420 with CNW — Discussions to Legalize Marijuana Market Reach Pivotal Stage in Pennsylvania

Governor Josh Shapiro and Pennsylvania’s lawmakers are rushing to reach a deal on next year’s budget. With the deadline of July 1 fast approaching, there are still major disagreements over how to cover Shapiro’s proposed spending increases, particularly with a government split between Democrats controlling the House and Republicans holding the Senate.

One of the central goals for the governor and his Democratic allies is to boost funding for public education and transit systems. Republican lawmakers don’t oppose those ideas outright but are more focused on controlling costs, especially rising Medicaid expenses and the widespread use of “skill games”—video gambling machines found in convenience stores, restaurants, and standalone venues.

Shapiro’s spending plan for the FY 2025/26 totals $51.5 billion, marking a 9% increase over the current year. Around $2.5 billion is targeted for Medicaid, partly due to unexpected healthcare costs that arose when individuals remained eligible for Medicaid after the COVID-19 emergency ended. Lawmakers could attempt to delay some of this burden by underestimating costs or deferring payments to hospitals and other providers.

One of the thorniest issues is how to close the projected deficit. Although Shapiro doesn’t propose any hikes to income or sales taxes, his plan leans heavily on reserve funds of $4.5 billion. He is also counting on higher revenue from new tax streams tied to cannabis legalization, changes in corporate taxation, and tighter regulation of skill games. However, all of that depends on legislation still up in the air.

The governor is also proposing an extra $800 million for public schools and universities. Approximately $526 million of this is intended to start complying with a court ruling that said the current school funding formula is unfair to low-income districts. Meanwhile, a separate bill seeks to cut cyber charter school reimbursements, which could save public districts hundreds of millions if it passes the Senate.

Social services providers are also pushing for more money, especially organizations offering home care to Medicaid patients. They’re asking for a 10% ($370 million) bump, citing chronic staff shortages caused by low pay.

Shapiro also wants to boost funding for public transit by $283 million, roughly a 20% jump, to help transit systems recover from pandemic-era ridership declines. Democrats are on board, but Republicans want highway projects to receive comparable attention, possibly funded through revenue from skill game taxes.

The House recently passed a bill to raise the state’s minimum wage above the federal level of $7.25 per hour. Under the proposal, more populated counties would see faster and steeper increases. However, Senate GOP leaders have signaled opposition, casting uncertainty over whether the plan will move forward.

Cannabis industry actors from around the country, such as Curaleaf Holdings Inc. (TSE: CURA) (OTCQX: CURLF), will be hoping that Pennsylvania legalizes marijuana so that residents who wish to consume the substance can legally access it instead of taking risks by resorting to the black market.

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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — Marijuana’s Skunky Smell Could Soon Be a Thing of the Past

Not far from the highway, down a stretch near the local sheriff’s station, there’s a high-security facility surrounded by barbed wire. If you happen to drive past, you might catch a sharp, earthy scent in the air, which some call skunky and others say smells like fuel. Either way, it’s unmistakably the scent of cannabis.

The facility is home to District Cannabis, where over 15,000 pounds of marijuana flower are grown annually. Founder and lead cultivator Andras Kirschner proudly calls it their dream “weed factory.” Inside, the air is thick with earthy plant aromas, hints of citrus, and soft floral notes. The familiar strong, skunky odor that used to define marijuana is fading, replaced by sweeter and fruitier profiles as new strains emerge.

According to Pamela Dalton, a Monell Chemical Senses Center smell researcher, the growing popularity of recreational cannabis is pushing the market toward more appealing fragrances. “When people are using it for enjoyment, they want the experience to be pleasant from start to finish,” she explains. This has led to more crossbreeding and new strains with smells that are easier on the nose.

The District Cannabis facility grows thousands of young plants in warm, humid rooms until they’re ready for harvest. Once matured, they’re dried, trimmed, and packaged for sale. Kirschner’s strain, Layer Cake, recently earned top honors in a regional cannabis competition. A related strain called Gelato Cake, also grown on-site, continues to be a strong seller in Maryland and D.C.

