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A top Hawaii lawmaker says he will work to advance a bill this session that would put the question of marijuana legalization to voters after repeated failed efforts to enact the reform legislatively in recent sessions. House Judiciary and Hawaiian Affairs Committee Chairman David Tarnas (D) previewed the plan in an interview with Honolulu Civil Beat that was published on Monday. Given the legislature’s evident reluctance to end prohibition on its own despite public support for legalization, he said the issue ought to be decided by voters. “This is kicking this particular policy decision—very selectively—to the public for a decision,” Tarnas, who has previously sponsored legalization and other marijuana reform bills, said. While Gov. Josh Green (D) supports legalizing cannabis, and polling has indicated that Hawaiians are ready for the policy change, the chairman is signaling that he doesn’t anticipate that the legislature will be ready to move forward with a legislative reform this year but may instead be inclined to defer to voters. House Speaker Nadine Nakamura (D) has acknowledged broad public support for marijuana legalization, but said that some of her chamber’s members from the island of Oahu are not on board with the reform. Putting legalization on the ballot would come in the form of a proposed constitutional amendment under Tarnas’s plan, which would require a two-thirds vote in each chamber of the legislature. Hawaii’s Senate last February narrowly defeated a proposal that would have increased fivefold the amount of cannabis that a person could possess without risk of criminal charges. Had the measure become law, it would have increased the amount of cannabis decriminalized in Hawaii from the current 3 grams up to 15 grams. Possession of any amount of marijuana up to that 15-gram limit would have been classified as a civil violation, punishable by a fine of $130. A Senate bill that would have legalized marijuana for adults, meanwhile, ultimately stalled for the session. That measure, SB 1613, failed to make it out of committee by a legislative deadline. While advocates felt there was sufficient support for the legalization proposal in the Senate, it’s widely believed that House lawmakers would have ultimately scuttled the measure, as they did last February with a legalization companion bill, HB 1246. In 2024, a Senate-passed legalization bill also fizzled out in the House. Last year’s House vote to stall the bill came just days after approval from a pair of committees at a joint hearing. Ahead of that hearing, the panels received nearly 300 pages of testimony, including from state agencies, advocacy organizations and members of the public. Green signed separate legislation last year to allow medical marijuana caregivers to grow marijuana on behalf of up to five patients rather than the current one. And in July, the governor signed another bill that establishes a number of new rules around hemp products in Hawaii, including a requirement that distributors and retailers obtain a registration from the Department of Health. Lawmakers also sent a bill to the governor that would help speed the expungement process for people hoping to clear their records of past marijuana-related offenses—a proposal Green signed into law in April. That measure, HB 132, from Tarnas, is intended to expedite expungements happening through a pilot program signed into law in 2024 by Green. Specifically, it will remove a distinction between marijuana and other Schedule V drugs for the purposes of the expungement program. The bill’s proponents said the current wording of the law forces state officials to comb through thousands of criminal records manually in order to identify which are eligible for expungement under the pilot program. Meanwhile, in November, Hawaii officials finalized rules that will allow medical marijuana dispensaries to sell an expanded assortment of products for patients—including dry herb vaporizers, rolling papers and grinders—while revising the state code to clarify that cannabis oils and concentrates can be marketed for inhalation. The department also affirmed its support for federal marijuana rescheduling—a policy change that President Donald Trump ordered to be completed last month but has yet to come to fruition. — 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. — Regulators are also launching a series of courses designed to educate physicians and other healthcare professionals about medical marijuana as the state’s cannabis program expands. The underlying medical marijuana expansion bill signed by the governor in late June, in addition to allowing more patients to more easily access cannabis, also contains a provision that advocates find problematic. Before lawmakers sent the legislation to Green, a conference committee revised the plan, inserting a provision to allow DOH to access medical marijuana patient records held by doctors for any reason whatsoever. This past fall, regulators solicited proposals to assess the state’s current medical marijuana program—and also sought to estimate demand for recreational sales if the state eventually moves forward with adult-use legalization. Some read the move as a sign the regulatory agency saw a need to prepare to the potential reform. Photo courtesy of Brian Shamblen. The post Top Hawaii Lawmaker Previews Bill To Let Voters Decide On Marijuana Legalization At The Ballot appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

The New Hampshire House of Representatives has approved a bill to legalize marijuana in the state—though its chances of passage in the Senate remain dubious, and the governor has expressed clear opposition to the reform. Also on Wednesday, the House passed a proposal to allow medical cannabis dispensaries to become for-profit businesses. The marijuana legalization measure, sponsored by Rep. Jared Sullivan (D), cleared the House Commerce and Consumer Affairs Committee in October. And on Wednesday, the body approved it in a 208-135 vote. “It is time to stop arresting people for simple possession of cannabis and start treating it with the same fairness and regulation we apply to alcohol,” Sullivan said in a committee majority report. “The majority of our constituents already support legal cannabis, and it is time for the law to reflect the will of the people.” “This bill creates a framework for responsible regulation, testing, and taxation while protecting public safety and freeing law enforcement to focus on serious crimes,” he said. “Legalization will open the door to new economic opportunities for local businesses and generate revenue for prevention, treatment, and education. Most importantly, it acknowledges reality—cannabis is already part of our society, and it is better for everyone when it is safe, legal, and responsibly regulated.” At the committee level, members agreed to move forward with the cannabis bill, even though they generally accepted that it was unlikely to advance beyond the chamber given opposition in the Senate and the threat of a veto by the governor. Rep. Lilli Walsh (R) argued in a committee minority report that legalizing marijuana “would come with significant psychiatric, public safety, and societal costs that far outweigh any projected state revenue.” “Numerous studies show that frequent marijuana use—especially among young men—leads to higher rates of depression, psychosis, and long-term cognitive decline,” she said. “Daily users often struggle with motivation, concentration, and productivity, creating barriers to steady employment and personal stability. We have an obligation to protect our youth from the proven mental health risks of early cannabis use, not normalize it under the false guise of harmless recreation.” If enacted, HB 186 would legalize possession of up to 2 ounces of cannabis flower, 10 grams of concentrates and products with up to 2 grams of THC for adults over 21 years of age. They