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California Cannabis Excise Tax Hike Takes Effect as Consumers Face Mounting Cost-of-Living Crisis

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The excise tax increase will drive more Californians to the unlicensed market; Assembly Bill 564 offers a path to roll back the policy.



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10 Alabama CBD Stores, Vape Shops Raided; 4 Hemp Businesses Sue State

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Special agents with the Alabama Law Enforcement Agency (ALEA) coordinated with local and federal agencies to carry out a series of search warrants on June 23, seizing myriad products at smoke and vape shops in five cities.

ALEA’s State Bureau of Investigation (SBI) spearheaded the multiagency operation with support from the Alabama attorney general’s office, the Alabama Drug Enforcement Task Force, the Federal Bureau of Investigation (FBI), the 12th and 19th Judicial Circuit District Attorney’s offices, the sheriff’s offices in Coffee and Chilton counties, and police departments in Troy, Enterprise, Clanton, Wetumpka and Montgomery.

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SBI Major Crimes Chief Shawn Loughridge said during a June 27 press conference that the search warrants, which were executed at 10 businesses, resulted from a nearly yearlong investigation that launched after numerous complaints from community members arose in those five cities.

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The SBI special agents confiscated “significant” quantities of cannabis, drug paraphernalia and other illegal drug-related items, yet the investigation remains ongoing, he said.

“No arrests have been made at this time,” Loughridge said. “However, this evidence collected this week represents a major step forward in holding these businesses accountable and protecting the health and safety of our communities.”

The seized products included what law enforcement officials said were packaged and marketed as hemp but contained THC potencies that violated Alabama law, according to ALEA. Loughridge said those potencies were determined after special agents and local law officers conducted controlled purchases to analyze and determine the THC content.

Under Alabama law, only hemp products containing less than 0.3% delta-9 THC are legal to sell outside the state’s licensed medical cannabis market, which has yet to commence commercial sales amid ongoing legal challenges to the state’s licensing process.

Alabama’s hemp law is based on the 2018 Farm Bill, which federally legalized hemp, incorporating a preharvest field test for the 0.3% THC potency. The legislation does not regulate finished products.

SBI Director Chris Inabinett told reporters during the press conference that “no amount of clever packaging or marketing” is going to change the legal definition of hemp.  

“We now have the technology and facilities at ALEA to conduct accurate, presumptive analysis of THC levels in these products,” he said. “These search warrants were not meant to punish business owners; they were issued in response to numerous community complaints. This is about public safety.” 

Inabinett also said that certain intoxicating cannabinoid products are being sold in Alabama in packages that resemble candy, snacks and other popular food items attractive to children.

Alabama Attorney General Steve Marshall said that he wanted to make something “abundantly clear” during the press conference.

“This is not hemp. This is marijuana,” he said. “This is an illegal marijuana operation. Despite the labeling, despite what may be represented, this is illicit drugs. And, as opposed to going to a local drug dealer to buy your marijuana, this was going to a storefront. Either way, it’s illegal activity for which we’ll be vigilant in making sure that we enforce.”

The multiagency operation unfolded one week before legislation to ban smokable and synthetic hemp products goes into effect on July 1.

House Bill 445, signed by Gov. Kay Ivey, also authorizes Alabama’s Alcoholic Beverage Control (ABC) Board to license and oversee consumable hemp product manufacturers, wholesalers and retailers, allowing the board to conduct inspections and seize unlawful hemp products without a warrant.

In addition, the legislation will place a 10% excise tax on hemp product sales, impose testing and labeling requirements, prohibit sales to those under 21 years old, and ban online sales and direct deliveries.

Four companies filed a lawsuit against Ivey and Marshall on June 27 in the Circuit Court of Montgomery County, claiming the legislation is unconstitutional, asking the court for a temporary restraining order or a preliminary injunction.

While certain provisions of the signed bill don’t take effect until Jan. 1, 2026, an attorney general spokesperson from Marshall’s office clarified that possessing or selling prohibited products under H.B. 445 on or after July 1 could subject an individual to a Class C felony—which carries a 1-year to 10-year prison sentence—WSFA reported.

The plaintiffs argued in the lawsuit that they’re not sure whether they’ll be violating HB 445’s smokable and synthetic hemp ban because the law’s definitions are “so vague.”

“It’s impossible to tell whether a particular product is included in the statewide bans,” according to the suit. “As they exist, H.B. 445’s [bans] fail to provide fair notice of what products are prohibited and open the door for arbitrary enforcement in violation of the Due Process Clause.”

The plaintiffs also argue that since one must possess something to transport or ship it, H.B. 445 violates the Dormant Commerce Clause and the 2018 Farm Bill, which explicitly protects the interstate commerce of federally compliant hemp through states and territories.

During the press conference on last week’s raids, 12th Judicial Circuit District Attorney James Tarbox said the search warrants and enforcement efforts have nothing to do with H.B. 445.

“When you have a billboard that says ‘dispensary-grade THC,’ that means one thing to me: You’re selling marijuana,” he said. “When you have a billboard that says ‘inhale the good stuff,’ that means one thing to me: You’re selling marijuana. When your business is selling synthetic urine and drug screen masking agents, that means one thing to me: You’re up to no good. It’s about protecting the public and upholding the rule of law here in the state of Alabama.”

The day after the press conference, the Alabama Cannabis Coalition claimed it had been told by an “informant” that the raids would continue.

“We do not know when, but we would assume they are not going to waste any time flexing their muscles after the press conference yesterday,” the advocacy and policy reform group posted on social media. “Word on the street, they are targeting any business that is selling flower. Their plan is the same as 6/23/2025, confiscate flower and all cash in the business. Spread the word, protect yourselves and be safe. The long arm of the law has no boundaries.”



