Vicente LLP Hemp Update: March 2025
Mar 25, 2025
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Federal Updates
A recent memo from the Department of the Air Force reminds personnel in Massachusetts that cannabis and hemp-derived cannabinoids, including CBD and delta-8 THC, are prohibited on military bases. The memo highlights the risk of fines, imprisonment, and barment for violations and extends the ban to products like CBD-infused hand sanitizer, gummies, and protein powders.
As Congress prepares to revisit agriculture legislation, a recent Congressional Research Service (CRS) report provides an overview of the policy landscape around hemp, including the industry's economic conditions, the future of the Farm Bill, the difference between industrial hemp and intoxicating hemp-derived products like delta-8 THC, and the expansion of USDA support for hemp research and processing.
The FDA issued a warning to a California-based company for marketing an injectable cannabis product with unapproved health claims, such as treating chronic pain and anxiety. The FDA expressed concern about the risks of injectable products and gave the company 15 days to correct the violations.
State & District Updates
Alabama Senator Introduces Bill to Ban Intoxicating Hemp Products
Alabama Senator Tim Melson introduced a bill that would ban intoxicating hemp products and classify hemp-derived THC such as delta-8, delta-9, and delta-10 as Schedule I controlled substances. The bill is currently awaiting action in the Senate Committee on Healthcare. If approved, it would go into effect on October 1.
California Bill Takes Aim at Online Hemp Sales
California state Senator Scott Wiener has introduced a bill to restrict the online sale of unlicensed hemp and cannabis products. The bill, which is still under consideration, seeks to hold online retailers accountable for any harm caused by these products by requiring consumer protection measures, reporting mechanisms, and product disclaimers.
Florida Implements New Hemp Extract Regulations: Key Changes for 2025
Florida’s Rule 5K-4.034 establishes new regulations for hemp extract products, focusing on ingredient restrictions and child-resistant packaging. In this blog post, we discuss how the rue bans 66 additives, including certain FDA-approved colorants, and adopts ASTM standards for child-resistant packaging to reduce product appeal to minors. While enforcement of the rule begins in June 2025, FDACS is already enforcing existing statutes and regulations, making early compliance essential for businesses operating in the state.
Georgia Lawmakers Move to Restrict Hemp Products and Ban THC-infused Drinks
The Georgia Senate has approved two bills restricting hemp products. One bans THC-infused beverages, while the other limits intoxicating hemp compounds such as Delta-8 THC. The bills now await approval from the House before becoming law. To become law, they must pass the House before the Georgia legislative session ends on April 4th.
Illinois Suburb Approves Ban on Delta-8 and Delta-9 THC Edibles
Elgin City Council has officially approved a ban on the sale of delta-8 and delta-9 THC edibles. This move could impact small business owners in the area, who are calling for stronger regulation rather than an outright ban.
Kentucky Drops Hemp-Derived THC Drinks Ban
Kentucky lawmakers have decided not to ban hemp-derived THC beverages but will regulate them by placing THC milligram limits on beverages and restricting which types of licensees may sell them. Under the new law, beverages are capped at 5 mg THC per 12 fl. oz serving. Lawmakers also authorized a further study on hemp beverages. The legislation allows the University of Kentucky Cannabis Center to conduct a study and requires state agencies to pursue further regulation. The bill was signed into law by the governor on March 25th and becomes effective immediately. Brands have until June 1, 2025, to sell through their existing inventory.
Maine Working Group Recommends Setting Age Limit for Hemp-Derived THC Products
A working group in Maine has proposed setting a minimum age of 21 for intoxicating hemp-derived products and imposing THC limits on hemp beverages claiming that hemp-derived products in the state are “much more potent than was ever supposed to be allowed.”
Mississippi Senate Debates Access to Hemp-based Consumable Products Including Drinks
Mississippi’s Senate has passed a bill regulating hemp-based products, which would remove them from store shelves, except hemp beverages. The bill bans products with any THC, including Delta-8, Delta-10, and synthetic cannabinoids. It allows hemp drinks with up to 5 milligrams of THC per can, available only to adults 21 or older.
Missouri House Committee Rejects Bill Putting Age Restrictions on Intoxicating Hemp Products
A Missouri bill to impose age restrictions on intoxicating hemp products like THC seltzers and edibles was rejected by a state House committee after safety requirements were removed to lower costs. The bill, backed by the hemp industry, failed due to concerns over the lack of product safety regulations.
Montana Bill Would Prohibit the Sale of Synthetic Cannabinoids and Adjust THC Limits
Montana's HB 49 aims to ban the sale and use of synthetic cannabinoids, while also introducing rules for packaging, labeling, and enforcement. The bill sets limits on hemp products, restricting them to 0.5mg of delta-9 THC per serving and no more than 2mg per package. The bill is currently in the enrolling stage.
New Jersey Governor Proposes Stiff Marijuana Tax Hike
New Jersey Gov. Phil Murphy is proposing a major tax increase on the state's adult-use marijuana industry, raising the per-ounce cannabis tax to $15 and adding a $30 per-ounce fee on intoxicating hemp products.