could also grow six plants at home, three of which could be mature. Past cannabis possession convictions would be vacated, and non-discrimination protections for consumers would be established, including for access to medical care, public benefits, child custody and government employment. A new Cannabis Commission would be established to license and regulate the marijuana industry, along with a Cannabis Advisory Board. Recreational cannabis sales would be taxed at 8.5 percent, with revenue being split between program administration, municipalities, substance misuse programs, public safety agencies and the state general fund. Localities across the state would have ballot referendums asking voters if they want to opt in to allowing retail marijuana sales. The bill will now head to the House Finance Committee before potentially coming back to the House floor for a final vote and, if approved there a second time, will advance to the Senate for consideration. Sullivan’s legalization bill is one of several cannabis proposals filed for the 2026 session, including legislation from Rep. Jonah Wheeler (D) that seeks to put a constitutional amendment on the state ballot that would let voters decide if they want to legalize marijuana for adults 21 and older, allowing them to “possess a modest amount of cannabis for their personal use.” Gov. Kelly Ayotte (R) has already threatened to veto any legalization bill that reaches her desk, though the constitutional amendment proposal would not require gubernatorial action. The governor said in August that her position on the reform would not change even if the federal government moved forward with rescheduling the plant. Since then, President Donald Trump has directed the attorney general to finalize the process of moving cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA). At a committee meeting last year, Sullivan ultimately made a persuasive argument for advancing his legalization bill, pointing out that the House has repeatedly passed similar legislation and that the chamber should stand its ground, forcing the Senate and governor to again go on record with their opposition to a policy popular among voters. “We know where it’s going to go. Let’s send a virtue signal,” Sullivan said. “Let them be the ones that are pissing off voters who care about this.” Meanwhile, the House also approved a bill on Wednesday from Rep. Wendy Thomas (D) that would allow medical marijuana dispensaries (known as “alternative treatment centers,” or ATCs, in the state) to convert their dispensary licenses to become for-profit entities. HB 54, which passed on the consent calendar with other legislation, previously advanced unanimously out of the House Finance Committee. Part of the motivation behind the legislation is the fact that medical marijuana dispensaries don’t qualify for federal non-profit status. But in the state, they’re considered non-profit organizations, which has resulted in disproportionately increased operating costs. Other bills filed for 2026 include two proposals to protect the gun rights of medical cannabis patients. There are also a few pieces of legislation aimed at regulating hemp sales—an issue that’s receiving heightened attention given that Congress passed, and Trump signed, an appropriations bill that would effectively re-criminalize most consumable hemp products. Meanwhile, after the House added provisions to a Senate-passed bill last year that would allow medical marijuana patients to grow cannabis at home, those measures were stripped in conference. Photo courtesy of Mike Latimer. The post New Hampshire House Passes Bills To Legalize Marijuana And Let Dispensaries Convert To For-Profit Status appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

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It’s the season of New Year’s resolutions again, and Americans are apparently more inclined to quit or reduce their use of alcohol and tobacco than want to abstain from marijuana, according to a new poll. The survey from Censuswide, which was commissioned by Northerner.com, asked 1,003 U.S. adults about their resolutions for 2026. Among the 15 options, respondents were least inclined to curb their cannabis use. Just 8 percent of Americans said they wanted to reduce or cease their marijuana consumption. By contrast, 10 percent said they wanted to limit alcohol use, 12 percent said the same about tobacco and 16 percent wanted to limit their social media use. The most common New Year’s resolution commitment was to improve physical health, at 35 percent. Young people aged 21-24 were most likely (13 percent) to say they wanted to lower or quit their marijuana use, followed by those 25-34 (12 percent), 45-54 (5 percent) and 55+ (4 percent). Men were twice as likely (12 percent) to say they wanted to cut out cannabis compared to women (6 percent). And among those who said they wanted to reduce marijuana use in 2026, 40 percent said they’ve tried and failed in the past. Asked about the reasons they resolved to limit marijuana consumption, more than 50 percent said they feel it would “improve their independence and flexibility.” Forty-seven percent said they felt it would “make them feel more accomplished.” And 40 percent said they believe it “will help them lead a more active lifestyle and improve their mental and emotional well-being.” The fact that fewer people intend to quit cannabis over alcohol and tobacco in the new year isn’t especially surprising. While half of Americans report that they’ve tried marijuana, it’s still not as commonly used as alcohol or tobacco. Public education campaigns have also proven effective at deterring some, particularly young people, from drinking or using tobacco products that are legal and regulated for adults at the federal level, unlike cannabis. Recent polling shows that younger Americans are increasingly using cannabis-infused beverages as a substitute for alcohol—with one in three millennials and Gen Z workers choosing THC drinks over booze for after-work activities like happy hours. Another survey released in October found that a majority of Americans believe marijuana represents a “healthier option” than alcohol—and most also expect cannabis to be legal in all 50 states within the next five years. Smoking marijuana is also associated with “significantly” reduced rates of alcohol consumption, according to a recent federally funded study that involved adults smoking joints in a makeshift bar. A study published last year found that adults who drink cannabis-infused beverages has found more evidence of a “substitution effect,” with a significant majority of participants reporting reduced alcohol use after incorporating cannabinoid drinks into their routines. Another survey released last year also showed that four in five adults who drink cannabis-infused beverages say they’ve reduced their alcohol intake—and more than a fifth have quit drinking alcohol altogether. The post More Americans Want To Quit Using Alcohol And Tobacco Than Marijuana In 2026, New Year’s Resolution Poll Finds appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

