AHAA Weekly Policy Report: January 28th, 2026
State Regulatory Momentum Builds as Federal Deadline Looms
The fourth week of 2026 shows sustained legislative intensity as states continue positioning themselves ahead of the November federal hemp deadline. PolicyNote tracked 94 active policy items this week across multiple jurisdictions (38 hemp, 49 marijuana, 3 farm bill, 4 industrial hemp).
This Week's Highlights
Indiana hemp regulations advance with pharmacy oversight. Missouri files multiple hemp framework bills. Washington continues cannabis reform push. Nebraska medical cannabis taxation moves forward. Wisconsin hemp cannabinoid regulations gain momentum. Multiple states advance compassionate medical cannabis access.
Federal Activity
No new federal legislation filed this week. The Hemp Planting Predictability Act (HR 7024) remains in committee with industry advocacy intensifying as the November deadline approaches.
State Hemp Policy Updates
Indiana Advances Comprehensive Hemp Framework
IN SB 250 - Committee Report: Amend Do Pass, Adopted January 22, 2026
Indiana Senate Bill 250 continues advancing its comprehensive regulatory approach to hemp-derived cannabinoid products, establishing a framework that impacts manufacturing, distribution, and retail operations across the state.
Key Provisions:
Permit Requirements: All manufacturers, distributors, retailers, and carriers must obtain permits from the Alcohol and Tobacco Commission. Permits are non-transferable and subject to annual renewal with compliance verification.
Age Restrictions: Sales limited to individuals 21 and older. Minors prohibited from establishments where THC products are primary business. Strict penalties for violations including license suspension or revocation.
Testing and Labeling: All products require laboratory testing with certificate of analysis before sale. Packaging must include THC content, serving size, batch numbers, and health warnings. Child-resistant and tamper-evident packaging mandatory.
Tracking System: Seed-to-sale monitoring covers entire supply chain from cultivation through retail. Real-time inventory tracking required with state access for compliance verification.
Effective Date: July 1, 2026
Industry Impact: The pharmacy oversight model creates significant barriers for current retail channels. Gas stations, convenience stores, and specialty hemp retailers face potential market exclusion unless they can meet pharmaceutical-grade compliance standards. Small producers will struggle with testing costs and tracking system implementation.
Bill Status: Advanced through Senate Healthcare Committee. Strong bipartisan support suggests likely passage.
Read IN SB 250
Missouri Files Three Comprehensive Hemp Bills
Missouri emerged as this week's most active hemp legislation state with three bills addressing different aspects of the hemp market.
MO HB 2641 - Cannabis Framework Integration
Filed January 22, 2026 | Referred to Rules Committee
Proposes treating all hemp-derived cannabinoid products under the same regulatory framework as marijuana in Missouri.
Key Provisions:
Unified Regulation: Hemp-derived cannabinoid products must be cultivated, produced, and sold through licensed marijuana facilities. No separate hemp retail channel permitted.
THC Concentration Limits: Establishes specific concentration limits for hemp products aligning with marijuana product standards.
Enforcement: Missouri Department of Health and Senior Services designated as regulatory authority. Consumer privacy protections applied to hemp sales matching marijuana dispensary requirements.
Industry Impact: Effectively eliminates the current independent hemp retail market in Missouri. Existing hemp retailers would need to transition to marijuana facility licenses or exit the market. Small businesses face prohibitive licensing costs.
MO HB 2765 - Hemp Beverage Licensing
Filed January 22, 2026 | Referred to Judiciary Committee
Creates separate licensing framework specifically for hemp beverages.
Key Provisions:
License Types: Separate manufacturer, wholesaler, and retailer licenses. Annual renewal required with non-transferable status.
Product Limits: Maximum 10 milligrams THC per serving. Onsite consumption allowed for beverages under 5 milligrams THC per serving.
Age Restrictions: Sales limited to individuals 21 and older. Retailers must verify age with valid identification.
Excise Tax: 7% excise tax on retail sales of hemp beverage products.
Advertising Restrictions: Marketing cannot appeal to individuals under 21. Specific labeling requirements including consumer protection warnings and nutritional information.
Transition Period: Retailers and wholesalers given deadline to transition existing inventory to comply with new standards.
Industry Impact: Creates viable pathway for hemp beverage sector separate from full marijuana licensing. Lower barrier to entry compared to marijuana facility licenses. Excise tax adds cost burden but maintains market access.
MO SB 904 - Comprehensive Cannabis Integration
Voted Do Pass in Senate Judiciary Committee January 21, 2026
Most comprehensive of Missouri's three bills, establishing unified framework for hemp and marijuana regulation.
Key Provisions:
Consumer Privacy: Marijuana dispensaries prohibited from retaining consumer identifying information unless legally required. Privacy protections extend to all hemp-derived cannabinoid sales through licensed facilities.
Unified Licensing: Department of Health and Senior Services oversees all hemp-derived cannabinoid licensing. Same regulations apply as marijuana products.
Transportation Restrictions: Hemp-derived cannabinoid products can only be transported to and from licensed marijuana facilities. No independent hemp supply chain permitted.
Enforcement: Multiple state agencies coordinate enforcement including Department of Health, law enforcement, and regulatory authorities.
Bill Forecast: 95% likely floor vote in both House and Senate.
