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Dillon Beyer woke up Monday morning to a flurry of text messages.

A co-owner of Tree Huggers Cannabis, which is based in La Crosse with locations in Wisconsin and Minnesota, Beyer and his colleagues in Wisconsin’s hemp industry were beginning to learn that, tucked into the U.S. Senate bill to reopen the federal government, was a provision that could outlaw much of their industry.

That clause, inside the continuing resolution that the U.S. House approved and President Donald Trump signed Wednesday, would ban the “unregulated sale of intoxicating hemp-based or hemp derived products.”

That left Beyer “freaking out a little bit.” His company employs 25 people, developing and distributing drinks and other products that contain the psychoactive ingredient THC.

“It would force us to close our doors, because it would make all of the products that we sell noncompliant,” Beyer said ahead of the U.S. House’s vote.

In Wisconsin, where medical and recreational marijuana are illegal, a long-standing federal loophole has allowed one related industry to flourish.

The 2018 federal Farm Bill removed hemp from the list of controlled substances. As a result, products containing low doses of the psychoactive ingredient THC — like vapes, oils, gummies and beverages — are legal.

That’s true even in states like Wisconsin that don’t otherwise allow for other forms of marijuana production or sales.

Phillip Alberti is a research program manager specializing in hemp at an alternative crops lab at the University of Wisconsin-Madison. He said hemp has wide uses beyond its connections to marijuana — for example, as an agricultural and fiber product.

But he said it’s unclear exactly how big the Wisconsin hemp industry is.

“I’ve been looking forever to find those numbers … because I really think it’s important at the university to understand the impacts. Then we can see where there might be a need,” said Alberti. “All I know is that I cannot go anywhere without seeing those products. I can’t go to breweries. I can’t go to gas stations.”

Overall nationwide, it’s a booming, multibillion-dollar industry — one that critics say is insufficiently regulated. They say it’s too easy for kids to get their hands on the products, which are sometimes packaged to look like fun snacks or candy, and that it should be treated the same as other forms of marijuana.

Supporters, including those in the industry, say these products offer an alternative to alcohol, or provide benefits like stress relief.

Alla Tsypin and Richard Bowman co-own RA! Wellness, a THC beverage company based in Madison. Tsypin said they welcome more regulation for their products, but they shouldn’t be banned.

“We should all be held to the same standard, as far as our ingredients, our (lab testing), our transparency, things like that,” she said. “But to take it away as a whole as an option for millions of people is pretty crappy.”

Wisconsin business owners say they’re figuring out next steps. The legislation gives companies 365 days to find themselves in compliance.

For Tsypin and Bowman, that’s a year to get over the “shock” and potentially pivot their business. They also hope that this sudden move will spark a conversation that will draw more public support for their industry — and potentially lead to changes in state or federal law.

“The biggest takeaway from all of this is, really, how much this has affected not only us, but also the families, the growers, the consumers, the people … that rely on this as medicine,” said Tsypin.

Beyer, of La Crosse, said he thought bad actors in an underregulated field have given his products a bad name. His company checks customers’ IDs, and packages their products in dark colors that make it clear they’re not for kids.  

He said he thinks the next year gives both industry workers and consumers time to push for bigger changes to the law — a vaster opportunity than the loophole they’ve worked within for years.

“We are confident, and we are hoping to work with our supply chain of distributors, retailers, our consumers to really raise awareness and sound the alarm,” he said.

‘It would force us to close our doors’: Law to end shutdown could disrupt Wisconsin’s THC, hemp industries is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

A view of medical marijuana products at a New York medical marijuana cultivation facility. Wisconsin Assembly Republicans have proposed a bill to legalize medical cannabis in the state under strict conditions. (Drew Angerer | Getty Images)

“Illness does not discriminate,” said Sen. Patrick Testin (R-Stevens Point) during a hearing of the Senate Committee on Health on Wednesday. “It affects people from all walks of life. There is no doubt that each and every one of us knows someone that has suffered through an illness and struggles to find ways to make it through each day.” 

