed the Texas ban late Sunday night, while the Eighth Circuit Court of Appeals upheld Arkansas’ hemp ban Monday morning. California recently extended its emergency ban on hemp products as well. 

What happened: The House Appropriations Committee on Monday approved a bill that would close the original ‘loophole’ in the 2018 Farm Bill that allowed hemp-derived THC products to flourish across the US, making these state-level fights perhaps irrelevant. 

The bill passed 35-27. It now heads to the Rules Committee before it will get a full floor vote.

Go deeper: The House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, added language earlier this month to its 2026 spending bill that would federally prohibit all intoxicating THC products derived from hemp by closing the ‘loophole’.

Republican Maryland Rep. Andy Harris, a longtime opponent of federal cannabis reform, chairs the subcommittee.

Harris said closing the loophole would support President Donald Trump’s agenda by stopping the “proliferation of unregulated intoxicating hemp products, including Delta-8 and hemp flower, being sold online and in gas stations across the country.”

What they’re saying: “This isn’t Harris’s first attempt. In 2023, he spearheaded efforts to include similar language in the FY2025 Agriculture Appropriations bill, but the measure was ultimately defeated after widespread industry opposition and a national outcry,” the US Hemp Roundtable said in a call to action.

And also: “Congress must confront the dangers of chemically-converted synthetic THC products, safeguard CBD, and create parity across natural THC products regardless of origin,” Michael Bronstein, the president of the American Trade Association for Cannabis & Hemp, an industry trade group, said, encouraging a more collaborative tone.

“We look forward to continuing to work with Congress to create a unified federal framework for all natural THC products.”

Room for adjustment: Earlier this month, the subcommittee called on the Food and Drug Administration to create a Quantifiable Limits Task Force that would determine what could be a permissible level of THC, which the 2018 Farm Bill set as no more than 0.3% delta-9 THC (the traditional form of THC found naturally).

“The Committee recognizes the growing consumer demand for American made hemp-derived products following the expanded legalization of hemp under the Agriculture Improvement Act of 2018. As the industry continues to expand to meet consumer demand, the Committee acknowledges the need for clear, science-based guidance to ensure product safety, consumer confidence, and regulatory clarity,” said the 173-page report.

Our take: As we have said in the past, there are reasonable consumer safety concerns about the proliferation and easy access of synthetic and largely-untested hemp-derived intoxicating THC products 

There are also plenty of fast-growing companies in the nascent market making good-faith efforts to keep their products safe and limited to adults, such as Cann, CanTrip, and Rebel Rabbit.

We think there is clear room for compromise, by creating strict regulations that get rid of “gas station,” synthetic weed that is often sold to minors, while giving good operators with clean products clear, consistent guidelines.

What’s next: The bill still has to go through the Rules Committee before it gets a full vote, but that hasn’t been scheduled yet. 

It’s certainly possible that the hemp language is heavily amended, or even removed before the bill gets a full floor vote. Often, lawmakers insert language early in the process to suit their own agenda, but it gets removed or substantially changed out during the process of actually becoming law. 

It’s how the sausage is made — we’ll keep you updated.

-ZH

“I want you to know we’re getting close. This is not the time to ease up. This is not the time to back off. We are closer now to ever passing an adult-use cannabis bill and getting it on the governor’s desk,” State Sen. Sharif Street said about the ongoing legislative effort to legalize cannabis in Pennsylvania during Cannabis Day at the state capitol on Monday.

Jeremy and Jay chatted with Damien Cornwell, the President of the Cannabis Association of New York and the operator of Just Breathe, a dispensary. 

They chatted about the good, the bad, and the ugly of New York’s market, but one quote sticks out as it neatly sums up the challenges of running a cannabis business:

“The fact that we don’t have real access to capital that I could get if I was making ham and cheese subs and Jamaican patties and shit, but I can’t get it and I’m flipping three million bucks a year in a dispensary.”

