The federal ban on intoxicating hemp products would shut down about 68.1% of U.S. hemp-related businesses, according to a Whitney Economics report outlined by The Denver Gazette. The ban, which was set to take effect in November was delayed one month in August, via an amendment to a federal funding bill. 

The Whitney Economics analysis found that, in addition to the closures, 15.5% of hemp businesses would need to lay off employees, 6.9% would remain in business but would see less revenue, and 3.2% would relocate, presumably outside of the U.S. 

The report also suggests that states would lose between $1.2 billion and $1.5 billion in tax revenue and between $46.6 billion and $59.6 billion in potential retail losses.  

“Given the high levels of potential business failures and relocations, the economic impact of the current hemp laws, if enacted is rather profound, a reduction of total industry wide revenues by $35.1-$41.3 billion, 29,523-36,744 fewer employers and 188,961-225,861 displaced workers, earning between $7.5-$8.9 billion in wages.” — Whitney Economics, “2026 U.S. Hemp Cannabinoid Report,” via the Gazette 

The U.S. Hemp Roundtable has suggested that between 90% and 95% of current hemp products sold in the U.S. would be eliminated from the market under the ban, according to the Gazette. 

Whitney Economics surveyed 496 hemp businesses across 35 states to compile the report.  

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“2028 sounds far away. But artwork gets locked with the printer weeks or months before the run. Then the boxes sit in a warehouse until they are used.”

By Adrian A. Holguin, CannaShark Consulting

Last month, California Gov. Gavin Newsom (D) signed AB 2249, a bill that puts a much clearer line around what cannabis packaging, labels and ads can look like. The short version: no child-oriented dragons, unicorns or wizards; nobody who looks under 21; no imagery of candy, cereal, sweets or desserts primarily marketed to children; no child-style bubble or balloon lettering; and no packaging that mimics a noncannabis product marketed to kids.

The new definition takes effect on January 1, 2028.

Most of the coverage stopped there, and I get it. “Rules take effect in sixteen months” doesn’t make anyone spill their coffee. But operators tend to call me after a rule costs more than they expected, so here’s why 2028 is not the date that matters.

First, the basics.

California has banned cannabis packaging that is “attractive to children” since legal sales began, and cartoons on labels are already prohibited. The problem was that the line remained subjective and was applied inconsistently. A 2025 state audit found that Department of Cannabis Control (DCC) rules were not specific enough and that reasonable reviewers sometimes reached different conclusions about similar packaging.

AB 2249 draws a clearer line. It defines “attractive to children” as designed or likely to appeal to anyone under 21, then identifies cartoons; depictions of people under 21; celebrities, influencers, characters and mascots primarily associated with contemporary children’s media or products; fantasy characters such as unicorns, wizards and dragons; imagery of candy, cereal, sweets and desserts primarily marketed to children; child-oriented bubble or balloon lettering; and packaging that mimics a noncannabis product marketed to children.

Cartoon or overly stylized fruit on an edible or vape label is out. A realistic depiction of fruit that accurately reflects an ingredient or production region is allowed.

The bill also authorizes DCC to adopt additional rules for design elements or product characteristics that pose a heightened risk to children, and it requires the department to develop self-assessment resources.

DCC launched its AI-based Cannabis Product Image Analyzer in June. Use it as a screening tool, not a safe harbor: an automated result is advisory, not a final DCC determination.

AB 2249 sets no deadline for additional rulemaking or for the required resources, so operators are still designing against a target that could move.

Now here’s the part that got underplayed.

Packaging isn’t bought like office supplies. Many brands buy it in runs representing six months to a year of inventory because that is how they protect unit economics. Artwork gets locked with the printer weeks or months before the run. Then the boxes sit in a warehouse until they are used.

So play it forward. A brand placing a normal-sized packaging order in early 2027 may be buying stock it expects to use well into 2028. AB 2249 contains no express sell-through safe harbor for old packaging.

Unless DCC issues contrary guidance, the prudent plan is to assume that product offered for sale on January 1, 2028 must comply with the new definition. That may put the artwork deadline in late 2026. In other words, somebody has to decide now whether the mascot stays.

The California Cannabis Industry Association opposed the bill on cost, and that concern is real. A redesign can mean compliance review, new plates, minimum order quantities, retailer notifications and eventually paying someone to destroy old packaging. But the final Senate vote was 38-0, and the Assembly concurred 69-1.

The cost is now a scheduling problem, and scheduling problems are only cheap if you start early.

