CANNASWEEP

February 2026

OFW’s Cannabis Team regularly monitors cannabis news, legislation, regulation, and policy so our clients stay up-to-date on the latest developments impacting their business.

If you have any questions or would like more information about any of the items below, please contact us.

We also track cannabis-related legislation introduced in the U.S. Congress.  If you would like to learn more about our Congressional Bill Tracker, please reach out to Ben Dash.

Cannabis Rescheduling

• DOJ Urges Supreme Court to Uphold Federal Gun Ban for Cannabis Users-Even After Rescheduling (U.S. v. Hemani) – The Trump Administration filed a reply brief urging the Supreme Court to reverse a Fifth Circuit ruling and uphold the federal firearms ban for cannabis consumers, arguing marijuana users “pose a greater danger.” Oral arguments in United States v. Hemani are scheduled for March 2, 2026.
• Federal Cannabis Rescheduling: Where Schedule III Stands in February 2026 – Two months after President Trump’s December 18, 2025 executive order directing the Attorney General to complete the move from Schedule I to Schedule III, cannabis remains Schedule I. The DEA lacks an administrative law judge to preside over rescheduling hearings, the Attorney General has made no formal announcements, and 48 GOP lawmakers have formally opposed rescheduling. The rulemaking process is expected to take months to years.
• Blowing Smoke or Breaking Ground? The New Marijuana Rescheduling Order – A detailed analysis of the five key legal and financial realities of rescheduling that the Executive Order does not resolve: no interstate commerce, persistent banking friction, no FDA-approved marijuana product, ongoing 280E litigation risk, and a potential increase in state taxes to offset federal relief.

Executive Branch

• CMS Administrator Dr. Mehmet Oz Warns of ‘Consequences’ as Americans Switch from Alcohol to Marijuana—Even as Medicare Prepares CBD Coverage Pilot — In a podcast interview, Dr. Oz stated there will be “consequences” as more Americans choose marijuana over alcohol, citing concerns about “high-dose hemp and CBD.” The remarks came as his agency at the Centers for Medicare & Medicaid Services is preparing to roll out a pilot program allowing eligible Medicare patients to receive up to $500 per year in hemp-derived CBD products. A White House official subsequently pushed back on unconfirmed reports that the rule had already been finalized, calling such reports “baseless speculation” absent an official announcement. (for background on the Medicare CBD pilot, see AARP’s overview)
• FDA Misses Deadline to Publish Cannabinoid List, Define Hemp “Containers” – FDA failed to publish its congressionally mandated cannabinoid list and define hemp “containers” by the February 10, 2026 statutory deadline set out in last year’s appropriations bill. A federal ban on intoxicating hemp products remains set to take effect in November 2026 absent legislative intervention.
• NRA and NORML Unite to Oppose the Federal Gun Ban for Marijuana Users – In a reply brief in U.S. v. Hemani, the DOJ acknowledged that the defendant’s alleged terrorist ties have no bearing on the core constitutional question-while still arguing that the federal ban on gun possession by cannabis users should be upheld regardless of rescheduling. The brief drew opposition from an ideologically diverse coalition including the NRA, NORML, the Drug Policy Alliance, and the Cato Institute.
• The Drug Enforcement Administration is promoting a podcast episode about drug use in LGBTQ+ youth communities as part of its outreach and prevention programming.

U.S. Congress

• Comer Backs Initiative to Delay Hemp Ban from Going Into Effect in November – Rep. James Comer (R-KY) and Kentucky’s agriculture commissioner urged Sen. McConnell to support delaying the effective date of the hemp-derived intoxicating cannabinoid restrictions.  Comer cosponsored the bipartisan Hemp Planting Predictability Act to delay the November 2026 restriction by two years.
• 2026 Farm Bill Strives to Reduce Regulatory Burdens for Industrial Hemp Producers – The House Agriculture Committee released the Farm, Food, and National Security Act of 2026 on February 13, 2026 (H.R. 7567). The 802-page draft would reduce regulatory burdens for industrial hemp producers and allow them to self-designate as such, while leaving the November 2026 intoxicating hemp ban intact. The bipartisan Hemp Planting Predictability Act, by contrast, would delay those restrictions by two years to November 2028.
• House Agriculture Committee Set to Consider One-Year Delay of Federal Hemp THC Ban During Farm Bill Markup – Rep. Jim Baird (R-IN) filed an amendment to the Farm Bill (H.R. 7567) that would delay by one year the implementation of the provision set to take effect November 12, 2026 that would ban most intoxicating hemp-derived products currently sold nationwide. The House Agriculture Committee is scheduled to consider the amendment during a markup next week.
• Bipartisan Bill Aims to Delay Federal Hemp Product Ban Until November 2028 – Rep. Jim Baird (R-IN) introduced the Hemp Planting Predictability Act with bipartisan cosponsors, supported by Sen. Klobuchar (D-MN), who also linked the intoxicating hemp ban to the administration’s agricultural tariff policies.
• Colorado, Hawaii, Virginia, and Washington State All Advance Bills to Allow Medical Cannabis in Hospitals – Lawmakers in four states advanced “Ryan’s Law”-style bills allowing seriously and terminally ill patients to use medical cannabis while in hospitals and other healthcare facilities. (see also individual state articles for Hawaii, Virginia, and Washington State)
• Nebraska Left Off Congressional Medical Cannabis Protections Prohibiting DOJ Interference – Congress currently shields 47 states with medical marijuana laws from DOJ interference; Nebraska-where patient access has not yet launched more than a year after voters legalized the drug-was excluded from the latest spending bill’s protections.

