AHAA Weekly Policy Report: February 25th, 2026
This week brought major victories and critical threats. Iowa's 15% hemp tax proposal failed in committee, and Kansas defeated a restrictive naturopathic bill in a historic 58-58 tie vote. Meanwhile, Missouri HB 2641 passed the House and moves to the Senate, South Carolina's ban continues advancing, and Indiana pushes comprehensive hemp regulations forward. The complete report tracks 111 bills across hemp and marijuana sectors.
Major Victories This Week
Iowa SSB 3145: 15% Hemp Tax Proposal Defeated in Committee
Status: Failed Committee Passage, February 19, 2026
Iowa SSB 3145, which would have imposed a 15% retail excise tax on consumable hemp products plus a separate 15% use tax on consumer storage, failed to pass the Senate Health and Human Services Committee on February 19. The defeat of this measure is a significant win for Iowa hemp retailers and distributors who mobilized against the dual-taxation structure. The bill would have also increased record-keeping and permit requirements for businesses and directed revenue to a dedicated health care trust fund. Industry advocacy efforts successfully educated legislators on the compliance burden and competitive disadvantages the tax structure would create.
See Smart Summary of SSB 3145 | Bill Text: SSB 3145
Kansas HB 2366: Tied 58-58 Vote Kills Restrictive Naturopathic Bill
Status: Emergency Final Action Failed, February 19, 2026
Kansas HB 2366 failed in a dramatic 58-58 tie vote during Emergency Final Action on February 19, 2026. The bill sought to expand the scope of practice for naturopathic doctors with provisions that would have created regulatory complications for hemp and cannabinoid products. The tied vote represents a complete defeat of the measure under Kansas legislative rules. This outcome reflects successful pushback from stakeholders concerned about unintended consequences for the hemp industry embedded in the naturopathic practice expansion language.
See Smart Summary of HB 2366 | Bill Text: HB 2366
Critical Threats Advancing
Missouri HB 2641: Comprehensive Cannabis Bill Passes House
Status: Third Read and Passed House, February 19, 2026; Now in Senate
Missouri HB 2641 passed the House on third reading February 19 and now moves to the Senate, representing one of the most significant structural threats to the hemp industry nationwide. The bill establishes comprehensive regulations governing controlled substances, cannabis, and hemp-derived products by repealing existing statutes and creating new legal frameworks. Most critically, HB 2641 classifies hemp-derived cannabinoid products as marijuana subject to marijuana licensing and enforcement beginning November 12, 2026. Products containing non-natural cannabinoids or exceeding THC limits would face stricter controls. This legislation would effectively eliminate Missouri's current hemp retail market by forcing all hemp-derived cannabinoid products into the marijuana regulatory system with its associated costs, restrictions, and limited distribution channels.
See Smart Summary of HB 2641 | Bill Text: HB 2641
South Carolina H 4758: Hemp Ban Debate Continues
Status: Debate Adjourned, February 19, 2026
South Carolina's H 4758 hemp ban continues advancing through the House with debate adjourned February 19. The bill prohibits 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. It explicitly bans online sales, direct delivery, and shipments of consumable hemp products into the state, with violations carrying fines and potential imprisonment. While hemp growers and processors are permitted, retailers and distributors face complete elimination of their product lines. The bill has a 95% forecast to reach a floor vote and 59% likelihood of passing the House.
See Smart Summary of H 4758 | Bill Text: H 4758
Missouri HB 2765: Hemp Beverage Licensing Framework Advances
Status: House Committee Substitute Reported Do Pass, February 18, 2026
Missouri HB 2765 received a Do Pass recommendation from committee with a House Committee Substitute on February 18. The bill establishes a licensing framework for hemp beverage manufacturers, wholesalers, and retailers with annual non-transferable licenses, specific fees, and renewal requirements. Retail sales are restricted to individuals 21 and older, with THC content capped at 10 milligrams per serving and 0.3% total THC in products. A 7% excise tax applies to retail sales. The bill mandates product registration, labeling standards including ingredient disclosures and allergen information, and prohibits sales of cannabis flower or concentrates. Existing inventory must be sold or forfeited within 120 days of a specified date. The legislation also restricts hemp beverage business locations near educational institutions and places of worship.
See Smart Summary of HB 2765 | Bill Text: HB 2765
Missouri SB 904: Hemp-to-Marijuana Framework Remains on Informal Calendar
Status: Informal Calendar S Bills for Perfection, February 23, 2026
Missouri SB 904 remains on the Senate Informal Calendar for Perfection as of February 23, 2026. Similar to HB 2641, this bill would require hemp-derived cannabinoid products to be sold exclusively within licensed marijuana facilities and treated under the same regulatory framework as marijuana. The Department of Health and Senior Services would serve as regulatory authority, and consumer privacy protections would prohibit dispensaries from retaining identifying information unless legally required. This dual-track approach in Missouri (HB 2641 and SB 904) indicates strong legislative momentum toward eliminating the independent hemp retail market.
