The ban on the carry of open cannabis products applies to both drivers and passengers.
By Christine Sexton, Florida Phoenix
Carrying an open package of medical marijuana, hemp or THC products, including beverages, in a car, would be illegal and could lead to suspension or possible revocation of a patient’s access to medical marijuana under a bill that’s been filed in the Senate.
Fort Myers Republican Sen. Jonathan Martin filed SB 1056 Monday, eight days before the 2026 regular legislative begins.
Martin’s bill would give law enforcement the green light to search a vehicle based on the “plain smell” of edibles, hemp, marijuana or THC beverages by creating a new statute that provides “legislative intent.” In doing so, the bill aims to blunt the effect of an October 2025 Florida Second District Court of Appeal ruling that the smell of marijuana alone is not enough to establish probable cause for a police search because marijuana no longer is illegal.
Because the ruling was in conflict with one of its previous rulings, the appeals court certified the question of whether the legalization of medical marijuana and hemp in Florida means the “plain smell” doctrine, which allows searches based solely on the smell of marijuana, still is valid.
Sen. Martin didn’t immediately reply to Florida’s Phoenix’s request for comment on the bill.
The ban on the carry of open medical marijuana products applies to both drivers and passengers, although it wouldn’t apply to paying commercial passengers or passengers on buses or passengers in self-contained motor homes that are longer than 21 feet. The definition of “open container” mirrors the definition of open container for alcohol.
The bill has different penalties for drivers and passengers who break the law.
There are 929,655 medical marijuana patients in Florida, Office of Medical Marijuana Use data show.
Both drivers and passengers who violate the law could be charged with a noncriminal moving traffic violation and suspension of their medical marijuana identification cards, which enable them to buy the product. And both drivers and passengers who repeatedly violate the law could have their access to medical marijuana permanently revoked.
A driver who breaks the law a second time could be imprisoned for up to 90 days and forced to pay up to a $500 fine or both. Jail time for a third offense for a driver would be increased to up to six months and the potential fine upped to $1,000.
Police won’t have to wonder whether the driver or passenger owns the open product. Under the bill, an open container of edibles would be considered to be in the possession of the driver unless it is located in a locked glove compartment, locked trunk or other locked part of the vehicle, or is in the physical control of the passenger.
Rep. Dean Black (R) filed a similar bill in the House of Representatives on Monday.
This story was first published by Florida Phoenix.
Additional reporting by Marijuana Moment.
The post Florida Patients Could Lose Medical Marijuana Registrations For Having Open Containers Of Cannabis In Cars Under New Legislation appeared first on Marijuana Moment.
The Senate has confirmed President Donald Trump’s pick to serve as White House drug czar.
Sara Carter Bailey, who will soon be officially sworn in as director of the Office of National Drug Control Policy (ONDCP) following a 52-48 confirmation vote on Tuesday, will play a central role in implementing the administration’s drug policy agenda. That includes everything from marijuana and psychedelics to harm reduction and overdose prevention.
The full Senate’s approval of Carter comes about three months after the Judiciary Committee advanced her nomination.
Carter has voiced support for medical cannabis, while stating that she doesn’t have a “problem” with legalization, even if she might not personally agree with the policy.
A former journalist known for her coverage of drug cartels, the incoming ONDCP director also previously advised senators that the administration was keeping “all options” on the table as it considered a marijuana rescheduling proposal, while describing cannabis reform as a “bipartisan issue.”
Despite her personal ambiguity on the rescheduling issue, Trump last month signed an executive order directing the attorney general to expeditiously complete the process of moving cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA).
Given the role of the ONDCP director in setting and carrying out the administrative agenda on drug policy issues, the fact that Carter has gone on the record enthusiastically endorsing medical cannabis in the past is welcome news for advocates.
Sen. Cory Booker (D-NJ) raised the issue of cannabis rescheduling with the then-nominee in September, stating that the incremental reform would represents a “step in the right direction.”
“It would open up the door to more scientific study, and so I’m wondering if you were confirmed, how would you advise the American president about the ongoing rescheduling process?” he asked.
Carter said she shares Booker’s passion for the issue, which she characterized as “bipartisan.”
“If confirmed as director, I will comply with all federal laws and fulfill all statutory responsibilities of the ONDCP,” she said. “However, we will continue to work extensively with research and data. We will continue to do that and explore all options.”
Tuesday’s vote on her confirmation was largely along party lines—with Sen. Rand Paul (R-KY) joining all Democrats in opposition, and all other Republicans in support.
While Carter has spoken often about various marijuana policy issues—focusing attention on illicit trafficking and illegal grow operations on U.S. land, for example—her public comments on how she personally feels about the topic have been limited. What she did say in a 2024 episode of her podcast, The Sara Carter Show, signaled that she draws a distinction between legally regulated and illicitly supplied marijuana.
