Introduction

Hey, I’m Morgan Davis, a business attorney based in Raleigh, North Carolina, specializing in cannabis and wellness. Keeping up with the constantly changing regulations in the cannabis space can be a challenge. To help you stay informed, I’m providing monthly updates on significant changes in key states that could impact your business. Let’s dive into the biggest updates from March and April 2024.

California – AB 2223

This bill has been in discussion since January and February. Originally, it targeted synthetic cannabinoids, but recent amendments have expanded its scope. The bill now includes extremely low milligram caps, which could severely limit the hemp industry in California if passed in its current form. California’s large market and historical support for cannabis make this a significant development.

Louisiana – HB 952 and Companion Bills

Louisiana has always had unique regulations for hemp, including an 8 mg THC per container cap. The new bills add more regulations, particularly prohibiting products containing anything other than naturally derived cannabinoids. The definition of “naturally derived” is still pending, which could greatly affect the market depending on how it’s interpreted.

Illinois – SB 3926

Similar to California, Illinois seeks to impose low milligram caps (.5 mg per serving THC, 2 mg per package) and ban synthetic cannabinoids. This bill also requires a high ratio of other cannabinoids to THC. Unlike California, Illinois allows these products to be sold through the regulated market, meaning hemp companies would need to meet stringent licensing and testing standards.

Utah – HB 52

Recently passed, this bill adopts a 5 mg per serving, 150 mg per container cap for total THC. It requires licensing for all sellers and pre-market approval, effective January 2025. Additionally, all cannabinoids must be naturally occurring, targeting products created through isomerization.

Nebraska – LB 388

This bill proposed a 100% excise tax on hemp products, later negotiated down to 25%. However, it failed to pass and is now dead for this legislative session. Unless an emergency or special session is called, Nebraska’s laws will remain unchanged for now.

Conclusion

Staying compliant in the cannabis industry requires vigilance and up-to-date information. These state-level changes highlight the importance of understanding and adapting to new regulations. If you need more detailed and frequent updates tailored to your product category or type, we offer a 50-state review service. Contact us today to ensure your business remains compliant and thrives in this evolving market.

I hope this update was helpful. Come back next month for more insights. If you need comprehensive coverage for your national brand, reach out to us for a personalized 50-state review. We’re here to help you navigate the complexities of cannabis compliance.