TX Gov. signs Executive Order to regulate THC 🤠

TEXAS
Gov. Abbott signs an executive order raising the age to purchase THC to 21 🤠

Driving the news: Texas’ legislature attempted to ban THC products in the state three times — and all failed. 

Instead of trying yet again, Republican Gov. Greg Abbott used his executive authority yesterday to enact new hemp rules as the second special legislative session drew to a close. 

What’s in the regulations: The order, Executive Order 56, begins the process of regulating hemp-derived THC in the state without banning it outright. 

The order calls on the Department of State Health Services and the Texas Alcoholic Beverage Commission to craft regulations similar to what HB 36, a previous bill that did not pass, would have implemented.

Those regulations would restrict the sale of hemp products to those 21 and older, ban synthetic THC and THCA flower, mandate the testing of intoxicated hemp products and limit THC based on milligrams and not percentage of total weight. 

What they're saying: “Hemp should not be sold to our kids,” Abbott said on social media. “Safety for kids, freedom for adults.”

And: “All these politicians assume it’s a bunch of liberal hippies when no, bro, rednecks smoke weed,” Anthony Vazquez, the owner of Dooby’s Smoking Depot, told The Texas Tribune. 

Why it matters: For Texas hemp companies, this means business (mostly) as usual after much hand-wringing about an outright ban over the last few months. 

It’s a big win for hemp-derived beverages and derivative products like edibles containing THC, though not so much for those selling THCA flower in pre-rolled joints.  

Zoom out: Abbott’s executive order comes after Abbott vetoed an attempt from the legislature to totally ban hemp earlier this year, followed by two failed attempts to ban it through special legislative sessions this summer. 

(Those special sessions devolved into a circus of reefer madness spurred on by Lt. Gov. Dan Patrick, but we digress).

Hemp has grown into a massive industry in Texas, with an estimated 8,000 businesses selling intoxicated hemp products. 

While elected officials have consistently raised concerns about the products falling into the hands of minors, some have acknowledged that an outright ban would doom thousands of jobs. 

Our take: The executive order is also something of a backdoor to regulating products containing THC. 

The Texas legislature never voted to specifically allow these products. Rather, they were technically legalized via the federal 2018 Farm Bill, and Texas retailers simply met demand.

As long as the next version of the Farm Bill continues to allow hemp-derived THC, it seems like THC products will be plentiful in the Lone Star State. 

-ZH & JB

California Senate votes to pause tax hike ⏸️

The California Senate voted to approve a legislative rollback on a 4% increase to the state's cannabis excise tax. The increase, which took effect on July 1, moves the excise rate from 15% to 19%. The State Assembly must now pass the bill before it can be sent to the Governor's desk. 

Arkansas on track to bounce back from 2024 sales 📈

Patients in Arkansas spent over $193 million on medical cannabis so far in 2025, meaning the market is on track to surpass 2023's peak total sales of $283 million. That total dipped to $275.9 million in 2024.

Another cannabis raid in Oklahoma 👮

The Sooner State continues its streak of raiding illicit grow sites. This time, officers from the Oklahoma Bureau of Narcotics hit a farm in Cushing, seizing 12,303 plants and 294 pounds of processed cannabis. Authorities detained seven individuals, while ICE detained two more. 

RFK Jr. and Bondi crack down on illicit vapes 👀

Attorney General Pam Bondi and Health and Human Services Secretary Robert F. Kennedy Jr. traveled to Chicago to announce an operation to seize illicit vapes including those that contain THC. “These illegal and unregulated products are not safe,” Bondi said. “Chinese companies are making millions off these products.”

LIT ALERTS’ INSIGHTS
The Giants of Empire State Cannabis

Today, our partners at Lit Alerts share their list of the Giants of Empire State Cannabis.

These New York-born, category-leading brands collectively account for more than ~30% of units sold across the state in 2025.

Many of them produce and sell products in three or more categories. Most of these companies were the very first producers in the state and have maintained their top position throughout New York's challenging roll out.

You'd be hard pressed to find a retailer in any region of the state who is not stocking most of these brands.

Which of these brands has a shot at becoming a national or regional brand outside of New York?

How much longer will the New York born and bred brands dominate the top of the charts?

Time will tell — and we’ll be here to share Lit Alerts insights along the way.

Have a look at Lit Alerts’ exclusive insights. 👇

To learn more about Lit Alerts and get a special offer only available to Cultivated readers, visit litalerts.com.

New consumer advocacy group launches in NY 🌿

The Empire State Green Standard Alliance (GSA) officially launched as New York’s first statewide consumer advocacy group for cannabis. The organization aims to improve safety, transparency, and education for consumers while addressing key issues like mislabeled products, high prices, limited retail access, and confusion around what’s legal. More info here.

On Wednesday’s Cultivated Live, Jay and Jeremy chatted with Worcester Business Journal Managing Editor Eric Casey about his big new story on the downfall of Rev Clinics, a Massachusetts cannabis company that raised $50 million, employed hundreds, and is now in receivership.

They discussed the reasons for Rev’s failure and what it means for the future of cannabis in Massachusetts.

Watch it here:

Potentially therapeutic compounds found in cannabis leaves 🍃

Researchers at Stellenbosch University in South Africa discovered flavoalkaloids in cannabis leaves for the first time. Flavoalkaloids, which are not cannabinoids and can be found in white tea, are aromatic plant compounds with potential therapeutic benefits. 

Marijuana may cause chromosomal defects in human egg cells, study finds | CNN