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Pennsylvania is losing out on critical revenue by not legalizing marijuana, a key Democratic lawmaker says, but it’s up to the GOP-controlled Senate to make the next move. And one top Republican senator says there are “some significant concerns” to address before that happens—including the current federal classification of cannabis that’s under review by the Trump administration. In interviews with PoliticsPA last week, the bicameral and bipartisan legislators were each asked about the prospects of adult-use legalization in the Commonwealth. Rep. Jordan Harris (D), who chairs the House Appropriations Committee, pointed out that his chamber has previously passed a version of the reform, consistent with what the governor has proposed as part of his recent budget requests. “For me, I think we should have done it a while ago. I think most Pennsylvanians agree—most Americans agree that we should legalize cannabis—and many of the states around us have already done so,” he said, adding that he has friends in neighboring New Jersey who are “very happy that Pennsylvania has not legalized adult-use cannabis because they get to literally reap the benefits.” “They get to reap the benefits of us not passing adult-use cannabis when so many people from the southeastern part of the state cross right over the border into New Jersey get legalized cannabis, and so we need to do it,” he said. “We’re literally leaving money on the table by not legalizing adult-use cannabis.” Harris said the House continues to support the reform, which is among “many of these things have been priorities for us for a while,” but in order to enact legalization, “we’re waiting the Senate to either move on our bill or send us their own bill or something around it. I think we definitely need to talk about revenue.” On the Senate side, Sen. Scott Martin (R), who chairs the chamber’s Appropriations Committee, gave a decidedly pessimistic overview of the cannabis issue, saying he “didn’t see [legalization legislation] going much of anywhere” this session because “there’s some significant concern over learning lessons of some other states.” “Like, how about you build a regulatory framework first and tout the protections? Like, how are you going to keep it out of the youth hands? How are you going to get the technology that when someone’s pulled over on the side of the road, that you can test for it right away? Or for insurance purposes—for businesses and others—how much does the THC period of time need to be out of your system before you drive that school bus full of little kids, or before you operate a forklift in a warehouse?” “Unfortunately, often in life, you see governments that want to jump in right away, fully into the pool, and then deal with the consequences after,” he said. “There’s Second Amendment considerations that come to this as well. There’s other things that people need. How about we sort this out?” “Does the federal government change the classification from being a Schedule I narcotic to one that’s Schedule II that can be researched?” Martin said. “There’s so many things in the pipeline now.” Despite those apparent outstanding concern—and despite the omission of legalization from a final budget deal the chambers agreed to last month—several House and Senate lawmakers separately told Marijuana Moment that they do see a path forward to end criminalization in the fast-approaching 2026 session. For example, House Health Committee Chairman Dan Frankel (D) said that it “would’ve been a welcome surprise to see recreational cannabis legalization pass as part of the budget, but we weren’t counting on it.” “So far, there’s no sign the Pennsylvania Senate has the votes to end prohibition—and there’s unfortunately no path forward without support from both GOP leadership and a majority of Senate members,” the chairman, who championed legalization legislation that passed the House earlier this year, said. Rep. Rick Krajewski (D), who joined Frankel in leading the push to advance cannabis reform, said that it’s while it’s “disappointing that the Senate was unable to come to an agreement on legalization for this budget, we continue to be eager to work on a bipartisan path to adult-use cannabis.” That could be achieved through the legislation he’s sponsored such as HB 1200, the House-passed bill that would have legalized marijuana for sale through state-run-stores, or an “alternative proposal sent forward by the Senate,” he told Marijuana Moment. Another lawmaker who’s helped lead the push for legalization in the Commonwealth, Rep. Emily Kinkead (D), told Marijuana Moment that she wasn’t especially surprised that legalization didn’t make it in the budget. That train seemed to leave the station months ago, she said, adding that those she’s worked with on the issue have been “pivoting to trying to target passage in 2026.” Sen. Sharif Street (D), who has also sponsored adult-use legalization legislation, emphasized public support for the reform. “I fully expect that cannabis legalization will be at the top of the discussion for next year,” he told Marijuana Moment.