“I don’t have any problem if it’s legalized and it’s monitored,” she said. “I mean, I may have my own issues of how I feel about that, but I do believe that cannabis for medicinal purposes and medical reasons is a fantastic way of handling—especially for people with cancer and other illnesses, you know—of handling the illness and the side effects of the medication and those illnesses. So I’m not saying we’ve gotta make it illegal.”
Last month, a Democratic senator temporarily held up the Republican majority’s attempt to advance Carter’s confirmation, saying she is among many “unqualified” candidates who threaten to “undermine the rule of law and our national security.”
Carter will be the second White House drug czar in a row who has voiced support for medical marijuana, following former President Joe Biden’s ONDCP director Rahul Gupta, who worked as a consultant for a cannabis businesses and also oversaw implementation of West Virginia’s medical marijuana program.
On her social media, Carter has previously shared links—without commentary—to news stories about a variety of marijuana-related issues. In addition to her focus on illicit cartel grows, she’s also posted about congressional and state-level legalization votes, staffers in the Biden administration being fired over past cannabis use, Democratic presidential candidates’ support for legalization, the advancement of cannabis banking legislation in Congress and state policy developments such as Alaska’s legalization of cannabis cafes.
Federal statute dictates the drug czar is prohibited from endorsing the legalization of Schedule I drugs in the CSA, including marijuana.
“The Director…shall ensure that no Federal funds appropriated to the Office of National Drug Control Policy shall be expended for any study or contract relating to the legalization (for a medical use or any other use) of a substance listed in schedule I of section 812 of this title and take such actions as necessary to oppose any attempt to legalize the use of a substance (in any form) that— (A) is listed in schedule I of section 812 of this title; and (B) has not been approved for use for medical purposes by the Food and Drug Administration.”
Last April, Democratic congressional lawmakers announced the filing of a bill that would remove that restriction. It has not yet advanced in the GOP-controlled Congress.
Carter has separately sounded the alarm about the risk of pesticides and other contaminants in marijuana grown and sold by Chinese cartels—an issue that was taken up by a House committee last year.
Also last year, the incoming ONDCP director talked about the issue with Derek Maltz, a then-retired Drug Enforcement Administration (DEA) official who temporarily served as acting administrator of the agency prior to the confirmation of Trump’s permanent pick, Terrance Cole.
In an X post about the interview with Maltz, Carter said he exposed how “Chinese marijuana grow operations are using hazardous chemicals as pesticides.”
In 2022, U.S. Rep. Mike Garcia (R-CA) applauded Carter, who worked with his office to bring attention to illicit grow operations in his district, leading to a local law enforcement investigation.
Carter gave the congressman credit, saying “your work in taking down the illegal marijuana grows has stopped cartels from exploiting your community, those people forced to work on them and the [money].”
In an interview with Fox News’s Sean Hannity in 2021, she also talked about her work with Garcia—including accompanying him on a helicopter to survey “miles and miles and miles of vast, sophisticated illegal grows worth tens of millions of dollars.”
Cartels have “become extremely more brazen. They’re not afraid of hiding it,” she said. “They don’t hide it because they don’t feel that they’ll ever be held accountable for it.”
In a sense, Carter has seemed to implicitly suggest at multiple times that she supports regulated access to cannabis as a means of promoting public safety and health. Whether and how that implied position will influence federal policy now that she’s confirmed is yet to be seen.
On her social media, she’s previously shared links—without commentary—to news stories about a variety of marijuana-related issues. In addition to her focus on illicit cartel grows, she’s also posted about congressional and state-level legalization votes, staffers in the Biden administration being fired over past cannabis use, Democratic presidential candidates’ support for legalization, the advancement of cannabis banking legislation in Congress and state policy developments such as Alaska’s legalization of cannabis cafes.
Photo courtesy of Mike Latimer.
The post Senate Approves Trump’s White House Drug Czar Pick Who Supports Medical Marijuana As Rescheduling Looms appeared first on Marijuana Moment.
An Indiana lawmaker has filed a bill that would effectively legalize the possession and cultivation of limited amounts of marijuana.
The legislation filed on Monday by Rep. Mitch Gore (D) would remove all penalties for possessing or growing up to two ounces of marijuana without creating a regulatory structure for licensed cannabis production and retail sales, giving the state a non-commercial form of legalization.
The proposal would amend existing statute that designates any level of marijuana possession or cultivation as a Class B misdemeanor. Possessing hashish and hash oil, which are concentrated forms of cannabis, would still be entirely prohibited.
However, the bill would also make it so the cannabis possession threshold for a Level 6 felony—which is punishable by up to 2.5 years in prison and a maximum $10,000 fine—would be increased from 30 grams to four ounces.
