Cannabis News Roundup: Week 2025-18: From Alabama's Lawsuits to Montana's Tribal Breakthrough

3 May, 2025

Chaos in cannabis: Alabama gets sued, Michigan’s market crashes, and Montana hands tribes cannabis control. Meanwhile, hemp crackdowns sweep the U.S., D.C. delays reform, and Canada’s legal industry sounds the alarm. It’s a state-by-state rundown you don’t want to miss.

Covered states: Alabama, Kentucky, Michiogan, Missouri, Montana, Nebraska, New Hampshire, New Mexico, Pennsylvania, South Carolina, Washington D.C. 

 

 

 

 

 

 

 

 

 

 

ALABAMA

 

Alabama’s medical cannabis program is still in gridlock—and now, five families have taken legal action. They've filed a lawsuit against the Alabama Medical Cannabis Commission, or AMCC, in Montgomery County Circuit Court, accusing the agency of failing to implement a patient and caregiver registry as required under the Darren Wesley “Ato” Hall Compassion Act, which was signed into law back in 2021.

The law mandated that the registry be up and running by September 1, 2022. It's now more than two years past that deadline, and patients still can’t legally access medical cannabis in the state.

But the AMCC says the problem isn’t the registry itself. In a recent statement, the Commission explained that the patient registry is already fully functional and has been maintained through ongoing support payments. The real issue, they say, lies in the regulatory sequence laid out by state law.

Here’s how that works: Patients can only be registered once they’ve received a recommendation from a physician certified by the Alabama Board of Medical Examiners. But doctors can’t get certified until the Commission awards at least one license to a cultivator, processor, secure transporter, and dispensary—or to a fully integrated facility. As of now, none of those licenses have been finalized. So while the infrastructure exists, it can’t actually be used.

The AMCC insists it’s “ready on day one” to enroll patients as soon as licensing is complete. In the meantime, individuals who meet Alabama’s qualifying conditions for medical cannabis can join a pre-registration list to receive email notifications when appointments with certified physicians become available.

This lawsuit is just the latest in a string of legal troubles for the Commission. It’s already facing multiple suits over alleged irregularities in its licensing process, including claims of improper scoring, inconsistent procedures, and violations of the Alabama Open Meetings and Administrative Procedure Acts.

 

#AlabamaCannabis #MedicalMarijuana #CannabisNews #CannabisPatients #CannabisReform #MedicalCannabis #AlabamaNews #CannabisIndustry #CannabisRegulations #PatientRights #CannabisAccess

KENTUCKY

In Kentucky this week, a political clash is erupting over the state’s newly launched medical cannabis program—raising questions not just about regulation, but about transparency and political pressure.

State Auditor Allison Ball, a Republican, says her office is pressing forward with an investigation into how medical cannabis business licenses were awarded—despite what she calls “political gamesmanship.” Ball claims that five public records requests sent by the Kentucky Democratic Party the day after the probe was announced were meant to intimidate her office. This, she says, follows a pattern of interference from Democratic officials, including a prior incident involving Governor Andy Beshear’s administration.

Democrats deny any attempt at obstruction, calling the records requests routine and pointing out that Kentucky’s Open Records Act does not weigh the motives of requesters. Legal observers say the law is designed to promote government transparency—regardless of political affiliations.

#KentuckyCannabis #MedicalMarijuana #CannabisAudit #AllisonBall #KDP #CannabisLicensing #KYPolitics #OpenRecordsAct #CannabisTransparency #KYMMJ #CannabisNews #CannabisIndustry #MedicalCannabisKentucky #KYAuditor

MICHIGAN

In Michigan this week, the state’s largest cannabis lobbying group is urging lawmakers to halt new marijuana business licenses, warning that the market is buckling under oversupply, plummeting prices, and rising illicit sales.

The Michigan Cannabis Industry Association says too many growers and too few retailers are flooding the market. Legal cannabis that sold for $500 an ounce in 2019 now fetches just $65. State regulators admit the imbalance—with more than 2,500 growers for under 900 retailers—but stopped short of backing a licensing freeze.

Adding pressure: a wave of unregulated THC products, often hemp-derived, are slipping into legal channels. A 2024 court ruling also weakened the state’s power to suspend licenses, leaving regulators with few tools to curb bad actors.

