Hemp Legislation Update: The latest on U.S. hemp product laws & regulations
The laws that dictate how hemp businesses are able to operate in the United States have rapidly evolved over the last five years. As states grapple with the lack of federal regulation since the 2018 Agriculture and Improvement Act (the 2018 Farm Bill) legalized hemp and hemp derivative products in the U.S., they continue to take diverse approaches towards how businesses manufacturing and distributing such products are allowed to operate within state borders.
It is critical for hemp product businesses to stay abreast of various legislative acts making their way through state legislatures that will impact how they are able to conduct business in each state. In an effort to keep our clients and the general public aware of such acts, McDonald Hopkins is pleased to present our Hemp Legislation Blog. This blog provides a monthly snapshot of state (and federal) legislative activity concerning the manufacture, sale, and distribution of hemp and hemp derivative products in the U.S.
The following is not legal advice and should not be acted upon without consulting a licensed attorney. If you have any questions or concerns on how state laws may impact your ability to do business, please contact the chair of the McDonald Hopkins Cannabis & Psychedelic practice group, Kevin Washburn.
The first blog post of the McDonald Hopkins Hemp Legislation Blog provides a summary of legislative activity in the following states: California, Nevada, Montana, Nebraska, Texas, Illinois, Tennessee, Ohio, Michigan, Florida, South Carolina, New York, Connecticut and Rhode Island. Check back in next month for updates on the activity summarized below.
California hemp legislation update
California is one of the states leading the charge against the manufacture, distribution, and sale of federally legal hemp derivative products (i.e., those containing under 0.3% delta-9 tetrahydrocannabinol by dry weight). The state passed emergency regulations in 2024 banning the retail sale of hemp food, beverage, and dietary products containing detectable THC or other intoxicating cannabinoids.
In February 2025, the California legislature introduced a bill, S.B. 378, that seeks to further control the means and methods through which hemp products may be sold to California consumers. S.B. 378, among other things, would require online sellers of hemp products to provide a mechanism for website visitors to report to the business the existence of an advertisement for an intoxicating hemp product. Once reported, the online seller has thirty (30) days to respond to the report, and, if the advertisement is indeed for an intoxicating hemp product, generally must block that advertisement from view by California consumers.
Connecticut hemp legislation update
Connecticut has taken a complex approach to regulating the manufacture, distribution, and sale of hemp products. The state classifies hemp products into various categories according to product form and THC concentration; and then regulates hemp products according to the applicable category.
In February 2025, the Connecticut legislature introduced a bill, H.B. 6855, that seeks to create a process for businesses selling so called “moderate-THC hemp products” (defined as hemp products containing between 0.5mg and 5mg of THC per container) to become registered with the Commissioner of Consumer Protection. The registration would protect those businesses’ ability to sell certain hemp products via brick-and-mortar or online retail channels.
Florida hemp legislation update
Florida has historically taken a permissive approach to the manufacture, distribution, and sale of hemp products within the state. The Florida legislature has passed a series of legislative acts that require businesses to hold certain registrations and/or permits to be able to sell hemp products in the state.
The Florida legislature is currently considering two bills, S.B. 438 and H.B. 7027, that would impose further restrictions and controls on businesses seeking to distribute and sell hemp products in the state. S.B. 438 would impose a 5mg THC per serving and 50mg THC per package limit on hemp products sold in the state, with a further limit of 5mg THC per container for THC-infused beverages. S.B. 438 imposes further restrictions on the sale of hemp products like requiring businesses to be permitted; prohibiting the advertising of the availability of intoxicating hemp products; and storing hemp products out of reach of customers.
H.B. 7027, on the other hand, would impose a 5mg THC limit per 6 fluid ounces on THC-infused beverages; a maximum of 10mg THC per container; and a maximum of 100mg THC per package. H.B. 7027 would also require online sellers of hemp products to hold a retail permit, even if those businesses are located outside of the state. The bill further provides a “safe harbor” for manufacturers to manufacture products lawful for sale in other states, but not in Florida, to continue manufacturing such products, provided they are labeled as “NOT FOR USE OR RETAIL SALE IN FLORIDA”.