Gore’s proposal has been referred to the House Courts and Criminal Code Committee for consideration.
Whether the panel takes up the measure is yet to be seen, but cannabis reform advocates have struggled to make inroads in the conservative legislature.
That said, the state’s GOP governor said recently that a move by President Donald Trump to federally reschedule marijuana could add “a little bit of fire” to the local push for cannabis legalization in his state. Months later, Trump did sign an executive order directing the attorney general to move cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA).
Gov. Mike Braun (R) also said last year that he’s “amenable” to medical cannabis legalization.
Meanwhile, one member of the state’s congressional delegation, Sen. Jim Banks (R-IN), expressed opposition to state-level reform despite Trump’s prior comments previewing a rescheduling decision.
“President Trump has been honest about it, that when it comes to marijuana, he said very clearly we shouldn’t smell it on the streets. You have a lot of states that have legalized it. It’s caused even more crime and issues,” Banks said. “I hope Indiana is never a state that legalizes marijuana, by the way.”
The senator acknowledged, however, that there is likely to be “further conversation” about the issue.
Braun, for his part, previously said that “it’s probably time” to allow access to therapeutic cannabis among patients in the state. Those comments came alongside a poll indicating that nearly 9 in 10 Indiana adults (87 percent) support marijuana legalization.
Top Republicans in the legislature, however, have openly opposed marijuana reform.
“It’s no secret that I am not for this,” Senate President Pro Tem Rodric Bray (R) said in late 2024. “I don’t have people coming to me with really compelling medical cases as to why it’s so beneficial. And any state that I’ve seen pass medical marijuana is essentially passing recreational marijuana.”
House Speaker Todd Huston (R) doubted any medical benefits associated with marijuana, calling the substance “a deterrent to mental health.” He and others suggested that lawmakers supportive of the reform merely want to boost state revenue.
A number of marijuana reform bills were introduced for the Indiana legislature’s 2025 session, including one—from Reps. Jim Lucas (R) and Shane Lindauer (R)—that would have legalized medical marijuana for people with “serious medical conditions as determined by their physician.”
Photo courtesy of Chris Wallis // Side Pocket Images.
The post Indiana Lawmaker Files Bill To Legalize Low-Level Marijuana Possession And Cultivation appeared first on Marijuana Moment.
A top Republican Wisconsin lawmaker says President Donald Trump made the “wrong” choice to order the rescheduling of marijuana—which he called a “dangerous drug”—but he says the upside is that research barriers may be lifted in a way that demonstrates medical cannabis can be effectively used in a limited way as an alternative to prescription medications.
As advocates hold out hope for some form of legalization in the state, Assembly Speaker Robin Vos (R) said he thinks “we are not there” in terms of having enough votes to advance even a medical cannabis bill through his chamber at this point, despite characterizing himself as a supporter of patients’ access to marijuana “for almost a decade now.”
At the federal level, however, Vos told CBS 58 that “I think what President Trump did by declassifying—or, you know, reducing the classification of marijuana—was wrong.”
“I think marijuana is still a dangerous drug that should never be legalized in Wisconsin. All the data that’s coming out from states who’ve used it—it’s bad for kids, it’s bad for adults, it has long-term consequences that are all negative,” he said. “But the only positive that is going to come out of that is perhaps we will now be able to do some medical research on medicinal cannabis to say, is it something where we now have studies that can show it’s a better alternative than some kind of a narcotic?”
Speaker Vos, on medical marijuana, says Assembly Republicans "are not there."
Vos goes on to say President Trump reclassifying marijuana "was wrong."
"The only positive that is gonna come out of it is, perhaps, we will now be able to do some medical research." pic.twitter.com/uQVdPVbkGr
— A.J. Bayatpour (@AJBayatpour) December 31, 2025
Marijuana hasn’t been formally rescheduled yet, as the executive order Trump signed last month simply directed the attorney general to complete the process of moving cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA).
Such a reform would let marijuana businesses take federal tax deductions, while freeing up certain research restrictions that apply to Schedule I drugs. But it wouldn’t sanction the possession, cultivation or distribution of marijuana products without Food and Drug Administration (FDA) approval.
In Wisconsin, meanwhile, with just under a year before voters elect their next governor, the majority of the current candidates have made clear that they will support efforts to legalize marijuana—in part to fund public programs such as increased access to broadband.
And while there’s been splintering on the issue between the two chambers of the legislature, a Senate panel recently took up a Republican-led bill that would legalize medical marijuana in the state.
Senate President Mary Felzkowski (R) and Sen. Patrick Testin (R) filed the legislation, and the Senate Health Committee debated the proposal at a hearing in October, taking testimony from patients and other advocates. Members didn’t vote on the bill, but the chair said the panel would be advancing it “fairly quickly.”