Kyle Perrell, operations manager at the facility, says Gelato Cake gives off a complex mix of grape sweetness, a touch of cognac, and a sharp, kerosene-like finish. These layered smells come from terpenes—natural compounds also found in fruits, herbs, and trees. Gelato Cake’s leading terpenes include linalool, caryophyllene, and limonene, which contribute spicy, citrus, and floral notes.

Although many still associate marijuana with that classic skunk smell, new research has identified sulfur compounds as the true source of the strong odor. “We’re extremely sensitive to sulfur,” Dalton says. “Even small amounts can dominate what we smell.” That’s why some strains still hit hard with that pungent scent, even when mixed with more pleasant terpenes.

Each area of the District Cannabis facility carries a signature scent. In one greenhouse, the strain Pavé puts out an intense, earthy, and minty smell. Nearby, in the curing room, Cherry Limeade Cake hangs to dry. Workers in the trimming room carefully shape buds from a new hybrid called Berry Payton, a mix of tropical Runtz and a strain called Gary Payton, filling the air with a blueberry-like scent.

Still, the end goal isn’t just to grow something that smells good. The marijuana grown here goes straight to market, whether as buds, vape oil, edibles, or pre-rolled joints. The facility can produce up to 4 million joints per year, though Kirschner admits they’re not selling at that volume yet.

It would be interesting to hear what long-established cannabis entities like Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) have to say about the fraction of their customers who still insist on buying products having the classic skunky smell of marijuana in comparison to those who prefer the newer, less pungent aromas.

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420 with CNW — Study Finds That Market Forces Are Reducing Biodiversity in Marijuana Plants

A new study on marijuana genetics reveals that the legal cannabis industry may be unintentionally reducing the plant’s genetic diversity. The push for faster-growing plants with higher cannabinoid content, mainly for economic and regulatory reasons, has led to a narrowing of the genetic pool.

The study, conducted by graduate student Caleb Y. Chen at California State Polytechnic University, Humboldt, draws from both genetic data and interviews with cannabis breeders. According to Chen, selective breeding practices in the current “post-prohibition” market are creating what he refers to as a genetic “bottleneck.”

While humans have always shaped cannabis genetics to suit their needs, recent breeding has focused narrowly on certain traits like high THC levels, a strong terpene profile, and consistency in chemical composition.

These choices may make sense in a market driven by regulation and consumer demand, but they come at a cost. In an earlier paper from 2021, Chen pointed out that many growers select high-THC strains not because they prefer them, but because state regulations and consumer expectations push them in that direction. As a result, genetic variation is being lost.

The issue isn’t exclusive to cannabis. Many crops face similar reductions in genetic variety due to selective breeding. However, cannabis seems especially vulnerable. The study highlights that what are often described as “wild” marijuana plants today are most likely just escaped domestic strains, not true wild varieties.

Natural processes like wind pollination can spread pollen from hybrid plants to local landrace strains, erasing their distinct genetic identities. This kind of contamination has been reported in countries like Thailand, Jamaica, India, and Mexico.

Chen warns that even without the history of prohibition, the cannabis plant is at risk of becoming genetically uniform. Today, only a small number of cultivars dominate the global market. These strains are treated much like other mass-produced crops, with little regard for preserving their genetic uniqueness.

He also points out that “craft marijuana,” while often used as a marketing label, represents a smaller, more diverse subculture within the industry. Some breeders and growers believe that current testing methods overlook certain compounds that contribute to the overall experience of using cannabis.

Chen’s research also touches on marketing practices, noting that commercial interests sometimes lead to misleading labels on cannabis strains. Growers may intentionally misname their products to meet consumer expectations or fit into regulatory categories.

