420 with CNW — How the Hemp Industry Could Be Impacted by the Federal Ban on Hemp THC

A surge in hemp-derived THC products that reshaped convenience store shelves and fueled a fast-growing market appears to be heading toward a sharp slowdown. Tucked inside the bill that brought an end to the recent federal shutdown is a clause that would outlaw hemp-derived THC products nationwide.

That measure, scheduled for November 2026, has sent the $24 billion hemp sector scrambling for answers and time. Supporters and critics agree on one thing; this change would close a loophole created six years ago by the Farm Bill 2018, although some disagree on whether that is a good thing.

The 2018 bill defined hemp as cannabis containing less than 0.3% delta-9 THC. That wording created a loophole, allowing operators to produce products with enough THC to cause impairment. Businesses found even more room to maneuver by converting CBD, a compound that does not intoxicate, into other forms of THC, such as delta-10 and delta-8.

Within a few years, vape cartridges, candies, sodas, chips, and baked products using hemp-derived THC had spread nationwide with little oversight. In some states, teenagers could buy them at gas stations.

In legal cannabis markets, they competed directly with regulated and taxed products. In prohibition states, they skirted bans on recreational cannabis. Several states, including Indiana, later reported more calls to poison control centers involving young children. With federal action stalled until now, states moved on their own. Some restricted sales, others banned items outright.

Influential Senator Mitch McConnell, who was instrumental in shaping the 2018 hemp legislation, added the federal ban to the recent measure that ended the 43-day shutdown.

Parts of the legal cannabis industry have welcomed the development, arguing that the hemp sector has been allowed to dodge taxes and safety rules. Anti-cannabis groups have also praised the move.

However, hemp producers hope that Congress will use the one-year window to craft national standards instead of shutting the industry down. They argue that stricter age limits, rules against synthetic cannabinoids, and bans on child-focused marketing could address concerns without wiping out the entire industry.

Industry representatives warn the ban could put over 300,000 jobs at risk and cost states an estimated $1.5 billion in tax revenue. Some business owners say their companies would not survive.

Several lawmakers are now pushing for a middle path. Senator Rand Paul attempted to remove the ban from the funding bill, though the effort failed. Minnesota’s Senators, Tina Smith and Amy Klobuchar, have called for hearings and suggested that states be allowed to create their own regulations.

The marijuana industry, including entities like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED), will be following the discussions in the wake of this federal hemp-sourced THC ban to see how it reshapes the hemp and cannabis industries.

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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 — Michigan Court Starts Hearing Challenge to Newly Approved Marijuana Taxes

A judge on the Michigan Court of Claims is set to review arguments over whether state lawmakers crossed a constitutional line when they approved a new tax on cannabis. The hearing centers on a 24% levy on wholesale cannabis transactions that became a key part of the state budget signed by Governor Gretchen Whitmer last month.

The state’s recreational cannabis industry filed suit shortly after the budget became law. Industry leaders argue that voters already established the tax framework for legal marijuana when they passed a ballot initiative in 2018, which created a retail tax on cannabis products.

They argue that lawmakers cannot layer an additional tax on the industry without meeting the required supermajority votes.

The Michigan Cannabis Industry Association spokesperson, Rose Tantraphol, stated that the Legislature exceeded those limits. She accused lawmakers of approving the wholesale tax during hectic late-night proceedings that left little room for scrutiny.

According to the lawsuit, the original ballot measure was designed to encourage a stable, regulated market for adult-use cannabis, while the recently adopted wholesale tax would undermine that goal. Industry representatives say many stores are already struggling to stay open amid falling prices, limited access to banking, and heavy competition.

“Profit margins are already razor-thin. There is no way to absorb a 24 percent hit,” Tantraphol said. Some operators, she added, have said they would be forced to shut down if the tax is implemented.

Officials in the State Budget Office declined to discuss the case, citing ongoing litigation. In court filings, the state maintains that the new tax stands on its own, as it appears in a separate statute and is not intended to regulate the cannabis market. Instead, state lawyers say the revenue would help generate an estimated $420 million for Michigan’s roads.

