State-by-state hemp & cannabis compliance.
TerraVault automatically enforces state and federal compliance on every transaction. Shipping rules, THC limits, license checks, and COA verification — built into the platform, not bolted on.
Automated Enforcement
How TerraVault enforces compliance.
Every order passes through five compliance checks before it can proceed. No manual review needed — it is instant and automatic.
Automatic state shipping rule verification
Every order is checked against the origin and destination state regulations before it can proceed. Non-compliant routes are blocked instantly.
THC limit checks
All products must have COAs showing delta-9 THC below 0.3% for interstate hemp commerce under the 2018 Farm Bill. Products exceeding this threshold are restricted to intrastate transactions only.
License verification before trading
Vendors must submit valid state-issued licenses before listing products. Licenses are verified against state regulatory databases and monitored for expiration.
Geo-verification of buyer and seller locations
IP-based and address-level verification ensures transactions comply with local jurisdiction rules, including states and counties that have opted out.
COA requirements enforced per state
Certificates of Analysis from accredited labs are required for every product listing. COAs are validated for completeness, lab accreditation, and THC content.
Federal Framework
The legal foundation for hemp commerce.
2018 Farm Bill
Hemp defined as cannabis with less than 0.3% delta-9 THC on a dry weight basis. Removed from Schedule I of the Controlled Substances Act. States authorized to create their own hemp regulatory programs.
USDA Oversight
The USDA oversees state and tribal hemp production plans. States must submit plans for USDA approval. Producers operating under approved state plans are subject to state and federal oversight.
Interstate Commerce
Compliant hemp and hemp-derived products may be transported across state lines under federal law. However, individual states may impose additional restrictions on inbound shipments, especially for smokable hemp and high-THCA products.
November 2026 Rule Changes
Updated USDA final rules take effect, including revised testing methodology, disposal requirements, and negligence thresholds. The total-THC vs. delta-9-only debate continues at the federal level.
State Regulations
State-by-state compliance data.
Key regulations for each state TerraVault operates in. Click a state for full details including license types, tax rates, and regulatory contacts.
| State | Hemp Status | THC Limit | License Req. | Key Notes |
|---|---|---|---|---|
| ArizonaAZInfo only | Legal | 0.3% delta-9 | Yes | Fully legal since 2020 (Prop 207). Limited licenses. Social equity program. |
| CaliforniaCA | Legal | No THC cap for adult-use flower | Yes | Largest legal cannabis market in the world. |
| ColoradoCO | Legal | No cap | Yes | First state to legalize recreational cannabis. |
| FloridaFLInfo only | Legal | 0.3% delta-9 | Yes | Hemp program under FDACS. Medical cannabis only; no adult use. Large medical market. |
| IllinoisILInfo only | Legal | 0.3% delta-9 | Yes | Fully legal adult use since 2020. Social equity licensing. Vertical integration allowed. |
| MaineMEInfo only | Legal | 0.3% delta-9 | Yes | Fully legal since 2016. Slow rollout. OCP regulates. Caregiver market significant. |
| MassachusettsMAInfo only | Legal | 0.3% delta-9 | Yes | Fully legal since 2016. CCC regulates. Delivery licenses available. Social equity focus. |
| MichiganMI | Legal | No cap | Yes | Fast-growing market. |
| MinnesotaMN | Legal | No cap | Yes | Brand new market — first adult-use licenses issued in 2025 via lottery. |
| MontanaMTInfo only | Legal | 0.3% delta-9 | Yes | Fully legal since 2021 (I-190). Small market. Local opt-out allowed. |
| NevadaNV | Legal | No cap | Yes | Tourism-driven market centered around Las Vegas. |
| New MexicoNM | Legal | No cap | Yes | Fast-growing market with relatively few barriers to entry. |
| New YorkNY | Legal | No cap | Yes | Slow rollout plagued by lawsuits and illicit market competition. |
| OklahomaOK | Legal | No cap (medical) | Yes | Most licenses issued of any state. |
| OregonOR | LegalShip Ban | No cap | Yes | No sales tax makes Oregon cannabis relatively affordable. |
| TexasTX | LegalShip Ban | 0.3% THC (hemp only) | Yes | Largest hemp-only market. |
| VirginiaVA | Legal | TBD by regulation | Yes | Retail market launching November 1, 2026. |
| WashingtonWAInfo only | Legal | 0.3% delta-9 | Yes | Fully legal since 2012. Mature market. LCB regulates. No interstate cannabis commerce. |
Note: 10 states currently restrict inbound shipments of smokable hemp or THCA products. TerraVault automatically blocks orders to these states for restricted product types. Data is updated regularly but regulations change frequently. Always verify current state regulations before shipping.
Shipping Compliance
Interstate shipping rules.
Inbound hemp shipment rules
Most states allow inbound shipments of hemp products that comply with the federal 0.3% delta-9 THC limit. However, several states restrict or ban smokable hemp flower, THCA products, or specific product forms. TerraVault maintains a real-time database of these restrictions.
Documentation required for interstate shipping
All interstate hemp shipments must include: Certificate of Analysis from an accredited lab, proof of compliant THC levels, origin state license documentation, bill of lading, and chain of custody records. TerraVault auto-generates shipping documentation packages for every order.
Auto-blocked non-compliant routes
TerraVault automatically blocks orders where the destination state prohibits the product type being shipped. This includes smokable hemp bans, THCA restrictions, and states that require additional import permits. Vendors and buyers are notified of the restriction with a specific reason.
Banned shipping states
The following states currently restrict inbound shipments of smokable hemp and/or THCA flower. TerraVault auto-blocks these routes.
Questions about compliance?
Our compliance team can help you navigate state regulations, licensing requirements, and shipping rules for your specific products and markets.
Disclaimer: This information is for educational purposes only and does not constitute legal advice. Hemp and cannabis regulations change frequently. Always consult with a licensed attorney in your jurisdiction before making business decisions. TerraVault is not a law firm and does not provide legal counsel.