Committee weighs amendment allowing cannabis producers to form small cooperatives

Feb 23, 2026

A striking amendment to HB 1941 would let licensed cannabis producers form agricultural cooperatives for collective processing and marketing while capping an association’s representation at three producer licenses; producers and industry groups supported the amendment but urged future changes tied to federal normalization and concerns about market oversupply.

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The Labor and Commerce Committee heard a striking amendment to House Bill 1941 on Feb. 25 that would permit licensed cannabis producers to organize agricultural associations or cooperatives to collectively process, handle and market their products.

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