Vos, for his part, said that month that he hopes lawmakers in the state can “find a consensus” on legislation to legalize medical marijuana. But he added that the cannabis bill filed by his Republican leadership counterpart in the Senate is “unlikely” to pass his chamber because it is “way too broad and way too wide-ranging.”
As the 2025 session was set to get underway, Felzkowski said she was “hoping to have a conversation” in the legislature about legalizing medical marijuana—though the Republican Assembly speaker still represented “an obstacle,” she added.
The Senate leader has previously sponsored medical cannabis legislation in past sessions, formally introduced the new legislation.
Meanwhile, a Republican candidate for governor of Wisconsin who has since left the race said in July that he was “open to considering different opportunities” when it comes to legalizing medical or adult-use marijuana in the state, though he has provided little in the way of specifics so far.
Current Gov. Tony Evers (D), who supports legalizing cannabis, isn’t seeking re-election—but he said in June that if his party can take control of the legislature, the state can “finally” legalize marijuana so that residents don’t have to go to neighboring Illinois to visit its adult-use market.
Separately in June, a poll from Marquette Law School found that two in three Wisconsin voters support legalizing marijuana.
The survey found that support for cannabis reform has generally increased over time since the institution first started tracking public opinion on legalization in 2013, with 67 percent of voters now backing the policy change. That’s 17 percentage points higher than the 2013 results.
Democrats are the most likely to favor legalizing cannabis, at 88 percent, followed by independents (79 percent). However, a majority of Republicans (56 percent) said they’re still opposed to adult-use legalization.
Underscoring the importance of party control, the state’s Republican-controlled Senate and Assembly this summer rejected another attempt to legalize marijuana, defeating amendments to budget legislation that would have ended prohibition in the state and established new medical and recreational cannabis programs.
Evers has routinely attempted to change that policy as part of his budget requests—and Democratic leaders have similarly pushed for reform.
Republicans in the legislature also cut the marijuana provisions from a state budget proposal in May, as they’ve done in past sessions.
Despite Republicans’ move to cut legalization from the budget legislation, party leaders recently acknowledged that the debate over medical marijuana legalization is “not going to go away,” and there’s hope it can be resolved this session.
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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.
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“I don’t think anyone is naive enough to think that marijuana and THC products aren’t present in the state of Wisconsin when they are readily available over state lines, so I think we need to come to an answer on this,” Assembly Majority Leader Rep. Tyler August (R) said in February. “I’m hopeful that we can.”
“If we’re going to call it medical marijuana, it needs to be treated like a pharmaceutical. But the marijuana debate is going to be something that is not going to go away,” Sen. Dan Feyen (R), the assistant majority leader, said at the time. “The margins are tighter.”
There have been repeated attempts to legalize medical marijuana in the legislature over recent years, including the introduction of legislation from the Assembly speaker that called for a limited program facilitated through state-run dispensaries. That proved controversial among his Republican colleagues, however, and it ultimately stalled out.
Evers previewed his plan to include marijuana legalization in his budget last January, while also arguing that residents of the state should be allowed to propose new laws by putting binding questions on the ballot—citing the fact that issues such as cannabis reform enjoy sizable bipartisan support while the GOP-controlled legislature has repeatedly refused to act.
Previously, in 2022, the governor signed an executive order to convene a special legislative session with the specific goal of giving people the right to put citizen initiatives on the ballot, raising hopes among advocates that cannabis legalization could eventually be decided by voters. The GOP legislature did not adopt the proposal, however.
Evers said in late 2024 that marijuana reform is one of several key priorities the state should pursue in the 2025 session, as lawmakers work with a budget surplus.
Days after he made the remarks, a survey found the reform would be welcomed by voters in rural parts of the state. Nearly two thirds (65 percent) said they support legalizing cannabis.
Last May, the governor said he was “hopeful” that the November 2024 election would lead to Democratic control of the legislature, in part because he argued it would position the state to finally legalize cannabis.
“We’ve been working hard over the last five years, several budgets, to make that happen,” he said at the time. “I know we’re surrounded by states with recreational marijuana, and we’re going to continue to do it.”
A Wisconsin Democratic Assemblymember tried to force a vote on a medical cannabis compromise proposal in 2024, as an amendment to an unrelated kratom bill, but he told Marijuana Moment he suspects leadership intentionally pulled that legislation from the agenda at the last minute to avoid a showdown on the issue.
Meanwhile, the state Department of Revenue released a fiscal estimate of the economic impact of a legalization bill from then-Sen. Melissa Agard (D) in 2023, projecting that the reform would generate nearly $170 million annually in tax revenue.
A legislative analysis requested by lawmakers estimated that Wisconsin residents spent more than $121 million on cannabis in Illinois alone in 2022, contributing $36 million in tax revenue to the neighboring state.
