Vicente LLP Hemp Law and Policy Briefing: October 2025
Nov 5, 2025
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What’s new in October: At the federal level, Congress advanced sweeping legislation to redefine “hemp” and effectively ban most commercial hemp products within one year, while California enacted landmark restrictions on hemp ingestibles, Ohio’s governor issued an executive order banning intoxicating hemp (now temporarily blocked), and Wisconsin lawmakers introduced sweeping legislation to regulate hemp-derived cannabinoids under a liquor-style framework.
The dynamic nature of federal and state-level hemp and cannabinoid regulation necessitates proactive engagement and compliance. Below are a few of the most notable developments from October.
Federal Updates
Federal Definition of Hemp Amended to Ban Most Hemp Products (Effective One Year After Enactment)
A new federal law has been signed, effectively banning most commercially available hemp products. Language included in the FY2026 Agricultural Appropriations Bill resets the threshold for federally legal hemp at 0.3% Total THC, as opposed to delta-9 THC, caps Total THC content for finished products at 0.4 mg per container, and prohibits synthetic or converted cannabinoids such as delta-8 THC.
In this blog, we break down the key aspects of the legislation, including how it changes the definition of hemp, the timelines businesses should prepare for, and what this means for hemp operators, manufacturers, distributors, and retailers nationwide.
State Updates
California
Ban on Most Hemp Ingestible Products
Signed October 2, 2025, AB8 prohibits industrial hemp raw extract from being incorporated into food, beverages, or dietary supplements, effective January 1, 2026. CBD and CBN are permitted as ingredients only in the form of 99%+ purity isolates, effectively banning the sale of full-spectrum hemp ingestibles that would otherwise be lawful under the 2018 Farm Bill. Hemp flower and pre-roll sales are also banned.
After January 1, 2028, industrial hemp will be permitted for use as an ingredient in cannabis products, subject to the Department of Cannabis Control’s regulatory requirements. Please contact us for a bill summary.
Hemp Online Marketplace Legislation
Signed October 6, 2025 and effective July 1, 2026, SB-378 requires online marketplaces to monitor and remove listings for intoxicating hemp products, and prohibits engaging in unlawful paid online advertising of cannabis, cannabis products, or intoxicating hemp products.
Affirmative defenses are provided if the "marketplace" follows highly detailed parameters, including clear reporting tools, posted disclosures, and demonstrates no custody or control of intoxicating hemp products.
Enforcement
In October 2025, Lancaster police, alongside state and county agencies, inspected 20 smoke shops and issued 17 citations, seizing 21 boxes of unlicensed cannabis or hemp products. Officials emphasized the need for ongoing enforcement to protect public health and safety.
Colorado
The Colorado Hemp Beverage Coalition is collaborating with legislators, regulators, and industry leaders to shape the future of responsibly regulated THC-infused beverages in Colorado, with proposed legislation to be introduced during this session. Through policy engagement, educational briefings, and collaborative forums, the Coalition is helping lawmakers understand how smart regulation can promote consumer safety, market clarity, and economic growth.
In the year ahead, the Coalition will continue collaborating with stakeholders and state lawmakers to expand retail to regulated THC beverages by advancing legislation allowing fora for the retail and on-premise sale of regulated 5–10mg THC beverages in a manner similar to alcohol.
Kansas
Agents from the Kansas Bureau of Investigation (KBI), along with local law enforcement, raided smoke and vape shops in Kansas in October. Attorney General Kris Kobach said “lax enforcement” against illegal THC products is ending. News reports say KBI removed products "over the legal limit," which the agency considers "any drink containing over 0.3% Total THC concentration." The investigation into the raids is ongoing, and it's unclear if all seized products were "hot hemp."
Minnesota
The Minnesota Office of Cannabis Management released guidance documents for the lower-potency hemp edible licensing, which ended October 31:
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GM-2025-02 explains how cannabis or hemp wholesaler license holders can import hemp-derived products from other states.
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GM-2025-03 clarifies the product transition and license timeline.