Bill texts:
Illinois hemp legislation update
Illinois is one of the few states with an active adult-use and medical marijuana market that has not taken steps to prohibit or regulate the sale of hemp products to consumers. However, the Illinois Department of Agriculture has recently proposed amendments to the state’s Industrial Hemp Act that would effectively decimate the ability for businesses to sell or distribute hemp products to consumers.
The proposed amendments redefine “hemp” to include not just plant materials but also hemp derivative products. They further require the Department of Agriculture to license anyone who seeks to “transport” hemp, effectively meaning that any consumer seeking to purchase a hemp product would have to hold such a license.
Michigan hemp legislation update
Michigan is another state with an active adult-use and medical marijuana market that has not passed significant legislation concerning the manufacture, distribution, and sale of hemp products to consumers in the state. To date, Michigan merely requires businesses selling or marketing hemp products to Michigan consumers to hold a permit. However, Michigan’s Cannabis Regulatory Agency recently proposed certain rule changes that would severely restrict the ability of businesses to sell hemp products to consumers in the state.
The proposed rules, among other things, seek to limit the THC in hemp products to no more than 1.75mg per serving and 10mg per package. Further, the rules would impose a 15:1 CBD:THC ratio requirement on hemp products sold in Michigan.
Montana hemp legislation update
While the sale of hemp products to Montana consumers has been lawful to date, Montana’s legislature recently passed S.B. 375, a bill that prohibits the sale of hemp products containing any detectable amount of THC to consumers in the state. Governor Giaforte signed the bill into law earlier this month and it is effective immediately.
Nebraska hemp legislation update
Nebraska has historically adopted the same language concerning hemp as is found in the 2018 Farm Bill; meaning that hemp products were lawful for manufacture, sale, and distribution in the state. Earlier this year, the Nebraska legislature introduced L.B. 316, a bill that seeks to strongly regulate the manufacture, distribution, and sale of hemp products.
L.B. 316 seeks to prohibit the sale of hemp products in the state that are not “cannabidiol products”, or products that contain CBD as the primary ingredient. L.B. 316 further requires all cannabidiol products possessed, handled, transported, used, and consumed in Nebraska to comply with both the Nebraska Pure Food Act and the Federal Food, Drug, and Cosmetic Act (the FD&C Act). If you have paid attention to the FDA's position on hemp products, you are aware that compliance with the FD&C Act is nearly impossible for hemp products, as the FDA considers any products containing CBD to be adulterated. In effect, L.B. 316 would sound a death knell for the sale of hemp products in Nebraska.
New York hemp legislation update
New York has had a complex relationship with the manufacture, distribution, and sale of hemp products in the state. In 2023, the New York legislature passed emergency rules requiring businesses seeking to sell hemp products to New York consumers to be licensed by the state’s Office of Cannabis Management and prohibiting the sale of products containing delta-8 tetrahydrocannabinol.
Earlier this year, New York’s legislature introduced S.B. S7130. If passed, it would require hemp products sold in the state (except for flower and topical products) to contain a 15:1 CBD:THC ratio.
Nevada hemp legislation update
Nevada law has historically been favorable to businesses looking to manufacture, distribute, and sell hemp products in the state. Recently, however, the Nevada legislature introduced S.B. 356, a bill that creates comprehensive regulations concerning such activities in the state. S.B. 356, among other things, prohibits the sale of any hemp product in the state that has a THC concentration that exceeds the limit of detection (i.e. prohibits the sale of any hemp product with a detectable amount of THC). S.B. 356 also restricts the sale of hemp products to persons over the age of 21 and establishes packaging and testing requirements for hemp products.