Industry Impact: Most restrictive of the three Missouri bills. Eliminates independent hemp industry entirely. Forces consolidation into existing marijuana facility infrastructure. Large marijuana operators positioned to benefit while small hemp businesses face exit.
Kansas Hemp Criminal Background Checks Advance
KS SB 248 - Hearing January 20, 2026
Kansas advances legislation updating criminal background check requirements for hemp producers and processors.
Key Provisions:
Background Checks: All hemp producers must undergo comprehensive criminal history checks through Kansas Bureau of Investigation. State Fire Marshal receives criminal history information for licensing decisions.
Disqualifying Offenses: Certain felony convictions disqualify individuals from obtaining or renewing hemp production licenses. Review period considers rehabilitation evidence.
Multi-Industry Impact: Bill also affects money transmitters, earned wage access services, and gaming operations with similar background check requirements.
Bill Forecast: 38% likely floor vote in House, 14% likely floor vote in Senate.
Low passage forecast suggests controversial elements or competing priorities may stall progress.
Tennessee Hemp Definition Alignment
TN SB 1652 - Passed Second Consideration, Referred to Senate Judiciary Committee January 21, 2026
Tennessee moves to align state hemp definition with federal standards from the Continuing Appropriations Act of 2026.
Key Provisions:
Definition Update: Refines hemp definition to specify Cannabis sativa L. plant and derivatives with total THC concentration not exceeding 0.3% on dry weight basis.
New Product Categories: Introduces clear definitions for hemp-derived cannabinoid products and industrial hemp to provide market clarity.
Effective Date: July 1, 2026
Bill Forecast: 88% likely floor vote in House with 95% passage rate. 85% likely floor vote in Senate with 95% passage rate.
Strong bipartisan support positions this for enactment.
Industry Impact: Clarifies legal framework for hemp businesses. Provides certainty for product development and marketing strategies. Reduces legal ambiguity for retailers and manufacturers.
Tennessee Records Retention Extension
TN SB 1761 / HB 1503 - Introduced, Passed First Consideration January 21, 2026
Simple but significant administrative change for hemp regulatory oversight.
Key Provision:
Changes Department of Agriculture record retention period from 5 years to 10 years for all hemp-related records.
Effective Date: Immediate upon enactment
Bill Forecast: 58% House floor vote with 95% passage. 63% Senate floor vote with 95% passage.
Industry Impact: Minimal operational impact but extends potential audit and investigation window for hemp businesses. Operators must maintain compliance documentation for longer periods.
Tennessee Promising Futures Act - Hemp Tax Redirection
TN HB 1979 / SB 2062 - Filed for Introduction January 22, 2026
Redirects hemp-derived cannabinoid product tax revenues to support child care programs.
Key Provisions:
Revenue Allocation: Taxes, fees, and assessments from hemp-derived cannabinoid products redirected to Promising Futures Fund supporting child care assistance for working families.
Program Funding: $5 million allocated for Child Care Workforce Scholarship Pilot Program. $5 million for CareShare Tennessee Pilot Program (employer-supported child care assistance). Smart Steps Plus Program receives remaining funds after first two programs fully funded.
Bill Forecast: 60% House floor vote with 95% passage. 44% Senate floor vote with 95% passage.
Industry Impact: Does not change tax rates but redirects revenue purpose. Provides political justification for hemp taxation by connecting to family support services.
Wisconsin Hemp Cannabinoid Regulations Advance
WI AB 747 / SB 682 - Coauthor Added January 20, 2026
Wisconsin's comprehensive hemp-derived cannabinoid product regulations continue gaining legislative support.
Key Provisions:
Age Restrictions: Sales prohibited to individuals under 21. Retailers must verify age with valid identification.
Testing Requirements: Manufacturers must submit all batch samples to accredited laboratories. Certification required for cannabinoid content and safety standards including contaminant limits.
Labeling Requirements: Comprehensive information required including manufacturer details, batch numbers, serving sizes, cannabinoid profiles, ingredient lists, and warning statements.
Packaging Standards: Child-resistant and tamper-evident packaging mandatory.
THC Limits: Hemp-derived cannabinoid beverages limited to maximum 10 milligrams THC per serving. Nonresealable containers restricted to two servings.
Export Provision: Allows export of hemp-extract products not approved for consumer sale within Wisconsin.
Bill Forecast: 89% Assembly floor vote with 33% passage rate. 86% Senate floor vote (AB 747) / 91% Senate floor vote (SB 682) with 51% passage rate.
Mixed forecast suggests controversy over specific provisions despite general support for regulation.
Industry Impact: Establishes clear regulatory framework providing certainty for compliant businesses. Testing and packaging requirements increase operational costs but create level playing field. Age restrictions eliminate youth market access concerns.
South Dakota Hemp Intoxicant Ban Fails
SD SB 61 - Failed January 22, 2026 (YEAS 14, NAYS 19)
South Dakota's attempt to ban hemp-derived intoxicants not for medical purposes was defeated in the Senate.
Proposed Provisions (Rejected):
Prohibited chemical modification of industrial hemp to create THC isomers (delta-8, delta-9, delta-10). Limited total THC per container to 0.4 milligrams. Banned chemically derived cannabinoids or those synthesized outside cannabis sativa plant.
Industry Impact: Defeat preserves current hemp-derived cannabinoid market in South Dakota. Businesses can continue operations without restrictive ban. Signals legislative resistance to complete prohibition approach.