New York Opens Doors to Out-of-State Cannabis Brands as Bill to Legalize Intoxicating Hemp Advances
New York is considering a bill to repeal emergency regulations that would restrict the sale of intoxicating hemp products, potentially allowing them to be sold in dispensaries. The bill also introduces a new Type 3 Branding License, which would enable out-of-state operators to enter the market without a physical processing facility. While the OCM would still require full disclosure of ownership and financial details, the changes could significantly impact the state's cannabis industry.
Ohio Senators introduced Senate Bill 86, which would limit the sale of intoxicating hemp products to adult-use dispensaries, impose a 15% tax, and ban sales to those under 21. The bill would also regulate hemp-derived beverages, requiring testing and compliance with packaging, labeling, and advertising standards.
South Carolina Medical Cannabis and Hemp-Derived Cannabinoid Legislative Update
Cannabis-related legislation is once again on the move in South Carolina with the filing of a bill that would establish a regulated medical cannabis program and several bills that would officially regulate consumable products containing hemp-derived cannabinoids, including the increasingly popular beverages containing hemp-derived Delta-9 THC. Read this Vicente Insight to learn more.
Tennessee Hemp Industry Fears Restrictive Bills Could Gut Market And Shutter Businesses
Several proposed bills in Tennessee aim to restrict hemp-related products, which business owners fear will negatively impact small, locally owned businesses. One bill would shift regulation to a new agency and require businesses to have significant assets, while others would limit where hemp products can be sold and impose stricter regulations on sales and taxes.
Texas Weighs Full THC Ban—What It Means for You
A Texas Senate committee is reviewing a bill that would ban all forms of THC in response to concerns over unregulated THC products sold in stores. While some support stricter regulations, including age limits, many business owners argue that the proposed ban would severely harm the industry.
Virginia’s ‘Total THC’ Hemp Law Upheld by Fourth Circuit: What It Means for the Hemp Industry
In early January, the Fourth Circuit Court of Appeals issued a landmark decision in Northern Virginia Hemp & Agriculture v. Commonwealth of Virginia, upholding Virginia’s "total THC" hemp law and confirming the state’s authority to regulate hemp products beyond federal standards. This Insights post dives into Virginia’s “total THC” standard approach to hemp regulation, the court’s final ruling, and its impact on the future of hemp-derived products in Virginia and across the United States.
Governor Tony Evers of Wisconsin has proposed including delta-8, delta-10 THC, and other hemp-derived cannabinoids in the state’s marijuana regulations. This would ensure their production, processing, and sale are controlled and unavailable to those under 21. The proposal aims to create a more regulated market for these products, which are currently unregulated, and to generate significant revenue from marijuana taxes.
By the Numbers: Hemp Market Trends & Data
Led by Andrew Livingston, our in-house economist, this section provides a deep dive into the numbers driving the hemp market. Andrew analyzes key economic data, provides insights into market shifts, and offers expert commentary on what these trends mean for the future of the hemp industry.
Connecticut Provides First Look at Statewide Hemp Beverage Sales Data
Connecticut released the first publicly available hemp THC beverage sales data, thanks to its per-can fee structure. While early and potentially incomplete, the data released covering July–December 2024 shows that:
- 659,492 cans were sold during the second half of 2024 with Sarene Craft Beer Distributors accounting for 94.5% of all sales in the state.
- With a 21+ population of ~2.74M in Connecticut, that’s roughly 1 THC beverage per 4.15 adults.
Now that many states have regulated cannabinoid hemp alongside medical and adult-use marijuana, hemp cannabinoid market growth trends can be analyzed using comprehensive data, including monthly tax data from product sales. In this article, we analyze market trends in Minnesota, Louisiana and Tennessee using hemp-derived cannabinoid product sales tax data reported by the states.
General Updates
A study published found that young adults in states where cannabis is illegal are more likely to use unregulated, hemp-derived intoxicating products like delta-8 THC. Experts argue that legalizing and regulating marijuana reduces demand for these unregulated products, which often contain impurities and pose health risks.
US National Hemp Association Narrows Focus
The National Hemp Association (NHA), which has advocated for the hemp industry for over a decade, is now focusing primarily on supporting the industrial hemp fiber and grain sectors.
'Lot of Excitement' Around Hemp Beverage Boom
Hemp-based beverages have the potential to become a $1.4 billion to $4 billion industry in the U.S. within the next four years. As the nationwide market for intoxicating hemp grows alongside marijuana, more companies are seizing the opportunities in this rapidly expanding multibillion-dollar niche.
Events
March 25-27 | Global Cannabis Regulators Summit
Vicente LLP is excited to participate in the Global Cannabis Regulators Summit on March 25–27, 2025, in Washington, D.C. Partner Shawn Hauser will moderate the panel "Medical Fireside One: Global Cannabis Regulatory Frameworks", exploring the evolution of global cannabis regulations and future frameworks. Partners Charles Alovisetti and Adam Fine will also be in attendance. Learn more.
Vicente founding partner Joshua Kappel is slated to speak during NoCo Hemp Expo 2025 on a panel about the current landscape for psilocybin therapy. Attendees will also have the opportunity to network with multiple members of our team in Estes Park during the event. If you’ll be attending, be sure to reach out—we’d love to connect! Register now!
Webinar Replay | Hemp Business Funding
Watch this recorded session to learn about financing strategies for hemp-related businesses, including types of funding, investment compliance, and other industry-specific financial considerations.
Stay updated with state-by-state hemp and cannabinoid product compliance guide