Surprise: Banning hemp THC

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NATIONAL HEMP BAN EFFECTIVE IN A YEAR

Last night, Congress passed, and Pres. Trump signed, a federal bill to finally reopen the government after the longest shutdown in history. Sen. Mitch McConnell (R-KY) inserted language into that bill that will make the entire hemp THC industry federally illegal in one year, and it stayed in the final bill in spite of last-ditch efforts by Sen. Rand Paul (R-KY).

Effective in a year, the federal definition of legal “hemp” narrows to include only industrial hemp, ending the federally-legal status of the hemp-derived THC industry that had grown out of the 2018 Farm Bill’s legalization of hemp. Cannabis seeds are also not hemp. (Full statutory analysis available after the jump).

But wait, who wants that?

Lots of powerful interests. First, it changed the conversation away from ballooning healthcare costs. Big Alcohol has been lobbying Congress to “close the intoxicating hemp loophole”, as they increasingly lose sales to the burgeoning hemp THC drink industry.

Many in the cannabis industry are also celebrating today; the hemp industry has grown in part because it is not subject to the same crushing compliance requirements, 280E taxation, and state-by-state markets, and they hope that by banning hemp THC, customers will come to adult-use dispensaries instead.

What happens now?

Nothing, at first. None of these changes are effective for a year.

In a functional government, that would give the hemp THC industry time to lobby Congress to change the language before it goes into effect. We could have a national conversation about these products, agree on a cohesive federal framework for regulating them, and implement it. Clem Dabney thoughtfully argues for the nation to follow Minnesota’s approach in today’s Star Tribune. However, we are far from having a functional national government at the moment.

If this bill becomes effective without further changes, then the hemp THC industry in Minnesota will be basically in the same grey area - state-legal but federally-illegal - as Minnesota’s adult-use industry. Minnesota’s low-potency hemp edible products (LPHE) could be sold in dispensaries in Minnesota, but cannot cross state lines and will face the same hurdles with banking and taxes.

In the meantime, hemp THC producers can keep operating and keep fighting for a better outcome than that. We’ll need real leadership to move the needle in the next year.

Read the full article and notes:

MN CANNABIS NEWS

Minnesota manufacturers are challenging the rule changes prohibiting mailing direct-to-consumer in a new lawsuit. Star Tribune story (gift link) (Oct. 31)

Clem Dabney ("Doc Dabs") sings the praises of Concentrate Labs and of craft cannabis.

Happy 1st birthday to the North Bloom magazine! They celebrated at CannaClub at Earl Giles on Nov. 5.

MMJ Daily reported on the North Star Accelerator Program, Minnesota's first craft cannabis business accelerator

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OTHER CANNABIS NEWS

Virginia: Pro-cannabis Abigail Spanberger (D) was elected as governor, replacing Gov. Youngkin (R), who vetoed adult-use legalization while in office.

Oklahoma: Advocates had attempted to gather signatures to put adult-use cannabis on the ballot in 2026, but failed to get enough signatures and withdrew the iniatiative.

Missouri: Missouri's cannabis trade association, MoCannTrade, has published a report damning of the state's (entirely unregulated) hemp industry. The report claims to have purchased and tested 55 hemp-infused products from unlicensed retailers in MO; found almost all of them to contain THC content of 10-80% and 29% of them contained harmful contaminants like pesticides. “This report shows a blatant disregard for the law and for the health and safety of Missouri consumers,” Andrew Mullins, MoCannTrade’s executive director, said in a statement.

Also in Missouri: Before rolling out a third round of microbusiness licenses, Missouri regulators are attempting to crack down on predatory practices allowing applicants to skirt social equity requirements.

Nebraska: Nebraska officials are standing firm in its very restrictive medical program, which does not allow smokeables of any kind, despite public criticism and are attempting to block the Omaha Tribe of Nebraska from selling cannabis on its land, including, alleges the tribe, by scrapping a tobacco tax compact as retaliation. Gov. Pillen said, “My view is really simple: There’s not going to be Nebraskans going into the Omaha Tribe and buying recreational marijuana. We’ll take whatever steps it is to keep our state in the values and keep that from happening.”

Ohio: Ohio lawmakers are seeking to pass legislation to reform the sale of intoxicating hemp products in the state before their Thanksgiving recess,

Oregon: Multi-year research finds that people who live near dispensaries are more likely to consume cannabis regularly but are less likely to be heavy drinkers.

Pennsylvania: Striking workers at a RISE dispensary in Pennsylvania joined claimed victory after a 45-day strike this fall, the longest successful cannabis industry labor strike in U.S. history.

Texas: Even as Congress is taking steps to reinstitute a federal ban on hemp products containing THC, Texas officials are distributing a new hemp law “checklist” list to help businesses comply with recently enacted state cannabis rules—including age-gating to prevent the sale of intoxicating cannabinoid products to youth, reports Marijuana Moment.

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