Oklahoma Hemp Testing Standards Advance
OK HB 3013 - Authored by Representative Rosecrants February 2, 2026
Oklahoma proposes enhanced pesticide testing requirements for medical marijuana products.
Key Provisions:
Testing Requirements: Final harvest and production batch samples must be tested for specific pesticide analytes. Independent accredited laboratories conduct all testing.
Allowable Limits: Establishes specific permissible pesticide limits measured in parts per million (ppm) for various chemical substances.
Compliance Period: Medical marijuana testing laboratory licenses subject to monitoring and auditing. Inventory tracking through seed-to-sale system mandatory.
Effective Date: November 1, 2026
Bill Forecast: 86% House floor vote with 16% passage rate. 87% Senate floor vote with 39% passage rate.
Low passage rates suggest industry opposition to increased testing costs.
Industry Impact: Increases testing costs for cultivators and manufacturers. Laboratories gain additional testing revenue. Stricter standards may eliminate non-compliant operators.
Oklahoma Hemp Beverage Regulation
OK SB 2092 - Authored by Senator Paxton February 2, 2026
Authorizes Alcoholic Beverage Laws Enforcement (ABLE) Commission to regulate hemp beverages.
Key Provisions:
Regulatory Authority: ABLE Commission authorized to regulate hemp beverages alongside alcoholic beverages. Specific licenses required for sale.
Age Restrictions: Sales limited to individuals 21 and older. Aligns with existing alcoholic beverage age requirements.
License Requirements: Breweries, retail establishments, and mixed beverage licensees can apply for hemp beverage licenses.
Bill Forecast: 86% House floor vote with 64% passage rate. 87% Senate floor vote with 78% passage rate.
Strong passage forecast signals likely enactment.
Industry Impact: Creates clear regulatory pathway for hemp beverages. Existing alcohol license holders positioned to add hemp beverages to product lines. Regulatory clarity encourages market investment.
Oklahoma Controlled Substances Expansion
OK HB 3767 - Authored by Representative Turner February 2, 2026
Adds various cannabinoid compounds to controlled substance schedules.
Key Provisions:
Schedule Additions: Numerous synthetic cannabinoids and analogs added to Schedule I and IV controlled substances. Stricter regulations on specific chemical compounds.
Exemptions: Certain substances like Gamma-Butyrolactone may receive exemptions under specific conditions.
Bill Forecast: 86% House floor vote with 64% passage rate. 87% Senate floor vote with 78% passage rate.
Industry Impact: Increases regulatory compliance requirements for businesses handling these substances. Pharmaceutical, chemical manufacturing, and research sectors affected. May eliminate certain cannabinoid products from market.
State Cannabis Policy Updates
Nebraska Medical Cannabis Taxation Advances
NE LB 1235 - Kauth FA895 Filed January 22, 2026
Nebraska continues developing comprehensive medical cannabis framework including taxation structure.
Key Provisions:
Registry System: Patient and caregiver registry with eligibility criteria. Health care practitioner directory for issuing medical cannabis recommendations.
Commission Oversight: Nebraska Medical Cannabis Commission oversees licensing, regulation, and enforcement. Commission maintains patient confidentiality and manages cash fund for program administration.
Taxation: Specific tax rates established for marijuana and controlled substances. Revenue supports state funds and medical cannabis program administration.
Tax Exemptions: Registered individuals exempt from certain tax obligations to encourage program participation.
Bill Forecast: 78% likely Legislature floor vote with 95% passage rate.
Strong forecast signals Nebraska moving toward operational medical cannabis market.
Industry Impact: Creates structured legal market for medical cannabis. Healthcare practitioners must obtain authorization to issue recommendations. Dispensaries and cultivation facilities will need state licenses. Revenue generation supports program sustainability.
Hawaii Compassionate Medical Cannabis Access
HI HB 1542 - Introduced and Passed First Reading January 21, 2026
Representative Gregg Takayama (D) filed legislation expanding compassionate access to medical cannabis.
Bill Forecast: 35% House floor vote with 95% passage rate. 23% Senate floor vote with 95% passage rate.
High passage rates but low floor vote probability suggest the bill may face committee obstacles despite strong floor support if it reaches a vote.
Industry Impact: Expands patient access to medical cannabis. Dispensaries may see increased patient enrollment. Compassionate use provisions address underserved patient populations.
Illinois Cannabis Education Funding
IL HB 4515 - Filed with Clerk January 21, 2026
Establishes permanent Community College Cannabis Vocational Training Program.
Key Provisions:
Vocational Training: Cannabis Business Development Fund provides grants to community colleges for cannabis vocational training programs.
Social Equity Support: Cannabis Business Development Fund supports Qualified Social Equity Applicants with low-interest loans and grants. Targets minorities, women, veterans, and individuals with disabilities impacted by past cannabis laws.
Funding Transfer: Mandates $40 million transfer from Compassionate Use of Medical Cannabis Fund to Cannabis Business Development Fund.
Laboratory Standards: Establishes regulations for cannabis testing facilities including independence requirements and accreditation standards.
Bill Forecast: 34% House floor vote with 87% passage rate. 29% Senate floor vote with 95% passage rate.
Industry Impact: Creates workforce development pipeline for cannabis industry. Social equity applicants gain critical financial support for business entry. Testing laboratories face higher operational standards.
