AHAA Weekly Policy Report: January 21st, 2026
Nationwide Activity Accelerates Ahead of Federal Hemp Deadline
The third week of 2026 shows explosive legislative activity as states race to position themselves ahead of the November federal hemp deadline. PolicyNote tracked 142 active policy items this week across multiple jurisdictions (59 hemp, 65 marijuana, 6 farm bill, 6 industrial hemp).
This Week's Highlights
Federal delay bill officially introduced. Alabama pharmacy-only hemp bill advances. Washington files four cannabis bills in one week. New Mexico finalizes comprehensive hemp extraction rules. Kentucky files constitutional cannabis amendment. New Jersey continues aggressive hemp phase-out.
Federal Executive Action
Hemp Planting Predictability Act Officially Filed
US HR 7024 - Introduced January 13, 2026
Representative Jim Baird (R-IN) officially filed the Hemp Planting Predictability Act in the House, proposing to extend the implementation period for federal hemp restrictions from 365 days to 3 years.
The bill amends the Agricultural Marketing Act of 1946, pushing the effective date from November 12, 2026 to November 12, 2028. This provides hemp businesses the time needed to adjust crop rotations, adapt processing operations, and transition to compliant product formulations.
Bill Forecast: 18% likely floor vote in House, 5% likely passage. 13% likely floor vote in Senate, 40% likely passage.
The low House forecast but higher Senate passage probability suggests bipartisan support may be stronger in the Senate where agriculture interests hold more influence. Industry stakeholders should focus advocacy efforts accordingly.
State Hemp Policy Updates
Alabama Advances Pharmacy-Only Hemp Model
AL SB 1 - Senate Healthcare Committee Referral January 13, 2026
Alabama Senate Bill 1 advances its restrictive approach limiting consumable hemp product sales exclusively to licensed pharmacies certified by the Alabama State Board of Pharmacy.
Key Provisions:
Sales Restrictions: Only licensed pharmacies may sell nonpsychoactive consumable hemp products. All products must derive from Alabama-cultivated hemp. Laboratory testing and certificate of analysis required before any sale.
Controlled Substance Scheduling: Psychoactive hemp derivatives classified as Schedule I controlled substances. Alabama Department of Forensic Sciences determines synthetic analogue qualifications. Exemptions available for approved new drug applications.
Tracking System: Seed-to-sale monitoring covers entire supply chain from cultivation through retail, significantly increasing operational costs.
Industry Impact: The pharmacy-only model effectively eliminates the current hemp retail market in Alabama. Small retailers, gas stations, and specialty shops would lose market access. Compliance costs for testing and tracking create prohibitive barriers for small producers.
Bill Forecast: 30% likely floor vote in House. 29% likely floor vote in Senate.
Governor Ivey has not indicated a position. The pharmaceutical lobby's support could drive passage despite industry opposition.
New Mexico Finalizes Hemp Extraction Regulations
20.10.2 NMAC (New Rules) - Published January 13, 2026 | Effective January 28, 2026
The New Mexico Environment Department finalized comprehensive regulations governing post-harvest hemp processing, extraction, production, transportation, warehousing, and testing.
Permit Requirements: All hemp facilities must obtain separate permits with detailed operational plans covering product sourcing, security measures, testing protocols, and employee training. Thorough record-keeping mandatory for all hemp products.
Testing Standards: Strict limits for THC concentration and pesticide residues. Products must be tested by approved laboratories before sale or distribution. Testing results must meet safety standards for human consumption, absorption, and inhalation.
Labeling Requirements: Health disclaimers and safety warnings mandatory. Analytical testing results must accompany all finished products.
Water and Sanitation: Hemp facilities must have access to approved water supplies and comply with sewage disposal standards. Environmental safety emphasized throughout regulations.
Compliance Framework: Management and employee training plans required. Regulatory authorities have inspection access. Clear processes for permit suspension, revocation, and appeals.
Effective Date: January 28, 2026
The regulations create uniform statewide standards for safe hemp product manufacture and accurate presentation, eliminating inconsistent local enforcement.
State Cannabis Policy Updates
Kentucky Files Constitutional Cannabis Amendment
KY HB 199 - Elections Committee Referral January 14, 2026
Four Democratic representatives filed a proposed constitutional amendment to legalize cannabis possession, use, sale, and cultivation for adults 21 and older.
Amendment Provisions:
Guarantees the right to possess one ounce or less of cannabis. Allows cultivation, harvest, and storage of up to five cannabis plants for personal use. General Assembly authorized to regulate production, processing, and sale of cannabis and cannabis-derived products.
