AHAA Weekly Policy Report: February 18, 2026
This week's report tracks 110 bills and regulatory actions across hemp, marijuana, kratom, and tobacco sectors. The hemp section highlights key developments in South Carolina, Illinois, Missouri, Kentucky, Iowa, and Texas, with significant movement on both regulatory frameworks and outright ban proposals. The complete report includes marijuana, Farm Bill, and additional alternative wellness legislation.
Hemp Regulatory Developments
South Carolina H 4758: Hemp Beverage Ban Advances
Status: Debate Adjourned Until February 12, 2026 (House Floor)
South Carolina's H 4758 continues to move through the House and represents one of the most aggressive anti-hemp measures in the country this session. The bill would prohibit the possession, manufacturing, and sale of any consumable hemp products exceeding 0.3% THC on a dry weight basis, effectively banning most ingestible and inhalable hemp products including edibles and vapes. Hemp growers and processors are permitted under the bill; retailers and distributors bear the full impact of the ban. Enforcement costs are projected at nearly $2 million annually beginning in fiscal year 2026-27.
Bill Text: H 4758
Take Action for South Carolina Here
Illinois SB 3919: Comprehensive Hemp Regulatory Framework
Status: Referred to Assignments
Illinois SB 3919 establishes comprehensive regulations for the cultivation, processing, distribution, and sale of cannabis and hemp products statewide. The bill clarifies distinctions between cannabis, hemp, industrial hemp, and intoxicating hemp, aligning state definitions with federal standards. It prohibits sales to individuals under 21, sets security, packaging, and labeling requirements, and creates a dedicated Industrial Hemp Regulatory Fund to finance enforcement, inspection, and regulatory activities through fees, fines, and penalties. Civil penalties apply for violations related to hemp-derived product sales and manufacturing of synthetic hemp.
See Smart Summary of SB 3919 | Bill Text: SB 3919
Illinois SB 3820: Industrial Hemp Federal Alignment
Status: Referred to Assignments
Illinois SB 3820 amends state statutes related to industrial hemp to align with recent federal legal developments. The Department of Agriculture would be required to adopt rules within 12 months to ensure compliance with federal standards, including testing, inspection, and disposal protocols for THC levels. The bill clarifies that hemp and hemp-derived products remain legal under current Illinois law. Higher education institutions and the Department of Agriculture would be permitted to engage in research and cultivation through pilot programs.
See Smart Summary of SB 3820 | Bill Text: SB 3820
Missouri HB 2765 and SB 993: Hemp Beverage Licensing
Status: HB 2765 Public Hearing Completed; SB 993 Voted Do Pass in Committee
Missouri is advancing dual legislative tracks for hemp beverage regulation. HB 2765 establishes licensing and operational requirements for hemp beverage manufacturers, wholesalers, and retailers, with annual non-transferable licenses and strict age restrictions limiting sales to individuals 21 and older. THC content per serving is capped at 10 milligrams. A 7% excise tax is imposed on retail hemp beverage sales. Separately, SB 993 passed the Senate Emerging Issues and Professional Registration Committee with similar provisions, emphasizing mandatory testing by accredited laboratories, labeling requirements, and advertising restrictions to prevent marketing to minors.
See Smart Summary of HB 2765 | Bill Text: HB 2765
See Smart Summary of SB 993 | Bill Text: SB 993
Missouri SB 904: Hemp-Derived Products Moved to Marijuana Framework
Status: Informal Calendar S Bills for Perfection (February 17, 2026)
Missouri SB 904 represents a significant structural threat to the hemp industry. The bill would require hemp-derived cannabinoid products to be sold exclusively within licensed marijuana facilities and treated under the same regulatory framework as marijuana. Consumer privacy protections would prohibit dispensaries from retaining identifying information unless legally required. The Department of Health and Senior Services would serve as the regulatory authority. This approach would effectively eliminate the existing hemp retail market and force products into the more restricted, higher-cost marijuana distribution system.
See Smart Summary of SB 904 | Bill Text: SB 904
Kentucky HB 532: Medicinal Hemp Product Standards
Status: Referred to Agriculture Committee
Kentucky HB 532 establishes quality and safety standards for medicinal hemp products, with an emphasis on supporting small farmers and rural economic development. Businesses must maintain detailed batch records for at least three years and conduct mandatory testing for pesticides, microbial contaminants, residual solvents, and mycotoxins through accredited, independent laboratories. Labels must include product identity, batch number, cannabinoid profile, contact details, ingredients, expiration date, and a QR code or web link for batch details. The legislation prohibits license caps and restrictions that would favor large-scale or vertically integrated operations, and clarifies that hemp products do not require a prescription for sale.
