Pennsylvania Stalemate And Texas Vape Ban Creates Uncertainty
Host Shadd Dales and Anthony Varrell welcome Michael Bronstein, president of the American Trade Association for Cannabis & Hemp (ATACH), to break down two of the biggest state stories shaping the cannabis industry right now: Pennsylvania’s adult-use legalization debate and Texas’s new hemp and vape ban about to become law.
We kick off with a discussion about a new Shield Compliance survey that captures executive pessimism about rescheduling in 2025. The Shield Compliance survey of 142 cannabis executives found that nearly all view rescheduling and 280E relief as critical, but on average they put the odds of rescheduling this year at just 34 out of 100. Respondents reported general satisfaction with current banking partners but expressed frustration with limited payment options and indicated interest in alternatives such as ESOPs and new financial institutions.
In “Insider’s Edge,” ATACH president Michael Bronstein digs into Texas and Pennsylvania. On September 1, SB 2024 went into effect in Texas, banning the sale and marketing of vape products containing cannabinoids such as Delta-8, CBD, and THC. Violations carry Class A misdemeanor penalties. Meanwhile, SB 6—a broader hemp-derived THC ban—remains under consideration during the special session, with a September 14 deadline.
Investors, operators, and retailers alike are watching closely as Texas reshapes its hemp market, and we’ll connect these policy shifts to the investor outlook: compliance risks, market opportunities, and which catalysts could drive the next wave of cannabis investing news. We’ll also dive into a sharp pullback in Village Farms International (VFF) amid a year of outperformance and corporate moves, plus brief Tilray notes from a CFO site visit in Portugal.
In Pennsylvania cannabis legalization updates, Governor Josh Shapiro has made legalization part of his budget plan, but the state remains divided. The House advanced a state-run model earlier this year, while Senators Dan Laughlin and Sharif Street are pushing for a private licensing system with a Cannabis Control Board. The stakes are high: with neighboring states like New Jersey, New York, and Maryland already legal, Pennsylvania risks losing out on hundreds of millions in tax revenue and jobs if it delays further.
Bronstein notes Senate GOP leadership resistance but says fiscal gravity eventually forces deals; federal rescheduling—especially signaled by a Republican president—would be a game-changer for PA votes. But will it happen? We’ll share our thoughts.