For patients and recreational users, cheaper prices may seem like a win—but they come at a cost: a less stable, more fragmented market. And while big players push for tighter controls, critics warn a freeze could lock out smaller entrepreneurs and undermine the industry’s original promise of equity and access.

Michigan’s cannabis crisis echoes a wider trend: of booming growth, weak enforcement, and a market still struggling to find balance.

#MichiganCannabis #CannabisLicensing #MarijuanaOversupply #CannabisRegulation #BlackMarketTHC #LegalWeedMichigan #CannabisNews #MCIA #RobinSchneider #BrianHanna #CannabisPodcast

MISSOURI

Missouri this week became the latest state to commission a full economic impact study of its cannabis industry—a move that could influence how many marijuana business licenses are issued in the future, and who gets them. The decision comes as Missouri’s cannabis market—once a newcomer—has rapidly become one of the most lucrative in the U.S., reporting nearly $3 billion in sales since adult-use legalization just two years ago.

Three research firms are now competing for the state contract, including national players known for cannabis market forecasting and equity analysis. The study will help Missouri regulators decide whether to expand access to licenses, particularly for small operators and historically disadvantaged entrepreneurs, or hold the line to avoid oversaturating the market. The findings will also examine how cannabis revenues are impacting underserved communities—part of a growing trend among regulators to view legalization not just as commerce, but as economic justice.

#MissouriCannabis #CannabisLicensing #MarijuanaBusiness #CannabisStudy #MissouriMarijuana #CannabisEquity #CannabisEconomics #MarijuanaMarket #CannabisPolicy #MissouriWeed #CannabisNews #CannabisIndustry #MicrobusinessCannabis #AdultUseCannabis

 

MONTANA

Montana this week took a significant step in cannabis policy that could ripple far beyond the state’s borders. Lawmakers passed House Bill 952, granting Native American tribes the right to negotiate cannabis regulations directly with the governor’s office—ushering in a new era of tribal sovereignty over cannabis on reservation lands.

The bill addresses a major flaw in Montana’s original adult-use cannabis legislation, which had severely limited tribal participation in the legal market. Under the 2021 law, tribes were confined to just one dispensary, with operations restricted to off-reservation areas in so-called “green counties.” That effectively sidelined many Native communities from the economic and health benefits of legal cannabis.

House Bill 952 changes that. It allows each tribal nation to forge its own compact with the state, setting terms for cultivation, retail, taxation, and more. It’s a model that echoes successful frameworks seen in Washington State, and may set a precedent for others.

For tribal governments, the change could mean new revenue streams, job creation, and the ability to address community health needs with culturally informed approaches to medical cannabis. For consumers, especially those in rural areas or on reservations, it could improve access to both recreational and medicinal products—often in places where legal availability is scarce.

Industry watchers should take note that Montana’s compact approach could signal a broader shift toward more inclusive cannabis regulation across the U.S., especially as debates over sovereignty, equity, and public health gain ground.

Still, not everyone is on board. Some lawmakers warn the move might overcomplicate a system they believe is already functioning well. But for now, Montana is positioning itself as a test case in how states and tribes can share authority over an industry still mired in legal gray zones.

#MontanaCannabis #TribalSovereignty #HB952 #CannabisPolicy #NativeAmericanRights #CannabisCompacts #MontanaNews #CannabisLegislation #TribalCannabis #MarijuanaReform #FrankSmithMontana

NEBRASKA

Nebraska this week — lawmakers are facing a cannabis crossroads, with two key bills revealing deep divides over how to regulate both medical marijuana and hemp-derived THC products.

From May 3rd to 5th, state senators will host public forums to gather feedback on LB 677, a stalled bill to implement Nebraska’s newly approved medical cannabis program. Although voters legalized medical marijuana by a wide margin last November, the legislature has yet to agree on how to regulate it. Lawmakers hope the forums will help salvage the bill before the session ends in June. If they don’t act, key deadlines for licensing and implementation could be missed—leaving patients and entrepreneurs in limbo.

At the same time, the legislature has advanced LB 316, a separate and more controversial bill that would ban or severely restrict many hemp-derived THC products, like Delta-8. The measure reclassifies them as marijuana and imposes new taxes and penalties.

