Cannabis News & Policy Update: A Tale of Two States
The cannabis industry continues to evolve rapidly, with states across the US pursuing vastly different approaches to regulation. July 2025 witnessed significant developments in both Texas and California, highlighting the contrasting trajectories of cannabis policy.
Texas: A Boost for Medical Cannabis
On July 26, 2025, the Lone Star State took a notable step forward in its medical cannabis program. Governor signed HB 46 into law, a bill poised to reshape the landscape of medical cannabis access in Texas. This legislation represents a substantial expansion of the existing framework, with several key provisions designed to broaden patient access and bolster the industry.
One of the most significant changes is the inclusion of chronic pain as a qualifying condition. This addition opens the door for a wider range of patients to seek relief through medical cannabis. The legislation also addresses the supply side, increasing the number of vertically integrated medical cannabis licenses from a mere three to 15. This will likely stimulate competition and potentially drive down prices, making medical cannabis more accessible and affordable for Texans.
Furthering the expansion, HB 46 also increases the permissible amount of THC in medical cannabis products to 10 mg per dosage unit. This adjustment may enable patients to find effective symptom relief with greater convenience.
The state Department of Public Safety is tasked with implementing the new licensing structure. The department will begin issuing nine new vertically integrated medical cannabis licenses by December 1, 2025. An additional three licenses are slated to be issued by April 1, 2026. This phased approach should help ensure a smooth transition and prevent overwhelming the nascent industry. The expansion in Texas indicates a growing acceptance of cannabis for medical purposes and a willingness to provide greater access to those who can benefit from it.
California: Hemp Products Face a Potential Ban
While Texas expands its medical cannabis market, California is contemplating a controversial move that could severely impact its hemp industry. The state Department of Public Health has proposed a permanent rule that would effectively ban hemp products containing any level of THC.
This proposed ban has sparked significant concern within the state’s business community. The CDPH anticipates that this rule could cost California businesses a staggering $3.14 billion in lost revenue over a five-year period. Moreover, the department projects the elimination of 18,000 jobs during the same timeframe. These figures highlight the potentially devastating economic consequences of such a ban.
Interestingly, the CDPH estimates that the proposed ban would also benefit the established cannabis retailers in the state. The agency projects that these retailers could see an increase in revenue of $69.8 million over the next five years. This suggests a potential shift in consumer spending from hemp products to those sold at licensed cannabis dispensaries if the ban goes into effect. The decision underscores the complex regulatory landscape in California, where the interplay between the hemp and cannabis industries continues to evolve.
Contrasting Approaches
The developments in Texas and California present a stark contrast in cannabis policy. While Texas embraces expansion and increased access, California contemplates a ban that could cripple its hemp industry. These diverging paths highlight the diverse approaches states are taking as they navigate the evolving legal status of cannabis. These policy changes will likely have far-reaching economic and social consequences, shaping the future of the cannabis industry across the United States. The outcomes of these policies will be closely watched by industry stakeholders, policymakers, and consumers alike as the cannabis debate continues to unfold.