Testin was speaking in favor of SB 534, a bill introduced by Republicans to legalize medical cannabis in Wisconsin. If passed, the bill would allow registered patients to have cannabis in a non-smokeable form such as a concentrate, oil, tincture, edible, pill, cream or vapor. The bill would also create an Office of Medical Cannabis Regulation attached to the state health department and tasked with overseeing the budding program. 

Testin shared a story about his grandfather, whom he described as his role model and as “the reason I decided to take a life of public service.” Back in the 1990s, Testin’s grandfather was diagnosed with lung cancer, which then metastasized to bone cancer. 

The senator recalled watching his grandfather undergo chemotherapy. The man “was a big guy,” Testin said, “and we watched him wither away.” At that moment, over 25 years ago, “my family made the very difficult decision to go outside the law to get him marijuana,” Testin said. “It gave him his appetite back, and it gave him time that we probably otherwise would not have had.”

Testin said his story was not unique. Although other medications exist, he said that many “come with side effects that can make living a normal life much more difficult.” He noted that 40 states, including Wisconsin’s neighbors Michigan, Illinois and Minnesota, give patients access to medical cannabis when recommended by doctors. Texas is the most recent state to legalize medical cannabis, he noted

“So both red and blue states alike have been able to come together and recognize that this is a viable option,” Testin said. “Medicine is never a one size fits all, and it’s time for Wisconsin to join the majority of the country and add another option which may help patients find relief they need.”

Legislation’s provisions

Under the proposed bill, medical cannabis sales would be tracked through the state’s prescription drug monitoring program. Pharmacists would also be required to be on-site at dispensaries. The legislation would only cover certain conditions: cancer, seizures or epilepsy, glaucoma, severe chronic pain, severe muscle spasms, severe chronic nausea, Parkinson’s disease, multiple sclerosis, inflammatory bowel disease, and any terminal illness, including patients with a life expectancy of less than a year. 

Patients must be at least 18 years old. Minors could have access if there is  written consent “from all” of their parents or guardians. Patients would be given registration cards and would be charged $20 a year to remain on the registry. 

The bill also prohibits dispensaries or their staff “from claiming that medical cannabis may cure, mitigate, treat, or prevent any disease or medical condition.” Dispensaries would also be prohibited from “advertising their services to the general public, with certain exceptions.” 

The bill includes a provision preventing courts from considering  lawful use or possession of cannabis, or being registered as a patient, when determining  custody or placement of a child, except where the child has access to the cannabis. Unlawful possession or use could still be used against parents in court, however. The bill also protects people who lawfully possess cannabis against housing discrimination, and prevents local governments from regulating legal medical cannabis programs or using zoning laws to restrict the location or operation of a legal cannabis operation. 

Support and opposition

Earlier this year, two-thirds of registered voters polled by Marquette Law School said that cannabis should be legalized in Wisconsin. The Wisconsin Wellness Coalition has registered with the Wisconsin Ethics Commission in support of the legislation and the Wisconsin Medical Society against it, The Alzheimer’s Association, Outdoor Advertising Association, and Pharmacy Society have all registered their positions as “other.” 

People from a variety of backgrounds also spoke during the public hearing. Many supported legalizing cannabis, but had concerns about restrictions in the bill. 

“This should not be a partisan issue,” said Testin. “It is clear that we as a state need to begin having a real discussion about medical cannabis legalization, and it is our hope that this bill will be the first step. It’s time for Wisconsin to provide our citizens with another option in their health care.” 

Sen. Mary Felzkowski (R-Tomahawk), who has proposed  medical cannabis legislation for years, echoed that sentiment. 

“Wisconsin is on an island surrounded by neighboring states that allow the use of medical cannabis products,” Felzkowski said during the Wednesday hearing. “Someone who suffers from a serious health condition should not have to make the choice to travel to another state or break the law so that they can try an alternative medicine for relief.”

Felzkowski recounted her battles with breast cancer, first when she was 40 years old, which resulted in a double mastectomy, and then a stage 4 diagnosis a decade later. She described the side effects of opioids that doctors prescribed to control her pain as “something nobody should have to live through.” 

She said her oncologist called medical cannabis  “another tool in the toolbox, and it could help a lot of people.” 

 “Here we are sitting in our Ivory Tower, denying that for people that really need it, and it’s wrong that we’re doing that,” Felzkowski said.