Evers and other Democrats have since at least 2024 insisted that they would be willing to enact a modest medical marijuana program, even if they’d prefer more comprehensive reform.
Photo courtesy of Chris Wallis // Side Pocket Images.
The post Top Wisconsin GOP Lawmaker Says State Isn’t Ready To Legalize Medical Marijuana, Criticizing Trump’s Rescheduling Move appeared first on Marijuana Moment.
A Virginia lawmaker has introduced a bill that would require health care facilities in the state to allow terminally ill patients to access medical cannabis if they have a doctor’s recommendation.
The legislation, sponsored by Del. Karen Keys-Gamarra (D), would not permit patients to smoke or vape cannabis in the facilities, and their use of marijuana would have to be documented in their medical records.
But, similar to a law enacted in California in 2021, terminally ill patients could consume non-combustable cannabis products at state health facilities if they’ve received a certification from a physician.
The text of the Virginia bill states that the policy change would “not apply to a patient receiving emergency medical services.” And it specifies that health care facilities would not be mandated to issue medical cannabis certifications.
Also, the measure stipulates that facilities don’t have to comply with the law if a federal agency such as the Department of Justice or Centers for Medicare and Medicaid Services “initiates enforcement action against a medical care facility related to the facility’s compliance with a state-regulated medical marijuana program” or “issues a rule or otherwise provides notification to the medical care facility that expressly prohibits the use of medical marijuana in medical care facilities or otherwise prohibits compliance with a state-regulated medical marijuana program.”
However, it states that health care providers cannot “prohibit patient use of medicinal cannabis due solely to the fact that cannabis is a Schedule I drug pursuant to the federal Controlled Substances Act or other federal constraints on the use of medicinal cannabis that were in existence” before the state law is potentially enacted.
“Compliance with this section shall not be a condition for obtaining, retaining, or renewing a license as a medical care facility,” it says.
Meanwhile, advocates in Virginia are eagerly awaiting potential movement on statewide commercial sales legalization for adult use—and the Democratic governor-elect recently laid out what “needs to be” included in such a bill in order for her to sign it into law. That includes “strong labeling” requirements and allocating tax revenue toward education.
“Right now is that we live in this gray space where there’s some legality to marijuana, there’s some illegality,” incoming Gov. Abigail Spanberger (D) said last month. “There’s a lot of questions—a lot of confusion—and that creates real problems for Virginians who might currently have the legal ability to buy it for medicinal needs, or for those who might try to fall under the personal use.”
Cannabis has been legal to possess and cultivate for adult use since 2021, but there’s currently no retail access for non-medical marijuana. Gov. Glenn Youngkin (R), who leaves office this month, has vetoed bills passed by the legislature to establish a commercial recreational cannabis market—but advocates have been encouraged by Spanberger’s position in favor of the policy change.
Meanwhile, last month, Virginia’s Senate president pro tempore filed a bill to provide relief for people convicted of past cannabis crimes, mandating that individuals with certain offenses automatically receive resentencing hearings and have their punishments adjusted. Youngkin has vetoed similar proposals in past sessions.
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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.
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Also last month, the legislature’s Joint Commission to Oversee the Transition of the Commonwealth into a Cannabis Retail Market unveiled a much-anticipated proposal to legalize recreational marijuana sales that it is recommending lawmakers pass during the 2026 session.
Sen. Louise Lucas (D), the Senate president pro tempore, recently said the state should move forward with legalizing recreational marijuana sales—in part to offset the Trump administration’s cuts to federal spending in support of states.
Separately, the Virginia Department of Labor and Industry published a document recently outlining workplace protections for cannabis consumers.
Photo courtesy of Mike Latimer.
The post Terminally Ill Patients Could Use Medical Marijuana In Virginia Hospitals Under Newly Filed Bill appeared first on Marijuana Moment.
“The court recognizes the serious questions about whether this discriminatory tax violates the intent of the cannabis legalization that Michigan voters approved in 2018.”
By Kyle Davidson, Michigan Advance
Court of Claims Judge Sima G. Patel on Monday denied the state of Michigan’s request to rehear a motion to toss a lawsuit filed by cannabis industry advocates against the 24 percent wholesale tax on marijuana which took effect on January 1.
In October the Michigan Cannabis Industry Association filed a lawsuit against the state, arguing that the Legislature’s decision to create a 24 percent tax on wholesale marijuana violates the state constitution by modifying the 2018 law established when Michigan voters approved a ballot proposal legalizing recreational marijuana.
Industry advocates have also warned that the tax would bring irreparable harm to Michigan’s marijuana industry, forcing small retailers out of business and pushing buyers into the black market.
