News Roundup: Week 2025-06: Tennessee & Hawaii Push Cannabis Legalization, Maryland Clears Records, Minnesota Prepares for Business, and Arkansas Supports Schools with Weed Taxes

Week of 8 Feb, 2025

This week’s episode covers the latest cannabis policy changes across the U.S. Tennessee and Hawaii push forward with new legalization efforts, while Pennsylvania eyes a $1.3 billion tax windfall. Minnesota’s cannabis business licenses are finally opening up, Maryland expands expungement laws, and Arkansas uses marijuana tax revenue to fund student meals. Plus, we discuss the ongoing cannabis banking battle in Congress.

 

 

 

 

 

 

TENNESSEE
In Tennessee this week, lawmakers were working on four cannabis-related bills. Two of the proposed measures aim to establish a regulated market for both recreational and medical marijuana. If passed, adults 21 and older would be allowed to possess up to 60 grams of cannabis, cultivate up to 12 plants, and purchase marijuana from licensed dispensaries. The legislation includes provisions for taxation, criminal justice reforms, and consumer protections. If approved, these laws would take effect on January 1, 2026.

 

The third bill, while not legalizing cannabis, would impact the sale of smoking hemp, along with tobacco and vape products. It proposes raising the age verification threshold for these purchases. Currently, retailers must check ID unless a buyer appears at least 30 years old. The new measure would increase that threshold to 50 years old, requiring more customers to provide proof of age at checkout. If passed, the law would take effect in July 2025.

The fourth bill filed in Tennessee this week proposes legalizing marijuana and using 75% of its tax revenue to repair the state’s highways.

HAWAII

Hawaii lawmakers have taken a major step toward legalizing recreational cannabis as the new House Bill advances through legislative committees. The bill proposes a single regulatory agency for medical, recreational, and hemp cannabis. It establishes a 14% tax on recreational sales, and sets strict local business protections. If enacted, Hawaii would join 24 other states in cannabis legalization, with sales expected to start in 2026. While the measure faces mixed public opinion, it has strong support from social equity advocates and local cannabis businesses. 

TEXAS

A University of Houston Hobby School of Public Affairs survey, released on February 4, 2025, reveals that a majority of Texans across political, racial, and religious demographics support easing restrictions on cannabis use. According to the study, 79% of respondents favor expanding medical cannabis access, 69% back decriminalization for those 21 and older, and 62% support legalizing a commercial adult-use cannabis marketplace. 

 

PENNSYLVANIA

Pennsylvania Governor Josh Shapiro has once again called on state lawmakers to legalize adult-use cannabis, citing economic losses to neighboring states and the potential for $1.3 billion in new tax revenue over five years. Under his budget proposal, legalization would take effect on July 1, 2025, with retail sales beginning in January 2026. A 20% wholesale tax on cannabis would help alleviate the state’s growing budget deficit, while funding for social equity programs and criminal expungements would address past injustices. While bipartisan support is increasing, the Republican-controlled Senate remains divided, raising questions about whether Pennsylvania will finally legalize cannabis or continue to fall behind its neighbors.

MINNESOTA

Minnesota’s long-awaited cannabis business licensing process is set to begin this month. The state’s Office of Cannabis Management announced that applications will be accepted from February 18 through March 14, with a lottery for capped licenses taking place in May or June. Half of these licenses will be reserved for social equity applicants, individuals from communities affected by past cannabis prohibition. Meanwhile, businesses applying for uncapped license types—such as microbusinesses, testing facilities, and delivery services—will be reviewed on a rolling basis. Delays in the licensing process, caused by lawsuits over application denials, have pushed the expected market launch further into 2025. However, with this latest development, Minnesota’s cannabis industry is on track to open legal businesses later this year.

MARYLAND

Maryland is pushing to clear past cannabis convictions with new legislation aimed at expanding expungement. Governor Wes Moore, who issued the nation’s largest state-level cannabis pardon in 2024, is backing two bills—SB 432 and HB 499—that would allow individuals with parole or probation violations to petition for expungement and remove pardoned convictions from public records.

 

A separate measure, the Maryland Clean Slate Act, would automatically erase cannabis possession charges before July 1, 2023, or three years post-conviction, and clear certain misdemeanors after seven years. Advocates say these reforms would help those impacted by past drug laws access jobs and housing.

 

Meanwhile, officials are monitoring a rise in cannabis-related hospital visits and youth exposure, highlighting the need for education and regulation. Governor Moore is also pushing for federal cannabis reforms, including banking access for legal businesses

ARKANSAS

Arkansas lawmakers have advanced SB 59, a bill that would use medical marijuana tax revenue to fund free breakfasts for students and supplementing federal meal programs. The bill is backed by the republican Senator Jonathan Dismang  and supported by Governor Huckabee.

For the cannabis industry, this move further legitimizes marijuana taxation as a mechanism for public funding, while for families, it eliminates the stigma of income-based meal programs and guarantees consistent access to food. If approved, SB 59 could serve as a model for other states exploring alternative ways to fund social services. The bill now moves to the Arkansas House for final consideration.

 

FEATURE

This week, the Senate Banking Committee held a pivotal hearing that brought bipartisan attention to the financial hurdles plaguing the cannabis industry. While Chairman Tim Scott, a Republican from South Carolina, sought to keep the discussion centered on federally legal businesses, senators from both parties pressed the issue of banking restrictions on state-licensed marijuana companies.

Senators Elizabeth Warren, a Democrat from Massachusetts, Thom Tillis, a Republican from North Carolina, and Jack Reed (Democrat from Rhode Island, were among those highlighting the widespread consequences of financial exclusion. Warren emphasized the need for accountability, calling out the systemic barriers that prevent cannabis businesses from accessing banking services. Meanwhile, Tillis, while not advocating for full legalization, indicated a willingness to explore regulatory fixes that could provide relief.

At the heart of the debate is the SAFE Banking Act, a long-stalled bill designed to protect financial institutions that serve cannabis businesses. Despite broad bipartisan support, the legislation remains gridlocked in Congress. With pressure mounting from both lawmakers and industry advocates, the cannabis banking debate remains one to watch in the coming months.