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A Florida lawmaker has introduced a bill that would protect the parental rights of medical cannabis patients, preventing them from losing custody of their children for using their medicine in accordance with state law. “A court may not deny or otherwise restrict a parent’s custody of a child or the parent’s visitation rights or parenting time with a child based solely on the parent’s status as a qualified patient,” the bill text states. “There is no presumption of neglect or child endangerment based solely on the parent’s status as a qualified patient.” “In determining the best interests of the child with respect to custody or dependency, this section applies,” it continues. The legislation, if enacted, would take effect on July 1. “I remember speaking with someone last year and the year before regarding public employees potentially listing their jobs even if they have a medical marijuana card and recently heard about parents getting [the Department of Children and Families] called on them,” Nixon told Florida Politics. “Those in leadership won’t look out for working families by providing adequate health insurance,” she said. “At least easing their pain physically without the possibility of them losing their kids is the least we can do.” A Senate version of the bill was pre-filed last year by Sen. Tina Scott Polsky (D), who is also seeking to add employment protections for registered medical cannabis patients in the state. In the background, a campaign is working against the clock to collect enough signatures to again put the question of adult-use marijuana legalization to voters at the ballot. But there have been complications. Most recently, the Republican attorney general of Florida and several business and anti-marijuana groups urged the state Supreme Court to block the legalization initiative, calling it “fatally flawed” and unconstitutional. The parties generally contend that the proposal is written in a way that’s affirmatively misleading, runs counter to federal law prohibiting cannabis and violates the state’s single subject rule for ballot initiatives. The attorney general’s office last month asked the state Supreme Court to review the constitutionality of the legalization initiative. The court accepted the request and set a schedule for state officials and the cannabis campaign to file briefs this month. Proponents of the measure have until January 12 to submit response briefs, then the opposition has until January 20 to reply. The briefs were filed days after Smart and Safe Florida filed a new lawsuit against state officials, alleging that they improperly directed the invalidation of about 71,000 signatures as a turn-in deadline approaches. The campaign has been fighting several legal battles this cycle to ensure that its initiative is able to qualify for ballot placement. The latest lawsuit, filed in the Leon County circuit court, claims Secretary of State Cord Byrd (R) directed county election officials to invalidate about 42,000 signatures from so-called “inactive” voters and roughly 29,000 signatures collected by out-of-state petitioners. This comes after another court upheld a previous decision to strike about 200,000 signatures that the state said were invalid because the petitions didn’t include the full text of the proposed initiative. The campaign contested the legal interpretation, but it declined to appeal the decision based on their confidence they’d collected enough signatures to make up the difference. Now, with a February 1 deadline to submit 880,062 valid signatures just about a month away, Smart & Safe Florida is signaling that the additional invalidations could jeopardize their chances of making the ballot. Currently, the state has validated 675,307 signatures. Florida Gov. Ron DeSantis (R) campaigned heavily against an earlier version of the legalization proposal, which received a majority of voters last year but not enough to meet the 60 percent threshold required to pass a constitutional amendment. Former Attorney General Ashley Moody (R) unsuccessfully contested the prior initiative in the courts. In March, meanwhile, two Democratic members of Congress representing Florida asked the federal government to investigate what they described as “potentially unlawful diversion” of millions in state Medicaid funds via a group with ties to DeSantis. The money was used to fight against a citizen ballot initiative, vehemently opposed by the governor, that would have legalized marijuana for adults. The lawmakers’ letter followed allegations that a $10 million donation from a state legal settlement was improperly made to the Hope Florida Foundation, which later sent the money to two political nonprofits, which in turn sent $8.5 million to a campaign opposing Amendment 3. The governor said last February that the newest marijuana legalization measure is in “big time trouble” with the state Supreme Court, predicting it would be blocked from going before voters this year. “There’s a lot of different perspectives on on marijuana,” DeSantis said. “It should not be in our Constitution. If you feel strongly about it, you have elections for the legislature. Go back candidates that you believe will be able to deliver what your vision is on that.” “But when you put these things in the Constitution—and I think, I mean, the way they wrote, there’s all kinds of things going on in here. I think it’s going to have big time trouble getting through the Florida Supreme Court,” he said. In 2023, the governor accurately predicted that the 2024 cannabis measure from the campaign would survive a legal challenge from the state attorney general. It’s not entirely clear why he feels this version would face a different outcome. While there’s uncertainty around how the state’s highest court will navigate the measure, a poll released last February showed overwhelming bipartisan voter support for the reform—with 67 percent of Florida voters backing legalization, including 82 percent of Democrats, 66 percent of independents and 55 percent of Republicans. — 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. — Meanwhile, another recently filed bill in Florida would make it so patients could lose their medical cannabis registrations if they are found with an open container of marijuana or hemp products inside vehicles. A pro-legalization GOP state lawmaker separately filed legislation to amend state law to codify that the public use of marijuana is prohibited. Rep. Alex Andrade (R), the sponsor, said last year that embracing cannabis reform is a way for the Republican party to secure more votes from young people. Last month, a Florida Republican senator filed a bill to expand the state’s medical marijuana program, in part by increasing supply limits for patients and waiving registration fees for honorably discharged military veterans. A similar version of legislation was introduced in the House. Other recently filed bills in the legislature for 2026 would more incrementally reduce medical cannabis patient registration fees for military veterans and clarify that smoking or vaping marijuana in public places is prohibited. Meanwhile, a Florida Democratic senator introduced legislation for the 2026 session that would legalize home cultivation of marijuana for registered medical cannabis patients in the state. Separately, Florida medical marijuana officials are actively revoking the registrations of patients and caregivers with drug-related criminal records. The policy is part of broad budget legislation signed into law last year by DeSantis. The provisions in question direct the state Department of Health (DOH) to cancel registrations of medical marijuana patients and caregivers if they’re convicted of—or plead guilty or no contest to—criminal drug charges. The post New Florida Bill Would Protect Medical Marijuana Patients’ Parental Rights, Including Custody And Visitation appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