Voter Decision: The amendment would appear on the next regular election coinciding with General Assembly elections, requiring voter approval for implementation.
Sponsors: Nima Kulkarni (D), Tina Bojanowski (D), Daniel Grossberg (D), Lisa Willner (D)
Constitutional amendments in Kentucky require significant legislative hurdles. The Republican supermajority makes passage unlikely, but the filing signals growing Democratic support for cannabis reform.
Washington State Files Four Cannabis Bills in One Week
Washington emerged as the week's most active cannabis reform state, with four comprehensive bills filed between January 12-15.
Social Consumption Venues
WA HB 1932 - Reintroduced January 12, 2026
Establishes legal framework for cannabis consumption events, allowing adults 21+ to consume cannabis in designated areas outside their homes.
Cannabis Consumption Event Organizer License: New license type permits hosting events with security requirements, age verification, and specific cannabis handling protocols.
Budtender Permits: Employees selling or serving cannabis products must complete mandatory training programs.
Local Control: Local governments retain authority to adopt more restrictive ordinances for public cannabis consumption.
Social Equity: Cannabis licensees not designated as social equity applicants can receive annual license renewal fee reimbursement if they submit social equity plans.
Bill Forecast: 84% likely floor vote in House, 84% likely passage. 79% likely floor vote in Senate, 93% likely passage.
Strong bipartisan support positions this for likely enactment.
Oversupply Prevention
WA HB 2315 - First Reading January 12, 2026
Addresses cannabis oversupply through revenue thresholds and retail license limits.
Revenue Thresholds: Tier Three producers must demonstrate minimum $24,000 monthly gross sales. Tier Two producers must show $8,000 monthly. Failure results in downgrade to lower tiers with reduced production space. One-year exemptions available under certain circumstances.
Retail License Limits: Maximum five retail licenses per individual or entity. Management agreements conferring financial interests across more than five licenses prohibited. Retail licenses forfeited if not operational within 24 months (some exceptions apply).
Distance Restrictions: Licenses cannot be issued within 1,000 feet of schools, parks, and certain public facilities (local governments may reduce). Research facilities may be licensed within this radius under specific conditions.
Bill Forecast: 50% likely floor vote in House, 69% likely passage. 49% likely floor vote in Senate, 81% likely passage.
Cannabis Excise Tax Reform
WA HB 2433 - First Reading January 13, 2026
Updates cannabis excise tax structure and product definitions.
Product Definition Expansion: Broader range of items intended for human consumption now encompassed. Specific THC concentration limits established for cannabis-infused products.
Tax Structure: Specific rates for usable cannabis, cannabis trim, concentrates, and edibles. Weight-based taxation influences pricing and revenue.
License Fees: Application fees $250. Annual renewal fees $1,381. Each location requires separate license.
Bill Forecast: 20% likely floor vote in House, 71% likely passage. 19% likely floor vote in Senate, 84% likely passage.
Interstate Market Preparation
WA HB 2504 - First Reading January 15, 2026
Prepares Washington for potential legal interstate cannabis market.
Import Requirements: Cannabis products from other jurisdictions must be processed by licensed Washington processors. Quality assurance testing by accredited laboratories mandatory before sale.
Federal Contingency: Provisions take effect upon establishment of legal interstate cannabis market, contingent on federal law changes or DOJ guidance.
Retail License Caps: Maximum five retail licenses per entity. Management agreements conferring financial interests across more than five licenses prohibited. Licenses forfeited if business not operational within specified timeframe.
Bill Forecast: 20% likely floor vote in House, 52% likely passage. 19% likely floor vote in Senate, 68% likely passage.
This forward-looking legislation positions Washington as a leader in interstate cannabis commerce once federal prohibition ends.
California Advances Medicinal Cannabis Shipment Reform
CA AB 1564 - From Printer January 13, 2026 | Hearing February 12
California Assembly Bill 1564 addresses the medical cannabis access crisis by allowing licensed microbusinesses to ship directly to patients.
Microbusiness Shipments: Licensed microbusinesses involved in retail, manufacturing, distribution, and outdoor cultivation may ship medicinal cannabis directly to patients under specific conditions (possession limits, age verification).
Free Product Provision: Licensed retailers may provide free cannabis products to patients or caregivers, enhancing access for those in need.
Local Jurisdiction Limits: Local governments cannot prohibit medicinal cannabis delivery but may impose reasonable regulations related to zoning and public health.
Compliance Requirements: Microbusinesses must maintain detailed records and verify physician recommendations. Provisions remain in effect until January 1, 2030.