In her early December ruling, Patel largely rebuffed arguments from industry advocates, denying the association’s request to block the wholesale tax from taking effect alongside its request to have the case resolved without a full trial.
However she did permit the case to move to trial, raising questions on whether the Legislature’s decision to create the tax violates the intent of the initiated law, partially denying a similar request from the state to resolve the matter without moving to trial.
While the state filed a motion to have their request reconsidered, Patel denied it on Monday, determining that there had been no palpable error in her previous ruling and reemphasizing that questions of fact remained around the new tax violates the purpose of the 2018 law.
“It is not certain on this record whether the 24 percent wholesale excise tax will impact prices to the extent purchasers will be driven to the illicit marijuana market,” Patel wrote. “Discovery is required to examine how the tax will impact the purposes of the [voter initiated law.]”
Rose Tantraphol, the Michigan Cannabis Industry Association’s spokesperson, called Monday’s decision a win for voters and the industry.
“In issuing this order, the court recognizes the serious questions about whether this discriminatory tax violates the intent of the cannabis legalization that Michigan voters approved in 2018,” Tantraphol said. “We’re looking forward to making our case that this tax will push Michiganders, who are already feeling stretched financially, into the illicit market.”
In a separate filing, the association has asked the Michigan Court of Appeals to hear the case, arguing it would allow them to pursue the full range of arguments they made in their initial lawsuit.
This story was first published by Michigan Advance.
The post Michigan Judge Allows Lawsuit Challenging New Marijuana Tax To Proceed appeared first on Marijuana Moment.
The Internal Revenue Service (IRS) has denied a marijuana-focused tourism organization’s request for nonprofit tax-exempt status, citing the ongoing federal criminalization of cannabis and saying that the group’s activities create a “private benefit to the cannabis industry” and its members.
Therefore, the agency said, the organization cannot claim tax exemptions for charitable purposes.
In a notice to the group that IRS made publicly available, the agency said the articles of incorporation (AOI) that were submitted to qualify as a tax-exempt nonprofit corporation stated that the organization’s purpose was to “promote the development of a responsible cannabis-related tourism industry, and advocate for sustainable innovations and social equity.”
“Your application stated you aim to accomplish your purpose by engaging in education, training-workforce development, and outreach partnerships,” the notice, which was posted in a redacted form that does not show the group’s name, said. “One of your goals, per your website, is to cultivate local partnerships that can grow cannabis-related economic development opportunities…through education and training.”
IRS said a review of the organization’s website shows that it planned to “utilize a portion of local abandoned buildings to create a vertically integrated farming entity through seed-to sale operations to cultivate an economy around cannabis development (cannabis, food, and industrial hemp seed-to-sale).” That includes “teaching vertical farming techniques and providing real estate to grow cannabis.”
“The cannabis business will be sustained year-round through the hydroponic techniques taught to your members,” the agency said. “As a result, you would create a hub for cannabis-related networking and business development.”
While the state the group is based in has “legalized cannabis activities you aim to promote,” the letter says, “federal law classifies cannabis as a Schedule I controlled substance… Furthermore, federal law prohibits the manufacture, distribution, possession, or dispensing of a controlled substance.”
“Further, you operate for a substantial non-exempt purpose of providing private benefit to the cannabis industry and your members. You advocate for the local cannabis industry in the city of [information withheld] to engage in business to grow and sell cannabis. The creation of networking hubs, combined with access to vertical farming facilities, would provide direct benefits to your members seeking to enter the cannabis industry (i.e., aiding in getting a license and providing real estate within the city [information withheld] to develop cannabis through vertical farming methods.) These opportunities would disproportionately benefit those individuals rather than the public at large.”
“You fail the organizational test because your purpose, as stated in your AOI, is too broad and expressly empowers you to engage substantially in activities which do not further exempt purposes,” IRS concluded. “Moreover, although you do have charitable and educational purposes, you fail the operational test because you have substantial non-exempt purposes of promoting federally illegal activities (cannabis production) and serving the private interests of your members. Therefore, you fail to qualify for exemption under IRC Section 501(c)(3).”
To that end, the organization is required to pay any federal taxes it avoided by claiming nonprofit exempt status within 30 days of receiving the notice.
The final rejection letter was sent to the organization in September and publicly posted by IRS last month, one day after President Donald Trump issued an executive order directing the attorney general to complete the process of moving marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA).
Whether that pending reform would impact the organization’s request for nonprofit tax-exempt status is unclear, but one of the key policy changes that would be enacted is directly related to IRS—specifically an agency code known as 280E. If marijuana moved to Schedule III, that code barring businesses from taking federal tax deductions if they work with Schedule I or Schedule II substances would be rendered moot for the cannabis sector.
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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.