”There’s an outcry from members. And there’s an outcry from the public to get it done.” The budget deal came weeks after Pennsylvania senators approved a bipartisan bill that would create a new regulatory body to oversee the state’s existing medical cannabis program and intoxicating hemp products, while preparing to eventually handle the adult-use cannabis market as well. — Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments. Learn more about our marijuana bill tracker and become a supporter on Patreon to get access. — A top aide to Pennsylvania’s governor said in September that lawmakers should stop introducing new competing legalization bills and instead focus on building consensus on the issue—while emphasizing that any measure that advances needs to contain equity provisions if the governor is going to sign it into law. Sen. Dan Laughlin (R), for his part, said in August that the House “needs to pass the language in my bill and send it to my committee” after which point he “can negotiate with the Senate and the governor.” Laughlin separately said recently that supporters are “picking up votes” to enact the reform this session. Meanwhile, bipartisan Pennsylvania senators in October introduced a bill that would allow terminally ill patients to use of medical marijuana in hospitals. Separately, the leading Republican candidate in the race to become the next governor of Pennsylvania dodged a question about her stance on legalizing marijuana—saying she doesn’t have a “policy position” on the issue and arguing that the sitting governor’s proposal for reform “way, way overstated” potential revenue. The candidate, Pennsylvania Treasurer Stacy Garrity (R), pointed to neighboring Ohio, which launched its own adult-use cannabis market this year, saying “they generated about $115 million in revenue.” And while the populations of both states are relatively comparable, Shapiro’s budget projected $536.5 million in cannabis revenue in the first fiscal year of implementation. She did, however, say that if Pennsylvania moves forward on enacting the reform, she’ll “make sure that it’s banked appropriately.” Meanwhile, a Pennsylvania Democratic senator recently said that federal marijuana rescheduling would be “very influential” in advancing legalization in his state, giving “political cover” to GOP members on the fence about reform. Polls have shown bipartisan support for legalization among voters, but the reform has consistently stalled in the legislature, due largely to GOP opposition. But not all Republican members are against the policy change—and one recently said she felt her party should seize the “opportunity to snatch” the issue from Democrats. Photo courtesy of Chris Wallis // Side Pocket Images. The post Marijuana’s Federally Banned Status Is One Reason Pennsylvania Hasn’t Legalized It, Top GOP Senator Says appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

Oregon-based marijuana companies are asking a federal court to uphold a lower judge’s ruling that struck down a voter-approved law to require licensed cannabis businesses to enter into labor peace agreements with workers and mandate that employers remain neutral in discussions around unionization. In a brief filed with the U.S. Court of Appeals for the Ninth Circuit on Wednesday, attorneys for two marijuana businesses—Bubble’s Hash and Ascend Dispensary—said the prior district court ruling was accurately decided, as the labor peace agreement requirement unconstitutionally infringed upon their freedom of speech. This comes about two months after the defendants—Oregon Gov. Tina Kotek (D), Attorney General Dan Rayfield (D) and Oregon Liquor and Cannabis Commission’s (OLCC) Dennis Doherty and Craig Prins—urged the appeals court to review the constitutional challenge to the state law following their lower court defeat. The plaintiffs initially filed a lawsuit in the district court challenging the implementation of Measure 119, and a federal judge sided with the plaintiffs, finding that the law unconstitutionally restricts free speech and violates the federal National Labor Relations Act (NLRA). “Although Defendants and Plaintiffs do not dispute that the NLRA applies to the cannabis industry, and do not dispute the Lower Court’s opinion regarding the same, Plaintiffs acknowledge this Court may extend discretion to review without any such party challenge,” the latest filing, first reported by Law360, states. Under the currently paused law, a marijuana businesses that was unable to provide proof of a labor peace agreement could have been subject a denial or revocation of their license. In an order in May, the district court judge walked through various components of the legal arguments from both sides and ultimately agreed that the Oregon law is preempted by the NLRA, which is meant to provide protections for workers who want to unionize—but specifically preserves the right for “uninhibited, robust, and wide-open debate in labor disputes.” By mandating neutrality from employers in labor discussions, the Oregon law constitutes a violation of the NLRA, the