The study concludes that modern cannabis regulations, falling product prices, and the push for higher yields are all contributing to reduced genetic diversity. It urges policymakers to recognize the importance of maintaining diverse cannabis genetics and recommends that breeders’ knowledge be taken seriously in future regulatory decisions.

It would be interesting to hear what major cannabis brands like Cresco Labs Inc. (CNX: CL) (OTCQX: CRLBF) think about concerns that marijuana genetic diversity is being sacrificed at the altar of commercial interests.

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420 with CNW — Facebook Appears to No Longer Censor Marijuana Searches

Earlier this year, Meta stated it would shift how it handles controversial topics by loosening certain content rules, particularly around issues frequently debated in politics, such as gender identity and immigration. However, when it came to cannabis, the company continued to censor search results for key terms. Instead of showing related content, users saw alerts asking them to report any drug sales.

The restriction appears to have been lifted, with searches that were previously blocked now delivering actual results and the earlier warnings no longer appear. Though many digital platforms enforce rules against selling drugs and limit who can view substance-related posts, Meta’s actions drew criticism for being too broad and silencing legitimate content meant to educate and inform.

Previously, typing in phrases like “Marijuana Policy Project” or “Massachusetts Cannabis Control Commission” on Facebook returned zero results—just a notice encouraging people to flag drug-related posts. That no longer seems to be the case. It’s unclear exactly when the policy was revised.

NORML’s political director Morgan Fox had spoken out about the impact of Meta’s restrictions saying they severely limited how advocates could reach the public. After noticing the shift in search results, he expressed hope that the changes were permanent and wouldn’t just be a short-term adjustment. He also stressed the need for Meta to implement more consistent and transparent moderation systems to avoid repeated censorship of advocacy and educational content.

Kat Murti, who leads Students for Sensible Drug Policy, welcomed the search update but pointed out that issues persist. She mentioned meeting with Meta more than a year ago to highlight concerns, including how the platform’s algorithms were limiting visibility for accounts following the law and supporting public safety.

Meta’s influence in shaping public access to information is massive, Murti said. People turn to these platforms for life-saving advice on overdose prevention, civic engagement, and drug policy reform. Yet much of this content still faces unnecessary censorship, she added.

Illustrator Brian “Box” Brown, a long-time critic of Meta’s policies, said he’s noticed some changes, too. While his posts aren’t getting flagged as frequently, the reach of some cannabis-related content still feels throttled. Brown, who once toned down his own content to avoid penalties, said he now plans to stop self-censoring and see how the platform responds.

Despite growing legalization across states, social media platforms continue to flag and restrict cannabis content, prompting many creators to look for alternative spaces to connect with their audiences.

Any positive adjustments to the policies of major social media platforms are likely to be welcomed by the marijuana industry, including entities like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) that closely observe what is happening in the U.S.

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420 with CNW — Could Hemp-Sourced THC Finally Push Congress to Act?

Congress is finally moving toward addressing laws tied to the marijuana industry after years of inaction. However, instead of expanding support—such as allowing marijuana businesses access to banking services, easing tax burdens, or opening up interstate trade—lawmakers are shifting their focus to restricting products made from hemp-derived THC.

Industry experts and lobbyists say a recent GOP-backed budget plan, introduced in the House and passed by a subcommittee, aims to outlaw products made with hemp-derived THC at the federal level. Even if the proposal doesn’t make it through Congress, it signals a turning point. Many in the industry now believe the relatively unregulated days of online sales and storefronts may be nearing an end.

According to Michael Bronstein, head of the American Trade Association for Cannabis and Hemp, it’s no longer a question of whether Congress will act, but when and how extensively.

The controversy picked up speed when Representative Andy Harris proposed a redefinition of “hemp” that would close what many view as a legal gap in the 2018 Farm Bill. Harris argues that the law has allowed for the unchecked sale of intoxicating hemp products—like delta-8 THC and THCA flower—via gas stations and websites, without oversight.