Legislators are divided

Lawmakers hope to get more colleagues behind the bill. Yet, despite lagging behind many other states, Wisconsin’s Legislature still struggles with just talking about cannabis. “We are not going to be talking about overall legalization for cannabis products,” said Sen. Rachael Cabral-Guevera (R-Appleton), as she chaired a meeting of the Senate Committee on Health on Wednesday. “So, if you’re here to testify on how this should be 100% legal, this is not the spot for you today.” 

The Legislature held its first public hearing on legalizing cannabis in 2022 in the Senate. Rep. Patrick Snyder (R-Weston), who also spoke during Wednesday’s hearing, said in an interview with the Wisconsin Examiner that he’s optimistic that the new bill will survive the Senate. “My goal this time,” Snyder told Wisconsin Examiner, “is something we haven’t done yet since I’ve been here and that is to have a hearing in the Assembly, where people I talk to can come down and explain their situations.”

Snyder said he hears from constituents who want the state to legalize medical cannabis. When he talks to Republicans who oppose the bill, he said, “I try to tell them first of all, this is something that helps a person. This is something that is going to be focused on folks that really need it.” 

Snyder stressed that “these are people not looking for shortcuts to get marijuana, I mean they could do that without [legalized medical cannabis].” Rather, his constituents are people who often don’t want to travel so far north or south to get their medicine, or who would prefer going to a local farmer or dispensary instead.

The bill’s critics include Republicans who feel medical cannabis would only lead to legalizing recreational use, which they don’t want, as well as Democrats who criticize the bill’s restrictive framework and want Wisconsin to legalize recreational use of cannabis. 

Even with the Republican bill’s restrictions on the form in which cannabis can be used and its system of rigorous licensing, testing and enforcement, Snyder said there are “far right” Republicans in the Assembly who need to be won over. 

Felzkowski said of the 24 states that allow recreational marijuana, 15 did so through ballot measures, which aren’t available in Wisconsin. “So that’s never going to happen in the state,” she said. 

Nine states that have legalized recreational  marijuana after legalizing medical cannabis “are solid blue states like Illinois, New York, and Connecticut,” she said. “Wisconsin is not a solid blue state.”  

Another 16 states have only legalized medical cannabis. Hawaii, the first state to pass a comprehensive medical cannabis program in 2000, still does not allow recreational cannabis, she said.  

“Fortunately, Wisconsin is able to learn from the experience of other states,” said Felzkowski. “We can create an effective program with safeguards, so patients and small businesses can benefit from medical cannabis products, while preventing abuse, or those without medical need from gaining access.”

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• A year ago more than 80 people were sickened by pizza from Famous Yeti’s Pizza in Stoughton. Officials determined the pizza was contaminated with THC-infused oil. Since then one of them has filed a lawsuit against the pizzeria.

• Wisconsin is one of six states that don’t regulate or have plans to regulate THC, the psychoactive chemical found in marijuana, which is why incidents like Famous Yeti’s haven’t resulted in fines or penalties against the company.

• Efforts to regulate THC have been included in bills seeking to legalize marijuana, but while marijuana remains illegal, legal hemp-derived THC is being used in more and more products without additional consumer protections.

On Oct. 23, 2024, Samuel Hoffland stopped by Famous Yeti’s Pizza in Stoughton on his lunch break. What happened next is detailed in a previously unreported lawsuit he filed in May in Dane County claiming the restaurant was negligent when it contaminated his pizza with THC.

The lawsuit describes how Hoffland endured a multiple-hour ordeal to get home after feeling “abnormal symptoms associated with THC intoxication.” He crashed his car and ended up in the emergency room. His injuries led to lost work time and ongoing medical issues, according to the complaint.

Two tests a day apart confirmed Hoffland was experiencing THC intoxication. Over 80 people experienced similar symptoms, including 27 who went to the emergency room, some of whom reported concerns it was carbon monoxide poisoning, according to responses to Public Health Madison and Dane County’s final report obtained under the open records law.

In the weeks and months after the incident, the contamination created a stir online with a range of reactions. Some blamed Famous Yeti’s and expressed concern while other comments said “even more reason to eat them” and “who is complaining?” But for Hoffland, the experience was no joke, leading him to file a civil lawsuit against Famous Yeti’s and the owner of Turtle Crossing Cannabis, a company that shared kitchen space with the pizzeria.