judge ruled. The new filing from the cannabis businesses says that while the federal government has generally “declined to prosecute state marijuana laws that conflict with the” Controlled Substances Act (CSA), that “does not mean other constitutional limits on states’ regulatory powers also take a back seat.” “The CSA does not grant states the power to burden interstate commerce that would otherwise be impermissible, simply because the CSA prohibits cannabis,” it said. “Finding that the NLRA applied to cannabis employers for which the [National Labor Relations Board] maintains jurisdiction, the District Court correctly concluded M119 was preempted under the NLRA principle of preemption.” “For the reasons as set forth above, the Court should affirm the District Court, which held that the NLRA preempts M119…and that M119 violates the First Amendment speech protections,” it says. The state, for its part, has argued that the federal circuit court “should reverse the district court’s judgment, and it should remand the case with instructions to enter judgment for defendants on the preemption and First Amendment claims.” — Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments. Learn more about our marijuana bill tracker and become a supporter on Patreon to get access. — On the question of whether the law violates First Amendment protections under the U.S. Constitution, the cannabis companies argued that “Measure 119 is a content-based restriction on speech that is subject to strict scrutiny, and that Defendants fail to provide a compelling government interest requiring this restriction.” Measure 119 passed with about 57 percent of the vote last November. A regional chapter of United Food and Commercial Workers (UFCW)—UFCW Local 555—had submitted more than 160,000 signatures to qualify the measure for ballot placement last year. During the Oregon legislature’s 2023 session, lawmakers declined to enact a bill containing similar provisions. UFCW lobbied for that legislation, and it decided to mount a campaign to let voters decide on the issue this year after that effort failed. UFCW pressed legislators to enact a bill to codify the labor protections in 2023. And after it was effectively killed by a top House Democrat, it announced that it would be leading a recall effort to oust him. Read the filing in the Oregon cannabis industry labor law case below: Photo elements courtesy of rawpixel and Philip Steffan. The post Oregon Marijuana Businesses Urge Federal Court To Uphold Ruling Blocking Industry Labor Law Approved By Voters appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

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Texas officials have released a revised proposed rule to ban the sale of hemp THC products to people under 21. After the governor issued an emergency order barring such sales, the Texas Alcoholic Beverage Commission (TABC) put forward temporary emergency rules to codify the policy change—and now it’s planning to adopt an amended regulation on the issue permanently after receiving public and stakeholder input. “If ultimately adopted, the rules proposed now will replace the emergency rules,” TABC said in a notice published in the Texas Register on Friday. “The proposed rules are intended to prevent minors from accessing and using consumable hemp products (CHPs) that will negatively impact the health, general welfare, and public safety of minors in Texas.” The main components of the proposal would largely align with what they initially implemented following Gov. Greg Abbott’s (R) emergency order, with “some key changes,” the agency said. For example, TABC would be permitted to suspend licenses, rather than outright cancel them, for violations of the rule. That was among several contentions from stakeholders who felt the temporary rules were excessively punitive. The proposed rule also provides “a licensee or permittee a defense to an enforcement action for failure to inspect proof of identification…if the ultimate consumer or recipient of the CHP is 40 years of age or older.” “For each year of the first five years the proposed rules are in effect, [the head of TABC] expects that enforcing or administering the proposed rules will have the public benefit of reducing minors’ access to, and use of, CHPs and a corresponding reduction in the public harms associated with such use,” the filing says. As far as the license suspension provisions are concerned, regulators would be empowered to put a pause on licenses for up to seven days for a first violation, 14 days for a second violation, 30 days for a third violation and institute a cancelation for “any subsequent violation.” Those changes to the emergency order appear responsive to public feedback that raised serious concerns about the inflexibility of the temporary rule that seemed to put hemp sellers at disproportionate risk of being severely penalized compared to other regulated industries. Meanwhile, state officials with the Department of Public Safety (DPS) separately conditionally approved nine new medical marijuana business licenses