His amendment, which narrowly passed its first vote, seeks to ban high-THCA hemp flower and remove lab-created cannabinoids like delta-10 THC and THCP from the legal definition of hemp. If adopted, the change could force many hemp producers and sellers to shut down or drastically alter their businesses. Still, who would enforce such a ban and how effective it would be remains unclear.

Despite this push, Harris’ proposal faces significant challenges. Democrats are unlikely to support a bill that also includes heavy cuts to social programs. And given the narrow GOP majority in the House due to recent retirements, a bill that loses just a few Republican votes could be dead on arrival.

Moreover, states with large hemp farming industries like North Carolina and Kentucky may resist changes that could hurt their agricultural economies. Many lawmakers seem unwilling to upset the farmers and small businesses that invested heavily under the original Farm Bill.

Christopher Lackner, who leads the Hemp Beverage Alliance, said there’s confidence Congress won’t abandon the industry. He pointed out that President Trump, who signed the original Farm Bill, is still in office, which gives advocates hope.

Interestingly, Harris’ proposal has sparked unity among competing marijuana sectors. Instead of dividing hemp and marijuana stakeholders, it has brought them together in opposition. Liquor distributors, too, are backing hemp products to make up for falling alcohol sales.

Advocacy groups are now using this moment to better inform legislators about regulated hemp and the success of sensible rules in certain states. Meanwhile, many on Capitol Hill agree that the situation created by the 2018 bill needs fixing—but they’re wary of swinging the pendulum too far in the other direction.

Marijuana companies like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) from inside and outside the U.S. will be watching any decisions that federal lawmakers make on the hemp derivatives since this could have significant impacts upon the hemp and marijuana industries.

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420 with CNW — Sky News Investigation Uncovers Illicit Marijuana Sellers in the UK Using QR Codes to Attract Buyers

While walking through Burton upon Trent, Steve noticed unusual stickers on lampposts and bins with a shiny green marijuana leaf, a QR code, and the phrase “get your delivery.” Curious, he scanned the code with his phone and was taken to a polished website selling cannabis in various forms—vapes, oils, gummies, buds, and even pre-rolled joints.

Steve had recently moved to the area and was dealing with severe pain from a back injury. He wanted an alternative to prescription opioids but didn’t feel safe buying drugs on the street. The site he found operated like a legitimate online store. It offered next-day delivery, had a variety of products, and included positive reviews on platforms like Trustpilot and Google.

He remembers being nervous the first time he ordered. “The package smelled strong,” he said. “It was shaped to fit through the letterbox, so the postman just dropped it in without a knock.”

Stickers just like the ones Steve saw have appeared in cities and towns across the UK—places like Birmingham, London, Glasgow, Shrewsbury, and even near police stations and schools. An investigation by Sky News discovered at least three different sticker styles, each linking to separate but related websites. All of them had professional branding, and their backend code revealed a rotating list of bank accounts and business names used during purchases.

The businesses are tied to a group of Lithuanian nationals, many of whom are linked to addresses in East London. One of these addresses is connected to a convicted criminal from Lithuania. Mail tracking data suggests the shipments are processed through a local Romford mail center. Moreover, a TRM Labs digital wallet analysis found that one of the websites had taken in over $100,000 by mid-March, which likely understates the total, as many buyers use traditional bank transfers.

When investigators visited a woman who owns two of the homes tied to the operation, she claimed to know nothing about it and said the people involved had since left the country.

Tony Saggers, formerly with the National Crime Agency, says this kind of operation shows how drug sales have moved from the dark web to regular websites, making access easier for everyday users. The volume of products being sold also points to large-scale cannabis production, likely within the UK.

Ben, a student at the University of York, scanned a sticker out of curiosity. He’d never used drugs before but said the sleek website made it feel like a real online store. He received a £10 ($13.57) joint in clean packaging but didn’t like the experience and chose not to repeat it.

Dr. Simon Erridge, from Curaleaf Clinic—a legal medical cannabis provider—warns people like Ben and Steve are gambling with their health. His clinic’s research found that 90% of seized marijuana samples had contaminants like mold, lead, or bacteria. Other tests showed many samples didn’t even contain real marijuana, with some having dangerous synthetic substances.

