🌿 Hemp ban temporarily on hold, grand jury flags DeSantis funds, and Oklahoma owner charged in explosion

Happy Friday Pre Rollers! Welcome to another edition of The Pre Roll, the cannabis newsletter that keeps you up-to-date on the industry happenings you need to know.

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Holding pattern. The hemp industry just bought a little more time as the House passed a short-term government funding bill Tuesday that pushes back the federal crackdown on intoxicating hemp-derived THC products by roughly a month. The bill was subsequently signed by President Donald Trump on Wednesday. The measure moves the hemp restrictions that were slated to take effect in November into December.

The delay is less a policy reversal than a legislative timeout. Congress previously approved restrictions aimed at closing the so-called “hemp loophole” that helped fuel the booming market for products such as delta-8 THC and other hemp-derived intoxicating cannabinoids.

The new rules would dramatically narrow what qualifies as hemp, threatening much of the current hemp-derived THC product universe. The one month extension gives manufacturers, retailers, trade groups, and their congressional allies additional runway to push for changes before the restrictions kick in. These industry advocates now have a narrow window to persuade lawmakers that an outright crackdown should be replaced with a regulatory framework for hemp-derived cannabinoids.

The bigger cannabis industry takeaway is the increasingly blurry line between hemp and cannabis policy. While the regulated cannabis market has been watching federal reform and rescheduling debates, the hemp sector is facing a potentially existential change to its federal legal foundation. For operators on either side of that divide, the next few months could determine whether the United States ends up with two increasingly distinct cannabinoid markets or a more unified regulatory framework.

Diverted funds. A Florida grand jury has concluded that the administration of Governor Ron DeSantis misused $10 million in public funds, but no formal criminal charges were filed.

The money originated from a Medicaid settlement aimed at helping disadvantaged children get health insurance, but instead of flowing back into state and federal coffers, was directed to the Hope Florida, a charitable initiative associated with first lady Casey DeSantis.

Hope Florida later routed the the money to political committees involved in the campaign against the 2024 ballot initiative aimed at legalizing recreational cannabis in the state.

The arrangement drew scrutiny because Florida law generally requires settlement money involving public funds to be handled through the state’s appropriations process. Records and testimony examined during the investigation also raised questions about how the deal was structured and who inside the administration knew about the transfers.

For state’s cannabis industry, the episode is a consequential footnote to the ultimately rejected legalization measure, and the controversy surrounding the funding campaign has added another layer to an already contentious fight over who gets to shape cannabis policy in the nation’s third-most-populous state.

Deadly explosion. The owner of an Oklahoma cannabis extraction business is facing two counts of first-degree murder following an August 27 explosion that killed two employees and damaged multiple neighboring businesses.

Ryan Bassham, 35, turned himself in and was released on a $2 million bond. Prosecutors allege that employees at his Sand Springs facility, Solos Extracts, were unlawfully manufacturing hazardous substances when the explosion occurred.

The charges come amid questions about the facility’s regulatory and safety record. According to court documents, the business was seeking updated cannabis and narcotics registrations and was not authorized to conduct extraction at the time of the blast. A January fire inspection had also identified an outdated fire suppression system and ordered extraction equipment disconnected until the facility could be reinspected.

After the explosion, investigators found large quantities of liquid propane and other hazardous materials that had not been present during the earlier inspection. A neighboring business owner also told police that elevated carbon dioxide levels had previously been detected inside the facility and that he became lightheaded after entering.

One of the victims initially survived the blast and reportedly told a paramedic that ventilation at the facility was inadequate. He later died at a hospital.

California: The state’s regulated cannabis market has generated nearly $8.4 billion in tax revenue since 2018, funding community programs while the state intensifies enforcement against illicit operators; Governor Gavin Newsom also signed a law restricting cannabis ads and packaging that appeal to children.

Maine: Officials will distribute 12,000 free lockable cannabis storage bags through more than 140 retailers and public health advocates to help prevent accidental access by children and pets, with eligible adults able to receive one for free while supplies last.

Missouri: A federal judge is weighing a challenge from hemp businesses, which argues the state’s new ban on intoxicating hemp products is unconstitutional, while the state maintains the law is clear and lawful.

Ohio: Cannabis prices rose sharply over the summer of 2026, driven by increased demand and limited supply.

Green Check grows beyond cannabis compliance

The cannabis financial technology company is expanding its cannabis-focused compliance platform to serve other high-risk industries, including money services businesses, fintechs, gaming, ATM operators, NGOs and charities, and cash-intensive businesses.

Headset hit with PPP penalty

The cannabis data company agreed to pay more than $1 million over allegations it improperly obtained a federal PPP loan.

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Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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