Robert Schneider, a senior analyst with the Citizens Research Council of Michigan, said the dispute may come down to whether the wholesale levy is viewed as distinct from the retail tax approved by voters. He noted that the two appear in different laws and apply to different stages of the supply chain. The court will have to determine whether those differences are meaningful or whether lawmakers attempted an improper workaround.

Both sides have asked for a prompt decision. The tax is scheduled to start on January 1, and any delay in the ruling could complicate the state’s plans for budgeting and distribution of the expected revenue.

The marijuana industry is also seeking a temporary order that would halt enforcement of the tax until the case is resolved. If the judge issues an immediate ruling, the matter could reach the state Supreme Court in the coming months.

The entire marijuana industry within and outside the U.S., including leading companies like Aurora Cannabis Corp. (NASDAQ: ACB) (TSX: ACB), will be watching how the judge handles this dispute and the ruling made as it could set a precedent that other states emulate in their bid to generate more tax revenue from licensed cannabis companies.

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420 with CNW — Buying Habits of Gen Z’s Are Changing Marijuana Retail

Cannabis retailers across the U.S. are adjusting to an unexpected shift in shopper behavior as the youngest legal buyers reshape the market. Gen Z customers are coming into stores, but they are approaching cannabis with more intention, more research, and more caution than many of the shoppers who came before them.

Los Angeles’ The Higher Path & The Other Path director Adrienne Airhart says customers are not walking in to chase intense highs. According to her, younger adults often use THC to support workouts, manage school workloads, or ease social discomfort. For many of them, cannabis has become another tool in a daily routine rather than an escape vehicle.

For years, many retailers assumed younger adults would consume less cannabis and that growth would come from older demographics. But Gen Z’s approach is presenting a new opening. It is not tied to high-volume use. It is tied to consistency, intentionality, and a desire for reliable effects.

Recent consumer surveys reveal clear differences between age groups. Adults 50 and older continue to adopt marijuana at fast rates and often look for help with sleep, relaxation, pain, or mental health. Millennials remain the most active spenders, buying across a wide range of products that deliver comfort and convenience, such as topicals, vapes, edibles, and affordable flower.

Gen Z, shaped by wellness trends and rising awareness around anxiety, is coming up during a period where many young adults drink less than previous generations.

National polling, including Gallup findings, shows younger consumers prefer substances that feel cleaner, are easier to regulate, and are compatible with daily life. Cannabis fits neatly into that shift.

Financial strain also plays a significant role. High housing costs, inflation, and lingering student loans leave this group with limited discretionary money. They visit stores less frequently and choose smaller baskets.

Surveys show most adults (69%) aged 18 to 24 favor marijuana over alcohol, and many say they are replacing alcohol with lower-dose THC options, such as beverages and edibles. They also plan consumption around specific situations and emphasize consistency over intensity.

Retailers have started adjusting their shelves accordingly. The Higher Path added a low-dose shelf in response to growing interest in mild, easy-to-manage products.

Larger multipacks of prerolls still sell, but often to groups seeking light social effects rather than a strong high. Gen Z buyers have not abandoned potency, yet they increasingly want it delivered in formats that feel controlled and purposeful.

Since only part of Gen Z is old enough to buy legally, experts say these habits are early indicators of what the future market may look like. Retailers who invest in education, effect-based merchandising, and products that fit structured routines may benefit from steady demand as this generation gains more buying power.

Operators say the opportunity is not in waiting for heavy consumption to return. It lies in adapting to a consumer base that values purpose, control, and thoughtful use. For companies like Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF), the changing preferences of different demographics of consumers is something that will determine product design and marketing for years to come.

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420 with CNW — Activists in Oregon Withdraw Measure Seeking to Legalize Marijuana Consumption Lounges

Oregon activists have halted their effort to place a measure on the 2026 ballot that would have legalized marijuana social lounges across the state. The Oregon Cannabis Cafe Coalition confirmed that it has withdrawn the proposal after months of preliminary work, including filing two variations of the measure.