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Four Arrested for CBD Distillate Theft Valued at $3.6M

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The Georgia Department of Agriculture (DOA) said four people have been arrested for the theft of about 3,000 liters of hemp-derived CBD distillate with an estimated value of $3.6 million, WSBTV.com reports.

The theft happened in January at the Irwin County, Georgia-based hemp processing facility Second Century Ag, where officers responded to reports of the theft and confirmed that 3,000 liters of CBD distillate had been stolen from a warehouse. Investigators said two perpetrators used a rented U-Haul to transport the stolen goods to another county, where they switched vehicles, before driving the CBD distillate to Dallas, Texas.

Police arrested four people in Texas over the incident and they were all extradited to Georgia. The two suspects who are accused of actually stealing the CBD distillate are facing felony burglary charges, while two other suspects who were linked to the plot via peer-to-peer money transfers are facing both burglary and conspiracy charges. Prosecutors believe that one of the suspects, Aaron Wayne Smith, 29, was the main orchestrator of the plot, and are pursuing the following charges against him:

  • Second Degree Burglary
  • Conspiracy to Commit a Crime
  • Use of a Communication Facility in Committing or Facilitating a Drug Transaction
  • Possession of a Controlled Substance with Intent to Distribute
  • Felony Theft by Taking

Georgia Agriculture Commissioner Tyler J Harper said in a statement he is “incredibly proud” of the investigation, highlighting DOA’s cooperation with the Texas Department of Public Safety, the Texas Rangers, and the Irwin County Sheriff’s Office.

“In Georgia we are sending a clear message, if you attempt to use agriculture as a cover for criminal activity – we will catch you and you will go to prison.” — Harper, in a press release

Cannabis remains illegal in Georgia except under the state’s limited medical cannabis program. Officials last year added dispensaries to the program after the total patient count exceeded 25,000, the threshhold set by the state for triggering expansion.

Meanwhile, lawmakers considered a bill this year to ban THC from all hemp products sold in the state but the Senate-passed proposal ultimately stalled in a House committee.



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What’s Changed Since Connecticut Legalized Adult-Use Marijuana 4 Years Ago?

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Not only have recreational sales increased, but medical purchases have made up less than half of the state’s cannabis market retail sales since May 2023.

By Sasha Allen, CT Mirror

July 1 marks four years of legalized recreational cannabis use in Connecticut, and with legalization came major changes to the medical marijuana market.

A law enacted in 2012 allowed the purchase and use of cannabis for medical reasons only. But in 2021, the state legalized recreational use for everyone 21 and older. Statewide recreational retail sales began in January 2023, and by May 2023, recreational sales accounted for the majority of state cannabis retail sales, a trend that has continued to today.

Connecticut was the 19th state to legalize recreational marijuana.

Under state law, anyone 21 or older without a medical card is allowed to possess up to 1.5 ounces of cannabis flower or other cannabis product equivalent in public and up to 5 ounces in their private residence. Medical cardholders can posses up to 5 ounces of cannabis on their person.

Not only have recreational sales increased, but medical purchases have made up less than half of the state’s cannabis market retail sales since May 2023.

Connecticut was the 19th state to legalize recreational marijuana.

Both medical and recreational dispensaries sell similar products, but medical users who are using the product to treat “debilitating medical conditions” aren’t subject to the cannabis tax. Medical users can also buy other products that recreational users cannot, including capsules, tablets, pills, sublinguals and suppositories.

Medical users are also not subject to potency restrictions, while recreational cannabis is currently capped at 30 percent THC for cannabis flower and 60 percent THC for concentrate products other than vapes. However, as of October 1, 2025, the cap for raw flower will be raised to 35 percent THC and 70 percent THC for concentrates other than vapes.

The cannabis tax is dependent on both the product and the amount of THC; edible products are taxed the most heavily per milligram of THC and plant products the least. For an eighth of flower that’s 15 percent THC, for the tax currently sits at around 9.4 percent, fluctuating based on product pricing. Edibles are subject to a tax of $0.0275 per milligram of the product’s total THC content.

Medical card holders are required to apply for renewal annually, which involves a consultation fee with health care providers that can range from $100 to $350 for users 18 and older. For users under 18, users must have a condition specified by the legislature for medical usage as well as parental consent and a caregiver arrangement.

Because cannabis usage is federally illegal, medical card holders are prohibited from purchasing firearms, and everyone applying for a firearm is required to disclose their usage of cannabis and other federally controlled substances. Federal law bars all cannabis users from owning a firearm.

Each hybrid or recreational cannabis retailer registered in Connecticut must pay the cannabis tax, which varies by product. The state cannabis tax brought in $21.3 million in state revenue for FY 2024.

Overall, the sales tax—along with state sales tax, municipality sales tax and licensing and conversion fees for dispensaries—brought in $49.4 million in cannabis revenue for FY 2024.

While there are dozens of products on the market, usable cannabis flower, which is just the dried plant, brings in the most sales across the medical and recreational markets. Overall, in May 2025, recreational cannabis retail sales were $18.7 million. Medical retail sales were $6.6 million.

There is only one exclusively medical dispensary in the state. The rest of the dispensaries have transitioned and cater to both the recreational market and the medical market as hybrid dealers, or just the recreational market.

Statewide, there are 36 recreational dispensaries and 35 hybrid dealers. However, the number of dispensaries fluctuates. Back in January 2023, only nine hybrid dispensaries existed. Numbers from around February 2025 showed 64 dispensaries in the state—eight fewer than are currently open.

This article first appeared on CT Mirror and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.

Embracing Marijuana Legalization Could Help GOP Win Over More Young Voters, Trump’s First Attorney General Pick Suggests

Photo courtesy of Philip Steffan.

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