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IRS rejects marijuana nonprofit’s app; WI medical cannabis; IN legalization bill; VA patient protections; MI tax lawsuit proceeds 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 The Senate confirmed President Donald Trump’s nomination of Sara Carter Bailey—who called medical cannabis “fantastic”—to serve as director of the White House Office of National Drug Control Policy. The Internal Revenue Service rejected a cannabis tourism group’s request for nonprofit tax-exempt status, citing the ongoing federal criminalization of marijuana and saying that the organization’s activities create a “private benefit to the cannabis industry” and its members. Wisconsin’s Assembly Speaker Robin Vos (R) said his chamber is “not there” yet in having enough votes to pass a medical cannabis legalization bill despite his support for limited reform—and he criticized President Donald Trump’s federal rescheduling move, calling marijuana a “dangerous drug.” An Indiana representative introduced a bill to legalize possession and cultivation of up to two ounces of marijuana, without creating a regulatory structure for licensed cannabis production and retail sales. A Virginia delegate filed a bill to allow terminally ill patients to use medical cannabis in hospitals and other healthcare facilities, subject to certain limitations. A Michigan judge is allowing the marijuana industry’s lawsuit challenging a new wholesale tax on cannabis to proceed despite state officials’ request for her to reconsider a ruling denying their motion for a summary judgement. Florida lawmakers filed legislation to make it illegal to possess open containers of medical marijuana or hemp products in vehicles—with the loss of medical cannabis patient status as a possible penalty. / FEDERAL The Drug Enforcement Administration Museum posted a video about a money counting machine in its collection. / STATES Colorado’s attorney general reached a settlement with a cannabis company that allegedly violated the terms of a prior settlement. Oklahoma’s attorney general said “trafficking of illegal marijuana from Oklahoma into Texas represents a serious threat to public safety in both states.” The New Jersey Assembly Health Committee approved a bill to restructure the Cannabis Regulatory Commission. Nebraska regulators approved new emergency medical cannabis rules as well as a cultivation license. California regulators filed proposed changes to the cannabis appellations program. Vermont regulators approved updated guidance on marijuana advertising and product labeling and registration. The Arkansas Medical Marijuana Commission will meet on Thursday. — 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 A court overturned Southampton, New York’s cannabis zoning rules. / INTERNATIONAL Ukraine’s Cabinet of Ministers approved quotas for production of medical cannabis and other drugs for 2026. The German Bundestag Health Committee will hold a hearing on a bill to add restrictions on medical cannabis on January 14. / SCIENCE & HEALTH A study’s results “suggest the potential application of hemp seed protein hydrolysate and its fractions as antioxidant and chemoprotective supplements in oncologic therapies.” A study found that “cannabis may influence brain health differently across the lifespan, potentially offering protective effects in older age while posing risks earlier in development.” A study found “a significant and clinically meaningful reduction in depressive symptoms after psilocybin treatment.” / BUSINESS Nabis is acquiring select assets of Humble Cannabis Solutions. IM Cannabis Corp. has a new board of directors member. / CULTURE A marijuana dispensary co-owned by Ice-T in Jersey City, New Jersey has closed. 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 New Trump drug czar supports medical cannabis (Newsletter: January 7, 2026) appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

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The ban on the carry of open cannabis products applies to both drivers and passengers. By Christine Sexton, Florida Phoenix Carrying an open package of medical marijuana, hemp or THC products, including beverages, in a car, would be illegal and could lead to suspension or possible revocation of a patient’s access to medical marijuana under a bill that’s been filed in the Senate. Fort Myers Republican Sen. Jonathan Martin filed SB 1056 Monday, eight days before the 2026 regular legislative begins. Martin’s bill would give law enforcement the green light to search a vehicle based on the “plain smell” of edibles, hemp, marijuana or THC beverages by creating a new statute that provides “legislative intent.” In doing so, the bill aims to blunt the effect of an October 2025 Florida Second District Court of Appeal ruling that the smell of marijuana alone is not enough to establish probable cause for a police search because marijuana no longer is illegal. Because the ruling was in conflict with one of its previous rulings, the appeals court certified the question of whether the legalization of medical marijuana and hemp in Florida means the “plain smell” doctrine, which allows searches based solely on the smell of marijuana, still is valid. Sen. Martin didn’t immediately reply to Florida’s Phoenix’s request for comment on the bill. The ban on the carry of open medical marijuana products applies to both drivers and passengers, although it wouldn’t apply to paying commercial passengers or passengers on buses or passengers in self-contained motor homes that are longer than 21 feet. The definition of “open container” mirrors the definition of open container for alcohol. The bill has different penalties for drivers and passengers who break the law. There are 929,655 medical marijuana patients in Florida, Office of Medical Marijuana Use data show. Both drivers and passengers who violate the law could be charged with a noncriminal moving traffic violation and suspension of their medical marijuana identification cards, which enable them to buy the product. And both drivers and passengers who repeatedly violate the law could have their access to medical marijuana permanently revoked. A driver who breaks the law a second time could be imprisoned for up to 90 days and forced to pay up to a $500 fine or both. Jail time for a third offense for a driver would be increased to up to six months and the potential fine upped to $1,000. Police won’t have to wonder whether the driver or passenger owns the open product. Under the bill, an open container of edibles would be considered to be in the possession of the driver unless it is located in a locked glove compartment, locked trunk or other locked part of the vehicle, or is in the physical control of the passenger. Rep. Dean Black (R) filed a similar bill in the House of Representatives on Monday. This story was first published by Florida Phoenix. Additional reporting by Marijuana Moment. The post Florida Patients Could Lose Medical Marijuana Registrations For Having Open Containers Of Cannabis In Cars Under New Legislation appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

The Senate has confirmed President Donald Trump’s pick to serve as White House drug czar. Sara Carter Bailey, who will soon be officially sworn in as director of the Office of National Drug Control Policy (ONDCP) following a 52-48 confirmation vote on Tuesday, will play a central role in implementing the administration’s drug policy agenda. That includes everything from marijuana and psychedelics to harm reduction and overdose prevention. The full Senate’s approval of Carter comes about three months after the Judiciary Committee advanced her nomination. Carter has voiced support for medical cannabis, while stating that she doesn’t have a “problem” with legalization, even if she might not personally agree with the policy. A former journalist known for her coverage of drug cartels, the incoming ONDCP director also previously advised senators that the administration was keeping “all options” on the table as it considered a marijuana rescheduling proposal, while describing cannabis reform as a “bipartisan issue.” Despite her personal ambiguity on the rescheduling issue, Trump last month signed an executive order directing the attorney general to expeditiously complete the process of moving cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA). Given the role of the ONDCP director in setting and carrying out the administrative agenda on drug policy issues, the fact that Carter has gone on the record enthusiastically endorsing medical cannabis in the past is welcome news for advocates. Sen. Cory Booker (D-NJ) raised the issue of cannabis rescheduling with the then-nominee in September, stating that the incremental reform would represents