Handled on the front end, this is a calendar and a manageable cost. Handled on the back end, it becomes destroyed inventory, retailer disruption, potential enforcement and a bill with more zeros. The difference is almost never information. Operators knew the rule was coming. The problem is that “2028” sounds far away.

If you hold a California license, this quarter looks like this: pull every SKU and flag anything with a character, creature, candy cue, child-oriented lettering or stylized fruit. If you have to argue about whether the gummy bear is a cartoon, it probably is.

Get your printer’s real lead times in writing and work backward from January 1, 2028. Start the redesign conservatively, have the final art reviewed, and run it through DCC’s tool as a screen before the plates are cut. Then size your last old-look order to sell through before 2028.

Nobody should build a compliance plan around the hope that the state will be generous with a pallet of dragon gummies.

The state gave you sixteen months. Your printer gave you about six. Plan around the printer.

Adrian A. Holguin, J.D., M.B.A., is founder and president of CannaShark Consulting. He advises cannabis operators and businesses in other highly regulated industries on licensing, compliance, finance and operations, and also serves as an expert witness.

Photo courtesy of Max Pixel.

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“They basically thought it was impossible when all these companies were fighting, and now the workers are winning.”

By Rebecca Rivas, Missouri Independent

Missouri cannabis workers are trying to turn a string of recent union victories into broader organizing momentum across the state.

High Profile Cannabis dispensary workers in Columbia last week unanimously ratified what union officials say is the state’s first collective bargaining contract for cannabis workers, securing higher pay and paid vacation time.

“Now for the first time in Missouri, dispensary workers are FEELING THAT CONTRACT HIGH!” the United Food and Commercial Workers International Local 655 posted on its Facebook page Wednesday.

And in St. Louis, Proper Brands post-harvest workers—who process and manufacture products—won their election to unionize last week, and Vibe Cannabis post-harvest workers are scheduled to hold an election at the end of July.

“I’ve been hearing from more and more production and dispensary workers all over the state who want to find out what they need to do in order to organize their workplaces,” said Sean Shannon, organizing director at UFCW Local 655. “They basically thought it was impossible when all these companies were fighting, and now the workers are winning.”

After Missouri legalized recreational marijuana in 2023, the state saw a surge in cannabis jobs that was soon followed by a push to unionize.

Several groups of workers endured yearslong legal battles and company pushback. This year, some are finally seeing the results.

Sierra Lutz was among the employees who organized the High-Profile union petition in 2023. She’s now a trimming tech at Vibe Cannabis, where she is leading the unionization campaign. She and her fellow post-harvest workers filed a petition to unionize last month.

After hearing the news about High Profile’s contract, Lutz applauded the workers’ dedication.

“I’m so proud of their perseverance,” she said. “They deserve every second of this glory.”

Her work with High Profile taught her some key lessons she’s bringing to the Vibe campaign, she said. The main one: “patience is everything.”

“The workplace won’t change overnight, but change will come,” Lutz said. “That’s been my biggest point I’ve been communicating to Vibe employees.”

Other Vibe employees are also organizing veterans, after participating in the unionization effort at BeLeaf Medical’s Sinse cultivation facility in St. Louis. In May, Sinse workers won a significant legal precedent for post-harvest workers after nearly three-year battle, with a decision affirming their right to unionize under federal labor law.

“More and more workers are feeling empowered,” Shannon said, “and I believe we’re going to see a huge wave and a rise in workers rising together.”

‘A seat at the table’

Katie Hazelwonder, a trainer in Proper’s post-harvest department, said she was overjoyed that workers voted 25-21 to unionize on July 1.

“We put a lot of work into this, and I’m so thankful to everyone that stood together to make this happen,” Hazelwonder said. “That’s honestly the only way we got through this, we stood together and never backed down.”

Hazelwonder acknowledged this was a stressful month for “both sides of the vote,” but said she believes the effort will result in better pay, job security and working conditions.

“This victory is about all of us having a voice and having a seat at the table,” she said, “and we’re looking forward to negotiating a fair contract that reflects the hard work and dedication of everyone.”

John Pennington, founder and CEO of Proper Brands, said in an email to The Independent that the company respects the post-harvest team’s decision and their right to determine how they want to be represented.

“Proper Brands has always believed that our people are the foundation of our success, and that commitment remains unchanged,” Pennington said. “As we move forward, our focus will be on building a constructive relationship rooted in mutual respect, open communication, and our shared goal of producing the highest-quality cannabis products for Missouri.”