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Last year, IRS advised marijuana companies that they still could not take federal tax deductions for business expenses afforded to other traditional industries unless the administration finalized the rule to reschedule cannabis.
In anticipation of the rescheduling move, certain multi-state marijuana operators sough refunds for what they said were excess taxes paid in past years due to 280E.
Multiple states have taken steps to provide state-level tax relief to marijuana businesses that are subject to 280E, but the federal rule has not yet changed. The Congressional Research Service (CRS) noted in a 2021 report that IRS “has offered little tax guidance about the application of Section 280E.”
IRS did provide some guidance in an update in 2020, explaining that while cannabis businesses can’t take standard deductions, 280E does not “prohibit a participant in the marijuana industry from reducing its gross receipts by its properly calculated cost of goods sold to determine its gross income.”
The update seemed to be responsive to a Treasury Department internal watchdog report that was released in 2020. The department’s inspector general for tax administration had criticized IRS for failing to adequately advise taxpayers in the marijuana industry about compliance with federal tax laws. And it directed the agency to “develop and publicize guidance specific to the marijuana industry.”
The post IRS Denies Marijuana Tourism Group’s Request For Nonprofit Tax-Exempt Status, Citing Ongoing Federal Prohibition appeared first on Marijuana Moment.
A ballot initiative in Arizona seeks to end retail cannabis sales in the state, Capitol Media Services reports. The effort, led by Sean Noble, president of the political strategy firm American Encore, would still allow personal possession and cultivation of cannabis and maintain the parts of the law that allow expunging of cannabis related criminal records.
Noble told Capitol Media Services that the 2020 voter-approved adult-use referendum has not lived up to its promise.
“They said, ‘We’re not going to be marketing to children, we’re not going to be making this easy, we’re not going to be making THC levels super extreme.’” — Noble to Capitol News Service
The petition, which was filed this month, will require 255,949 valid signatures by July 2. Noble said the campaign is being funded in part by Smart Approaches to Marijuana, a national group opposed to loosened cannabis laws.
Morgan Fox, political director for the National Organization for the Reform of Marijuana Laws, told Capitol News Service that anti-cannabis groups “failed to make the case for continuing to criminalize cannabis consumers in Arizona and other states where voters had a choice in the matter.”
“Now they are trying to mislead voters into thinking that recriminalizing responsible behaviors and pushing consumers back to the underground market will somehow improve public health and safety,” he told Capitol News Service. “It’s shameful, disrespectful to voters and woefully misguided.”
Noble helped find the 2016 opposition campaign against the campaign to legalize cannabis for adult use. In 2016, voters rejected the proposal by a 51-49 margin. Voters would ultimately approve the reforms four years later.
A Tennessee lawmaker included a proposal to legalize home cannabis cultivation among his 2026 legislative priorities, WMC reports. The Freedom to Farm Act, which Democratic State Rep. Antonio Parkinson intends to propose this legislative session, would allow one adult in each household to grow up to 15 cannabis plants for personal use.
“Five adult plants, five intermediate plants, and five budding plants, so they can continue to have the supply of marijuana that they need personally. Whether it is for medical purposes or whatever.” — Parkinson to WMC
The bill would not allow homegrown cannabis to be sold or otherwise distributed. It would require certification for people who grow cannabis and that the seeds be bought at a state co-op.
“If you are caught violating any rules, you will be prosecuted criminally,” Parkinson told WMC, “and you will never be able to take part in this opportunity again.”
Parkinson added that home cannabis cultivation would be significant for people with medical conditions.
“I am not a marijuana smoker,” he said to WMC, “but I do know there is some medical benefits to those individuals who suffer from debilitating diseases, medical issues, PTSD.”
The bill has not yet been formally introduced.
A bill proposed in Alabama would impose harsher penalties for individuals who consume cannabis in vehicles with children present, ABC 33/40 News reports. The legislation would classify smoking or vaping cannabis in a car with a child present as a Class-A misdemeanor, regardless of whether the vehicle is in motion, and whether the window is open or closed.
Democratic state Rep. Patrick Sellers said the bill aims to address concerns that he’s heard from educators.
“I kept listening to the concerns of educators, administrators, principals across the district, and one of the most alarming things is the smell and the sight of usage of marijuana within the cars as they drop kids off. And then kids have secondhand contact. … Marijuana usage has become almost normal. There was a time when people wouldn’t do that before they dropped their kids off at school. It’s affecting the ability for kids to learn and comprehend and be coherent and have a productive day at school.” — Sellers to ABC 33/40
The bill would also require offenders to attend an in-person course on the dangers of drug use around children, require law enforcement to report violations of the law to child welfare officials, and stipulate that mandatory reporters file a report if a child smells of cannabis, treating it as suspected child abuse or neglect.
The bill is in the chamber’s Public Safety and Homeland Security Committee.