See Smart Summary of SB 904 | Bill Text: SB 904
New Regulatory Frameworks Emerging
Indiana SB 250: Comprehensive Hemp Regulations Advancing
Status: Committee Report Amend Do Pass, Adopted, February 19, 2026
Indiana SB 250 advanced from committee with an amended Do Pass recommendation on February 19. The legislation establishes comprehensive regulatory changes for hemp, cannabis, and controlled substances effective July 1, 2026. It creates detailed licensing, permitting, and testing requirements for hemp cultivation, processing, manufacturing, and sale, including restrictions on online sales, delivery, and location proximity to public facilities. The bill defines hemp, hemp-derived cannabinoids, and related products, clarifying that products with THC above 0.3% or intended for inhalation are regulated differently. Enforcement authority is enhanced for inspections, record-keeping, and seizure of non-compliant products, with a dedicated fund created to support oversight activities. The legislation also tightens regulations on marijuana and hash products, classifying offenses based on quantity and prior convictions.
See Smart Summary of SB 250 | Bill Text: SB 250
Hawaii SB 2712: Hemp Fiber Industry Development Initiative
Status: Passed Committee with Amendments, February 18, 2026
Hawaii SB 2712 passed the Senate Agriculture and Environment Committee with amendments on February 18, receiving strong support (4 Ayes, 0 Nays, 1 Excused). The bill establishes the Hawaii Hemp Fiber Special Fund to provide grants to hemp fiber producers, converters, and manufacturers, as well as support for nonprofit organizations and educational institutions. A 5% surcharge on industrial hemp licenses will fund the initiative, with protections for smallholder farms. The legislation includes a pilot program for hemp paper packaging to evaluate locally manufactured products, with price preferences for qualified items. At least 30% of pilot program funds must go to applicants focusing on environmentally friendly practices like water-efficient cultivation and soil remediation. Performance metrics will track acres planted, jobs created, and carbon emissions reduced. The initiative is set to expire June 30, 2030.
See Smart Summary of SB 2712 | Bill Text: SB 2712
Additional Hemp Bills Under Review
Hawaii SB 3206: Hemp product regulations deferred by committee February 18, 2026. Addresses age verification and retail compliance standards.
Iowa HSB 753: Agriculture omnibus bill with hemp and Farm Bill implications. Committee vote 19 Yeas, 0 Nays, 2 Excused on February 19, 2026.
Mississippi HB 1152: Right to Try Medical Cannabis Act referred to Senate Public Health and Welfare Committee February 13, 2026.
Mississippi HB 513: Diverts Medical Cannabis Program revenues to Public Health Trust Fund. Continues advancing through Senate.
Tennessee HB 1679 / SB 2062: Enhanced penalties for underage tobacco and hemp vapor product violations. Both bills advancing in respective chambers.
Virginia HB 642: Retail marijuana market framework with hemp classification implications. Multiple committee actions ongoing.
Virginia HB 122: Consumer product safety bill including hemp labeling and THC disclosure requirements.
Oklahoma HB 3767: Medical marijuana program modifications with potential hemp crossover implications.
Beyond Hemp: Full Report Coverage
This week's complete policy report includes marijuana legislation (57 bills) covering medical and adult-use program updates, licensing frameworks, and tax structures; Farm Bill developments (2 bills); industrial hemp measures (3 bills); and THC/CBD/cannabinoid regulations (16 bills). The full report also covers kratom and tobacco legislation affecting alternative wellness retailers. 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
Missouri Is Critical: With HB 2641 now in the Senate and SB 904 advancing, Missouri hemp businesses face an existential threat. Direct outreach to state senators is essential now. The dual-track legislative approach shows coordinated intent to eliminate the hemp retail market.
South Carolina Needs Voices: H 4758 continues moving toward a floor vote. Retailers, distributors, and consumers must contact House members immediately with economic impact data and constituent stories.
Celebrate Iowa and Kansas Wins: Thank legislators who stood with the industry on SSB 3145 and HB 2366. Positive reinforcement strengthens relationships for future legislative battles.
Indiana Requires Attention: SB 250's comprehensive framework needs industry input as amendments are considered. Engage with sponsors on implementation timelines and testing availability.
Prepared by the American Healthy Alternatives Association
Tracking hemp policy nationwide to keep our industry informed.