Washington Cannabis Reform Continues
Washington maintained its position as leading cannabis reform state with continued momentum on previously filed bills.
WA HB 2315 - Cannabis Oversupply Prevention
Public Hearing Scheduled January 30, 2026
Addresses cannabis oversupply through revenue thresholds and retail license limits.
Key Provisions:
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: 89% House floor vote with 69% passage rate. 86% Senate floor vote with 81% passage rate.
Strong forecast suggests likely enactment to address market oversupply concerns.\
WA SB 6195 - Cannabis Oversupply Prevention (Companion)
Public Hearing Scheduled January 26, 2026
Senate companion to HB 2315 with similar provisions addressing cannabis oversupply.
Bill Forecast: 25% House floor vote with 69% passage rate. 22% Senate floor vote with 86% passage rate.
Lower floor vote probability compared to House version suggests HB 2315 more likely path to enactment.
WA SB 6204 - Home Cultivation Legalization
Public Hearing Scheduled January 26, 2026
Legalizes home cannabis cultivation for individuals 21 and older.
Key Provisions:
Cultivation Limits: Up to six plants per person, maximum 15 plants per housing unit. Must be grown at primary residence.
Possession Limits: Specified amounts of cannabis products permitted for home cultivation participants without violating state law.
Non-Commercial Transfer: Adults can transfer cannabis products to other adults under specific conditions.
Bill Forecast: 11% House floor vote with 69% passage rate. 12% Senate floor vote with 81% passage rate.
Very low floor vote probability suggests controversial provisions or strong opposition preventing committee advancement.
Industry Impact: Home cultivation could reduce retail sales for dispensaries. Creates gray market concerns for law enforcement. Consumer access expands for personal use cultivation.
Virginia Medical Cannabis Facility Access
Multiple bills advancing to expand medical cannabis access in terminal care facilities.
VA HB 75 - Terminal Care Facility Access
Assigned to Health Subcommittee January 16, 2026
Mandates terminal care facilities allow terminally ill patients to use medical cannabis in accordance with Medical Cannabis Program guidelines.
Key Provisions:
Facility Requirements: Must allow medical cannabis use by cardholders. Prohibits smoking or vaping. Must document use in patient medical records. Requires written certification from patients.
Safety Measures: Facilities must implement storage and usage safety protocols to protect other patients and staff.
Exemptions: Does not apply to emergency departments or emergency medical services. Compliance not required for facility licensing.
Federal Contingency: Provisions contingent on federal marijuana rescheduling (not specified).
Bill Forecast: 80% House floor vote. 77% Senate floor vote.
VA HB 486 - Expanded Terminal Care Access
Assigned to Health Subcommittee January 21, 2026
Similar provisions to HB 75 with identical framework for terminal care facility access.
Bill Forecast: 82% House floor vote. 82% Senate floor vote.
Slightly higher forecast than HB 75 suggests stronger support or better positioning.
Virginia Comprehensive Cannabis Market Framework
VA HB 642 - Assigned to Subcommittee January 20, 2026
Establishes comprehensive framework for retail marijuana market in Virginia.
Key Provisions:
Cannabis Equity Reinvestment Fund: Supports communities historically affected by drug enforcement. Provides resources for education, workforce development, and legal defense.
Regulatory Authority: Virginia Cannabis Control Authority oversees licensing and enforcement. Promotes economic equity and restorative justice.
Tribal Sovereignty: Recognizes Virginia Tribal governments' rights to regulate marijuana on their lands.
Consumer Protection: Mandates health insurance coverage expansions. Addresses medical debt concerns. Controlled substance handling requirements.
Bill Forecast: 69% House floor vote. 56% Senate floor vote.
Moderate forecast suggests controversial elements may limit passage despite reform momentum.
Vermont Cannabis Regulation Expansion
VT S 278 - Read First Time, Referred to Committee January 21, 2026
Comprehensive amendments to Vermont's cannabis regulations significantly expanding market opportunities.
Key Provisions:
THC Limit Changes: Eliminates THC concentration limits for cannabis flower. Increases concentrate product limit to 70%.
Transaction Limits: Retail sales limit increases from one ounce to two ounces.
Tax Reduction: Cannabis excise tax reduced from 14% to 10%.
New Permit Types: Cannabis events (fee: $250), delivery services (annual fee: $500), on-premises consumption (annual fee: $1,000).
Advertising Reform: Removes prior approval requirement from Cannabis Control Board. Prohibits advertisements appealing to individuals under 21. No more than 30% of paid advertisement audience can be expected underage.
Municipal Authority: Municipalities can condition permit issuance based on local ordinances. Must hold vote on cannabis establishment authorization in 2026 general election.
Cannabis Business Development Fund: Provides grants and low-interest loans to social equity applicants and tier 1 cultivators/manufacturers. One-time contribution of $50,000 per integrated license. $1,000,000 appropriation from General Fund in fiscal year 2027.
Bill Forecast: 67% House floor vote with 17% passage rate. 82% Senate floor vote with 56% passage rate.
Low House passage rate suggests controversy despite Senate support.
Industry Impact: Dramatically expands market opportunities for cannabis businesses. Events and consumption venues create new revenue streams. Lower tax rates improve price competitiveness. Social equity fund supports diverse market entry.
Utah Medical Cannabis Program Modernization
UT SB 121 - Referred to Senate Health Committee January 21, 2026
Comprehensive updates to Utah's medical cannabis program focusing on licensing, testing, and access.