a “step in the right direction.” “It would open up the door to more scientific study, and so I’m wondering if you were confirmed, how would you advise the American president about the ongoing rescheduling process?” he asked. Carter said she shares Booker’s passion for the issue, which she characterized as “bipartisan.” “If confirmed as director, I will comply with all federal laws and fulfill all statutory responsibilities of the ONDCP,” she said. “However, we will continue to work extensively with research and data. We will continue to do that and explore all options.” Tuesday’s vote on her confirmation was largely along party lines—with Sen. Rand Paul (R-KY) joining all Democrats in opposition, and all other Republicans in support. While Carter has spoken often about various marijuana policy issues—focusing attention on illicit trafficking and illegal grow operations on U.S. land, for example—her public comments on how she personally feels about the topic have been limited. What she did say in a 2024 episode of her podcast, The Sara Carter Show, signaled that she draws a distinction between legally regulated and illicitly supplied marijuana. “I don’t have any problem if it’s legalized and it’s monitored,” she said. “I mean, I may have my own issues of how I feel about that, but I do believe that cannabis for medicinal purposes and medical reasons is a fantastic way of handling—especially for people with cancer and other illnesses, you know—of handling the illness and the side effects of the medication and those illnesses. So I’m not saying we’ve gotta make it illegal.” Last month, a Democratic senator temporarily held up the Republican majority’s attempt to advance Carter’s confirmation, saying she is among many “unqualified” candidates who threaten to “undermine the rule of law and our national security.” Carter will be the second White House drug czar in a row who has voiced support for medical marijuana, following former President Joe Biden’s ONDCP director Rahul Gupta, who worked as a consultant for a cannabis businesses and also oversaw implementation of West Virginia’s medical marijuana program. On her social media, Carter has previously shared links—without commentary—to news stories about a variety of marijuana-related issues. In addition to her focus on illicit cartel grows, she’s also posted about congressional and state-level legalization votes, staffers in the Biden administration being fired over past cannabis use, Democratic presidential candidates’ support for legalization, the advancement of cannabis banking legislation in Congress and state policy developments such as Alaska’s legalization of cannabis cafes. Federal statute dictates the drug czar is prohibited from endorsing the legalization of Schedule I drugs in the CSA, including marijuana. “The Director…shall ensure that no Federal funds appropriated to the Office of National Drug Control Policy shall be expended for any study or contract relating to the legalization (for a medical use or any other use) of a substance listed in schedule I of section 812 of this title and take such actions as necessary to oppose any attempt to legalize the use of a substance (in any form) that— (A) is listed in schedule I of section 812 of this title; and (B) has not been approved for use for medical purposes by the Food and Drug Administration.” Last April, Democratic congressional lawmakers announced the filing of a bill that would remove that restriction. It has not yet advanced in the GOP-controlled Congress. Carter has separately sounded the alarm about the risk of pesticides and other contaminants in marijuana grown and sold by Chinese cartels—an issue that was taken up by a House committee last year. Also last year, the incoming ONDCP director talked about the issue with Derek Maltz, a then-retired Drug Enforcement Administration (DEA) official who temporarily served as acting administrator of the agency prior to the confirmation of Trump’s permanent pick, Terrance Cole. In an X post about the interview with Maltz, Carter said he exposed how “Chinese marijuana grow operations are using hazardous chemicals as pesticides.” In 2022, U.S. Rep. Mike Garcia (R-CA) applauded Carter, who worked with his office to bring attention to illicit grow operations in his district, leading to a local law enforcement investigation. Carter gave the congressman credit, saying “your work in taking down the illegal marijuana grows has stopped cartels from exploiting your community, those people forced to work on them and the [money].” In an interview with Fox News’s Sean Hannity in 2021, she also talked about her work with Garcia—including accompanying him on a helicopter to survey “miles and miles and miles of vast, sophisticated illegal grows worth tens of millions of dollars.” Cartels have “become extremely more brazen. They’re not afraid of hiding it,” she said. “They don’t hide it because they don’t feel that they’ll ever be held accountable for it.” In a sense, Carter has seemed to implicitly suggest at multiple times that she supports regulated access to cannabis as a means of promoting public safety and health. Whether and how that implied position will influence federal policy now that she’s confirmed is yet to be seen. On her social media, she’s previously shared links—without commentary—to news stories about a variety of marijuana-related issues. In addition to her focus on illicit cartel grows, she’s also posted about congressional and state-level legalization votes, staffers in the Biden administration being fired over past cannabis use, Democratic presidential candidates’ support for legalization, the advancement of cannabis banking legislation in Congress and state policy developments such as Alaska’s legalization of cannabis cafes. Photo courtesy of Mike Latimer. The post Senate Approves Trump’s White House Drug Czar Pick Who Supports Medical Marijuana As Rescheduling Looms appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

An Indiana lawmaker has filed a bill that would effectively legalize the possession and cultivation of limited amounts of marijuana. The legislation filed on Monday by Rep. Mitch Gore (D) would remove all penalties for possessing or growing up to two ounces of marijuana without creating a regulatory structure for licensed cannabis production and retail sales, giving the state a non-commercial form of legalization. The proposal would amend existing statute that designates any level of marijuana possession or cultivation as a Class B misdemeanor. Possessing hashish and hash oil, which are concentrated forms of cannabis, would still be entirely prohibited. However, the bill would also make it so the cannabis possession threshold for a Level 6 felony—which is punishable by up to 2.5 years in prison and a maximum $10,000 fine—would be increased from 30 grams to four ounces. Gore’s proposal has been referred to the House Courts and Criminal Code Committee for consideration. Whether the panel takes up the measure is yet to be seen, but cannabis reform advocates have struggled to make inroads in the conservative legislature. That said, the state’s GOP governor said recently that a move by President Donald Trump to federally reschedule marijuana could add “a little bit of fire” to the local push for cannabis legalization in his state. Months later, Trump did sign an executive order directing the attorney general to move cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA). Gov. Mike Braun (R) also said last year that he’s “amenable” to medical cannabis legalization. Meanwhile, one member of the state’s congressional delegation, Sen. Jim Banks (R-IN), expressed opposition to state-level reform despite Trump’s prior comments previewing a rescheduling decision. “President Trump has been honest about it, that when it comes to marijuana, he said very clearly we shouldn’t smell it on the streets. You have a lot of states that have legalized it. It’s caused even more crime and