The cannabis industry continues to evolve at a rapid pace, with regulatory enforcement and healthcare policy emerging as two critical fronts. This week, two significant developments highlight both the tightening of oversight and the expanding conversation around hemp in preventive care. Here’s what you need to know about Connecticut’s first “gun jumping” settlement and the Centers for Medicare & Medicaid Services (CMS) LEAD Model’s new incentives for hemp conversations.
Connecticut’s First
“Gun Jumping” Settlement: A Warning for Cannabis Businesses
On January 12, 2026, Connecticut Attorney General William Tong announced a $416,000 settlement with three cannabis licensees operating under the “Crisp Cannabis” brand. The alleged conduct, known as “gun jumping,” involved the acquiring entity assuming decision-making authority and coordinating operations, branding, and staffing of three separate cannabis establishments for more than 100 days before notifying regulators.
This marks the first enforcement action under Connecticut’s pre-merger notification framework for cannabis businesses, signaling increased scrutiny of market concentration and antitrust compliance. The settlement includes a $416,000 civil penalty, with $104,000 due within 30 days and $312,000 deferred contingent on compliance.
Attorney General Tong emphasized the importance of these safeguards:
“When the legislature created Connecticut’s adult-use cannabis market, it built in safeguards like the 2021 notice of material change pre-merger notification statute to protect competition and prevent market concentration before it starts.”
The case serves as a clear reminder that cannabis businesses must adhere to state merger-notification rules and avoid premature transfers of operational control. For more details, read the full announcement.
CMS Opens Door to Hemp Conversations in Medicare
In a parallel move, the CMS LEAD Model now includes Substance Access Beneficiary Engagement Incentives (BEI), allowing participating Accountable Care Organizations (ACOs) to advise Medicare patients on eligible hemp products as part of preventive, team-based care. This creates a standardized on-ramp for provider education, informed patient choice, and outcomes tracking within value-based care.
Key aspects of the BEI include:
- Authorizing ACOs, at their own expense and only in states where eligible hemp products are legal, to consult with patients about potential benefits of hemp products within a structured, evidence-oriented framework.
- Normalizing clinician-patient dialogue about hemp within a prevention framework, enabling integration into team-based care workflows.
- Pairing with other Healthy Living initiatives like nutrition supports.
At the same time, the FY2026 Agriculture Appropriations Act narrows the federal definition of hemp to a total THC limit of 0.3% (including THCA), effective November 2026. This change will exclude many consumer cannabinoid products like lab-made or chemically converted cannabinoids (e.g., delta-8, delta-10).
Together, these policy shifts signal federal support for evidence-guided conversations about hemp’s potential role in preventive care while tightening the definition of what qualifies as hemp. Learn more about the CMS LEAD Model.
Why These Developments Matter for the Cannabis Industry
These two developments reflect two sides of the same coin: as regulators step up enforcement to ensure a fair, competitive market (like in Connecticut), federal health programs are cautiously creating space for evidence-guided conversations about hemp’s potential role in preventive care.
For cannabis businesses, the Connecticut settlement underscores the importance of compliance, transparency, and patient-centered education in a maturing industry. Violations of merger-notification rules can result in substantial penalties and increased regulatory scrutiny.
For healthcare providers and patients, the CMS BEI offers a structured pathway to discuss hemp products within a preventive care framework, promoting informed, evidence-based choices.
At Green Grove Bud, we believe in science-backed policies that support both consumer safety and industry growth, and we advocate for responsible, accessible cannabis wellness. Staying informed about legislative changes and healthcare innovations is crucial for navigating this dynamic landscape.
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To learn more about cannabis legislation and advocacy, visit our Legislation & Advocacy page. For insights on wellness and responsible consumption, explore our Wellness & Responsible Consumption page.
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