Pennington also said the company remains committed to “providing a safe, supportive workplace where every team member has the opportunity to grow and contribute to our continued success.”

“We are pleased to be a part of this process,” he said, “and look forward to working with the UFCW.”

Hazelwonder previously told The Independent that the Proper team was encouraged by a May decision from the National Labor Relations Board, which decides labor disputes and sets national policy on union organizing.

The board rejected another St. Louis marijuana company’s argument that post-harvest employees are agricultural workers, who are excluded from a federal law that protects most private-sector employees’ right to unionize without fear of retaliation.

“Thanks to the recent NLRB ruling we have the opportunity to sit at the table and make it better for us and the others to come,” Hazelwonder said.

Vibe

At Vibe, Lutz said she and other production workers were told they’d have the federal Juneteenth holiday off this year. But then a few days before the holiday, she says managers told them they would have to work. They later learned the company paid for another department’s employees to go to Six Flags theme park on Juneteenth.

It’s part of the favoritism, such as free meals and other perks, her team doesn’t get to enjoy.

“I love that that department gets all of that extra stuff, like, genuinely,” Lutz said, “but our department gets absolutely nothing.”

Juneteenth was the last straw for post-harvest employees who were on the fence about unionizing, Lutz said, and Shannon filed the petition to unionize on June 18.

Katie Parker, human resources manager for Vibe, said the company had no comment on the petition or the issues raised by employees.

Since the petition was filed, Lutz said workers have been required to meet individually with two consultants, who told employees the company hired them to educate workers on the union process.

Lutz works in the trim department, where she operates the Mobius trimming machine, she said. During the summer, she said, the room is often 80 degrees with poor air circulation.

“They’ve told us many times that the thing that they are worried about getting above 80 degrees in that room is not our wellbeing as employees,” she said, “but the wellbeing of the product.”

She said she and her colleagues do challenging work that’s vital to the quality ofVibe’s product, but they don’t see the pay raises other departments do.

Bird Herndon, who has worked in Vibe’s post-harvest department for about a year, agreed with Lutz.

“Cannabis cultivation and processing are physically demanding and almost always impact respiratory health,” Herndon said. “Making sure we have consistent access to safety equipment like respirators is a top priority.”

Herndon said a structured collective bargaining process would allow the team to “work collaboratively with management to formalize, streamline, and uphold high-standard safety procedures and equipment protocols for everyone.”

Among the group’s demands is the option of a 401(k) so they can plan for retirement.

Vibe employees have been in touch with organizers at Proper and BeLeaf, Herndon said, to learn from their experiences.

“We can all help each other,” Herndon said. “More minds on the problem leads to a better solution for everyone.”

This story was first published by Missouri Independent.

Photo courtesy of Chris Wallis // Side Pocket Images.

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A Michigan Republican representative has filed legislation that would reverse a recently enacted tax increase on marijuana businesses.

The new bill, from Rep. James DeSana (R) would repeal the 24 percent wholesale cannabis tax that was enacted as part of legislation negotiated by Gov. Gretchen Whitmer (D) and House and Senate leaders last year.

The tax was projected by state officials to raise $420 million, with the revenue aimed at funding road repairs and construction.

The levy has been challenged in court through lawsuits filed by the cannabis industry.

“It’s time to repeal this failed tax and stop forcing taxpayers and businesses to pay for a policy that simply isn’t working,” DeSana told WNEM-TV

The GOP lawmaker said the tax is generating in less than half of what its supporters anticipated—falling roughly $70 million less in the first four months of the fiscal year, which could rise to a $210 million shortfall from projections, he told the local news outlet.

Removing the new wholesale tax would ease the fiscal burden on legal cannabis businesses and help them compete with the unregulated market, he argues.

—
Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.
—

To that point, the company Higher Love Cannabis Co. on Monday announced it will be suspending operations at five of its nine dispensaries, citing the “mounting tax burden” on marijuana businesses in the state and specifically calling out the new wholesale tax, which it said “introduced another substantial cost in a market already subject to a 10% retail excise tax and 6% sales tax.”

“This decision comes amid broader pressure across Michigan’s cannabis industry, where oversupply, price compression and declining revenue have already forced numerous businesses to consolidate, suspend operations facilities and eliminate jobs,” Higher Love said in a press release. “The added tax burden has further strained the supply chain and made it increasingly difficult for responsible operators to remain viable.