Justyce Seith, founder of the coalition and chief petitioner, said the decision was not taken lightly. She noted that the campaign’s timeline and signature-gathering goals no longer aligned with the resources available. According to Seith, attention will now shift to developing a better version of the proposal for a future ballot cycle.

Seith thanked volunteers who helped the campaign reach several early milestones. Their work drew enough support to confirm, in her view, that public spaces for marijuana use remain an important issue for many residents.

The state attorney general approved a verified ballot title for the initiative in September. That approval followed the release of an initial proposal in August. Only one public comment was submitted in response to the draft. The commenter argued that the word “lounges” lacked clarity and suggested using “business establishments” instead.

State officials reviewed the suggestion and declined to modify the title. The individual could have sought review by the Oregon Supreme Court, but did not pursue that option.

To qualify for the ballot, OCCC would have been required to gather at least 117,000 valid signatures from registered voters.

The proposal would have allowed state-licensed marijuana social lounges to open and operate under specific rules. These locations would have provided adults with a place to consume marijuana while also offering unmedicated beverages and food, but no cannabis sales could take place inside the premises.

Consumption would have been limited to vaping, smoking, and the use of non-edibles. Nicotine products, tobacco, and alcohol would have been banned.

Local governments would have been permitted to set limits on the number of lounges and adopt additional rules. They also would have had the authority to inspect businesses for compliance. Oversight at the state level would have been handled by the OLCC, which would have reviewed license applications and enforced penalties that could include license suspension and/or fines.

The proposal also called for clear public education requirements, including signage explaining health risks and operational rules. The commission would have worked with health agencies to develop outreach materials.

If approved, the measure would have taken effect at the start of 2027. Marijuana companies like Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) that have participated in efforts to reform cannabis laws in other jurisdictions sympathize with the Oregon campaigners because it is a very expensive and back-breaking undertaking to push a ballot measure through the preliminary steps and then oversee campaigns to get the measure approved by voters.

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420 with CNW — Ohio House Approves Bill Reforming Marijuana Laws, Banning Hemp THC

Lawmakers in Ohio advanced a measure that would tighten rules on hemp products with intoxicating effects and revise several parts of the state’s recreational cannabis system. The House approved Senate Bill 56 in a 52-34 vote, sending it back to the upper chamber for final consideration.

The Senate is scheduled to return on December 9, and House Speaker Matt Huffman said he was confident the chamber would sign off on the proposal.

The Senate first approved the legislation in February, but the House later added new rules for intoxicating hemp, which prompted senators to vote unanimously in October against adopting those changes. That decision sent the issue to negotiation.

Soon after, federal lawmakers voted to prohibit products containing more than 0.4 milligrams of THC per package as part of the agreement to reopen the federal government. The 2018 Farm Bill had previously allowed hemp cultivation as long as plants remained below 0.3 percent THC.

Although the federal restriction does not take effect for a year, states can adopt their own rules sooner. Steve Huffman said Congress’s move shaped Ohio’s approach to both hemp and marijuana. The bill now aims to keep intoxicating hemp products out of general retail shops by limiting sales to licensed cannabis dispensaries.

If the Senate signs off and Governor Mike DeWine approves the measure before January, the hemp provisions could begin as early as March. Five-milligram THC beverages would still be allowed until the end of 2026. Lawmakers also included language signaling that they would revisit the issue if federal rules shift again.

On the cannabis side, the bill lowers THC limits for concentrates to 70%, caps flower at 35%, and expands restrictions on smoking in public places. Some probable cause language was removed, though officers could still act if drivers show clear signs of impairment.

Communities hosting recreational dispensaries would receive 36% of adult-use tax revenue. The tax rate for recreational cannabis would remain at 10%, and home grow limits would stay at six plants per person and twelve per household.

Voters approved recreational cannabis in 2023 with 57% support, and sales began in August 2024. Since the measure passed as a statute rather than a constitutional amendment, lawmakers are permitted to modify it.

Critics say the new bill ignores what residents approved. Supporters argue it brings needed structure to a young industry and addresses public safety concerns as the market expands. Many actors within the broader marijuana industry, even across borders, such as Tilray Brands Inc. (NASDAQ: TLRY) (TSX: TLRY), will be happy that some clarity is being brought into the hemp THC phenomenon in the U.S.