Despite the risks, more people are turning to online sources. A survey found that while friends and dealers remain common suppliers, online sales—especially through QR codes—are rising, particularly among younger adults.

While law enforcement is aware of the sticker campaign and its connection to drug sales, they’ve made few arrests. Officers in some regions now remove the stickers when they find them and encourage others to do the same. However, police say many of these websites operate from outside the UK, making enforcement difficult.

The proliferation of illicit marijuana sales in the UK underscores the necessity to revisit the country’s drug policies and possibly create a regulated market where companies similar to Trulieve Cannabis (CNX: TRUL) (OTCQX: TCNNF) can operate legally and have their products meet the set standards prior to market entry.

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420 with CNW — The Unseen Immigration Risks Associated with Working in the Marijuana Industry

With the current presidential administration putting a spotlight on immigration enforcement, it’s more important than ever for employers to make sure their hiring and employment practices follow federal immigration rules. This is especially critical for businesses involved in the legal marijuana industry at the state level. Even though more states are legalizing marijuana for medical and recreational use, federal law still lists marijuana as a Schedule I controlled substance—meaning it is treated as illegal under federal statutes.

For individuals who are not U.S. citizens, any connection to marijuana—even if it’s legal under state law—can lead to serious immigration consequences. According to federal immigration law, someone who has been convicted of or has admitted to using or being involved with controlled substances may be denied entry to the U.S., barred from getting a visa, or even deported. This includes lawful permanent residents (green card holders), who can be removed from the country if they’re convicted under these drug laws, unless the offense is a one-time possession of under 30 grams.

The law broadly defines drug trafficking to include cultivating, producing, selling, distributing, financing, or helping in any way with these activities. Because of this wide definition, people working in state-legal cannabis roles—from farm workers to delivery drivers, investors, or managers—could fall under the label of “traffickers” in the eyes of immigration officials.

That includes workers on temporary visas like the H-2A visa used for agricultural labor. Even if the work is legal in their state, involvement in cannabis may disqualify them from future visa applications and can open employers up to serious penalties if they failed to disclose the nature of the job during the visa process.

Non-citizens applying for visas or entering the U.S.—even just for a short visit—may be refused entry if they have cannabis-related convictions or involvement. The U.S. Department of State’s Foreign Affairs Manual gives consular officers wide discretion to deny visas based on even a hint of participation in cannabis activity.

The impact doesn’t stop there. Permanent residents applying for U.S. citizenship must demonstrate “good moral character.” Violations of drug laws—whether through conviction or admission—can prevent them from meeting this requirement during the eligibility period, which is either three or five years, depending on how they received their green card.

For these reasons, people who are not U.S. citizens should steer clear of cannabis-related work or business, no matter what state law permits. Likewise, employers in the cannabis industry should avoid hiring non-citizens to reduce the risk of legal trouble for both the business and the employee. Federal immigration rules still apply, and violating them—knowingly or not—can have serious consequences.

These persisting prohibitionist policies against marijuana despite the changing societal attitudes to the substance are probably a concern to industry actors like Tilray Brands Inc. (NASDAQ: TLRY) (TSX: TLRY) that have worked hard to avail licensed products that provide value to users, whether for recreational or medical purposes.

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420 with CNW — Missouri Officials to Make Unannounced Cannabis Retail Location Visits to Test Products

Missouri’s marijuana oversight agency will kick off a new initiative aimed at ensuring cannabis products on store shelves are truly safe from next month. Inspectors from the Division of Cannabis Regulation will begin making unannounced visits to dispensaries each month, collecting roughly 50 products for independent analysis at the Missouri State Public Health Reference Laboratory. These samples will be tested for contaminants such as pesticides, mold, and other potential hazards.