The States

• Arizona: This Bill Would Make ‘Excessive Marijuana Smoke and Odor’ a Crime – The Arizona Senate Judiciary and Elections Committee took up two measures (SB 1725 and SCR 1048) filed by Sen. J.D. Mesnard (R) to criminalize the “creation of excessive marijuana smoke or odor” as a Class 3 misdemeanor public nuisance, with the SCR version referring the issue to the November 2026 ballot.
• California: State regulators seized more than $2 million worth of illicit cannabis products in multiple enforcement actions targeting unlicensed retailers. Separately, regulators published an updated brochure on the Cannabis Inspection Program; San Francisco Mayor Daniel Lurie signed legislation allowing San Francisco police to arrest individuals for public drug use and transport them to a designated sobering center, where they may leave after becoming sober; The California State Fair is again hosting a cannabis awards competition this year, adding a new home grow category for the first time.
• Colorado: The Colorado Department of Revenue released its latest figures on marijuana sales and tax revenue, showing the industry’s continued economic impact, generating $236,449,405 in 2025.
• Connecticut: Joint Committee on Public Health Holds Hearing on Bill to Allow Terminally Ill Patients to Use Medical Cannabis in Hospitals and Nursing Homes — The Connecticut legislature’s Joint Committee on Public Health held a hearing on House Bill 5242, which would require hospitals, nursing homes, hospice inpatient facilities, and short-term hospital special hospices to permit qualifying patients certified as terminally ill (prognosis of one year or less) to use non-smokable cannabis forms including tinctures, edibles, and topicals. Connecticut’s Cannabis Ombudsman testified in support. If enacted, the law would take effect October 1, 2026.
• Florida: Cannabis Legalization Ballot Initiative Signature Count Reset to Zero Under New Law, Blocking Carryover into 2028 Cycle — Florida Secretary of State Cord Byrd declared on February 1, 2026 that Smart & Safe Florida’s marijuana legalization initiative failed to reach the 880,062 valid signatures required for the November 2026 ballot, with the state reporting 783,592 validated signatures. The campaign disputes this count, claiming it submitted over 1.4 million signatures. Under a new 2025 state election law signed by Gov. Ron DeSantis, none of the signatures gathered for the 2026 campaign may be carried over to the 2028 cycle – resetting the count to zero. Litigation is ongoing.The Florida House Health & Human Services Committee Unanimously Approves Bill to Cut Medical Marijuana Card Fee for Veterans by 80% – The House Health & Human Services Committee approved HB 887 by a 22-0 vote to reduce the medical cannabis patient ID card fee for honorably discharged veterans from $75 to $15. The bill’s sponsor noted that marijuana helps with “reducing the dependency on opioids.” A companion Senate bill (SB 1032) has also advanced; The state’s health care administration secretary acknowledged that the state reimbursed the federal government for Medicaid settlement funds that had been used to oppose the marijuana legalization ballot initiative that appeared on the 2024 ballot
• Hawaii: Senate Health and Human Services Committee Unanimously Approves Bill to Create Psychedelics Task Force — The Hawaii Senate Health and Human Services Committee approved SB 3199 (5-0) to create a Mental Health Emerging Therapies Task Force. The body would spend two years reviewing scientific literature and developing policy recommendations for “safe, ethical, and culturally-informed implementation” of therapies using psilocybin, MDMA, and similar substances, with a focus on veterans, first responders, and trauma survivors.
• Illinois: Cannabis Sales Revenue Fell 13% in 2025, Marking First Annual Decline – Annual recreational cannabis sales in Illinois dropped to $1.5 billion from $1.7 billion the prior year, driven by lower prices, competition from hemp and the unregulated market, and operator closures. The Chicago City Council also considered a hemp-derived product restriction ordinance; Mayor Johnson vetoed it, saying it would hurt Black- and brown-owned small businesses while benefiting large licensed cannabis companies.
• Maryland: House and Senate Bills Would Protect Firefighters and EMTs From Penalties for Off-Duty Medical Cannabis Use – Companion bills SB 439 and HB 797 would prohibit employers from disciplining fire and rescue workers based solely on their possession of a valid medical cannabis certification or for testing positive for THC metabolites while holding such certification. SB 439 was scheduled for a Senate Finance Committee hearing on February 19, 2026.
• Massachusetts: Cannabis Regulators Agree to Explore Licensing Freeze – Massachusetts cannabis regulators agreed to explore a potential freeze on new licenses, with stakeholders weighing in on freezes across license types, including craft marijuana cooperatives, product manufacturing, and micro-licenses. The state’s top regulator acknowledged that Massachusetts has “not met the mission of promoting social equity” in the industry.
• Michigan: The Michigan Supreme Court will hold oral arguments next month in two marijuana-related cases with significant implications for the state’s cannabis industry and regulatory framework.
• Minnesota: A state senator discussed her bill to require mandatory testing of recreational marijuana products, arguing stronger testing requirements are needed to ensure consumer safety.
• Missouri: House Passes Bill Banning Intoxicating Hemp Products – The Missouri House passed a bill to ban intoxicating hemp THC products in line with federal restrictions, closing loopholes created by the 2018 Farm Bill. Regulators also launched a “Verified Dispensary” initiative to help consumers identify state-licensed dispensaries; State cannabis regulators are developing a statewide media campaign aimed at warning young people about the risks of marijuana use, with messaging targeted at youth-facing channels.