Public Health Madison and Dane County investigated the incident and determined the food was mistakenly contaminated with THC oil from a bulk container (though the report doesn’t mention Turtle Crossing Cannabis). But the agency determined there was nothing it could do because Delta-9 THC, the chemical derived from hemp and used to make edible THC products, is not regulated in Wisconsin.

In other words, there are no laws or regulations prohibiting the preparation of THC and non-THC products in the same industrial kitchen.

Nearly a year later, that remains the case.

In Wisconsin, regulatory laws surrounding hemp-derived cannabis are lacking, creating gray areas that make it difficult to enforce any standards surrounding the production and distribution of THC-related products. Wisconsin is one of only six states, along with Alabama, Maine, New Mexico, North Carolina and West Virginia, that neither ban nor regulate or aren’t attempting to regulate Delta-8 THC.

The lack of regulation has put consumer safety at risk. The Famous Yeti’s Pizza incident is one example, but not the only incident. In June, two children in Milwaukee went to the hospital after their mother mistakenly purchased 600 mg of THC gummies from a convenience store. The shop owner received a warning letter, but didn’t receive a citation because the sale wasn’t illegal.

THC derived from hemp plant

Under the 2018 Farm Bill, the U.S. government authorized commercial hemp production and made it eligible for federal crop insurance. The intended purpose was to provide additional support for people in the agriculture industry.

Hemp under the Farm Bill was defined as cannabis with a tetrahydrocannabinol (THC) concentration of below 0.3% on a dry weight basis. THC is the psychoactive compound present in both hemp-derived and marijuana-derived cannabis. But marijuana-derived cannabis has a higher presence of THC and is federally illegal.

“Cannabis itself is actually the same product, whether it’s hemp-derived or marijuana,” Jason Hunt, CEO and general counsel of DynaVap, said. “Cannabis sativa is actually the product. It’s really the same plant, but it depends on when it’s harvested, as well as the concentration.”

Delta-8 and Delta-9 are similar variations of the same THC compound found in cannabis. Delta-9 is more commonly found in the marijuana plant, while Delta-8 is almost entirely found in hemp and is federally legal.

Delta-8 THC is found in low concentrations, so it is often chemically modified by concentrating Delta-8 from the hemp-derived cannabidiol, according to the U.S. Food and Drug Administration.

“They take a portion of the plant and they chemically modify it to make sure it’s more intoxicating, so it’s a synthesized cannabis product,” Hunt said.

So, how is hemp regulated?

In 2022, Wisconsin’s regulatory hemp program fully transitioned to the federal level, so now the regulatory authority falls under the U.S. Department of Agriculture. 

Instead, Wisconsin regulates products with hemp derivatives at the state level through the same laws that govern retail food establishments and food processors. Like other products, hemp-derived products are subject to Department of Agriculture, Trade and Consumer Protection requirements for labeling, weights and measures, consumer safety, misrepresentations, and deceptive advertising.

The state only allows hemp that has been certified by DATCP or another state’s hemp program to be in food products, but food items or ingredients containing hemp manufactured and packaged outside of Wisconsin cannot be sold in Wisconsin. Wisconsin also has “truth in labeling” laws requiring all hemp products to be properly labeled. Knowingly making an inaccurate or misleading claim regarding hemp products is illegal under a state statute. 

Dane County Executive Melissa Agard, a Democrat who served in the Legislature for 12 years and authored bills to legalize recreational and medical marijuana, argues that legalization would lead to regulation.

“If we would pass a bill in regards to legalizing and regulating cannabis in Wisconsin, there would be a lot more consumer protections, whether you’re at a restaurant that might be serving cannabis-infused foods or a bar that’s selling cannabis-infused beverages, or at a corner store where you want to buy some edibles or some bud,” Agard said. “Right now, you’re just kind of taking people’s word for it. There’s no checks and balances, there’s no real accountability.”

Minnesota, where marijuana is now fully legal, also regulates hemp products including requiring all consumers to be at least 21 years of age.