According to Ryan Bernard, who leads the division’s research and testing team, the program has been in the pipeline for some time. It’s designed to add an extra layer of accountability for the state’s licensed cannabis testing labs. Bernard said they’re not expecting any red flags, saying, “We won’t know what we’re dealing with until we see the data, but I trust our labs are following the rules.”

However, some experts in the national marijuana testing industry aren’t so optimistic. Josh Swider, a lab executive and vice chair of a national cannabis lab working group, warned that similar surprise testing programs in other states have revealed serious issues. He pointed to a case in Arizona where a lab was cited for over a dozen violations, including faulty methods for detecting pesticides and misleading potency results.

Swider also noted that a common issue across the U.S. is inflated THC numbers, which can mislead consumers about product strength. Missouri may encounter the same problems, he added.

Previously, Missouri regulators had discussed a program where licensed labs would cross-check each other’s results—a concept known as “round robin” testing. Although considered critical by Division Director Amy Moore, the plan never materialized. Instead, the upcoming random sampling will serve as the state’s first attempt at independent oversight.

Lawmakers have already begun funding the effort, allocating $3.8 million for the testing initiative in FY 2024/25. However, much of it went unused due to delays in setting up the necessary lab systems. Another $2.4 million was set aside for the current year, with a similar amount approved for the upcoming fiscal year.

Bernard acknowledged that testing 50 products out of the hundreds of thousands available in the market barely scratches the surface. Still, he described the effort as an early step toward broader oversight. He added that supply delays, equipment problems, and other challenges have slowed the rollout.

Last year, experts raised concerns over Missouri’s testing ecosystem during a cannabis industry conference. It was revealed that one lab— “Lab D”—handled 82% of testing in the state and reported significantly fewer mold contamination cases than others. While most labs in Missouri reported mold detection rates around the national average of 3.8%, Lab D’s rate was below 0.5%. This raised suspicions that some issues may be slipping through undetected.

Even so, Bernard said he stands by the current system. “All labs are required to meet the same standards,” he said. “Without further investigation, I believe the testing is being done properly.”

The broader marijuana industry, including companies like TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF), is likely to welcome the efforts geared at assuring consumers in Missouri that the products they buy from licensed outlets are exactly what their labels say they are.

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420 with CNW — Marijuana CEO Asks Texas Governor to Veto Bill Banning THC

Texas is on the verge of banning a wide range of THC-infused items like vapes, edibles, and beverages. A newly approved bill by state lawmakers is now in the hands of Governor Greg Abbott, who will decide whether to sign it into law.

If Abbott approves the bill, it would introduce new felony charges for activities such as producing, distributing, or intending to distribute certain hemp-based products. The proposal also outlines penalties for falsifying lab reports and operating without proper authorization. Some violations would be classified as misdemeanors and could lead to fines or even jail time.

Under the proposed changes, all hemp products containing synthetic cannabinoids would be banned. However, non-psychoactive compounds like CBG and CBD would remain legal. The state’s limited medical marijuana program, which allows specific low-THC treatments for qualifying health conditions, would likely continue unaffected.

Peter Barsoom, the founder and CEO of marijuana brand 1906, is speaking out against the bill. He argues it disregards the needs of many adult users, including military veterans, who rely on hemp products as part of their daily health routines.

When asked why traditional medications like Tylenol and Advil aren’t enough for pain relief, Barsoom explained that many adults have found hemp products to be more effective. He cited both personal experiences and scientific studies as evidence that cannabis-based options can offer real benefits for certain individuals.

Barsoom emphasized that people should have options when managing their health. “We’re not saying cannabis is the best solution for everyone,” he said. “But people deserve the freedom to choose what works for them, whether it’s a prescription drug, an over-the-counter remedy or a marijuana product.”

He also believes the bill was rushed through due to political pressure, particularly from Lieutenant Governor Dan Patrick. Patrick has made cracking down on THC a top priority, saying it’s necessary to protect young people from substance abuse. He also criticized the media for not giving the issue enough attention.

