IRS Slams 280E, Virginia Moves to Sell, and Texas Targets THCA

The hosts discuss cannabis legalization frustrations and preview stories for the week ending March 15, 2026, led by a tax court case tied to roughly $1.6B in MSO 280E-related liability, where the U.S. argues cannabis businesses fall “within the meaning” of Schedule I/II for 2016–2017 tax years, despite the ongoing rescheduling push. They note a Ninth Circuit decision that the dormant Commerce Clause does not apply to cannabis, contrasting with East Coast rulings and a continuing circuit split after the Supreme Court declined review. State updates include Texas’s March 31 ban on smokable hemp/THCA flower sales, Tennessee “pot for potholes” messaging, Virginia’s new micro-vertical licensing framework and regulator setup, Alabama’s medical rollout delays due to litigation, Florida’s ballot initiative setbacks and political hypocrisy, and Verano’s $195M loan amid ongoing MSO expansion.