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420 with CNW — Florida Authorities Relent to Pressure, Advance Marijuana Ballot Initiative

Florida’s long-running fight over a proposed recreational cannabis amendment took another turn this week after state election officials confirmed they had completed a key step that a pro-legalization group accused the DeSantis administration of deliberately delaying.

Smart and Safe Florida, the organization behind the proposal, filed a petition with the Florida Supreme Court in October, accusing the state of stalling the ballot certification process. On Tuesday, Attorney General James Uthmeier urged the court to dismiss the case, noting that the action the group sought had been carried out the day before.

Maria Matthews, the director of the Division of Elections, issued the required letter confirming that the group had collected enough verified signatures to move the measure forward.

According to the state’s filing, Smart and Safe’s lawsuit requested that the court compel officials to send the acknowledgment letter and advance the petition to the attorney general. The state argued that the issue is now moot because the letter has been delivered and the proposal sent along for further review.

This marks the second lawsuit the group has filed over the proposed amendment. The latest legal move comes months after the recreational marijuana measure fell short during the 2024 election cycle. While 56% of voters backed legalization, Florida law requires at least 60% for a constitutional change.

The defeat followed a high-profile effort by Governor Ron DeSantis and several state leaders who campaigned aggressively against the initiative. They warned that expanding access to marijuana would harm communities and invite corporate influence, turning the issue into one of the most contentious fights of the year.

In its October lawsuit, Smart and Safe said it informed the election division in August that the campaign had far exceeded the number of verified petitions needed to trigger the next step in the process. The group said it had secured over 660,000 verified signatures, more than triple the minimum required to begin review.

Despite the early notification, no acknowledgment letter was issued for months. Smart and Safe argued that the delay was intentional and part of a broader effort to hinder the initiative. The group pointed to an October 3 directive from the Secretary of State instructing county supervisors to invalidate up to 200,000 petition signatures.

According to the order, organizers did not include the full text of the proposed amendment in certain mailings, which the state said violated petition rules. The decision wiped out nearly one-fourth of the signatures required for next year’s ballot and was the core of the group’s lawsuit.

The wider marijuana industry, including allied firms like Innovative Industrial Properties Inc. (NYSE: IIPR), will be glad that the effort in Florida has notched this step in the process of making its way onto the ballot.

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420 with CNW — Female Frequent Users of Marijuana Are More Satisfied in Their Romantic Relationships, Study Finds

A recent study from Israel suggests that marijuana use may influence how partners feel about their relationships, with women and men reporting sharply different experiences. The research, published in the Drug and Alcohol Dependence Journal, examined how varying levels of cannabis consumption relate to satisfaction in long-term partnerships.

The study involved 110 couples who answered detailed surveys about how often they used cannabis, how they viewed the strength of their relationship, how they felt about their sex lives, and how responsive they believed their partners were.

Women who consumed cannabis frequently tended to rate their relationships more positively, describing both themselves and their partners as more fulfilled than women who used it rarely or never. Men, however, told a different story. The study notes that those who used marijuana at similar high levels tended to report lower satisfaction. They also viewed their partners as less responsive, although the latter finding did not meet the threshold for statistical significance.

The study is one of the few to look at possible dose-related effects rather than simply whether a person uses cannabis or abstains. The authors say this approach offers a more nuanced look at how consumption patterns shape couples’ experiences.

The study notes that couples who differed significantly in how much they used the drug were more likely to describe weaker bonds and less satisfying sex lives. The researchers link this trend to a long-standing theory that shared activities strengthen romantic bonds. When one partner regularly uses marijuana and the other does not, or when their consumption levels differ widely, the couple may have fewer mutual experiences built around that activity, which can limit closeness.

As for the gender divide, the researchers offered several ideas. Men generally consume cannabis more often than women, which has been associated in previous studies with a greater chance of negative physical or psychological effects. Those drawbacks might spill into relationships and influence both partners’ sense of connection.

