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Federal

New Farm Bill Draft Aims to Reduce Regulatory Burdens
House Agriculture Committee Chair Glenn Thompson (R-PA) has released the draft text of the 2026 Farm Bill, which includes provisions intended to ease federal oversight of the industrial hemp sector. The proposal would maintain the core federal hemp program while giving the USDA, states, and tribes more flexibility to reduce or eliminate testing requirements and background checks for hemp growers, and streamline compliance processes for industrial producers like fiber and grain farmers. The bill also contains language to improve hemp testing infrastructure, such as requiring USDA to establish lab accreditation procedures. Thompson’s office frames these changes as reducing “regulatory burdens” that have challenged hemp producers. The legislation is set to begin committee markup later this month.

Illinois

Chicago Ordinance (Vetoed)
On February 13, 2026, Chicago Mayor Brandon Johnson vetoed a City Council ordinance that would have restricted the sale of hemp-derived products by limiting sales to licensed cannabis dispensaries and certain liquor-licensed establishments.
In his statement, the Mayor cited concerns that the measure would operate as a broad ban on many existing hemp retailers and said additional collaboration was needed before advancing such restrictions. He also emphasized the importance of strict age verification, responsible labeling, and enforcement standards for intoxicating hemp products.

The ordinance will not take effect unless the City Council moves to override the veto or advances revised legislation.

Kentucky

HB612 (Oppose as Drafted – Urge Amendment)
HB 612 would impose a new state retail regulatory license fee on hemp-derived cannabinoid products at a rate of $0.16 per milligram of delta-9 THC, delta-8 THC, or any other form of THC, beginning July 1, 2027. The bill requires retailers to report total milligrams of THC sold and remit payment monthly to the Department of Revenue. At $0.16 per milligram, the potency-based tax would dramatically increase consumer costs and function as a prohibition-level tax on compliant hemp products. The bill also establishes new regulatory license fees and enforcement mechanisms, including civil penalties, misdemeanor liability for violations, and personal liability for certain business officers.

In addition, HB 612 defines “cannabis-infused beverages” as products containing no more than 5 milligrams of intoxicating adult-use cannabinoids per 12-ounce serving , creating a framework that layers new hemp taxes alongside the broader alcohol regulatory restructuring within the bill.

Without amendments to correct the tax structure and licensing provisions, HB 612 would significantly disrupt Kentucky’s hemp market and reduce consumer access through excessive taxation.

Kentucky residents: Take Action: Contact your legislators and urge them to support amendments to HB 612 to prevent prohibition by taxation and ensure a workable regulatory framework for hemp-derived products.

Minnesota

Direct-to-Consumer Sales Litigation Update (Good News)
A coalition of Minnesota hemp businesses has successfully secured a court order prohibiting the Office of Cannabis Management (OCM) from enforcing any rule that would ban direct-to-consumer sales of hemp products. The court agreed that OCM must complete the proper rulemaking process before such restrictions can be enforced.

As a result, direct-to-consumer sales may continue, and in the short term it is business as usual for Minnesota hemp operators. While this ruling prevents immediate enforcement of the proposed prohibition, the long-term path remains uncertain. OCM could appeal the decision or seek legislative changes to expressly prohibit direct-to-consumer sales through statute. We will continue monitoring developments closely.

This outcome reflects the coordinated efforts of Minnesota industry leaders, including Hellmuth & Johnson, Crested River, St. Paul Cannabis, Raiden Labs, Natreum, Mary and Jane, NoCoast, BLNCD Naturals, and Foundry Nation.

New Jersey

S4509 (Passed in January- Alert Only)
On January 12, 2026, New Jersey governor signed Bill S4509, which establishes a regulatory framework for the sale of certain hemp-derived cannabinoid products, aligning state law with federal standards. The bill amends and clarifies definitions related to hemp, cannabinoids, and cannabis, distinguishing between products that are naturally derived from the Cannabis sativa L. plant and those that are synthesized or exceed specified tetrahydrocannabinol (THC) thresholds. It sets strict limits on the types and concentrations of cannabinoids allowed in products marketed as hemp, prohibiting the sale of products with more than 0.3% THC (by dry weight) or more than 0.4 milligrams of THC per container.

It grants the Cannabis Regulatory Commission and other state and local agencies enforcement authority, including the power to confiscate non-compliant products and impose both civil and criminal penalties for violations. Penalties escalate with repeated offenses, and businesses with multiple violations may be deemed public nuisances subject to municipal restrictions or closure. The act also requires that all intoxicating hemp beverages sold after April 13, 2026, contain no more than 5 milligrams of THC per serving or 10 milligrams per container, and mandates that such products be accompanied by a certificate of analysis from an accredited laboratory.

The bill also introduces a new excise tax of $3.75 per gallon on wholesale sales of intoxicating hemp beverages, with revenues directed to the state’s General Fund.

Ohio

SB 56 Petition
A citizen-led referendum has been officially certified following the effect from the passage of SB56, clearing the way to begin collecting signatures statewide. If successful, the referendum would stay enforcement, allowing for the continued sale of hemp-derived products in Ohio, including direct-to-consumer sales, while voters weigh in.

Ohio residents: Sign the petition and donate to support the effort. https://noonsb56.com/
Non-Ohio residents: Donate to support the efforts and share with your friends or customers in Ohio. https://noonsb56.com/

South Carolina

H.3924 (Support Ford Amendment)
We previously reported on H.4758 and H.4759, in SC, and we are hearing that H.3924 is back in rotation in South Carolina and would significantly reshape the state’s consumable hemp market. As introduced, the bill creates a new criminal and regulatory framework for “consumable hemp products,” but in practice limits lawful products to beverages only, excluding other non-beverage hemp product forms from the marketplace.

While framed as a regulatory measure, the practical effect is a beverage-only carveout that would eliminate access to other lawful consumable hemp products and substantially contract the existing market. An amendment to H.3924 (LC-4759.VR0001H) has now been introduced that would replace the beverage-only approach with a comprehensive regulatory framework for full-spectrum and broad-spectrum hemp-derived cannabinoid products that comply with the federal 0.3% THC standard. The amendment establishes product registration, ISO-accredited third-party testing, labeling and packaging standards, 21+ age restrictions, a prohibition on synthetic cannabinoids, licensing requirements, and a 10% excise tax to fund enforcement and oversight.

South Carolina residents: Take Action: Contact lawmakers and urge them to support the Ford amendment (LC-4759.VR0001H) to create a clear, enforceable regulatory framework rather than a beverage-only carveout.

South Dakota

SB 61 (Dead)
Thanks to the hard work of the South Dakota Industrial Hemp Association, this bill is dead. It would have broadly prohibited non-medical hemp-derived intoxicants, sweeping in chemically converted cannabinoids and banning products synthesized outside the plant or containing more than 0.4 mg of any THC isomer per container; a near-total ban.