 #NebraskaCannabis #MedicalMarijuanaNE #LB677 #CannabisLegislation #NEPolitics #BenHansen #PublicForumCannabis #CannabisReform #LegalizeMarijuanaNE #VoiceOfTheVoters

NEW HAMPSHIRE

In New Hampshire — a bill to legalize cannabis for personal use has stalled in the state Senate, despite overwhelming public support. In a narrow 12 to 10 vote, lawmakers tabled House Bill 198, effectively ending the state’s chances of legalizing marijuana in 2025.

The measure would have allowed adults 21 and over to possess up to two ounces of cannabis — but it stopped short of creating a retail market. There were no provisions for sales, taxation, or product safety regulations. Still, supporters argued the bill was a step toward aligning New Hampshire with the rest of New England, where adult-use cannabis is already legal in every neighboring state.

But opponents, including Republican leaders and Governor Kelly Ayotte, warned that legalization could increase youth exposure and public health risks. Ayotte has vowed to veto any legalization measure — and that threat helped sway Senate votes.

#NHPolitics #CannabisLegalization #HB198 #LiveFreeOrDie #NewHampshireMarijuana #NHLegislature #CannabisReform #MarijuanaPolicy #AyotteVeto #LegalizeNH #CannabisNews2025 #NewEnglandCannabis

 

NEW MEXICO

 

In New Mexico this week, a federal court ruling has reignited debate over medical marijuana and insurance coverage, with implications far beyond the state’s borders.

 

A U.S. District Court judge has ruled that health insurers, including Medicaid, are not required to cover medical cannabis—even when state law encourages parity for mental health treatment. The decision stems from a lawsuit brought by patients and cannabis providers in New Mexico, who argued that medical marijuana prescribed for behavioral health should be reimbursed like other treatments under the state's mental health parity laws.

 

But the court disagreed, citing the federal government's classification of cannabis as a Schedule I drug—illegal, and lacking FDA approval. That federal status, the judge said, prevents insurers from offering reimbursement, regardless of what state legislation says.

 

Meanwhile, a new bill in New Mexico’s legislature aims to mandate such coverage at the state level. But unless there’s a shift in federal law, any such policy may face the same legal roadblocks.

 

#MedicalMarijuana #CannabisLaw #NewMexicoCannabis #MarijuanaInsurance #CannabisCoverage #UltraHealth #CannabisPolicy #FederalVsStateLaw #CannabisPatients #MedicalCannabis #MarijuanaNews #CBDReform #CannabisAccess #LegalWeed #CannabisInsurance

 

PENNSYLVANIA

Pennsylvania this week took a decisive step toward joining the growing number of U.S. states legalizing recreational cannabis. Bipartisan lawmakers are drafting bills, and state officials have launched a nationwide survey to learn from industry leaders elsewhere — all against the backdrop of a looming $250 million budget shortfall.

While Pennsylvania already allows medical marijuana, the push to expand access is gaining urgency. Much of the pressure is economic: residents are spending millions in neighboring states with legal markets, and lawmakers see an opportunity to reclaim that revenue. Governor Josh Shapiro has signaled support, as have members of both major parties, although Senate Republicans remain divided — especially on issues like criminal record expungement.

Two competing legalization models are emerging: one proposes a privatized retail system, favored by Republicans, while another pushes for state-run sales and stronger social equity provisions. But both camps agree that Pennsylvania can't afford to wait much longer.

To inform its path forward, the state launched a national survey of cannabis businesses, asking for insights into regulation, compliance, and industry trends — a signal that Pennsylvania wants to learn from what’s worked, and what hasn’t, in other states and countries.

#PAMarijuana #CannabisLegalization #PAHouse #ShapiroCannabisPlan #CannabisReform #PAPolitics #AdultUseCannabis #LegalizePA #MarijuanaPolicy #BipartisanCannabis #PABudget2025 #CannabisIndustrySurvey

SOUTH CAROLINA

In South Carolina, a bill to legalize medical marijuana is on the brink of collapse. With just days left in the legislative session, the Compassionate Care Act remains stuck in committee. If lawmakers don’t act by May 8, the state will miss its chance—and patients and advocates will have to wait until 2026 for another try.

The bill would allow regulated, non-smokable cannabis products for people with serious medical conditions. Support is strong—both from the public and within the cannabis industry—but political resistance remains high.

#SCMedicalMarijuana #CompassionateCareAct #SenateBill53 #SouthCarolinaCannabis #CannabisReform #MedicalCannabis #CBD #SCPolitics #LegalWeedSC #CannabisNews #MarijuanaPolicy #VeteransForCannabis #SCPatientsDeserveBetter

WASHINGTON D.C.