Barsoom warns that the ban could wipe out jobs and hurt legitimate businesses. “If this passes, Texas could lose thousands of jobs and force responsible companies like ours out of the market,” he said. “The state should focus on smart regulation instead of rushing into an all-out ban.”

His message to Abbott: “Veto this bill. Don’t take away a vital option from people who truly need it. Push for real, practical regulation instead of an all-out ban.”

It would be eye-opening to hear what marijuana firms like SNDL Inc. (NASDAQ: SNDL) have to say about the regulatory direction that Texas is taking with relation to hemp-derived intoxicants.

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420 with CNW — Are the Days of THCA Now Numbered?

Steven Brown, the CEO of Nothing But Hemp, believes that THCA flower is legal under federal law due to Farm Bill 2018. But even though his company runs 11 stores across two states and offers a wide range of hemp-derived products, you won’t find THCA flower on his shelves—or his website.

Why? The legal environment is changing fast. More states without legal recreational cannabis are updating their laws to treat THCA flower the same as traditional marijuana, making it illegal under state law.

Some legal experts maintain that THCA is still permitted under current federal law. But as states give law enforcement the green light to treat THCA like cannabis and seize it, business owners like Brown are backing off.

A notable incident happened in Tennessee in 2024 when police confiscated a large batch of what they believed to be cannabis. However, since THCA wasn’t specifically addressed in the state’s laws at the time, the authorities ended up paying $735,000 in damages to two hemp companies after the seized products went bad. That situation is unlikely to repeat after January 1, 2026 when a new law will go into effect redefining THCA as a form of THC.

Texas is following a similar path. In May, legislators passed a measure tightening the definition of THC. Though the bill is awaiting the governor’s signature, hemp industry supporters have submitted over 118,000 signatures urging a veto.

Neither Texas nor Tennessee has legalized medical cannabis, making them key markets for hemp-derived alternatives. Critics of the new bans argue they will only drive consumers toward the unregulated market and jeopardize thousands of compliant businesses.

Much of the confusion stems from a loophole created by the Farm Bill 2018, which set a THC limit of 0.3% by dry weight but didn’t account for THCA, which converts into THC when heated. Although federal guidelines require that THCA be included in THC testing through a heating process, enforcement has been spotty. According to cannabis attorney Rachel Gillette, this has led to widespread mislabeling and inconsistent regulation.

Federal lawmakers know this issue exists and may address it in the next Farm Bill. But that legislation is already long overdue, leaving regulation to the states for now.

Tennessee will still permit hemp-derived THC drinks, which are distributed by businesses like Brown’s and even major cannabis companies. Observers say this highlights a strange inconsistency: while smokable flower is banned, edibles and beverages remain okay.

Some companies are pushing boundaries regardless. Some businesses in Oregon, where cannabis is cheap due to oversupply, continue to ship THCA flower to states where it’s prohibited. One Maryland-based firm, SuperGreens Hemp Co., recently announced the purchase of 36 THCA farms nationwide, including in states with restrictive cannabis laws.

There’s barely any oversight beyond the point of cultivation, which Gillette calls a “huge gap in enforcement.” With thousands of shops and online sellers, it’s nearly impossible to crack down on them all. Instead, states might go after a few big names to send a warning.

Many agree that the demand for hemp-based THC is driven by federal cannabis prohibition and strict state laws. Hemp is cheaper to produce, faces fewer rules, and attracts entrepreneurs wary of heavy regulation. That’s why some push for crackdowns—to level the playing field with licensed cannabis businesses.

But Brown isn’t switching lanes. “I’ve built a company that’s nearly eight figures,” he said. “There’s no way I’m touching state-regulated cannabis. Too many headaches. Too much risk.”

The marijuana industry, including leading firms like Green Thumb Industries Inc. (CNX: GTII) (OTCQX: GTBIF), will be following how the THCA regulatory landscape unfolds across the country as it could impact the trajectory of the marijuana industry.

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