Key Provisions:
Licensing Updates: Refined cannabis production establishment and pharmacy licensing. Proximity restrictions to residential areas. Tightened eligibility excluding certain criminal backgrounds.
Product Standards: Clear labeling and packaging requirements including active ingredients, allergens, child-resistant and tamper-evident packaging. Branding restrictions prevent recreational marijuana associations.
Testing Laboratories: Independent cannabis testing laboratories must meet department performance standards.
Compassionate Use Board: Oversees approval process for medical cannabis cards, particularly for intractable conditions. Ensures timely patient access.
Patient Card Management: Streamlined application and renewal process. State electronic verification system enhances operational efficiency.
Nonresident Access: Nonresident patients can register for medical cannabis purchases during visits.
Industry Impact: Standardizes operational requirements across medical cannabis sector. Testing laboratory independence improves product quality assurance. Nonresident access potentially increases pharmacy traffic.
Mississippi Medical Cannabis Expansion
Multiple bills advancing Mississippi's medical cannabis framework.
MS HB 1152 - Right to Try Medical Cannabis Act
Title Sufficient Do Pass January 22, 2026
Expands medical cannabis access for chronic, progressive, severely disabling, or terminal illnesses not covered under existing Mississippi Medical Cannabis Act.
Key Provisions:
Petition Process: Treating medical providers submit petitions to State Department of Health. Department serves as sole authority determining patient eligibility.
Registry Cards: Approved patients can apply for registry identification cards. Treating providers must maintain bona fide relationship and certify petitions submitted in good faith.
Reevaluation: Approved patients reevaluated at least annually. Department can regulate type, form, or volume of cannabis authorized.
Annual Reporting: Department must report petitions received, granted, denied, and any trends or safety concerns.
Limitations: Does not permit violations of federal law. Does not interfere with employment drug policies or school regulations.
Industry Impact: Expands patient eligibility beyond current debilitating medical condition list. Dispensaries may see increased patient enrollment. Cultivation facilities gain larger patient market.
MS HB 1195 - Medical Cannabis Advertising Prohibition
Referred to Public Health Committee January 19, 2026
Prohibits all advertising and marketing of medical cannabis within Mississippi.
Key Provisions:
Advertising Ban: Prohibits any form of marketing in public spaces including electronic and non-electronic media.
Employment Background Checks: Criminal background checks required for medical cannabis establishment employees. Must adhere to federal standards including fingerprinting. Prohibits hiring individuals with disqualifying felonies or under age 21.
Work Permits: Employees must obtain work permit from state departments. Fee required, valid for five years.
Cultivation Restrictions: Medical cannabis must be cultivated within Mississippi. Transporting outside state prohibited.
Dispensary Limits: Can only sell to registered cardholders on-site. Certain topical products may be sold to individuals over 21 without card.
Data Privacy: State agencies prohibited from sharing registry identification cardholder information with federal entities.
Industry Impact: Advertising ban eliminates major marketing channels for dispensaries. Limits patient education and awareness. Employment background checks increase hiring costs but improve industry professionalism.
MS HB 513 - Public Health Fund Allocation
DR - TSDPCS: PH To AP January 22, 2026
Diverts portion of medical cannabis fees and fines to Mississippi Public Health Trust Fund.
Key Provisions:
Fund Allocation: 12.5% of all fees and fines collected by Mississippi Department of Revenue and Department of Health directed to Public Health Trust Fund for four years following enactment.
Sunset Provision: After July 1, 2030, all collected fees and fines redirected entirely to State General Fund.
Effective Date: July 1, 2026
Industry Impact: Does not change fee/fine amounts but redirects revenue purpose. Provides public health funding justification for medical cannabis program taxation.
Iowa Medical Cannabidiol Expansion
Multiple bills advancing to expand Iowa's medical cannabidiol program.
IA HF 990 - Dispensary License Increase
Subcommittee Recommends Passage January 21, 2026
Increases number of licensed medical cannabidiol dispensaries in Iowa.
Key Provisions:
Initial Licenses: Department required to license up to five dispensaries by April 1, 2018 (historical provision).
License Expansion: Potential to increase to ten licensed dispensaries.
Annual Licensing: Department must license new or relicense existing dispensaries by December 1 each year.
Bill Forecast: 95% House floor vote. 95% Senate floor vote.
Very strong forecast signals likely enactment.
Industry Impact: Increased dispensary licenses enhance market competition. Improves patient access through more locations. New market opportunities for medical cannabis operators.
IA HF 995 - Non-Resident Card Access
Subcommittee Assigned January 21, 2026
Eliminates residency requirement for medical cannabidiol registration cards.
Key Provisions:
Residency Elimination: Non-residents can obtain Iowa medical cannabidiol registration cards.
Bill Forecast: 81% House floor vote. 95% Senate floor vote.
Industry Impact: Market expansion through non-resident patients. Dispensaries may see increased sales from visitors and temporary residents. Cross-border medical cannabis tourism potential.
Maine Cannabis Tax Modifications
ME HP 1301 / LD 1942 - Work Session Held, Tabled January 21, 2026
Modifies tax structure for adult use cannabis, hemp, and hemp products.
Key Provisions (Effective January 1, 2026):
Hemp Product Tax: New 20% sales tax on hemp and hemp products containing THC.