In Washington DC this week: Momentum may be building—but not yet breaking—in the long-stalled federal effort to reclassify cannabis.

During his Senate confirmation hearing on April 30, President Trump’s pick to lead the Drug Enforcement Administration, Terrance Cole, said reviewing the delayed marijuana rescheduling process would be a top priority if confirmed. However, Cole stopped short of endorsing the proposal to move cannabis from Schedule I—a category reserved for drugs with no accepted medical use—down to Schedule III, which includes substances like ketamine and testosterone.

The move to reschedule cannabis has been sitting in limbo since 2023, when the Department of Health and Human Services recommended reclassification based on its recognized medical utility and relatively low abuse potential. But the DEA, which has the final authority, has yet to act—leaving cannabis classified alongside heroin and LSD, even as state-level legalization expands.

Cole’s cautious tone reflects a delicate balancing act. A longtime law enforcement official and Virginia’s current Secretary of Public Safety, he acknowledged the legal chaos caused by the growing divide between federal law and state cannabis markets. He committed to consulting legal and scientific experts but declined to take a personal stance on cannabis reform, drawing sharp questions from lawmakers eager for clarity.

His nomination follows the withdrawal of a previous DEA pick who had publicly supported decriminalization—signaling that Trump’s administration remains wary of alienating conservative voters, even as public support for legalization surpasses 70%.

In parallel, a new bill introduced by Representatives Dina Titus and Ilhan Omar aims to repeal a decades-old law that prohibits the White House drug czar from even discussing legalization or sponsoring cannabis research. If passed, the Evidence-Based Drug Policy Act could open the door to a more science-driven federal approach—regardless of DEA delays.

 

HEMP

Hemp-derived sales are getting pummeled this week. Three states had major shifts in policy, signaling a nationwide reckoning for intoxicating cannabinoids like Delta-8 THC and THC-O — compounds that have thrived in a legal gray area since the 2018 U.S. Farm Bill.

In Ohio, lawmakers unanimously passed a bill that would ban sales of these psychoactive hemp products outside of licensed cannabis dispensaries. The measure adds age limits, product testing, and a 10% tax — effectively folding these products under the same rules as recreational cannabis.

In Oklahoma, Governor Kevin Stitt directed five state agencies to crack down on the sale and production of lab-altered hemp compounds. His order targets both licensed dispensaries and the broader gray market, citing rising concerns over youth access and public safety.

And in Texas, a high-stakes political battle is unfolding. A key House committee advanced a proposal to regulate, not ban, low-dose THC edibles and tinctures — complete with licensing, testing, and childproof packaging. But the Senate is holding firm on a full prohibition, setting up a potential legislative showdown.

INTERNATIONAL:

CANADA

Our international story comes from Canada this week. 

The country’s legal cannabis industry is pressing Ottawa for urgent reforms—just days after Prime Minister Mark Carney secured a new term in office.

The Cannabis Council of Canada, which represents licensed growers and industry stakeholders, says the country’s cannabis sector is at a breaking point. Despite contributing over $43 billion to the national economy since legalization in 2018, companies are struggling with outdated tax rules, red tape, and fierce competition from a still-thriving black market.

At the heart of the problem is Canada’s excise tax system. When first designed, it assumed cannabis would retail at around $10 per gram. But as market prices have dropped to as low as $3, many producers are still being taxed at the higher of either 10% or $1 per gram. That fixed floor is squeezing margins and pushing smaller players out of the legal market.

Meanwhile, producers face the added cost of complying with a patchwork of provincial excise stamp requirements—something the federal government pledged to unify last year, but has yet to deliver.

For patients and consumers, the stakes are high. The Council warns that 25–40% of cannabis sales are still happening off the books—and recent federal testing found that nearly all illegal cannabis samples contained harmful contaminants, including banned pesticides and even traces of human waste.

The industry is calling for tax reform, a unified national stamp, and a crackdown on illicit sales. Without action, Canada’s legal cannabis experiment—once a global model—could become a cautionary tale.

#CanadaCannabis #CannabisReform #CannabisCouncil #MarkCarney #LegalWeedCanada #CannabisTaxReform #CanadianCannabis #CannabisPolicy #IllicitMarket #CannabisNews #CdnPoli #CannabisIndustry #WeedReform #CannabisEconomy