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Attorney General could unilaterally reschedule cannabis ☝️

Attorney Jason Adelstone of Harris Sliwoski argued that US Attorney General Pam Bondi has the authority to reschedule cannabis if it would bring the United States better in line with its international treaty obligations — specifically the Single Convention on Narcotic Drugs. The UN Commission on Narcotic Drugs voted to remove Cannabis from its most restrictive classification in 2020, acknowledging that there could be medical benefits derived from the plant. Meanwhile, the U.S. government classifies cannabis as a Schedule I drug lacking any medical use. That would certainly be a lot simpler than the administrative law process for rescheduling…

Circuit Court upholds Arkansas hemp ban 🧑‍⚖️

The Eighth Circuit Court of Appeals reversed a lower court’s injunction against Act 629, which effectively bans delta 8, delta 9, delta 10 as well as synthetic cannabinoids. The ban was signed into law in April, 2023 but five months later was blocked by a federal court. With that injunction tossed, the hemp ban can finally be implemented. 

Maryland launches Cannabis Equity and Accelerator program 📈

Maryland Gov. Wes Moore announced the launch of a new statewide program to help social equity cannabis license holders start and grow successful businesses, including a CEO Accelerator Program, as well as comprehensive support for entrepreneurs. Read more.

House will vote on allowing VA doctors to prescribe cannabis 🌿

The House is set to consider an amendment to a spending bill that would allow Veterans Affairs doctors to prescribe medical cannabis to veterans, Marijuana Moment reports.

Aurora Cannabis now offering the highest potency in Poland ⛽

The Edmonton-based cannabis firm Aurora announced the release of two new cultivars into Poland's medical market, Farm Gas and Sourdough, that test at 29% and 27% THC which the company says makes them the highest-potency flower available on the market. 

Tilray authorized to dispense medical cannabis in Italy 🧳

Tilray is expanding its international exports, becoming the first company to receive authorization from Italy's Ministry of Health to distribute cannabis flower for therapeutic use. The approval adds to the company's ever-expanding roster of European markets, including Germany, Portugal, Poland and the United Kingdom. 

Nabis launches digital marketplace in New York 🗽

Cannabis wholesale platform Nabis is launching its digital marketplace in New York. The company says it will help reduce friction for and offer a scalable supply chain solution for growing cannabis businesses in the state. 

And more:

• Cannabis pre-roll and vape brand Rove launched in Maryland. 

• The Homegrown Group formed as a five-way merger between Homegrown Cannabis Co., Seed Supreme, i49, Symple Fulfillment, and United Strains of America to support cannabis home-growers.

Massachusetts Cannabis Control Commission is hiring a Director of Testing to oversee the state’s independent cannabis testing labs. An interesting job as the state’s labs have come under fire for manipulated results. See the full job description.

The New York State Office of Cannabis Management will host its monthly meeting on Friday, June 27 in New York City. Those outside of the city can watch the meeting here.

Legal cannabis has generated nearly $25 billion of tax revenue since 2014 when Colorado and Washington opened the first retail cannabis markets in the country, according to an analysis from the Marijuana Policy Project.

Twenty-four states have legalized cannabis for adults, and despite the industry’s struggles, states pulled in nearly $5 billion worth of cannabis tax revenue last year alone.

How hot was it in New York City yesterday? 

Hot enough to light a joint on the granite bench in Washington Square Park, as Josh Kesselman, the founder of RAW and recent purchaser of High Times, Josh Kesselman discovered. 

With prospects of a THC ban eroded, Texas hemp industry supports age restrictions, more regulation enforcement | The Texas Tribune

Cannabis shop owners in Houston riding high after Abbott's veto but future of THC in Texas still hazy | KHOU11

Does Weed Hurt Your Heart? Only If You Ignore the Details | Doctor-Approved Substack

EXCLUSIVE: Calif. Judge “troubled” by how DCC shuttered lab | WeedWeek