issues,” Banks said. “I hope Indiana is never a state that legalizes marijuana, by the way.” The senator acknowledged, however, that there is likely to be “further conversation” about the issue. Braun, for his part, previously said that “it’s probably time” to allow access to therapeutic cannabis among patients in the state. Those comments came alongside a poll indicating that nearly 9 in 10 Indiana adults (87 percent) support marijuana legalization. Top Republicans in the legislature, however, have openly opposed marijuana reform. “It’s no secret that I am not for this,” Senate President Pro Tem Rodric Bray (R) said in late 2024. “I don’t have people coming to me with really compelling medical cases as to why it’s so beneficial. And any state that I’ve seen pass medical marijuana is essentially passing recreational marijuana.” House Speaker Todd Huston (R) doubted any medical benefits associated with marijuana, calling the substance “a deterrent to mental health.” He and others suggested that lawmakers supportive of the reform merely want to boost state revenue. A number of marijuana reform bills were introduced for the Indiana legislature’s 2025 session, including one—from Reps. Jim Lucas (R) and Shane Lindauer (R)—that would have legalized medical marijuana for people with “serious medical conditions as determined by their physician.” Photo courtesy of Chris Wallis // Side Pocket Images. The post Indiana Lawmaker Files Bill To Legalize Low-Level Marijuana Possession And Cultivation appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

A top Republican Wisconsin lawmaker says President Donald Trump made the “wrong” choice to order the rescheduling of marijuana—which he called a “dangerous drug”—but he says the upside is that research barriers may be lifted in a way that demonstrates medical cannabis can be effectively used in a limited way as an alternative to prescription medications. As advocates hold out hope for some form of legalization in the state, Assembly Speaker Robin Vos (R) said he thinks “we are not there” in terms of having enough votes to advance even a medical cannabis bill through his chamber at this point, despite characterizing himself as a supporter of patients’ access to marijuana “for almost a decade now.” At the federal level, however, Vos told CBS 58 that “I think what President Trump did by declassifying—or, you know, reducing the classification of marijuana—was wrong.” “I think marijuana is still a dangerous drug that should never be legalized in Wisconsin. All the data that’s coming out from states who’ve used it—it’s bad for kids, it’s bad for adults, it has long-term consequences that are all negative,” he said. “But the only positive that is going to come out of that is perhaps we will now be able to do some medical research on medicinal cannabis to say, is it something where we now have studies that can show it’s a better alternative than some kind of a narcotic?” Speaker Vos, on medical marijuana, says Assembly Republicans "are not there." Vos goes on to say President Trump reclassifying marijuana "was wrong." "The only positive that is gonna come out of it is, perhaps, we will now be able to do some medical research." pic.twitter.com/uQVdPVbkGr — A.J. Bayatpour (@AJBayatpour) December 31, 2025 Marijuana hasn’t been formally rescheduled yet, as the executive order Trump signed last month simply directed the attorney general to complete the process of moving cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA). Such a reform would let marijuana businesses take federal tax deductions, while freeing up certain research restrictions that apply to Schedule I drugs. But it wouldn’t sanction the possession, cultivation or distribution of marijuana products without Food and Drug Administration (FDA) approval. In Wisconsin, meanwhile, with just under a year before voters elect their next governor, the majority of the current candidates have made clear that they will support efforts to legalize marijuana—in part to fund public programs such as increased access to broadband. And while there’s been splintering on the issue between the two chambers of the legislature, a Senate panel recently took up a Republican-led bill that would legalize medical marijuana in the state. Senate President Mary Felzkowski (R) and Sen. Patrick Testin (R) filed the legislation, and the Senate Health Committee debated the proposal at a hearing in October, taking testimony from patients and other advocates. Members didn’t vote on the bill, but the chair said the panel would be advancing it “fairly quickly.” Vos, for his part, said that month that he hopes lawmakers in the state can “find a consensus” on legislation to legalize medical marijuana. But he added that the cannabis bill filed by his Republican leadership counterpart in the Senate is “unlikely” to pass his chamber because it is “way too broad and way too wide-ranging.” As the 2025 session was set to get underway, Felzkowski said she was “hoping to have a conversation” in the legislature about legalizing medical marijuana—though the Republican Assembly speaker still represented “an obstacle,” she added. The Senate leader has previously sponsored medical cannabis legislation in past sessions, formally introduced the new legislation. Meanwhile, a Republican candidate for governor of Wisconsin who has since left the race said in July that he was “open to considering different opportunities” when it comes to legalizing medical or adult-use marijuana in the state, though he has provided little in the way of specifics so far. Current Gov. Tony Evers (D), who supports legalizing cannabis, isn’t seeking re-election—but he said in June that if his party can take control of the legislature, the state can “finally” legalize marijuana so that residents don’t have to go to neighboring Illinois to visit its adult-use market. Separately in June, a poll from Marquette Law School found that two in three Wisconsin voters support legalizing marijuana. The survey found that support for cannabis reform has generally increased over time since the institution first started tracking public opinion on legalization in 2013, with 67 percent of voters now backing the policy change. That’s 17 percentage points higher than the 2013 results. Democrats are the most likely to favor legalizing cannabis, at 88 percent, followed by independents (79 percent). However, a majority of Republicans (56 percent) said they’re still opposed to adult-use legalization. Underscoring the importance of party control, the state’s Republican-controlled Senate and Assembly this summer rejected another attempt to legalize marijuana, defeating amendments to budget legislation that would have ended prohibition in the state and established new medical and recreational cannabis programs. Evers has routinely attempted to change that policy as part of his budget requests—and Democratic leaders have similarly pushed for reform. Republicans in the legislature also cut the marijuana provisions from a state budget proposal in May, as they’ve done in past sessions. Despite Republicans’ move to cut legalization from the budget legislation, party leaders recently acknowledged that the debate over medical marijuana legalization is “not going to go away,” and there’s hope it can be resolved this session. — 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. — “I don’t think anyone is naive enough to think that marijuana and THC products aren’t present in the state of Wisconsin when they are readily available over state lines, so I think we need to come to an answer on this,” Assembly Majority Leader Rep. Tyler August (R) said in February. “I’m hopeful that we can.” “If we’re going to call it medical marijuana, it needs to be treated like a pharmaceutical. But the marijuana debate is going to be something that is not going to go away,” Sen. Dan Feyen (R), the assistant majority leader, said at the time. “The margins are tighter.” There have been repeated attempts