Revenue Allocation Change: Sales tax revenue from adult use cannabis allocated to Adult Use Cannabis Public Health and Safety and Municipal Opt-in Fund decreases from 12% to 6%.
Excise Tax: 10% excise tax on average wholesale price of adult use cannabis sold by cultivation facilities to other licensees. No excise tax on transfers between cultivation and manufacturing facilities.
Payment Schedule: Excise tax payment transitions to quarterly basis with returns due 15th day of month following quarter end.
Bill Forecast: 87% House floor vote with 36% passage rate. 92% Senate floor vote with 15% passage rate.
Very low Senate passage rate suggests strong opposition despite House support.
Industry Impact: 20% hemp product tax significantly increases consumer costs potentially driving customers to unregulated market. Reduced municipal revenue allocation may impact local support for cannabis operations. Quarterly excise tax eases cash flow compared to monthly payments.
Maine Cannabis Testing Modernization
ME SP 603 / LD 1488 - Ordered Sent Forthwith, Passed House January 20, 2026
Removes prohibition on using same equipment for cannabis and hemp products.
Key Provisions (Effective April 3, 2025):
Equipment Flexibility: Licensed manufacturing facilities can use same equipment, supplies, and facilities for both cannabis and hemp products.
Testing Clarification: Further processing, manufacturing, or alteration does not include using cannabis extracts/distillates in baked goods or edibles except for specific testing (potency, homogeneity, cannabinoid profiles).
Bill Forecast: 95% House floor vote with 13% passage rate. 95% Senate floor vote with 7% passage rate.
Very low passage rates despite passing House suggests Senate opposition or concerns.
Industry Impact: Equipment flexibility reduces capital costs for manufacturers operating in both cannabis and hemp sectors. Improves operational efficiency. May raise concerns about cross-contamination if proper protocols not followed.
California Medicinal Cannabis Microbusiness Shipment
CA AB 1564 - From Printer January 13, 2026 | Hearing February 12
California continues advancing legislation allowing microbusinesses to ship medicinal cannabis directly to patients.
Bill Forecast: 75% Assembly floor vote with 85% passage rate. 80% Senate floor vote with 94% passage rate.
Strong forecast signals likely enactment addressing patient access crisis.
Arizona Cannabis Regulation Proposals
Multiple Arizona bills addressing cannabis policy including expungement, licensing, and cultivation.
AZ HB 2801 - Marijuana Expungement
House Second Reading January 21, 2026
Expands marijuana expungement eligibility for past offenses.
Key Provisions:
Eligibility: Individuals arrested, charged, adjudicated, or convicted of marijuana-related offenses (possession of small amounts, cultivation of limited plants) can petition for expungement.
Court Process: Court notifies prosecuting agency upon petition receipt. May hold hearing if disputes arise. Must grant petition unless prosecuting agency demonstrates ineligibility.
Fee: Reasonable fee from Department of Public Safety for criminal history record research and correction.
Rights Restoration: Civil rights restored including firearm possession rights (unless otherwise ineligible). Expunged records not accessible to public. Individuals can claim never arrested for expunged offenses.
Appeal: Direct appeal available if petition denied.
Industry Impact: Expungement removes barriers to cannabis industry employment. Increases eligible workforce for licensed operations. Supports social equity objectives.
AZ HCR 2037 - Marijuana Cultivation Amendments
Filed 2026 Regular Session
Proposes constitutional amendments to marijuana regulations.
Key Provisions:
Conviction Exclusions: Individuals with violent crime convictions barred from principal officer or controlling person positions in marijuana establishments.
Cultivation Canopy: Base cultivation canopy of 15,000 square feet per marijuana establishment. Dual licensees allowed combined 30,000 square feet. Licensees can distribute canopy across multiple facilities.
Residual Solvents: Specific limits for marijuana products produced through solvent-based extraction. Non-compliant products must be remediated or destroyed within 18 months.
Interstate Commerce: Prohibits interstate commerce of Arizona-cultivated marijuana unless federal law permits. Seed-to-sale tracking system ensures compliance.
Federal Registration: Department creates framework for licensees to engage with federal registration system for marijuana as controlled substance. Allows sharing licensing and compliance information with federal agencies.
Industry Impact: Violent crime exclusion removes certain individuals from industry participation. Canopy limits control production capacity. Solvent limits require operational adjustments. Federal registration framework prepares for potential Schedule III rescheduling.
AZ SB 1363 - Rural Opportunity Initiative
Filed 2026 Regular Session
Focuses on expanding marijuana access in rural underserved areas.
Key Provisions:
Geographic Priority: New dispensary certificates prioritized based on geographic need. Areas lacking dispensaries or at least 25 miles from existing dispensary receive priority.
Rural Initiative: Up to 18 marijuana establishment licenses and nonprofit medical marijuana dispensary certificates for rural communities. Promotes economic growth in underserved areas.
Application Process: Electronic applications accepted after initiative effective date. Comprehensive information required with local zoning compliance.
Social Equity Program: Mandates implementation of social equity ownership program promoting ownership by individuals from communities disproportionately affected by past marijuana laws.
Delivery Rules: Delivery of marijuana products unlawful until rules adopted by January 1, 2025 governing logistics and requirements.
Industry Impact: Rural license allocation creates new market opportunities outside metropolitan areas. Social equity requirements diversify ownership. Geographic prioritization ensures statewide access improvement.
