By Morgan Davis, Health and Wellness Attorney
Hemp Compliance Update: Federal Shifts, State Moves, and Industry Risks
The key phrase for this blog is Hemp compliance update. In November 2025, the hemp industry saw major developments at both federal and state levels. These changes could disrupt businesses operating across the country. From proposed bans to redefinitions of legality, the hemp sector is once again facing uncertainty. Here’s a summary of the most important regulatory changes, enforcement actions, and pending legislation over the past 30 days.
Federal Law: A Risky Redefinition of Hemp
The most significant development was the passage of the federal appropriations bill on November 12, 2025. The bill includes language that, if unchanged, will redefine hemp within 365 days. Anything outside the new definition—including some forms of CBD—may be treated as a Schedule I controlled substance. This was not what many in the industry expected.
Soon after, federal Medicare regulations interpreted the new language to mean that unapproved ingestible CBD, even if derived from hemp, could be illegal. This interpretation starkly contrasts with promises that wellness products would remain protected. While Representative Nancy Mace has introduced a bill to repeal this section of the appropriations bill, it hasn’t gained traction yet.
State-Level Action: Bans, Carveouts, and Court Battles
Illinois: Hemp at Risk in Chicago
In Illinois, the Chicago City Council is considering an ordinance that would ban the sale of hemp. Fines could range from $2,000 to $5,000 per violation, per day. This would be a major blow to retailers in a key hemp and cannabis market.
Ohio: Carveouts Under Pressure
Ohio lawmakers are negotiating a bill that would push all hemp products into the regulated cannabis market. A temporary carveout exists for hemp beverages, but only until the federal bill takes effect. A final vote is expected December 9.
New Jersey: Trying Again After Legal Setbacks
New Jersey is revisiting earlier legislation that would move hemp under cannabis regulation. Their original law was blocked for violating interstate commerce rules. A revised version is now in the Senate Budget and Appropriations Committee.
Wisconsin: Conflicting Bills Create Confusion
Wisconsin has three bills on the table. One would ban hemp completely. Another treats it like alcohol under a three-tier system. A third, more moderate bill has no clear support yet. A public hearing is coming soon.
Other States: Regulatory Whiplash
In Mississippi, a judge denied a request to block an AG opinion that classified hemp products as illegal. This puts businesses in a risky legal gray zone.
Tennessee, however, offers a win. Current license holders under the Department of Agriculture will retain rights to sell products like THCA flower through their license term, even as regulation shifts to the ABC Board in 2026.
Missouri is cracking down on “intoxicating hemp” with broad definitions of semi-synthetic cannabinoids. This could include THCA, not just Delta-8 and similar products. Retailers in Missouri should prepare for enforcement based on these aggressive interpretations.
Final Thoughts
This hemp compliance update makes it clear: the next year will be a legal minefield. Businesses must monitor both state and federal developments closely. If you operate in multiple states or sell products across state lines, now is the time to seek legal guidance. Davis Legal offers tailored compliance reviews for hemp and cannabis businesses. Let’s work together to keep your company protected and thriving.