Ohio hemp legislation update
Ohio recently legalized adult-use marijuana and, as we’ve seen in many other states with adult-use marijuana markets, is now seeking to restrict the sale of hemp products in the state. The Ohio legislature recently introduced a trio of bills, S.B. 86, H.B. 160, and H.B. 198, that concern the manufacture, sale, and distribution of hemp products in the state.
S.B. 86, the most restrictive bill of the trio, would require any intoxicating hemp products sold in Ohio to be sold only at licensed marijuana dispensaries. On the other hand, H.B. 160 would classify any hemp product containing greater than 0.5mg THC/serving or 2mg THC/package as marijuana and similarly require such products to be sold only in licensed marijuana dispensaries.
In contrast, H.B. 198 seeks to impose a hemp product regulatory scheme that would require businesses to hold licenses issued by the Department of Agriculture to be able to lawfully manufacture, distribute, or sell hemp products in Ohio. The bill also seeks to impose label and packaging requirements on hemp products sold in the state. Under H.B. 198, hemp products would be lawful for sale in Ohio so long as they meet the 2018 Farm Bill standard of containing no more than 0.3% delta-9 tetrahydrocannabinol by dry-weight.
Bill texts:
Rhode Island hemp legislation update
Rhode Island law is generally favorable to the manufacture, sale, and distribution of hemp products. The Rhode Island legislature has recently introduced a set of bills, S.B. 984 and H.B. 6270, that would impact the ability of businesses to conduct such activities in the state.
S.B. 984 focuses specifically on the sale and distribution of THC-infused beverages in Rhode Island. The bill requires such products to be sold only on-premise by licensed retailers, which effectively prohibits the online sale of such products. The bill also restricts the sale of such beverages to persons over the age of 21 and establishes THC limits of 5mg per serving, with a maximum of two servings allowed per beverage.
H.B. 6270 similarly takes aim at THC-infused beverages and prohibits the sale, possession, and consumption of such products in Rhode Island unless the products are approved for sale under the state’s existing marijuana regulations, meaning that those products would only be available for purchase from licensed marijuana dispensaries.
Bill texts:
South Carolina hemp legislation update
South Carolina is one of many states that has not yet enacted any legislation concerning the manufacture, sale, or distribution of hemp products. However, the South Carolina legislature is currently contemplating H.B. 3924, a bill that seeks to regulate the sale of hemp products to consumers in the state.
H.B. 3924 is a fairly straightforward bill that simply prohibits the possession or consumption of hemp products by individuals under the age of 21 and accordingly prohibits the sale of hemp products to individuals under the age of 21.
Tennessee hemp legislation update
Tennessee is one of the states that has taken a permissive approach to regulating the manufacture, sale, and distribution of hemp products. The Tennessee legislature recently approved two sister bills, S.B. 1413 and H.B. 1376, that would impose limitations on the types of hemp products allowed for sale in the state and further limit how such products can be sold to consumers. Both bills are on the Governor’s desk awaiting signature or veto.
The bills would require businesses manufacturing, distributing, or selling hemp products to hold a license from the Alcoholic Beverage Commission. The bills also prohibit the online, direct-to-consumer sale of hemp products to consumers located in Tennessee and require businesses to verify that customers are over the age of 21. Finally, the bill amends the state’s definition of “THC” to include decarboxylated THCA, effectively prohibiting the sale of hemp products containing large concentrations of THCA.
Bill texts:
Texas hemp legislation update
Texas, like Tennessee, has historically taken a permissive approach to the regulation of the manufacture, sale, and distribution of hemp products. However, the Texas hemp industry has been under fire from Texan lawmakers for the last year, and 2025 looks like it will continue that trend.
The Texas legislature introduced S.B. 3 in the current legislative session. The bill aims to restrict both the manufacture and sale of hemp products in the state, along with requiring businesses that conduct such activities to be licensed. Most problematic for hemp businesses is that the bill prohibits the manufacture, sale, or distribution of hemp products in Texas that contain any cannabinoids other than CBD.