last week as part of a law that’s being implemented to significantly expand the state’s cannabis program. The department will issue conditional licenses to three additional dispensaries by April 2026. This represents a major change to the program, as there are currently only three dispensaries licensed to operate in Texas. DPS in October adopted additional rules to increase the number of licensed dispensaries, establishing security requirements for “satellite” locations and authorizing the revocation of licenses for certain violations. — Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments. Learn more about our marijuana bill tracker and become a supporter on Patreon to get access. — These latest developments come after the Department of State Health Services (DSHS) adopted rules allowing doctors to recommend new qualifying conditions for cannabis patients and creating standards for allowable low-THC inhalation devices. Separately, a recent survey from a GOP pollster affiliated with President Donald Trump found that Texas Democratic and Republican voters are unified in their opposition to the hemp ban proposal. The post Texas Officials File Revised Rule Banning Hemp THC Sales To People Under 21 As State Expands Medical Marijuana Program appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

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As Virginia lawmakers prepare to resume efforts to legalize adult-use marijuana sales in next year’s legislative session, state officials have released guidance on a recently enacted law that provides employment protections for workers who use cannabis while off duty. Virginia has a medical cannabis program—and recreational use and personal cultivation were legalized in 2021, but there’s not currently a system of regulated sales for recreational use. While legislators have already taken steps to enact further reforms to allow marijuana sales from licensed retailers, with a legislative commission putting forward a framework last week in hopes of advancing the issue in 2026, the Department of Labor and Industry (DOLI) published a new document outlining workplace protections for cannabis consumers. The guidance states that employers “should not take employment actions, including discipline or termination of employment, against an employee based upon the presence of cannabinoid metabolites in the individual’s bodily fluids in an employer-required or requested drug test without additional factors indicating impairment…unless the employer has established a drug free workplace based on its reasonable workplace drug policy.” For medical cannabis patients specifically, the guidance from DOLI’s Virginia Occupational Safety and Health program stipulates that no employers may “discharge, discipline, or discriminate against an employee for such employee’s lawful use of cannabis oil under the laws of the Commonwealth pursuant to a valid written certification issued by a practitioner for the treatment or to eliminate the symptoms of the employee’s diagnosed condition or disease.” There are exceptions built into the rule, which is being implemented in response to the enactment of bills signed into law in recent sessions. Impairment during work hours would not be protected, and employers could not be required to do anything that would cause them to be “in violation of federal law or that would result in the loss of a federal contract or federal funding.” Additionally, defense industrial base sector employers could still take adverse action against workers who test positive for THC “in excess of 50 ng/ml for a urine test or 10 pg/mg for a hair test.” The guidance document also says that nothing in the rule “shall prohibit an employer from adopting reasonable zero tolerance or drug free workplace policies, or employment policies concerning drug testing, smoking, consumption, storage, or use of cannabis in the workplace or while on call provided that the policy is applied in a nondiscriminatory manner.” The DOLI guidance notably included a definition of “cannabinoids” that says the compounds in marijuana “may help treat the symptoms of cancer or the side effects of cancer treatment.” The most recent bill that Gov. Glenn Youngkin (R) signed on cannabis and employment policy, enacted last year, was meant to codify that public sector workers were also protected from adverse actions by employers, along with private business employees, unless they fall into a category where there’s an explicit exception. Several years before lawmakers passed, and the governor signed, cannabis consumer workplace protection legislation that inadvertently left out a section of state code covering firefighters, maintenance workers, teachers and other public employees. Meanwhile, after months of hearings and debate, the legislature’s Joint Commission to Oversee the Transition of the Commonwealth into a Cannabis Retail Market released a framework for an adult-use marijuana program at its final meeting on Tuesday. Since legalizing cannabis possession and home cultivation in 2021, Virginia lawmakers have worked