In Michigan, only companies licensed through the Michigan Marijuana Regulatory Agency can sell, distribute and manufacture hemp-derived Delta-8 products, and all customers must be 21.

Wisconsin has no specific age requirements for purchasing and ingesting hemp products. Instead, age requirements are left up to localities. 

Wood County was the first state locality to set an age restriction on purchasing hemp-related products in 2022. Milwaukee County set an age requirement in July after two children were left hospitalized after being sold THC gummies.

In February, Public Health Madison and Dane County expressed support for implementing an age restriction statewide. 

Without a statewide age restriction, many localities have not passed specific requirements, leaving those markets widely unregulated. 

In the Famous Yeti’s incident, eight people under 18 were reportedly intoxicated by cannabis oil, but without regulations, there were no citations. 

“There are no regulation requirements for products derived from the hemp plant,” Public Health Madison and Dane County said in a blog following the incident. “Unlike commercial tobacco, Public Health cannot issue citations for the sale or distribution of hemp-derived products to minors.”

No compensation for THC victims

The Famous Yeti’s Pizza incident shows the consequences of a lack of regulation.

Jason Tarasek, a Minnesota attorney who specializes in cannabis law, explained that people harmed by the contamination would likely need to show monetary consequences to win a lawsuit against the establishment.

“One of those people who were harmed could easily bring a negligence action against that restaurant because it’s a breach of your duty to act as a reasonable restaurant if you’re accidentally slipping THC to people,” Tarasek said.

According to responses to the public health department’s questionnaire accessed via an open records request, respondents did raise concerns about the monetary consequences of the contamination.

“I don’t think I should have to pay for my ambulance ride or my tests that I needed as a result of being drugged,” a female respondent said.

Another female respondent said she was going to have over $1,000 in hospital bills even after her insurance claim.

“The closer you get to pointing at a bill for money, the easier it is to get a judge or jury to award you that,” Tarasek said.

The civil lawsuit against Famous Yeti’s pizza relates to negligence on behalf of the restaurant. 

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Hoffland claims Famous Yeti’s breached its duty by “negligently preparing, handling, and serving food contaminated with THC” resulting in “physical illness, mental distress, and other injuries requiring medical attention and resulting in damages.” The civil lawsuit also claims Famous Yeti’s is strictly liable for Hoffland’s injuries and damages from consuming “THC-laced” food. 

In response to the complaint, Famous Yeti’s said it was not negligent in preparing the food nor at fault for the contamination, but admits the product unintentionally “contained” THC. The restaurant also denied the food was laced, which would imply the food was deliberately infused with THC.

“The contamination of the subject product was the result of an intervening cause not due to any negligence or fault on the part of the defendant,” Famous Yeti’s said in its response.

Currently, the civil lawsuit is still pending. Famous Yeti’s, Hoffland and their attorneys did not respond to a request for comment.

Current status of regulation attempts

Wisconsin’s lack of cannabis regulations continues to leave consumers in the dark when they purchase hemp-derived THC products in Wisconsin.

Gov. Tony Evers has attempted to regulate cannabis in multiple budget cycles, the most recent being the 2025-27 biennium. The marijuana-related provisions would have legalized and set regulatory standards for marijuana. 

Evers’ budget recommendations included a section that would have started a program within DATCP to regulate the cultivation, production and distribution of marijuana requiring all producers and processors to hold a permit from DATCP.

The provision would have also set more stringent requirements, such as requiring all purchasers of THC products be 21 or older and banning production or distribution of cannabis near schools, playgrounds, public parks or child care facilities. If passed, it would have also established a training program under DATCP for proper handling of cannabis. 

But Republicans removed the provision from the budget bill early in the process. 

In 2024, Republicans, who have been otherwise reluctant to support marijuana legalization, introduced a bill to legalize and regulate medical marijuana in Wisconsin, specifically through heavily regulated state dispensaries. The bill was sponsored by 19 Republicans, including Assembly Speaker Robin Vos, R-Rochester, but failed to pass the Legislature. It would not have regulated THC products derived from hemp.

This story was produced in partnership with the University of Wisconsin-Madison’s Investigative Journalism class taught in the School of Journalism and Mass Communication.

Legal loopholes in Wisconsin cannabis laws leave consumers vulnerable is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.