• Nebraska: Multiple committees advanced bills addressing the nascent medical cannabis program. The General Affairs Committee approved a bill to give Medical Cannabis Commission members a salary, create a dedicated cash account for the body’s work, and allow it to charge fees and require fingerprinting from license applicants. Separately, federal spending legislation excluded Nebraska from the appropriations rider protecting state medical cannabis programs from DOJ interference. Advocacy group Nebraskans for Medical Marijuana also held statewide listening sessions to address patient access barriers; The legislature’s Health and Human Services Committee approved a bill to provide legal protections for physicians who recommend medical cannabis to qualifying patients, shielding doctors from disciplinary action for such certifications.
• New Hampshire: State senators discussed legislation proposing changes to medical cannabis business rules.
• New Jersey: The New Jersey Cannabis Regulatory Commission issued a notice promoting Black History Month cannabis programming, highlighting the impact of cannabis reform on communities of color.
• New York: Mayor Zohran Mamdani’s preliminary budget projected marijuana tax revenue to reach $43 million by fiscal year 2030, acknowledging slower-than-expected growth from the state’s troubled rollout. Lawmakers also filed legislation that would allow liquor and wine stores to sell low-potency THC-infused beverages under a new retail permit category.
• Ohio: The Ohio Division of Cannabis Control issued a consumer safety recall on cannabis gummies that had been distributed without proper THC labeling, cautioning consumers to check their products. What the fight against total ‘intoxicating’ hemp ban looks like from rural Ohio.
• Oklahoma: The House County and Municipal Government Committee approved a bill to allow counties to levy local medical cannabis taxes. A separate committee advanced a bill to restrict the shape of medical cannabis gummies to avoid resembling candy or items appealing to children, and to add new product labeling requirements.
• Oregon: House Passes Ryan’s Law Bill to Allow Medical Cannabis Access in Hospices and Care Facilities, 39-3 – The Oregon House passed HB 4142, requiring hospice, palliative, and home care organizations, as well as residential facilities, to develop written policies permitting registered patients with debilitating conditions to use medical cannabis on site. The measure expands the definition of “debilitating medical condition” to include the need for hospice, palliative, or comfort care, and prohibits the Oregon State Board of Nursing from disciplining nurses who discuss cannabis use with patients. Hospitals and hospital-affiliated clinics are explicitly exempt. The bill now heads to the Senate Health Care Committee. The Oregon Psilocybin Product Potency Workgroup will hold meetings on March 3 and 17, 2026, continuing its work to establish potency standards for regulated psilocybin products under the state’s licensed psilocybin services program.
• Rhode Island: The Cannabis Control Commission has not yet finalized the process for awarding up to 20 new marijuana dispensary licenses through a lottery, with the agency expected to begin awards as early as May 2026; State cannabis regulators are asking a federal court to dismiss a lawsuit challenging the state’s marijuana social equity business licensing system, defending the program’s design as a lawful effort to remedy the disproportionate harms of past prohibition.
• South Dakota: House Passes Bill to Eliminate Medical Marijuana Oversight Committee — The South Dakota House of Representatives passed HB 1160 by a 41–26 vote to repeal the Medical Marijuana Oversight Committee, a statutory body created to provide legislative oversight of the state’s voter-approved program. Sponsor Rep. Tim Goodwin (R-Rapid City) argued the committee’s work is complete; opponents, including Committee Chair Rep. Josephine Garcia, said its oversight role remains essential. The medical marijuana program itself would continue under the Department of Health. The bill now heads to the Senate.
• Texas: Voters to Weigh Cannabis Legalization Question in March 2026 Democratic Primary – Texas Democratic primary voters on March 3, 2026 will decide on Proposition 8, a non-binding ballot question asking whether the state should legalize cannabis for adults and automatically expunge criminal records for past low-level offenses.
• Virginia: House General Laws Committee Amends Senate-Passed Recreational Marijuana Sales Bill, Setting Stage for Bicameral Conference – The Virginia House General Laws Committee replaced the contents of the Senate-passed legalization bill (SB 542) with a substitute version closer to the House-passed bill (HB 642) and approved it 16-4, setting the stage for a bicameral conference committee to reconcile differences on key issues including the start date for legal sales, tax rates, and conversion fees for existing medical cannabis operators; Several Republican lawmakers discussed their decisions to vote in favor of marijuana sales legalization-breaking with most of their caucus-citing constituents’ desire for a regulated market and the failure of prohibition to reduce cannabis access.
• Washington, D.C.: Regulators finalized new medical cannabis advertising and signage rules, establishing updated standards for how licensed dispensaries and other cannabis businesses may market their products and display signage to the public; Regulators suspended a medical cannabis business’s license over alleged violations of the district’s medical cannabis program requirements.
• West Virginia: The House Health and Human Resources Committee considered legislation to authorize medical cannabis edibles, which are not currently permitted under the state’s program. Lawmakers also discussed broader cannabis reform proposals, including adult-use legalization bills. The House Finance Committee held a hearing on a bill to reallocate revenues generated by the state’s medical cannabis program, with stakeholders and legislators debating how funds should be distributed across state agencies and health programs.