to establish a commercial marijuana market—only to have those efforts consistently stalled under Youngkin, who twice vetoed measures to enact it that were sent to his desk by the legislature. Once the next legislative session begins in January, the new proposal is expected to be sponsored by Del. Paul Krizek (D), who has served as chair of the commission, as well as Sens. Louise Lucas (D) and Aaron Rouse (D). Rouse said last month that he’s “very optimistic” about the prospect of advancing legislation to create an adult-use marijuana market in the coming session. That optimism is heightened by the fact that state Democrats widened their House majority, and voters elected a pro-legalization governor, in November. “Any measure that we can take to find revenue, I’m very optimistic about that approach,” the senator, who has been the lead sponsor of legislation to legalize and regulate adult-use sales that was vetoed by the outgoing GOP governor, said. “We, in Virginia, have to take every step we can to make sure we can find revenues that strengthen our communities, that strengthens the education process, that puts food on the table, that gets people back to work,” Rouse said. — Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments. Learn more about our marijuana bill tracker and become a supporter on Patreon to get access. — This next session is shaping up to deliver different results. In addition to growing their majority in the Assembly, Democrats now have Abigail Spanberger as the state’s next governor, and the party also secured wins in the Commonwealth’s lieutenant governor and attorney general races. Spanberger, a former congresswoman, told Marijuana Moment ahead of the election that “as Virginia takes steps toward creating a legalized retail market for cannabis,” the commonwealth “needs a clear strategy to set up a market that is safe for consumers, transparent for businesses, and fair to entrepreneurs.” She added that “revenue from commercial cannabis products must return to Virginia communities and be reinvested for purposes like strengthening our public schools.” The governor-elect said she will “work with leaders in the General Assembly to find a path forward that both prioritizes public safety and grows Virginia’s economy”—and that part of that is establishing “a formalized, legal, emerging cannabis market.” During her time in Congress, Spanberger voted twice on the House floor in support of bills to federally legalize marijuana. She also consistently backed legislation to free up banking services for the industry, protect all state cannabis program from federal interference and expand marijuana research. The former congresswoman additionally opposed a proposal to remove protections for universities that study cannabis. She voted against certain reform proposals, however, including on measures to lift certain research barriers for Schedule I drugs and to revise federal policy to prevent past marijuana use from being used as a factor to determine eligibility for a security clearance. Spanberger cosponsored bills to provide medical cannabis access for military veterans on two occasions, and she cosponsored the Secure and Fair Enforcement (SAFE) Banking Act during the 116th Congress. At the legislative commission’s first meeting in July, members discussing broad regulatory considerations and other issues related to THC potency, the hemp market and more. In August, the panel focused on cannabis taxes and revenue. Meanwhile, a top Democratic Virginia senator recently said the state should move forward with legalizing recreational marijuana sales—in part to offset the Trump administration’s cuts to federal spending in support of states. Photo courtesy of Martin Alonso. The post Virginia Officials Publish Guidance On Marijuana Consumers’ Workplace Rights appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

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FL medical marijuana homegrow bill; NH proposal to put cannabis on ballot; Hemp farmers & carbon credits’ MI marijuana tax ruling; NM psilocybin Subscribe to receive Marijuana Moment’s newsletter in your inbox every weekday morning. It’s the best way to make sure you know which cannabis stories are shaping the day. Get our daily newsletter. Email address: Leave this field empty if you're human: Your support makes Marijuana Moment possible… Before you dig into today’s cannabis news, I wanted you to know you can keep this resource free and published daily by subscribing to Marijuana Moment on Patreon. We’re a small independent publication diving deep into the cannabis world and rely on readers like you to keep going. Join us at https://www.patreon.com/marijuanamoment / TOP THINGS TO KNOW A Florida senator introduced a bill to legalize home cultivation of medical cannabis, allowing patients to grow up to six plants for themselves and to purchase marijuana seeds and clones from dispensaries. New Hampshire lawmakers prefiled several marijuana and hemp bills for the 2026 session—including legislation to put legalization on the ballot, protect gun