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Takeaways

  • The law would tax a tax, creating a spiraling effect that significantly increases costs for growers, retailers, and consumers.
  • New rules would effectively force cash-on-delivery sales, putting financial strain on retailers who can’t access immediate capital.
  • Independent, family-owned, and social equity businesses are at higher risk of failure under the proposed tax model.

After failing to enact annual appropriations bills by the start of the new fiscal year, Michigan legislators have taken the unprecedented step of passing a short continuation budget. Nevertheless, legislative leaders and the governor are trying to keep a new 24% wholesale tax on marijuana. It hasn’t passed yet, and legal challenges are certain, but it’s worth taking a look to see the damage that will be done if the tax does go into effect.Continue Reading The Real Impact of Michigan’s New Wholesale Marijuana Tax

Takeaways

  • The Texas Senate is advancing Senate Bill 5 (SB 5), which would impose one of the strictest bans on hemp-derived THC products in the nation, including criminal penalties for manufacturers, distributors, and consumers.
  • SB 5 defines “detectable” THC with vague thresholds, creating potential compliance challenges and legal uncertainty for the hemp industry.
  • Governor Abbott favors a regulated THC system with low milligram caps over a full prohibition, setting up ongoing tension with Senate leadership.

The Texas Legislature kicked off a special session Monday, July 21, 2025, to address more than a dozen matters, including responding to Governor Greg Abbott’s recent veto of a full THC ban (as previously reported). Now that the first week of Senate action has concluded, it’s obvious that the Senate is not backing down. The Senate State Affairs Committee unanimously reported out Senate Bill 5 (SB 5), which, like the vetoed Senate Bill 3, would ban virtually all consumable hemp-derived THC products. Like its predecessor, SB 5 would impose criminal penalties on manufacturers, distributors, and consumers of any product containing a detectable amount of THC, with narrow exceptions for non-psychoactive cannabinoids such as CBD and CBG.Continue Reading Texas Senate Continues to Push Broad Ban on Hemp-Derived THC in Special Session