Bill Forecast: 75% likely floor vote in Assembly, 85% likely passage. 80% likely floor vote in Senate, 94% likely passage.
Strong forecast signals likely enactment addressing patient access crisis.
Hawaii Advances Compassionate Medical Cannabis Access
HI HB 1542 - Prefiled January 14, 2026
Representative Gregg Takayama (D) prefiled legislation expanding compassionate access to medical cannabis.
Bill Forecast: 33% likely floor vote in House, 95% likely passage. 27% likely floor vote in Senate, 95% likely passage.
The high passage forecasts but low floor vote probability suggest the bill may face committee obstacles despite strong floor support if it reaches a vote.
Additional State Activity
New Jersey: Continues aggressive hemp and cannabis regulatory activity with S 1075 (Farm Labor Equality Act) and S 1888 (Community Supported Agriculture promotion) filed January 13. Multiple cannabis regulatory bills under review.
Washington: WA HB 1067 proposes transferring cannabis licensing from Liquor and Cannabis Board to Department of Agriculture (effective July 1, 2026). Strong forecast: 66% House floor vote, 52% passage; 65% Senate floor vote, 68% passage.
Federal: US S 2100 (Modernizing Agricultural and Manufacturing Bonds Act) held hearings January 14 in Senate Small Business Committee. Increases qualified small issue manufacturing bond limits from $10M to $30M, $40M to $120M for certain bonds. Strong forecast: 95% House floor, 49% passage; 82% Senate floor, 71% passage.
Key Compliance Deadlines
January 26, 2026: Texas public comment period ends on hemp licensing fee increases
January 28, 2026: New Mexico hemp extraction regulations take effect
February 12, 2026: California AB 1564 (medicinal cannabis shipments) committee hearing
April 13, 2026: New Jersey hemp inventory liquidation deadline
July 1, 2026: Washington cannabis licensing transfer to Department of Agriculture (if HB 1067 passes)
November 12, 2026: Federal hemp ban effective (unless HR 7024 extends to 2028)
Action Steps
Hemp Businesses - Federal Advocacy Priority:
Contact your Representative and Senators supporting HR 7024 (Hemp Planting Predictability Act). The bill faces low House passage forecast (5%) but higher Senate passage probability (40%). Concentrated advocacy can move these numbers.
Alabama Hemp Operators:
Monitor SB 1 Senate Healthcare Committee hearings. Prepare position statements on pharmacy-only model impact. Document operational costs for testing, tracking, and compliance. Coordinate industry response through trade associations.
New Mexico Hemp Facilities:
January 28 compliance deadline approaching. Ensure permit applications complete with operational plans, security measures, testing protocols, employee training programs. Verify water supply and sewage disposal compliance. Schedule regulatory inspection access.
Washington Cannabis Businesses:
Track all four bills (HB 1932, HB 2315, HB 2433, HB 2504) for comprehensive market impact. Prepare for potential social consumption licensing. Evaluate revenue thresholds against current production. Plan for interstate market preparation if federal prohibition ends.
California Microbusinesses:
Monitor AB 1564 February 12 hearing. Prepare for direct patient shipment capabilities. Update record-keeping systems for physician recommendation verification. Review free product provision policies.
All States:
November federal deadline drives state-level activity. Monitor your state legislature and regulatory agencies for hemp response bills. Engage proactively before restrictive measures advance.
The Bottom Line
This week's explosive activity (142 tracked items) demonstrates states are no longer waiting for federal clarity. Alabama moves toward pharmacy-only hemp. Washington files comprehensive cannabis reforms. New Mexico finalizes extraction rules. The pattern is clear: states are establishing their own frameworks ahead of the November deadline.
The federal Hemp Planting Predictability Act's low House forecast but higher Senate passage rate reveals the political challenge. Agriculture states understand the economic impact. Urban districts remain skeptical. Industry advocacy must focus on economic data, job preservation, and small business survival stories.
Washington State's four-bill package represents the most comprehensive cannabis reform effort filed this week. Social consumption venues, oversupply prevention, tax reform, and interstate preparation position Washington as a policy leader. Other states will watch these bills closely for replication potential.
Alabama's pharmacy-only model, if enacted, creates a precedent other conservative states may follow. The approach allows legislators to claim "regulation not prohibition" while functionally eliminating the current market. Industry must aggressively counter this narrative with economic impact data.
The next several weeks determine whether states adopt restrictive frameworks or balanced regulations. Federal advocacy for HR 7024 remains critical, but state-level engagement now carries equal urgency.
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This report was compiled by the American Health Alternatives Association (AHAA) team. For questions or additional information, contact us.