Bipartisan House and Senate leaders have rejected a provision that would’ve blocked the Justice Department from rescheduling marijuana—while maintaining a longstanding rider protecting state medical cannabis programs from federal interference. While a GOP-controlled House committee advanced a ver...
The attorney general of Florida and several business and anti-marijuana groups are telling the state Supreme Court to block a cannabis legalization initiative, calling it “fatally flawed” and unconstitutional as advocates work against the clock to qualify the measure for the November ballot. In a...
Researchers at the University of Washington (UW) Department of Environmental and Occupational Health Sciences are investigating potential health hazards faced by workers in cannabis production, Cascadia Daily reports. The study is federally funded and supported by the National Institute for Occup...
The price of adult-use cannabis in Massachusetts has reached its lowest point since sales launched in 2018, MassLive reports. The average price of an eighth of an ounce of cannabis flower in Massachusetts was $14.20 in November, according to publicly available data from the Cannabis Control Commi...
The Drug Enforcement Administration (DEA) says the marijuana rescheduling appeal process “remains pending” despite President Donald Trump’s recent executive order directing the attorney general to finish the job “in the most expeditious manner.” DEA and reform proponents on Monday submitted a joi...
A GOP senator says his opposition to marijuana reform—and his conviction that cannabis is a “gateway drug”—hasn’t changed even after President Donald Trump signed a rescheduling order. Asked about the president’s directive to move marijuana from Schedule I to Schedule III of the Controlled Substa...
The Drug Enforcement Administration (DEA) has finalized quotas for legal production of controlled substances in 2026—further raising the amount of certain psychedelics that can be made for research purposes in the new year. In a notice published in the Federal Register on Monday, DEA increased it...
A political committee funded by major marijuana businesses has contributed an additional $1.05 million to President Donald Trump’s MAGA Inc. super PAC in the months leading up to his rescheduling order, FEC filings show. The American Rights and Reform PAC—which initially launched in 2023 under a ...
Rescheduling could ease marijuana advertising ban; Anti-cannabis group’s plans; MA possession limit increase; NY market report Subscribe to receive Marijuana Moment’s newsletter in your inbox every weekday morning. It’s the best way to make sure you know which cannabis stories are shaping th...
Massachusetts lawmakers have assembled a bicameral conference committee to reach a deal on a bill that would double the legal marijuana possession limit for adults and revise the regulatory framework for the state’s adult-use cannabis market. After the Senate passed an amended version of the legi...
The U.S. Supreme Court has scheduled oral arguments in a case challenging the constitutionality of a federal law banning people who use marijuana or other controlled substances from buying or possessing firearms. About two months after agreeing to take the case, justices on Friday set a date of M...
New York officials have released a set of reports providing an end-of-year status update on the evolution of the state’s medical and adult-use marijuana markets—touting record sales, revenue hauls for state coffers, licensing approvals, equity initiatives and more. All told, retail cannabis sales...
Cannabis regulators in Massachusetts are set to begin reviewing license renewals of cannabis cultivators to determine whether they will be bumped down to a lower tier, State House News Service reports. If the Cannabis Control Commission (CCC) determines a licensee sold le...
Alabama’s stricter regulations on intoxicating hemp products took effect on January 1, the Montgomery Advertiser reports. The new rules require retailers to be licensed; impose an age limit of 21-and-older, require retailers to keep a certificate of analysis for each...
Kentucky’s first medical cannabis dispensary temporarily closed just seven days after it opened after running out of products, Spectrum News reports. Trip Hoffman, owner of The Post, located in Beaver Dam, told Spectrum News that he had imposed strict purchase limits – one uni...
About one-third of underage shoppers participating in a University of Minnesota Cannabis Research Center study went uncarded when attempting to purchase hemp edibles or beverages in the Twin Cities area, Minn Post reports. The study found that participants were not asked to show ID and verify the...
The San Diego Office of the Independent Budget Analyst (IPA) released a report showing that city officials likely overestimated the revenue potential of a cannabis business tax hike they implemented earlier this year. The report highlights diminished cannabis tax revenues as one of the largest ne...
New requirements for physicians looking to participate in Oklahoma’s medical cannabis program take effect January 1, KJRH reports. The new rules require doctors to complete an initial education course to register with the state Medical Marijuana Author...
A study published last month in the Journal of Medicinally Active Plants suggests that the type of soil hemp is cultivated in can significantly alter cannabinoid concentration. The researchers, from the Penn State College of Medicine, Penn State plant ...
About 14,000 certified medical cannabis patients in New Jersey allowed their registration to lapse in 2025, according to Cannabis Regulatory Commission (CRC) data outlined by the New Jersey Monitor. As of mid-December, the state counted 51,776 registered medical cannabis ...
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