“Higher Love joins industry leaders in calling for balanced policies that protect consumers while allowing businesses to retain employees, serve their communities and build a sustainable future,” it said.

DeSana’s new bill, HB 6224, is only a sentence long, simply reading, “The comprehensive road funding tax act, 2025 PA 23, MCL 205.901 to 205.913, is repealed.”

It has been referred to the House Appropriations Committee.

Meanwhile, earlier this year, the Michigan Cannabis Regulatory Agency announced it is distributing nearly $100 million in marijuana tax revenue to over 300 local governments and tribes across the state. The money is intended to support various local infrastructure, education and other programs and services in 313 municipalities, counties and tribal areas.

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The popular point-of-sale and payments service Square says it will no longer allow CBD and other hemp-derived products to be sold on its platform, according to an email obtained by Marijuana Moment.

The communication, sent to a business that uses Square, cited an upcoming change to federal law that will recriminalize many hemp products that were previously legalized by Congress.

Hemp derivatives with less than 0.3 percent delta-9 THC on a dry-weight basis were federally legalized under the 2018 Farm Bill that President Donald Trump signed during his first term in office. But late last year, the president signed new legislation containing provisions that will redefine hemp to make it so only products with 0.4 milligrams of total THC per container will remain legal after November 12.

“Because of this change, selling CBD and hemp-derived products — online or in person — will no longer be permitted on Square’s platform,” the email said.

“Your Square account remains open, and you can continue selling all of your non-CBD products on Square as usual, to the extent permitted under Square’s policies,” it continued. “Only the affected CBD/hemp items are impacted.”

Businesses are being directed to “remove any CBD, hemp and hemp-derived items from your Square catalog (both in-person and online)” by October 15.

“After that date, these items will no longer be permitted on Square platform,” the email said. “We know this is a significant change, and we want to give you as much time and support as possible to prepare.”

A Square spokesperson told Marijuana Moment that “a new federal law taking effect later this year places new restrictions and requirements on hemp-derived products, including those containing CBD.”

“To ensure compliance with this new law, we’re notifying impacted sellers and, where we’re able to, helping them update their catalogs so they can continue processing on Square,” they said.

A now-deleted page on Square’s website previously pitched its services specifically to hemp businesses, saying it could help them “sell CBD online and in-store to reach every customer.”

“Create a free online store and seamlessly accept payments for your CBD products. Or sync our software with your current site,” it said. “No matter how you run your CBD business, Square makes sure every part of it is protected.”

The platform’s new prohibition on hemp products comes amid a growing push in Congress to delay, alter or reverse the forthcoming ban on hemp products.

The U.S. Senate is expected to vote as soon as Friday on whether to extend the effective date of the hemp restrictions until December 11.

A number of members of Congress from both parties have filed or are circulating legislation that would enact regulations for hemp products in lieu of broad prohibition.

When asked whether Square would consider further revising its policies if the federal hemp product ban is delayed or reversed, the spokesperson said that “while we are constantly evaluating our policies and the broader compliance landscape to see if we can support more business types, we don’t have anything specific to share at this time.”

Read the full CBD and hemp products email from Square below:

Subject: [Action required] Important update about your Square account and CBD products

We’re reaching out with an important update about a federal law change that affects businesses selling CBD and hemp-derived products.

What’s changing

A new federal law takes effect on November 12, 2026 that redefines which hemp and hemp-derived products are legal.

Because of this change, selling CBD and hemp-derived products — online or in person — will no longer be permitted on Square’s platform.

What this means for your business

Your Square account remains open, and you can continue selling all of your non-CBD products on Square as usual, to the extent permitted under Square’s policies. Only the affected CBD/hemp items are impacted.

What you need to do

• • By October 15, 2026, please remove any CBD, hemp and hemp-derived items from your Square catalog (both in-person and online).
  • After that date, these items will no longer be permitted on Square platform.
  • If your business sells other, non-CBD products, no further action is needed — you’re all set to keep selling them.

If you have a Square Loan

Your outstanding Square Loan balance is unaffected by this change. Your remaining balance and your loan terms stay the same. Here’s how repayment continues:

• • If you sell other, non-CBD products on Square: Nothing changes about how you repay. Your loan will continue to be repaid automatically as a percentage of your daily card sales, just as it does today.

We know this is a significant change, and we want to give you as much time and support as possible to prepare. For more information or to contact us, visit our Support Center.

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