rights of medical cannabis patients and allow dispensaries to convert to for-profit businesses. A new federally funded study published by the American Medical Association found that patient participation in New York’s medical marijuana program “was associated with significantly reduced prescription opioid receipt.” “Medical cannabis is increasingly considered a substitute for prescription opioid medications for chronic pain, driven by the urgent need for opioid alternatives to combat the ongoing epidemic.” Amy Rubenstein of Dentons argues in a new Marijuana Moment op-ed that hemp growers should consider the largely “untapped opportunity to access carbon credit markets”, which brings tax incentives and can be “appealing to eco-conscious investors and consumers.” A Michigan judge denied cannabis industry groups’ request to impose a preliminary injunction against a newly approved marijuana tax increase while a lawsuit challenging the policy proceeds. The New Mexico Department of Health is aiming to launch the state’s psilocybin therapy program a year earlier than expected—with the senator who sponsored the bill that created it saying “we are experiencing a new renaissance…of psychedelic medicine.” / FEDERAL Rep. Jimmy Panetta (D-CA) said recent U.S. actions against drug traffickers are stopping “cocaine and marijuana”—not fentanyl. Rep. Nydia Velazquez (D-NY) tweeted, “I called out the hypocrisy of the Trump admin’s so-called’“war on drugs’ in the Caribbean while pardoning Juan Orlando Hernández, a convicted trafficker tied to 400 tons of cocaine. Trump’s escalation is clearly not about drugs, and we must stop this march toward war.” / STATES A Minnesota senator said the newly approved federal ban on hemp THC products will boost the illegal market. Hawaii regulators published guidance on hemp packaging and labeling requirements. Colorado regulators published guidance on recordkeeping best practices for marijuana businesses. Minnesota regulators are accepting applications for a grants program that invests in communities disproportionately affected by cannabis prohibition. — Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments. Learn more about our marijuana bill tracker and become a supporter on Patreon to get access. — / LOCAL Local officials in several Ohio municipalities discussed efforts to obtain a share of marijuana revenue. / INTERNATIONAL Germany’s federal drug and addiction commissioner expressed concerns about the country’s marijuana legalization law. The European Commission’s Scientific Committee on Consumer Safety published an opinion about CBD use in cosmetic products. / SCIENCE & HEALTH A study of fibromyalgia syndrome patients found that “THC significantly reduced spontaneous pain ratings on the McGill scale compared to both baseline and placebo” and “also significantly enhanced [offset analgesia] relative to baseline and placebo, while no effect was observed on” conditioned pain modulation. A review’s findings “support the potential of MDMA-[assisted therapy] as a viable treatment option for the symptoms of PTSD.” / BUSINESS Trulieve Cannabis Corp. completed the redemption of all the $368 million principal amount of its outstanding senior secured notes due 2026. cbdMD, Inc. regained compliance with New York Stock Exchange listing standards. Make sure to subscribe to get Marijuana Moment’s daily dispatch in your inbox. Get our daily newsletter. Email address: Leave this field empty if you're human: The post Medical cannabis reduces opioid prescriptions, study shows (Newsletter: December 9, 2025) appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

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Cannabis industry groups argued that the tax violates the state Constitution by altering the voter-approved legalization law without following proper procedure. By Ben Solis, Michigan Advance A group of cannabis industry advocates were unable to convince a Michigan Court of Claims judge that they would face irreparable harm if a new 24 percent wholesale tax on marijuana went into effect to fund the state’s future road repairs. In an opinion issued Monday, Court of Claims Judge Sima Patel said she was denying a request for a preliminary injunction from the plaintiffs in Holistic Research Group Inc./Michigan Cannabis Industry v. Michigan Department of Treasury. The consolidated lawsuits posited that the new tax, passed in October as part of a comprehensive 2025-26 budget deal to raise new revenue for road repairs and rebuilds through 2030, was unconstitutional because it violated the title-object clause of the state’s Constitution. Patel on Monday, after hearing oral arguments in the matter in November, said the industry advocates didn’t make a supported argument that a real constitutional issue existed, nor did the group succinctly show that the Michigan Regulation and Taxation of Marijuana Act, which legalized the use and sale of cannabis in Michigan, was the only statutory mechanism to enact taxes on pot. “The [road funding act] is consistent with the [marijuana taxation act]. The plaintiffs contend that the phrase ‘all other taxes’…refers only to generally applicable taxes, like the 6 percent sales tax imposed on all retail sales,” she wrote. “If that were true, however, the initiative could have simply said that. Instead, the initiative stated plainly that the 10 percent retail excise tax was in addition to ‘all other taxes.’ And the phrase ‘all other’ is broad and expansive. According to the plain meaning of these terms, ‘all other taxes’ broadly means all taxes other than the tax imposed by [the marijuana taxation act].” Patel further noted that the Legislature did not directly amend any of the existing taxes in the regulatory act or replace it with the new tax in the road funding legislation; rather, the Legislature imposed a new separate tax, which is permitted under the regulatory act. “The two statutes can be read together,” Patel wrote. The claim regarding the mechanism by which a new tax could be enacted was therefore dismissed, Patel wrote. Patel did, however, allow the case to move forward to determine if the tax interferes with the intent of the voter-initiated law that allowed marijuana consumption, regulations and sales. Patel said a genuine issue of fact remained on that issue, which required further consideration before the court. “The court must consider the intentions of the [taxation act] drafters and the impact of the new wholesale excise tax on the purposes of the [taxation act],” Patel wrote. “The court may not resolve such factual questions at the summary disposition phase. Discovery will be required to develop the evidence needed to support the parties’ positions in this regard.” This story was first published by Michigan Advance. Photo elements courtesy of rawpixel and Philip Steffan. The post Michigan Judge Allows Marijuana Tax Increase To Take Effect Despite Industry Lawsuit appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

“For hemp producers, entering the carbon credit market may provide a strategy for long-term sustainability and market resilience.” By Amy M. Rubenstein, Dentons As the cannabis and hemp industries evolve (including most recently through an amendment to the 2018 Farm bill that redefines “hemp”), producers should seek innovative ways to diversify income and align their businesses with sustainability goals. One promising developments is integrating carbon credit generation into hemp cultivation practices. With its impressive carbon sequestration capabilities, hemp presents an untapped opportunity to access carbon credit markets, including tax incentives through IRS Section 45Q and credits in both voluntary and compliance markets. Why Hemp Producers Should Care About Carbon Credits Producers growing hemp for cannabinoids like Delta-8 THC, CBD and other intoxicating or therapeutic compounds face regulatory challenges and volatile market prices. The amended hemp definition in the federal spending bill compounds these issues and may push producers to find alternatives to monetize their hemp crops. If producers can show a qualifying end-use, they may be able to open up a new and increasingly valuable revenue stream while improving their environmental footprint. Hemp’s rapid growth rate and high biomass density make it particularly effective at capturing carbon dioxide, which is the foundation for generating carbon offsets. Hemp’s Carbon Sequestration Power To the Lincoln University Hemp Institute, “hemp is an ideal annual crop for carbon negative supply chains for food, feed, fiber and fuel.” According to the British Hemp Company, every metric ton of hemp cultivated can absorb approximately 1.63 metric tons of CO₂ from the atmosphere. Dr. Darshil Shah of the University of Cambridge has stated that industrial hemp can capture more carbon per hectare than forests or commercial crops like cotton or wheat. And unlike tree-planting offset schemes, hemp grows in four to six months, meaning it can be cycled multiple times per year for carbon drawdown. Its deep root system not only locks carbon into the soil but also improves soil structure and fertility over time, making future harvests more productive—and more carbon efficient. For hemp producers, especially those already investing in regenerative farming practices to improve cannabinoid yields and terpene profiles, these environmental benefits can be converted into quantifiable financial returns in the form of carbon credits. Carbon Credit Markets: Voluntary vs. Compliance There are two main avenues for selling carbon credits: Voluntary Markets: These allow hemp growers to generate and sell carbon credits directly to companies, individuals or organizations looking to offset emissions as part of sustainability goals. Hemp-based credits are increasingly gaining attention here. Registries like Verra and Gold Standard are developing new agricultural methodologies to accommodate crops like hemp. Compliance Markets: These are government-regulated systems like California’s Cap-and-Trade program or the European Union Emissions Trading System. While more complex to access, these markets offer higher and more stable credit prices. Hemp credits are not yet mainstream in compliance markets, but advocacy is growing for broader agricultural inclusion. One voluntary carbon credit example for hemp comes from Hempitecture, a U.S.