Cannabis Abroad

• Canada: Canada Sets New Monthly Cannabis Sales Record: C$503.7 Million in December 2025 — Statistics Canada retail sales data confirmed that Canadian retailers sold C$503.7 million in legal cannabis products in December 2025—a new all-time monthly record, up 5.3% from November 2025 and 2.9% from December 2024. Full-year 2025 Canadian cannabis sales reached C$5.62 billion, up 4.1% from 2024.
• Costa Rica: Health regulators launched an online platform to streamline authorizations for medical cannabis and hemp businesses, reducing administrative timelines for license applicants.
• Germany: The German Bundestag Petitions Committee held a hearing on a citizen’s petition to halt planned changes to the country’s medical cannabis program. Germany partially legalized cannabis for adult use in 2024 under a two-phase rollout, but proposed revisions to the medical cannabis framework have drawn concern from patient advocates and the medical community.
• Malta: Prime Minister Robert Abela announced that outstanding reports from the country’s cannabis regulatory authority will be published soon.
• Philippines: House Committee on Dangerous Drugs and Committee on Health Jointly Approve Consolidated Medical Cannabis Bill – The two House committees jointly approved on February 24, 2026 a consolidated bill to legalize compassionate access to medical cannabis. The approved bill would create a Medical Cannabis Office under the Department of Health to oversee licensing, limit cannabis to pharmaceutical forms for patients with specific debilitating conditions, and require prescriptions from DOH-accredited physicians. (see also The Manila Times and Philippine News Agency)