Women, on the other hand, typically use cannabis at lower levels. Light use has been associated with fewer adverse consequences and a better reported quality of life compared with heavy use. The researchers suggest that these differences may help explain why frequent use appears to affect women more positively in the context of romantic satisfaction.

The team also raised the possibility that social expectations play a part. Women who use cannabis heavily may be stepping outside traditional gender roles, which could create a sense of autonomy and authenticity. That feeling of independence may contribute to a stronger perception of relationship quality.

The authors caution that their sample size was modest and that more research is needed to understand why these gender patterns emerge.

Rigorous data of this nature could be useful to the cannabis industry, including firms like SNDL Inc. (NASDAQ: SNDL), as it could inform how they refine their products targeting different sections of the population.

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420 with CNW — Will the Revolt Against Marijuana Taxes Succeed?

The U.S. has roughly 38,000 licensed marijuana businesses, yet many are struggling to meet federal tax obligations. Eleven of the largest operators collectively owe over $2.3 billion in federal income taxes. Smaller firms are facing similar pressure, largely due to Section 280E of the federal tax code, which blocks marijuana businesses from deducting most expenses.

That burden has pushed a growing number of companies to take a risky step. Cannabis businesses are submitting tax returns that challenge the IRS’s position on what they owe.

Whether that pushback will succeed is far from clear. Previous attempts by Americans to mount large-scale tax rebellions offer historical context, and most did not end well for the people involved.

One of the first major confrontations over taxes came in the early 1790s, when farmers in western Pennsylvania rejected a federal levy on distilled spirits meant to help the young nation pay down its war debt. President George Washington responded by leading troops into the region in 1794, and the Whiskey Rebellion fell apart almost immediately.

Only two participants were convicted, and both were later pardoned. Although residents continued resisting the tax until it was eliminated in 1802, the public largely backed the government’s actions.

Another revolt came in the 1990s, when thousands filed for a supposed “Black Inheritance Tax Refund.” It was based on the idea that the federal government had promised former slaves land and livestock after the Civil War. While the IRS stated that no such refund existed, it acknowledged that it had mistakenly paid out over $30 million and moved aggressively to alert the public and shut down the scheme.

Every major tax revolt has ended with the government prevailing, which does not bode well for today’s cannabis operators. Still, this modern dispute has its dynamics. Many marijuana companies argue they want to settle, but only for amounts they can realistically afford.

Supporters often cite the 2022 Harborside case in which the IRS accepted far less than the $22 million it claimed was owed and agreed to a ten-year payment plan. That deal was shaped by Harborside’s bleak finances and the likelihood that the company would collapse without leniency.

It also included a provision adjusting payments every two years so that any future profit would flow largely to the IRS. Harborside, later rebranded as StateHouse Holdings, ultimately failed anyway.

Others point to potential changes in federal drug policy or a retroactive fix to Section 280E. However, the Treasury Department has historically resisted retroactive tax changes, and such amendments are rare as taxpayers rely on the law as it stands when they file returns.

Some observers also raise the idea of a settlement program similar to the recent employee retention credit initiative, which allowed participants to repay most of what they received without facing penalties. Still, even an offer requiring repayment of 85% of the tax owed would be unreachable for many marijuana businesses already operating on thin margins.

For now, there is no close comparison in American tax history to a revolt where enforcing the law as written could threaten an entire industry. The outcome of the marijuana tax rebellion remains uncertain, and the stakes are only getting higher.

A more fair tax system would enable companies like Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) to grow a lot faster than they are currently doing.

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420 with CNW — New Federal Law Gives States Power to Regulate Hemp THC

Cannabis remains illegal in Wisconsin, yet anyone driving through commercial districts could easily assume otherwise. Shops advertising CBD and THC products have multiplied across the state, filling windows with colorful displays of gummies, oils, drinks, and vape cartridges. Many grocery stores and gas stations also carry similar items.

Their presence stems from a gap in federal law that allowed hemp products with trace levels of the psychoactive compound THC to be sold openly. That gap is now on track to close.

