In our previous legal update last month, we outlined language included in one of the appropriations bills which was passed in connection with ending the historic government shutdown. The package contained language that, among other things, recriminalized synthetic or artificially derived cannabinoids and products containing more than .4 mg of total THC combined with any other cannabinoids determined by the FDA to have a similar effect as THC per “container.” These provisions would not take effect for 365 days from the signing of the reopening package, which provides time for reconsideration by lawmakers.
Major Changes Ahead for the Hemp Industry: 365-Day Countdown Begins Following Government Shutdown Deal
In the wake of the recent government shutdown, significant changes are on the horizon for the hemp industry. As detailed in a legal update from Husch Blackwell, the congressional package to reopen the government, signed into law on November 12, 2025, includes provisions that will dramatically reshape the legal landscape for hemp-derived products—though these changes
The Devil Is in the Details, and So Is the Gross Margin: How Detailed Regulatory Strategy Can Make or Break Investment for Early-Stage Hemp Beverage Brands
Hemp-derived THC beverages comprise one of the fastest-growing beverage categories in the United States right now. With Circle K and Target recently announcing market entry the industry is quickly reaching mainstream status and creating interest for more brands to enter the space. At the same time states across the country are quickly enacting legislation to regulate these products in vastly different ways, creating a unique set of challenges for early-stage companies.
When Less Isn’t More: the Texas Hemp Ban and the Risks of Unregulated Markets
Late Wednesday evening the Texas House of Representatives dealt the hemp industry in the Lone Star State what can only be described as a Texas size heartache with the passage of Senate Bill 3 (SB3), effectively banning all hemp derived products containing THC and placing significant restrictions on non-intoxicating hemp products. The state of Texas has seen exponential growth in the sale of hemp derived products in reliance on the 2018 Farm Bill and 2019 bipartisan legislation meant to bolster Texas agriculture, each leaving significant ambiguity with respect to hemp derived products. Hemp derived products in various forms and concentrations have flourished largely due to a lack of restriction in Texas. As the industry continued to grow a lot of brands and operators doubled down in the hopes that everything truly would be “bigger in Texas” rendering the industry essentially too big to fail. Arguably that may be the case with some estimating the passage of SB3 places 6,300 small business, 40,000 jobs and $4 billion in retail at risk.
Higher Hoops? The Changing Place of Cannabis in College Athletics
Selection Sunday marked the start of the NCAA Division I basketball tournaments this week and this year “March Madness” comes with a lessened degree of “Reefer Madness”. Since the 2024 March Madness season, the National Collegiate Athletic Association (NCAA) has made a clear departure from its former position on cannabis. Last June the NCAA voted to remove cannabis from the banned drug class for NCAA championships and postseason football.[1] At the same time the growing popularity of low-does THC beverages and an increase in state legalization provide fans more of an opportunity to include cannabis in their experience.
The New York marijuana business application window has opened, but will be over in a ‘New York minute’
After months of anticipation, the New York State Office of Cannabis Management began accepting applications for five (5) types of licenses this week: cultivator, processor, distributor, and microbusiness. This is generally how the process will work:
Cannabis Licenses in Illinois: Could Hopeful Social Equity Applicants See Relief Soon?
The 2019 Cannabis Regulation and Tax Act provided the authority for the Illinois Department of Agriculture (the “IDOA”) and the Illinois Department of Financing and Professional Regulation (the “IDFPR”) to issue additional adult-use craft grower, infuser, transporter, and dispensary licenses. Each Department developed an application process for each license type to be graded by a third-party contractor. KPMG was awarded the contract to score the license applications. The award of several categories of licenses has been inhibited by a number of lawsuits. We have provided a brief summary of the status of each license category and the corresponding litigation below.
New Podcast Episode: ESG in the Cannabis Industry — More than a Buzzword
The Husch Blackwell Cannabis team has released episode two of their podcast, The Grass is Greener: Cannabis Law News. In this episode, cannabis attorneys Marshall Custer and Alyssa Samuel dive into ESG (Environmental, Social, Governance) and what it means for the cannabis industry, specifically the regulated marijuana industry. They explore what it means to take
Thanksgiving: an 1863 proclamation, is it still relevant today?
On October 3, 1863, Abraham Lincoln issued the proclamation that would serve to formally reserve the last Thursday of each November for the American tradition of Thanksgiving with the following words:
The UN Report on Climate Change: What does it have to do with Cannabis and Wine in the US?
Key Takeaways:
- The recently released IPCC Report shows irreversible harm to the global ecosystem.
- Fund managers focused on ESG criteria will have an increased focus on environmentally conscious companies and substantial sums of investment dollars will likely flow into companies that commit to more aggressive ESG plans.
- Cannabis companies could benefit from looking at how industries like the wine industry have embraced sustainability.
- In an industry where competition for capital is fierce, adopting ESG principles is an effective way for cannabis companies to not only foster good will, but to foster investment.
On Monday, August 9, 2021 the United Nations Intergovernmental Panel on Climate Change Sixth Assessment Report (the “IPCC report”) sent shock waves through the financial markets and the world in general. This report, the most comprehensive of its nature released since 2013, made it abundantly clear that much of the damage incurred by the global ecosystem will be irreversible and the harm is accelerating at an alarming rate. This has catalyzed investment funds and asset managers focusing on ESG investments to rethink their approach. According to Bloomberg Law, Chris Meyer of Praxis Mutual Funds, a well established socially responsible investment firm stated that the report “…changes the calculus. We will need to have a sharper focus. This report shows that investors are not moving quickly enough.” Financial investment itself may not be able to curb the problem, however, what is certain is that fund managers focused on ESG criteria will have an increased focus on environmentally conscious companies and substantial sums of investment dollars will likely flow into companies that commit to more aggressive ESG plans.