-based company that builds sustainable construction materials from hemp, with a methodology being reviewed Verra. Each metric ton of carbon sequestered becomes a credit that a company can then purchase to reduce its overall carbon footprint. These credits have a marketplace, with a lower price commanded for the voluntary markets than the compliance markets. IRS Section 45Q: A Primer for Hemp Cultivators IRS Section 45Q provides tax credits for each metric ton of CO₂ captured and either permanently stored or used in an approved application. While IRS initially created this tax credit for large-scale industrial operations, recent interpretations and guidance suggest a growing openness to biological carbon sequestration—including agriculture-based solutions like hemp. However, for hemp to qualify under 45Q, a few key requirements must be met: The CO₂ captured must be measured and verified using approved protocols. The storage must be permanent or used in a qualifying end-use (e.g., biochar, building materials). Entities must establish Monitoring, Reporting and Verification (MRV) systems to document sequestration. Because requirement #2 presents a challenge currently for intoxicating or therapeutic hemp-derived compounds (i.e., whether the carbon is captured permanently in that use case), most intoxicating hemp growers may find voluntary carbon markets (described above) to be a more immediate fit if 45Q’s requirements cannot be met. However, as intoxicating hemp producers may pivot when the new hemp definition becomes effective, using 45Q may become more attractive. It should be noted that IRS requirements under 45Q, which require compliance and monitoring standards (both during and after construction and placed in service), must be followed closely but still can allow flexibility on the use of the tax credit. Still, staying informed on IRS interpretations of 45Q is smart business—especially as policy continues to evolve as the 45Q credit has evolved and expanded under different administrations. Creating Hemp-Based Carbon Credits: Navigating Compliance and Opportunity Growers with sizable hemp acreage who want to turn hemp’s carbon sequestration into tradable credits must: Measure carbon capture using accepted methodologies (such as COMET-Farm or Cool Farm Tool); Work with a carbon project developer or aggregator. Register with a verified carbon registry. Undergo third-party validation and periodic verification. Maintain long-term documentation and reporting. According to CarbonCredits.com, projects involving hemp are now being registered and monetized, with some platforms even exploring blockchain-based credit systems that tokenize offsets, allowing them to be traded more easily and transparently. While intoxicating hemp often has been separated from industrial-use hemp in regulations, it still qualifies for carbon credit opportunities as long as the cultivation methods meet the criteria for verifiable carbon sequestration. In the next year, this separation also may fade for hemp producers. From a marketing perspective for any hemp product, emphasizing environmental stewardship through carbon capture can also be appealing to eco-conscious investors and consumers. Challenges to Consider Before diving in, there are important caveats: Verification costs can be substantial. Grouping together with other growers through a project developer can help. Lack of clear hemp-specific methodologies. While some exist for soil carbon or biomass sequestration, few are tailor-made for intoxicating hemp crops. Regulatory ambiguity. Federal policy still creates friction between cannabis-related operations and traditional agricultural benefits like USDA support or federal tax credits. Despite these issues, the carbon credit space continues to mature rapidly, and hemp growers are well-positioned to take early advantage. The Future: Hemp as a Dual-Use Crop for Profit and Planet For hemp producers, entering the carbon credit market may provide a strategy for long-term sustainability and market resilience. As more carbon registries develop agriculture-friendly protocols, and as public awareness of climate-smart agriculture grows, early adopters in the hemp space will reap financial and reputational benefits. Consumers seeking eco-friendly products may seek out products that have attributes like carbon capture. By aligning cultivation with carbon sequestration strategies and pursuing certification in voluntary or eventually compliance markets, hemp growers can play a pivotal role in fighting climate change—all while growing a better bottom line. Amy M. Rubenstein is a partner in the Health Care practice at Dentons US LLP. Photo courtesy of Max Jackson. The post How Hemp Producers Can Unlock Potential In Carbon Credit Markets (Op-Ed) appeared first on Marijuana Moment. 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