Last week →  The hemp ban has a rival — and a White House problem

Texas recriminalized most hemp THC overnight. Delta-9 is all that's left.

On July 31, the largest hemp retail market in the country changed rules mid-stride. Following the Texas Supreme Court's May decision dissolving a five-year-old injunction, the Department of State Health Services' 2021 schedule took effect: delta-8, delta-10, THCP and THCA flower are now Schedule I substances in Texas. Only hemp delta-9 at or below 0.3% dry weight survives — edibles, drinks and tinctures — and possession of anything else is a state jail felony. Roughly 14,000 licensed hemp retailers are affected, with industry estimates putting 60 to 90 percent of THC SKUs off the shelves. Two businesses are reportedly preparing lawsuits; details still emerging. The Texas cutover is a preview of the mechanics every operator faces November 12, when the federal total-THC standard arrives — unless one of the two bills now circulating in Congress moves first. Read the full 10-things breakdown →

Why it matters: Two vehicles are better than one, but neither has a committee date. Comer chairs House Oversight and represents Kentucky hemp country — his draft signals leadership-adjacent Republicans want a fix. The competing frameworks (Comer's regulatory floor vs. Barr–Craig's 1% redefinition) now have to converge before the November 12 recriminalization. Keep planning inventory against the current 0.4 mg-per-container standard until a bill actually moves.

Rep. James Comer (R-KY) began circulating a draft bill in late July to keep hemp THC products federally legal with packaging requirements, testing rules and age limits. The White House has publicly asked Congress to delay the ban or revise the hemp definition. Prohibition-side group CADCA is mobilizing letters urging Congress to leave the recriminalization in place.

Why it matters: The op-ed itself changes no law, but its timing does work: post-hearing briefs in the Schedule III proceeding are due August 17, and a former Republican attorney general arguing the move is a "tax windfall" gives cover to officials looking for reasons to slow-walk the final rule. Keep §280E relief unbooked until a final rule survives review. Talk to your counsel.

Former Attorney General William Barr, co-writing with the CEO of Smart Approaches to Marijuana in late July, claimed there is "no credible evidence" cannabis treats any medical condition and that rescheduling would reduce penalties and create "the false impression that it is safe."

Why it matters: This is the first major federal safety agency to formally study what rescheduling means for its workforce rules — the outcome will shape how DOT-regulated employers everywhere handle cannabis. Nothing changes today: drug testing and medical-certification standards are untouched, and safety-sensitive workers still cannot use cannabis, medical or otherwise.

The FAA's Office of Aerospace Medicine is partnering with the National Academies of Sciences, Engineering, and Medicine on four closed meetings this year and next, covering drug testing, cognitive-function monitoring and the duration of impairment after use — a response to the April interim Schedule III order.

Why it matters: Sellers risk consumable-hemp license loss, fines up to $10,000 per violation and Schedule I distribution charges; customers holding a delta-8 vape face a state jail felony. Operators in every state should study the mechanics — Texas just ran the drill the November 12 federal standard will impose nationally: SKU triage by cannabinoid, COA re-verification, and a delta-9-only product mix.

DSHS's 2021 controlled-substance schedule took effect July 31 after the Texas Supreme Court's May ruling ended the Hometown Hero injunction. Delta-8, delta-10, THCP and THCA flower are Schedule I; hemp delta-9 at ≤0.3% dry weight stays legal, and delta-9 smokeable hemp continues under a separately paused ban. Industry estimates put 60–90% of THC products off shelves; two legal challenges are reportedly in preparation, details still emerging.

Why it matters: Virginia now has a dedicated prosecutor's office watching hemp shelves in the same month the strictest per-package cap in the country takes effect. The promised industry injunction suit was still not on a docket as of August 1 — so August 15 remains the operative date for SKU audits, COA refreshes and sell-through plans. Don't bank on a court save.

Attorney General Jay Jones announced a Regulated Products Enforcement Unit covering THC and hemp products, kratom, liquid nicotine vapes and "emerging intoxicants." It arrives ahead of the August 15 rule limiting retail hemp products to 0.3% total THC and 2 mg total THC per package.

Why it matters: Delaware becomes the latest state to choose regulation over prohibition for hemp beverages — and its dual-channel model (dispensary plus liquor store) is the template beverage brands want. Operators eyeing the market have until October 21 to line up licensing, compliant labels and distribution. The November 12 federal question still hangs over every hemp drink.

Gov. Matt Meyer signed the bill in late July: hemp-derived THC beverages will be sold to adults 21+ through licensed marijuana dispensaries and liquor stores, subject to state packaging, labeling, advertising and testing rules plus new taxes. Most provisions take effect October 21, 2026.

Why it matters: Minnesota operators no longer have to choose between a hemp license and a cannabis license — the ban on holding both fell away August 1. For hemp beverage and edible makers weighing a move into the licensed marijuana market (or hedging against the federal hemp ban), the dual-track door is now open. Review license strategy with counsel before applying.

Provisions of Minnesota's 2026 omnibus cannabis bill took effect August 1, headlined by the removal of the prohibition on simultaneously holding hemp and cannabis licenses, alongside a set of smaller operational changes.

Why it matters: North Carolina is one of the largest unregulated hemp THC markets left on the East Coast; a conference-report bill covering hemp-derived THC, kratom and xylazine is now positioned for a final House vote. Retailers in the state should watch this week — final text will set compliance timelines. Details of the negotiated version are still emerging.

A House conference committee formally reported the negotiated version of the legislation on July 30, moving it toward a final floor vote.

Why it matters: The threat of anti-dumping duties has shadowed Canada-to-Israel medical cannabis exports — one of the few large legal international trade lanes — for years. Closing the investigation removes that pricing risk for Canadian licensed producers, at least for now, and keeps Israel's import-dependent medical market supplied.

Israeli officials closed the investigation into alleged dumping of Canadian medical cannabis into Israel's market, per reporting in late July. Canadian producers, meanwhile, posted C$485 million in domestic legal retail sales for May — a reminder of the scale behind the export lane.

Virginia's 2 mg cap arrives August 15 — thirteen days from this issue. Our compliance countdown walks the penalty structure, the VDACS inspection process, and a week-by-week sell-through plan for retailers holding non-compliant inventory. If you operate in or ship into Virginia, read it before Friday. Read the summary →