Industrial Hemp Updates
Oregon Hemp Testing Protocols
333-064-0100 - Final Notice Published February 1, 2026
Oregon Health Authority finalized comprehensive regulations for marijuana and industrial hemp-derived product testing.
Key Provisions:
Sampling Protocols: Rigorous sampling procedures including representative sample collection from batches. Detailed documentation and proper transportation/handling required.
Chain of Custody: Emphasis on maintaining chain of custody and quality assurance measures to enhance testing reliability and integrity.
Quality Control: Laboratories must implement extensive quality control measures and maintain comprehensive documentation.
Contaminant Limits: Specific limits for residual solvents, heavy metals, and mycotoxins in cannabis products.
Industry Impact: Laboratories must invest in training, equipment, and compliance infrastructure. Operational costs increase for testing facilities and producers. Enhanced standards improve product safety and consumer protection.
South Dakota Industrial Hemp Revisions
SD SB 39 - Agriculture Committee Do Pass January 22, 2026 (YEAS 6, NAYS 1)
Revises South Dakota's industrial hemp regulatory framework.
Key Provisions:
Transport Documentation: Transporters must possess grower licenses and laboratory reports for compliance verification during transportation.
Cultivation Licensing: Only licensed producers permitted to cultivate hemp. Application process clarified with nonrefundable application fees.
Hemp Regulatory Fund: Established to manage application, license, and inspection fees supporting program administration.
Licensing Fees: Vary by license type with specific caps for grower and processor licenses plus inspection fees.
Compliance Testing: Mandatory testing by approved laboratories. Provisions for retesting if samples exceed THC concentration limits.
Bill Forecast: 95% House floor vote. 95% Senate floor vote.
Very strong forecast signals likely enactment.
Industry Impact: Clarified licensing requirements reduce regulatory ambiguity. Dedicated fund ensures program sustainability. Testing requirements increase operational costs but improve compliance assurance.
Hawaii Industrial Hemp Bills
Two industrial hemp bills filed in Hawaii Senate.
HI SB 2102 - Referred to AEN, CPN January 22, 2026
Bill Forecast: 44% House floor vote with 95% passage rate. 33% Senate floor vote with 95% passage rate.
HI SB 2178 - Introduced and Passed First Reading January 21, 2026
Bill Forecast: 41% House floor vote with 95% passage rate. 25% Senate floor vote with 95% passage rate.
Both bills show high passage rates but low floor vote probability suggesting potential committee obstacles.
Farm Bill Activity
Alaska Department of Agriculture Establishment
AK SB 128 - Senate Rules Committee January 21, 2026
Establishes standalone Department of Agriculture in Alaska, transferring functions from Department of Natural Resources.
Key Provisions:
Commissioner Authority: Oversees agricultural activities including commercial and noncommercial agriculture promotion, agricultural product transportation regulation, and industrial hemp production management.
Cannabis Oversight: Commissioner can issue stop orders for cannabis plants exceeding specific THC levels. Licensing and inspection of elk farming operations.
Seed Exchange Framework: Noncommercial seed exchange established with online registration benefiting small-scale farmers and seed-sharing initiatives.
Forgivable Loan Program: Enhances food supply resiliency by funding agricultural investments.
Plant Materials Center: Department collaborates with University of Alaska to establish plant materials center.
Agricultural Land Access: Increased commissioner powers regarding land classification and disposal. Preference rights for individuals who have improved state or federal land. Lottery sales of agricultural land to facilitate resident access.
Bill Forecast: 5% House floor vote. 5% Senate floor vote.
Very low forecast suggests significant obstacles to passage.
Industry Impact: Centralized agricultural authority could streamline hemp program administration. Stop order authority for THC-exceeding plants provides enforcement mechanism. Agricultural land access provisions support hemp cultivation expansion.
Iowa Agricultural Omnibus Bill
IA HSB 588 - Subcommittee Assigned January 20, 2026
Comprehensive agricultural legislation affecting multiple sectors including renewable fuels, local food programs, and regulatory frameworks.
Key Provisions:
Renewable Fuel Infrastructure: $5 million annual allocation for facilities enhancing renewable fuels from corn or soybeans.
Choose Iowa Expansion: Supports individuals producing, processing, or marketing Iowa agricultural products. New school purchasing program with matching reimbursements.
Butchery and Dairy Programs: Promotes small-scale meat processing and expands dairy processing capacity prioritizing beginning farmers.
Weight Limit Increases: Vehicles transporting fluid milk products receive increased weight limits.
Tax Provisions: Eliminates excise taxes on grain handling. Tax exemptions for honeybees and certain aboveground storage tanks. Agricultural tourism scope broadened. Income tax exemptions for farm tenancies and veterinary practice loan repayments.
Bill Forecast: 5% House floor vote. 5% Senate floor vote.
Very low forecast suggests controversial provisions or competing priorities limiting advancement.
Industry Impact: Renewable fuel infrastructure benefits corn and soybean producers. Choose Iowa program supports local agricultural product marketing. Tax exemptions reduce operational costs for specific sectors.