A policy change in 2018 removed hemp from the federal list of controlled substances. The move permitted a wide range of products that include THC, provided they came from hemp and stayed under a strict limit of 0.3% by dry weight. The change fueled a booming market that a national hemp organization values at roughly $28 billion.

President Donald Trump recently signed legislation to end the federal government shutdown. Tucked inside the measure was language that tightens the limit on THC levels in hemp products. Products containing more than 0.4 milligrams of THC would be barred, a standard that would rule out most products currently on store shelves. The new limit becomes enforceable in one year.

This sparked immediate concern among growers, manufacturers, and retailers in Wisconsin, who fear the move could wipe out a large share of their business. Still, some legal scholars say the reaction may be stronger than the situation warrants.

Robert Mikos, a professor at Vanderbilt University who studies drug policy, said the federal government lacks the capacity to enforce a sweeping crackdown on the wide network of companies that produce or sell these products. In his view, the future of the market will hinge largely on decisions made in states rather than Washington.

Efforts to create state-level oversight are already moving. As the House prepared to vote on the shutdown legislation, Wisconsin’s Assembly Committee on State Affairs reviewed a bipartisan measure that would set up a thorough regulatory structure for hemp products.

The proposal calls for mandatory testing and licensing, taxes similar to those on alcohol, and clear municipal authority. It also outlines an age requirement for purchasing and using these products, a licensing system for producers and retailers, and rules for packaging.

A separate proposal would revise Wisconsin’s definition of hemp to match the new federal standard. That measure is expected to face a veto from Governor Tony Evers.

Even so, Mikos said the industry is unlikely to face aggressive enforcement in the near future, even after the federal limit takes effect next year. He cautioned that small businesses could still encounter ripple effects involving taxes or federal permits. But he added that the risk of criminal penalties remains extremely low.

Marijuana companies, such as Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF), will be tracking how this change to federal law impacts companies that have been manufacturing THC products from hemp.

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420 with CNW — Michigan Files Defense in Case Challenging its New Marijuana Taxes

The state of Michigan is standing by its newly approved wholesale cannabis tax, stating that the measure complies with the state constitution and does not violate the 2018 ballot initiative that legalized recreational marijuana.

The legal defense comes in response to a lawsuit filed by the Michigan Cannabis Industry Association, which is challenging a 24% wholesale tax on cannabis slated to take effect at the start of 2026. The tax would be added to the existing excise tax already applied to retail sales under the voter-approved legalization measure.

Industry representatives argue that the new levy is unconstitutional as it was not passed with the supermajority vote required to alter a voter-initiated measure. The tax cleared the House by a 78-21 vote and the Senate by 19-17, both falling short of the three-fourths margin required by the state constitution for such changes.

A separate lawsuit filed by Holistic Research Inc., a licensed marijuana cultivator based in Harrison Township, is also seeking to block the tax while litigation proceeds temporarily. The company has requested a preliminary injunction that would prevent the state from implementing the tax on January 1.

In its court filings, the state maintains that the new tax is a separate measure and does not amend the 2018 legalization law. State attorneys argue that lawmakers created a distinct revenue mechanism intended to work alongside Michigan’s broader marijuana regulatory framework, which is governed by multiple overlapping statutes.

According to the state’s brief, the goal of the new tax is to generate additional funding for road improvements, not to alter or regulate the marijuana market itself. Officials say the tax will contribute roughly $420 million to a $2 billion infrastructure plan designed to improve state and local roads.

Critics, however, warn that the added cost will likely raise prices for consumers, push some businesses to the brink, and encourage more buyers to return to the illegal market, undermining the state’s goal of supporting a regulated industry.

The state also rejected claims that lawmakers improperly changed the intent of an unrelated bill to push the tax through.

Attorneys for the Michigan Cannabis Industry Association have not yet formally responded to the state’s arguments, but a spokesperson said the group intends to press for a temporary injunction. Judge Sima Patel of the Court of Claims is scheduled to consider that request on November 25 in Detroit.

The wider cannabis industry, including companies like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) will be hoping that a workable compromise is attained to increase tax revenue without unduly burdening marijuana companies in Michigan.

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