See Smart Summary of HB 532 | Bill Text: HB 532
Iowa SSB 3145: Hemp Products Hit with 15% Excise Tax Proposal
Status: Subcommittee Meeting Scheduled for February 17, 2026
Iowa SSB 3145 proposes significant tax increases affecting tobacco, vapor, and hemp products. Consumable hemp products would face a 15% retail excise tax collected at the point of sale, plus a separate 15% use tax on consumer storage and use. The legislation also increases record-keeping and permit requirements for businesses manufacturing, distributing, or selling these products. Revenue would be directed to a dedicated health care trust fund. Subcommittee consideration is scheduled for February 17, 2026, in Room 217.
See Smart Summary of SSB 3145 | Bill Text: SSB 3145
Texas Emergency Rule Extension: Consumable Hemp Product Regulations
Status: Extended 60 Days Through March 30, 2026
The Texas Department of State Health Services has extended emergency rules governing the manufacture, distribution, and retail sale of consumable hemp products for an additional 60 days. The rules, originally effective October 2, 2025, now expire March 30, 2026. The extensions cover general consumable hemp product standards and restrictions on sales to minors. Texas businesses should prepare for permanent rulemaking to follow the emergency period.
Additional Hemp Bills Under Review
Illinois HB 4515: Cannabis vocational training program at community colleges, expanding workforce development within the regulated hemp and cannabis industry. Status: Added co-sponsor February 9, 2026. See Smart Summary of HB 4515 | Bill Text: HB 4515
Illinois HB 4306: Cannabis reform bill aligning Illinois law with federal standards for medical patients, including tax classification updates effective July 1, 2026. Status: Assigned to Executive Committee. See Smart Summary of HB 4306 | Bill Text: HB 4306
Mississippi HB 865: Kratom scheduling bill tabled February 10, 2026, providing temporary relief for kratom retailers and distributors following industry opposition. See Smart Summary of HB 865 | Bill Text: HB 865
Mississippi HB 513: Diverts a portion of Medical Cannabis Program revenues into the Mississippi Public Health Trust Fund beginning July 1, 2026. See Smart Summary of HB 513 | Bill Text: HB 513
Mississippi HB 1152: Right to Try Medical Cannabis Act transmitted to the Senate, expanding patient access for chronic, debilitating, or terminal conditions beyond current qualifying lists. Key provisions effective July 1, 2026. Bill Text: HB 1152
Hawaii HB 1542: Compassionate access to medical cannabis in health care facilities for terminally ill patients. Passed second reading as amended. See Smart Summary of HB 1542 | Bill Text: HB 1542
Hawaii SB 3319: Age-verification affirmative defense for hemp retailers deferred by committee February 11, 2026. See Smart Summary of SB 3319 | Bill Text: SB 3319
Iowa HSB 588: Broad agriculture bill with Farm Bill implications including renewable fuel infrastructure, agricultural commodities, and tax provisions. See Smart Summary of HSB 588 | Bill Text: HSB 588
Oklahoma HB 3881: Alternative Nicotine Products Regulatory Act establishing manufacturing, labeling, and safety requirements for vape products with implications for hemp vapor retailers. Passed committee with Do Pass recommendation. See Smart Summary of HB 3881 | Bill Text: HB 3881
Maine HP 1301: Proposes 20% sales tax on hemp products containing THC and 10% excise tax on adult use cannabis. Status: Divided Report issued February 12, 2026. Bill Text: HP 1301
Beyond Hemp: Full Report Coverage
This week's complete policy report includes marijuana legislation (68 bills) covering medical and adult-use program updates, licensing frameworks, and tax structures; Farm Bill developments; and additional kratom and tobacco legislation. Members operating in multiple product categories should review the complete tracking report for comprehensive state-specific updates.
See the Full Weekly Policy Report Here
Take Action
Contact Your Legislators: South Carolina and Missouri are at critical decision points. Business owners in these states should reach out directly to their representatives now. Personal stories about the economic impact of proposed bans carry significant weight in committee deliberations.
Submit Public Comment: Texas is entering its permanent rulemaking phase for hemp products. Iowa and Maine comment periods are approaching. Your real-world experience with compliance costs, consumer demand, and testing availability educates policymakers before votes are cast.
Prepared by the American Healthy Alternatives Association
Tracking hemp policy nationwide to keep our industry informed.