Key Compliance Deadlines
January 28, 2026: New Mexico hemp extraction regulations in effect
February 12, 2026: California AB 1564 (medicinal cannabis shipments) committee hearing
April 13, 2026: New Jersey hemp inventory liquidation deadline
July 1, 2026: Indiana SB 250 (hemp-derived cannabinoid regulations) effective. Tennessee SB 1652 (hemp definition alignment) effective. Washington HB 1067 (cannabis licensing transfer to Dept. of Agriculture) effective if passed. Mississippi HB 513 (public health fund allocation) effective
November 1, 2026: Oklahoma HB 3013 (medical marijuana testing requirements) effective
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). With 290 days until the November federal deadline, concentrated advocacy remains critical. Focus messaging on economic impact, job preservation, and small business survival.
Indiana Hemp Operators
Monitor SB 250 advancement through legislative process. Prepare for July 1, 2026 compliance deadline. Document operational costs for testing, tracking, and pharmaceutical-grade compliance standards. Evaluate whether current retail channels can meet permit requirements or if business model adjustments necessary.
Missouri Hemp Businesses
Critical decision point approaching with three competing regulatory frameworks (HB 2641, HB 2765, SB 904). HB 2765 (hemp beverages) offers most viable pathway for continued hemp market participation. SB 904 and HB 2641 effectively eliminate independent hemp retail. Engage with trade associations to support HB 2765 and oppose full marijuana integration models.
Tennessee Hemp Operators
SB 1652 alignment with federal hemp definition provides regulatory clarity. Prepare for July 1, 2026 effective date. Review product formulations and marketing materials to ensure compliance with refined definitions.
Wisconsin Hemp Businesses
AB 747/SB 682 establishes comprehensive regulatory framework. Mixed passage forecast (high floor vote probability but lower passage rate) suggests controversial provisions. Engage legislators to support balanced regulation. Prepare for testing, labeling, and packaging compliance requirements.
Oklahoma Hemp Beverage Manufacturers
SB 2092 creates clear regulatory pathway through ABLE Commission. Strong passage forecast (78% Senate) signals likely enactment. Begin preparation for license application process. Review products for age restriction and THC limit compliance.
California Microbusinesses
AB 1564 February 12 hearing approaching. Strong passage forecast (94% Senate) signals likely enactment. Prepare for direct patient shipment capabilities. Update record-keeping systems for physician recommendation verification.
All States
Monitor state legislative sessions closely. With 290 days until federal deadline, state-level activity will continue accelerating. Review PolicyNote tracking or state legislative websites weekly for new bills and regulatory proposals affecting your operations.
The Bottom Line
This week's 94 tracked policy items demonstrate states continue aggressive positioning ahead of the November federal deadline. Missouri's three-bill approach illustrates the range of regulatory frameworks under consideration: complete marijuana integration (SB 904, HB 2641), separate hemp beverage licensing (HB 2765), or hybrid approaches. The outcomes in Missouri will influence other states' approaches.
Indiana's advancement of comprehensive hemp regulations with pharmacy oversight represents the most restrictive model gaining traction. If enacted, the pharmacy-only approach creates a precedent that conservative states may replicate. The framework effectively eliminates most current retail channels while claiming "regulation not prohibition." Industry must counter this narrative aggressively with economic impact data and small business testimony.
Wisconsin's AB 747/SB 682 mixed forecast (high floor vote probability, lower passage rate) reveals the challenge of balanced regulation. The bill has sufficient support to reach floor votes but faces opposition over specific provisions. This pattern suggests negotiation and compromise will be necessary for enactment.
Washington's continued cannabis reform momentum contrasts sharply with hemp restriction trends elsewhere. The state's comprehensive approach to adult use cannabis provides a model for mature market regulation. Home cultivation legalization (SB 6204) faces obstacles despite reform momentum, illustrating ongoing tensions around personal cultivation even in progressive states.
Nebraska's medical cannabis taxation framework advancing to 78% likely floor vote demonstrates another state moving toward operational medical programs. The comprehensive approach including registry systems, commission oversight, and clear taxation structures provides predictability for business planning.
South Dakota's defeat of the hemp intoxicant ban (SD SB 61) offers a rare victory for the hemp industry. The 14-19 vote demonstrates legislative resistance to complete prohibition approaches. This defeat may embolden other states facing similar ban proposals to oppose rather than compromise.
The geographic split continues: conservative states moving toward restrictive pharmacy-only or marijuana integration models while progressive states expand access through comprehensive licensing frameworks. The middle ground of balanced hemp regulation without complete market elimination appears increasingly difficult to achieve politically.
With 290 days until the federal deadline, the next several months will determine state regulatory frameworks for the next decade. Federal advocacy for HR 7024 remains critical, but state-level engagement now carries equal importance. Industry cannot rely solely on federal extension - state frameworks are being locked in regardless of federal timing.
Take Action With AHAA
Hemp and cannabis policy affects patients, businesses, farmers, and communities nationwide. AHAA's Action Center empowers you to engage directly with policymakers.
Visit AHAA Action Center at https://myhealthyusa.org/pages/ahaa-action-center
Contact representatives about HR 7024. Submit public comments on state regulations. Stay informed on legislative developments. Join advocacy campaigns.
Join the AHAA Movement
Your membership fuels our advocacy efforts, policy research, and educational initiatives.
Explore AHAA Membership Options at https://myhealthyusa.org/collections/ahaa-membership
Join your State's Chapter at https://myhealthyusa.org/pages/about-ahaa-state-chapters
This report was compiled by the American Health Alternatives Association (AHAA) team. For questions or additional information, contact us.
