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.

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…

Large Indoor Marijuana Commercial Growing Operation With Fans, Greenhouse, Equipment For Growing High Quality Herb. Cannabis Field Growing For Legal Recreational Use in Washington State

On October 7, 2025, Michigan Governor Gretchen Whitmer signed into law the Comprehensive Road Funding Tax Act (House Bill 4951), which will impose a 24% excise tax on wholesale marijuana transactions beginning January 1, 2026. This new tax is in addition to the existing 10% excise tax and 6% sales tax on retail marijuana sales, marking a significant additional obstacle to positive margins in Michigan’s cannabis regulatory landscape.

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.

High detailed image of fresh cannabis cultivation

In March 2025, the Office of Cannabis Management (OCM) officially closed its application window for cannabis licenses in Minnesota. While some license types were decided by lottery, others were uncapped, including testing facilities. Testing facilities are integral to the Minnesota cannabis supply chain as they ensure that all products bought and sold in Minnesota are safe for consumers. Given their essential function within the Minnesota cannabis industry, OCM has prioritized the prompt operational readiness of testing facilities. With no need to wait for a lottery, potential license holders pursuing those types of licenses are able to begin searching for and securing property and ensuring its compliance with local laws.

Marijuana Pot Weed Cannabis Stock Company Business Market 3d Illustration

Employee stock ownership plans (ESOPs) have been used as a business succession strategy by employers across many industries. In the cannabis industry, ESOPs have come and gone and come again as a trendy topic promising to fix many of the tax and liquidity issues operators in the industry face. But are the benefits real, or is this just another pitch by consultants looking to generate fees? The answer is “yes”.

An ESOP is similar to a 401(k) plan except that an ESOP invests primarily in employer stock instead of mutual funds. Because of this unique feature, an entrepreneur can sell his or her business to an ESOP, thereby turning the employees into owners. 

On the heels of the 2018 Farm Bill, some states have opted to regulate hemp-derived cannabinoid consumer products. One of the early movers in this area is the State of Minnesota. The regulations in Minnesota for hemp-derived cannabinoid products (as well as licensing for them) are changing, with licensing opening up this fall. Interestingly, Minnesota has adopted a sort of hybridized cannabis and hemp program, in which cannabis licensees can also access and sell “lower-potency hemp edibles” (“LPHE”) made outside of the heavily regulated cannabis license supply chain.