to legalize medical marijuana in the legislature over recent years, including the introduction of legislation from the Assembly speaker that called for a limited program facilitated through state-run dispensaries. That proved controversial among his Republican colleagues, however, and it ultimately stalled out. Evers previewed his plan to include marijuana legalization in his budget last January, while also arguing that residents of the state should be allowed to propose new laws by putting binding questions on the ballot—citing the fact that issues such as cannabis reform enjoy sizable bipartisan support while the GOP-controlled legislature has repeatedly refused to act. Previously, in 2022, the governor signed an executive order to convene a special legislative session with the specific goal of giving people the right to put citizen initiatives on the ballot, raising hopes among advocates that cannabis legalization could eventually be decided by voters. The GOP legislature did not adopt the proposal, however. Evers said in late 2024 that marijuana reform is one of several key priorities the state should pursue in the 2025 session, as lawmakers work with a budget surplus. Days after he made the remarks, a survey found the reform would be welcomed by voters in rural parts of the state. Nearly two thirds (65 percent) said they support legalizing cannabis. Last May, the governor said he was “hopeful” that the November 2024 election would lead to Democratic control of the legislature, in part because he argued it would position the state to finally legalize cannabis. “We’ve been working hard over the last five years, several budgets, to make that happen,” he said at the time. “I know we’re surrounded by states with recreational marijuana, and we’re going to continue to do it.” A Wisconsin Democratic Assemblymember tried to force a vote on a medical cannabis compromise proposal in 2024, as an amendment to an unrelated kratom bill, but he told Marijuana Moment he suspects leadership intentionally pulled that legislation from the agenda at the last minute to avoid a showdown on the issue. Meanwhile, the state Department of Revenue released a fiscal estimate of the economic impact of a legalization bill from then-Sen. Melissa Agard (D) in 2023, projecting that the reform would generate nearly $170 million annually in tax revenue. A legislative analysis requested by lawmakers estimated that Wisconsin residents spent more than $121 million on cannabis in Illinois alone in 2022, contributing $36 million in tax revenue to the neighboring state. Evers and other Democrats have since at least 2024 insisted that they would be willing to enact a modest medical marijuana program, even if they’d prefer more comprehensive reform. Photo courtesy of Chris Wallis // Side Pocket Images. The post Top Wisconsin GOP Lawmaker Says State Isn’t Ready To Legalize Medical Marijuana, Criticizing Trump’s Rescheduling Move appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

A Virginia lawmaker has introduced a bill that would require health care facilities in the state to allow terminally ill patients to access medical cannabis if they have a doctor’s recommendation. The legislation, sponsored by Del. Karen Keys-Gamarra (D), would not permit patients to smoke or vape cannabis in the facilities, and their use of marijuana would have to be documented in their medical records. But, similar to a law enacted in California in 2021, terminally ill patients could consume non-combustable cannabis products at state health facilities if they’ve received a certification from a physician. The text of the Virginia bill states that the policy change would “not apply to a patient receiving emergency medical services.” And it specifies that health care facilities would not be mandated to issue medical cannabis certifications. Also, the measure stipulates that facilities don’t have to comply with the law if a federal agency such as the Department of Justice or Centers for Medicare and Medicaid Services “initiates enforcement action against a medical care facility related to the facility’s compliance with a state-regulated medical marijuana program” or “issues a rule or otherwise provides notification to the medical care facility that expressly prohibits the use of medical marijuana in medical care facilities or otherwise prohibits compliance with a state-regulated medical marijuana program.” However, it states that health care providers cannot “prohibit patient use of medicinal cannabis due solely to the fact that cannabis is a Schedule I drug pursuant to the federal Controlled Substances Act or other federal constraints on the use of medicinal cannabis that were in existence” before the state law is potentially enacted. “Compliance with this section shall not be a condition for obtaining, retaining, or renewing a license as a medical care facility,” it says. Meanwhile, advocates in Virginia are eagerly awaiting potential movement on statewide commercial sales legalization for adult use—and the Democratic governor-elect recently laid out what “needs to be” included in such a bill in order for her to sign it into law. That includes “strong labeling” requirements and allocating tax revenue toward education. “Right now is that we live in this gray space where there’s some legality to marijuana, there’s some illegality,” incoming Gov. Abigail Spanberger (D) said last month. “There’s a lot of questions—a lot of confusion—and that creates real problems for Virginians who might currently have the legal ability to buy it for medicinal needs, or for those who might try to fall under the personal use.” Cannabis has been legal to possess and cultivate for adult use since 2021, but there’s currently no retail access for non-medical marijuana. Gov. Glenn Youngkin (R), who leaves office this month, has vetoed bills passed by the legislature to establish a commercial recreational cannabis market—but advocates have been encouraged by Spanberger’s position in favor of the policy change. Meanwhile, last month, Virginia’s Senate president pro tempore filed a bill to provide relief for people convicted of past cannabis crimes, mandating that individuals with certain offenses automatically receive resentencing hearings and have their punishments adjusted. Youngkin has vetoed similar proposals in past sessions. — 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. — Also last month, the legislature’s Joint Commission to Oversee the Transition of the Commonwealth into a Cannabis Retail Market unveiled a much-anticipated proposal to legalize recreational marijuana sales that it is recommending lawmakers pass during the 2026 session. Sen. Louise Lucas (D), the Senate president pro tempore, 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. Separately, the Virginia Department of Labor and Industry published a document recently outlining workplace protections for cannabis consumers. Photo courtesy of Mike Latimer. The post Terminally Ill Patients Could Use Medical Marijuana In Virginia Hospitals Under Newly Filed Bill appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