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OCM will issue licenses to hemp retailers on a rolling basis after the application period.
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Licenses to hemp manufacturers and wholesalers will be issued by December 31, 2025.
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GM-2025-04 provides guidance for completing Final Plans of Record (FPOR) for Lower-Potency Hemp Edible Manufacturer Applicants.
For a deeper dive: Our Hemp & Cannabinoid Compliance Guides offer monthly summaries on product rules, cannabinoid legality, packaging and labeling, licensing, and enforcement trends. Schedule a consult with a member of our hemp and cannabinoids team today!
Ohio
On October 8, 2025, Governor DeWine announced Executive Order 2025-05D banning all intoxicating hemp products and revising the state’s hemp definition to exclude intoxicating forms. The Ohio Department of Agriculture (ODA) followed with emergency rules temporarily banning these products for 120 days. That same day, in Titan Logistics Group LLC v. DeWine, a court granted a Temporary Restraining Order blocking enforcement of the EO and rules. A hearing on a Preliminary Injunction is set for December 2, 2025.
On October 22, 2025, the Ohio House of Representatives passed Substitute S.B. 56, which creates a regulatory and tax framework for intoxicating hemp and cannabis products. The bill establishes rules for two distinct classes of hemp-derived beverages: Drinkable Cannabinoid Products (DCPs) and Intoxicating Hemp Products (IHPs), which differ in milligram limitations and permissible sales channels.
IHPs could only be sold in licensed hemp dispensaries, while DCPs would be limited to certain alcohol licensees. The bill also includes delivery, advertising, and DTC restrictions, plus taxes of 10% on IHP dispensary sales and $1.20 per gallon on DCP manufacturer/distributor sales.
On October 29, 2025, the Senate unanimously rejected concurrence, sending the bill to a likely conference committee. Bill 266, which would regulate the sale and testing of intoxicating hemp products by banning sales to individuals under 21 and restricting child-appealing formats, was referred to the General Government Committee on October 1, 2025.
Tennessee
Tennessee Alcoholic Beverage Commission (TABC) will oversee hemp-derived cannabinoid products (HDCPs) as of January 1, 2026, but the Tennessee Department of Agriculture (TDA) will continue to process certain licenses through December 31, 2025.
TABC reached an agreement with industry advocates to allow legacy licensees, which are licensees holding licenses issued before December 31, 2025, to operate under the “old law” (Title 43) through June 30, 2026. Beginning July 1, 2026, legacy licensees will be subject to the “new law” (Title 57).
The new law introduces a three-tier system and effectively prohibits the sale of THCA.
On October 23, 2025, the TABC voted to approve a set of administrative rules governing the regulation of HDCPs, enforceable beginning on January 1, 2026.
Wisconsin
On October 9, 2025, legislators introduced AB 530, the companion bill to SB 499, seeking to redefine the definition of hemp.
On October 29, 2025, Bill LRB-4863/1 was introduced as Assembly Bill 606, proposing to add definitions for “intoxicating” and “nonintoxicating” cannabinoids, restrict intoxicating hemp product sales to individuals aged 21 and older, and regulate hemp-derived cannabinoids (HDC) products similarly to alcoholic beverages. The bill introduces product restrictions (including limits on THC and caffeine), defines permissible product types (e.g., beverages, tinctures, edibles, inhalables, and topicals), and imposes an occupational tax based on THC content. The bill will also apply the protective Wisconsin Fair Dealership laws to HDCs and include a revamp of the testing requirements.
Madison, WI, is considering an ordinance that would impose an age restriction of 21+ for the sale of hemp-derived cannabinoid products and implement a buffer zone for retailers.
Comprehensive Coverage Across All 50 States
If you want more than just these highlights, that’s where the Vicente LLP Hemp & Cannabinoid Compliance Guide comes in.
Each month, our attorneys track and summarize developments across all 50 states from product sales and cannabinoid legality to packaging, labeling, licensing, and enforcement actions. The result is a practical, easy-to-use resource that translates complex regulations into clear compliance insights.
Schedule a consult with a member of our team to learn more.