Executive Summary
- DEA leadership change: Terrance Cole was confirmed July 22, 2025 as DEA Administrator; industry advocates are urging him to resume cannabis rescheduling hearings that were paused under Biden—House appropriations recently advanced legislation to block DOJ funding for rescheduling
- State tax pressure: California’s cannabis excise tax is set to rise from 15 % to 19 % on July 1, 2025, but Assembly Bill 564, cleared 15–0 and 6–0 in two committees, aims to halt this increase
- Hemp product crackdown: California Department of Public Health proposed permanently banning intoxicating hemp products (emergency regs expire Sept 23, 2025); public hearing set for July 28
- Federal research break: University of Mississippi ended its exclusive NIDA marijuana cultivation contract; DEA licensing expanded to diversify research supply
Strategic Takeaway: As federal rescheduling momentum builds under new DEA leadership, California businesses face heightened tax and product compliance pressures—alignment between policy momentum and market regulation will be vital.
🏛️ Regulatory & Compliance (Past Week)
California’s compliance landscape saw key federal and state developments:
- DEA transition: Terrance Cole assumed DEA leadership July 22. Industry groups like NCIA urge rescheduling hearings to move forward after a multi-year pause
- Federal funding block: House appropriations CJS subcommittee voted July 15 to prohibit DOJ funds being used to reschedule cannabis—a direct counter to agency-level efforts
- Health department rulemaking: Emergency rules banning intoxicating hemp (exploding THC >0.3 %) now proposed to be permanent; public hearing July 28 before 45-day comment period closes
🔍 Next‑Week Watch List
- July 28: CDPH public hearing on permanent intoxicating hemp ban—critical for hemp manufacturers and retailers.
- Reopening of DEA hearing docket: With new DEA Administrator in place, industry awaits schedule reset on rescheduling case before the federal judge
- AB 564 legislative timing: As bill moves to full Appropriations and Assembly, need to watch floor vote timing ahead of July 1 tax deadline.
🏗️ Project & Facility Progress
That information is outside the scope of our approved sources.
💼 M&A, License & Real‑Estate Transactions
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📊 Finance & Capital Flows
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🏢 Public Companies Spotlight
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📈 Trends, Insights & Strategic Implications
- Federal rescheduling turning point: A confirmed DEA head and court judgment on judge retirement could revive rescheduling hearings—major potential shift for banking, research, and interstate commerce
- Tax volatility risk: The proposed excise tax hike could deepen legal market struggles in CA; AB 564 is industry’s best hope to stabilize retail margins
- Hemp compliance tightening: CDPH’s ban on intoxicating hemp will streamline focus toward licensed market but disrupts up to 100 hemp businesses—regulatory winnowing expected
- Federal research decentralization: Ending NIDA’s exclusive contract signals broader DEA willingness to diversify research-grade cannabis supply—a positive signal for scientific and commercial transparency