Business, Banking, Insurance

• Cannabis MSO Curaleaf Rolls Over Debt with Record $500 Million Placement – Curaleaf Holdings closed a private placement of $500 million in 11.5% senior secured notes due 2029-described as the largest private debt raise in U.S. cannabis history-refinancing $475 million in existing notes due December 2026. CEO Boris Jordan highlighted that the offering was oversubscribed and attracted 10 first-time cannabis lenders.
• Organigram Announces C$65.2 Million BAT Private Placement Investment in Connection with Acquisition of Sanity Group – Organigram Global Inc. announced that British American Tobacco’s subsidiary BT DE Investments Inc. will invest C$65.2 million through a private placement to fund Organigram’s proposed acquisition of Berlin-based Sanity Group GmbH. The deal is subject to shareholder approval at a March 30, 2026 special meeting.
• MTL Cannabis Corp. Obtains Final Court Approval for Acquisition by Canopy Growth Corporation — The Supreme Court of British Columbia issued a final order on February 23, 2026 approving the plan of arrangement under which Canopy Growth will acquire all outstanding shares of MTL Cannabis Corp. Closing is expected before the end of March 2026.
• Top Issues in the Cannabis Industry for 2026 – Banking Section – Major financial institutions continue to resist servicing cannabis companies. Attorneys note that rescheduling to Schedule III does not equal legalization, and most major banks will remain on the sidelines until explicit safe harbor legislation, such as the SAFER Banking Act, is enacted.

Research

• Study: Adolescent Cannabis Use Linked to Doubling Risk of Psychotic and Bipolar Disorders – A longitudinal cohort study of 463,396 adolescents ages 13–17, followed through age 26, found that past-year cannabis use during adolescence was associated with approximately twice the risk of developing psychotic or bipolar disorders.
• Study: Moderate Cannabis Use May Protect the Aging Brain – An analysis of 26,000 older adults found that moderate cannabis use was associated with larger brain volumes and better memory and attention scores.
• Review: A systematic review concluded that the evidence supports the potential application of psilocybin for treating major depressive disorder, consistent with recent FDA breakthrough therapy designations and clinical trial results from psilocybin-assisted therapy programs.
• Poll (RAND Corporation): About One in Four Americans Support Legalizing Psilocybin-Similar to Support for Cannabis in the Mid-1990s Before Medical Laws Began Passing – A new RAND report drawing on the nationally representative 2025 RAND Psychedelics Survey found that 23% of Americans support the legal use of psilocybin mushrooms. The authors note that psilocybin’s support level mirrors where cannabis stood in the mid-1990s, just before state medical marijuana laws began to pass, though whether the two substances will follow similar policy trajectories “remains to be seen.” Among those who favor legalizing psilocybin, only 42% believe it should be available for any reason; the most-cited reason is to address mental or physical health conditions.
• Study: Packaging films based on polysaccharides with cannabis flower extract were found to reduce the degradation of bioactive compounds during the storage of packaged fruit, suggesting potential commercial applications for cannabis-derived food packaging materials.
• Study (WSU): ‘The Munchies’ Are Real and Could Benefit Patients With No Appetite – A Washington State University study found increased appetite after cannabis use regardless of sex, age, weight, or recent food consumption, driven by endocannabinoid receptor activity, with potential therapeutic implications for appetite loss conditions.
• Study: A systematic review concluded that cannabinoids show anticancer effects in melanoma and non-melanoma skin cancers.
• Study: Psychedelic compounds may function as therapeutics for reducing the global burden of nicotine addiction and other substance use disorders.
• Study: Adolescent lifetime and recent cannabis use have declined since the late 1990s, even as state legalization has spread. The study noted that regulated legal markets appear to more successfully limit youth access than prohibition.
• Study: Chronic use of ayahuasca or cannabis is not associated with detectable lasting neuropsychological impairments in executive function or working memory tasks. Personality characteristics-rather than cognition or psychopathology, most clearly distinguish chronic users from non-users.
• Case Report: Cannabis oil may be a promising adjunct therapeutic option in multicentric lymphoma treatment in dogs, aiding in management of chemotherapy-related adverse effects.

Other Noteworthy Updates

• NYT Editors Fail To Distinguish Between Regulated and Unregulated Marijuana Markets (NORML Response) – NORML Deputy Director Paul Armentano responded to the New York Times editorial board’s February 9, 2026 piece, arguing that the board failed to distinguish between regulated and unregulated cannabis markets. (See also an Op-Ed by Pharmacists’ Cannabis Coalition of California)
• Top Issues in the Cannabis Industry for 2026 – Congressional action-not rescheduling alone-is the threshold needed for major banks to service the cannabis industry. Under the new hemp law, most current hemp cannabinoid categories (Delta-8, Delta-10, THCA flower) would be reclassified as Schedule I.

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If you are interested in exploring commercial opportunities in the cannabis space, we would be happy to assist you in any of your cannabis law questions, comments, or concerns. Please contact our cannabis team (Tish Pahl, Kyla Kaplan, Ben Dash, Denise Calle, and Michael Goodman) for assistance.