“The court recognizes the serious questions about whether this discriminatory tax violates the intent of the cannabis legalization that Michigan voters approved in 2018.” By Kyle Davidson, Michigan Advance Court of Claims Judge Sima G. Patel on Monday denied the state of Michigan’s request to rehear a motion to toss a lawsuit filed by cannabis industry advocates against the 24 percent wholesale tax on marijuana which took effect on January 1. In October the Michigan Cannabis Industry Association filed a lawsuit against the state, arguing that the Legislature’s decision to create a 24 percent tax on wholesale marijuana violates the state constitution by modifying the 2018 law established when Michigan voters approved a ballot proposal legalizing recreational marijuana. Industry advocates have also warned that the tax would bring irreparable harm to Michigan’s marijuana industry, forcing small retailers out of business and pushing buyers into the black market. In her early December ruling, Patel largely rebuffed arguments from industry advocates, denying the association’s request to block the wholesale tax from taking effect alongside its request to have the case resolved without a full trial. However she did permit the case to move to trial, raising questions on whether the Legislature’s decision to create the tax violates the intent of the initiated law, partially denying a similar request from the state to resolve the matter without moving to trial. While the state filed a motion to have their request reconsidered, Patel denied it on Monday, determining that there had been no palpable error in her previous ruling and reemphasizing that questions of fact remained around the new tax violates the purpose of the 2018 law. “It is not certain on this record whether the 24 percent wholesale excise tax will impact prices to the extent purchasers will be driven to the illicit marijuana market,” Patel wrote. “Discovery is required to examine how the tax will impact the purposes of the [voter initiated law.]” Rose Tantraphol, the Michigan Cannabis Industry Association’s spokesperson, called Monday’s decision a win for voters and the industry. “In issuing this order, the court recognizes the serious questions about whether this discriminatory tax violates the intent of the cannabis legalization that Michigan voters approved in 2018,” Tantraphol said. “We’re looking forward to making our case that this tax will push Michiganders, who are already feeling stretched financially, into the illicit market.” In a separate filing, the association has asked the Michigan Court of Appeals to hear the case, arguing it would allow them to pursue the full range of arguments they made in their initial lawsuit. This story was first published by Michigan Advance. The post Michigan Judge Allows Lawsuit Challenging New Marijuana Tax To Proceed appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

The Internal Revenue Service (IRS) has denied a marijuana-focused tourism organization’s request for nonprofit tax-exempt status, citing the ongoing federal criminalization of cannabis and saying that the group’s activities create a “private benefit to the cannabis industry” and its members. Therefore, the agency said, the organization cannot claim tax exemptions for charitable purposes. In a notice to the group that IRS made publicly available, the agency said the articles of incorporation (AOI) that were submitted to qualify as a tax-exempt nonprofit corporation stated that the organization’s purpose was to “promote the development of a responsible cannabis-related tourism industry, and advocate for sustainable innovations and social equity.” “Your application stated you aim to accomplish your purpose by engaging in education, training-workforce development, and outreach partnerships,” the notice, which was posted in a redacted form that does not show the group’s name, said. “One of your goals, per your website, is to cultivate local partnerships that can grow cannabis-related economic development opportunities…through education and training.” IRS said a review of the organization’s website shows that it planned to “utilize a portion of local abandoned buildings to create a vertically integrated farming entity through seed-to sale operations to cultivate an economy around cannabis development (cannabis, food, and industrial hemp seed-to-sale).” That includes “teaching vertical farming techniques and providing real estate to grow cannabis.” “The cannabis business will be sustained year-round through the hydroponic techniques taught to your members,” the agency said. “As a result, you would create a hub for cannabis-related networking and business development.” While the state the group is based in has “legalized cannabis activities you aim to promote,” the letter says, “federal law classifies cannabis as a Schedule I controlled substance… Furthermore, federal law prohibits the manufacture, distribution, possession, or dispensing of a controlled substance.” “Further, you operate for a substantial non-exempt purpose of providing private benefit to the cannabis industry and your members. You advocate for the local cannabis industry in the city of [information withheld] to engage in business to grow and sell cannabis. The creation of networking hubs, combined with access to vertical farming facilities, would provide direct benefits to your members seeking to enter the cannabis industry (i.e., aiding in getting a license and providing real estate within the city [information withheld] to develop cannabis through vertical farming methods.) These opportunities would disproportionately benefit those individuals rather than the public at large.” “You fail the organizational test because your purpose, as stated in your AOI, is too broad and expressly empowers you to engage substantially in activities which do not further exempt purposes,” IRS concluded. “Moreover, although you do have charitable and educational purposes, you fail the operational test because you have substantial non-exempt purposes of promoting federally illegal activities (cannabis production) and serving the private interests of your members. Therefore, you fail to qualify for exemption under IRC Section 501(c)(3).” To that end, the organization is required to pay any federal taxes it avoided by claiming nonprofit exempt status within 30 days of receiving the notice. The final rejection letter was sent to the organization in September and publicly posted by IRS last month, one day after President Donald Trump issued an executive order directing the attorney general to complete the process of moving marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA). Whether that pending reform would impact the organization’s request for nonprofit tax-exempt status is unclear, but one of the key policy changes that would be enacted is directly related to IRS—specifically an agency code known as 280E. If marijuana moved to Schedule III, that code barring businesses from taking federal tax deductions if they work with Schedule I or Schedule II substances would be rendered moot for the cannabis sector. — 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. — Last year, IRS advised marijuana companies that they still could not take federal tax deductions for business expenses afforded to other traditional industries unless the administration finalized the rule to reschedule cannabis. In anticipation of the rescheduling move, certain multi-state marijuana operators sough refunds for what they said were excess taxes paid in past years due to 280E. Multiple states have taken steps to provide state-level tax relief to marijuana businesses that are subject to 280E, but the federal rule has not yet changed. The Congressional Research Service (CRS) noted in a 2021 report that IRS “has offered little tax guidance about the application of Section 280E.” IRS did provide some guidance in an update in 2020, explaining that while cannabis businesses can’t take standard deductions, 280E does not “prohibit a participant in the marijuana industry from reducing its gross receipts by its properly calculated cost of goods sold to determine its gross income.” The update seemed to be responsive to a Treasury Department internal watchdog report that was released in 2020. The department’s inspector general for tax administration had criticized IRS for failing to adequately advise taxpayers in the marijuana industry about compliance with federal tax laws. And it directed the agency to “develop and publicize guidance specific to the marijuana industry.” The post IRS Denies Marijuana Tourism Group’s Request For Nonprofit Tax-Exempt Status, Citing Ongoing Federal Prohibition appeared first on Marijuana Moment. View the live link on MarijuanaMoment.net

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