A coalition of hemp businesses filed a federal lawsuit Thursday seeking to block Missouri House Bill 2641 before it takes effect on November 12.
The 32-page complaint, filed in the U.S. District Court for the Western District of Missouri, argues that the law is unconstitutionally vague, discriminates against interstate commerce and conflicts with federal protections for the transportation of legal hemp products.
The plaintiffs are the MoHemp Trade Association, Wisconsin-based manufacturer and distributor Lifted Liquids, Inc., which operates under the Urb brand, and St. Louis-based MNG 2005, Inc. The lawsuit names Governor Mike Kehoe, Attorney General Catherine Hanaway and Department of Health and Senior Services Director Sarah Wilson as defendants in their official capacities.
Kehoe signed HB 2641 into law on April 23. The legislation establishes the Intoxicating Cannabinoid Control Act and places hemp-derived cannabinoid products under Missouri’s existing marijuana regulatory framework. The governor’s office said the law requires businesses without marijuana licenses to discontinue manufacturing or selling hemp-derived cannabinoid products.
Under the law, the cultivation, manufacturing, testing, transportation and retail sale of hemp-derived cannabinoid products would generally be limited to businesses licensed by the Department of Health and Senior Services under Article XIV of the Missouri Constitution.
The lawsuit argues that Missouri has already issued the maximum number of marijuana cultivation, manufacturing and dispensary licenses and is not accepting new applications, leaving existing hemp businesses with no way to comply.
MNG operates 55 stores across five states, including 12 in Missouri, while Lifted Liquids manufactures products in Wisconsin and transports them into and through Missouri.
“HB 2641 is the first law we can’t comply with because it wasn’t written to be complied with,” said MNG President David Palatnik. “There is no license we can apply for. There is no standard we can meet.”
The plaintiffs also contend that HB 2641 contains contradictory definitions that appear to classify hemp-derived cannabinoid products as both hemp and marijuana. Although titled the Intoxicating Cannabinoid Control Act, the complaint argues that the law could apply to non-intoxicating products containing CBD.
The lawsuit includes three claims, alleging that HB 2641 violates the Fourteenth Amendment’s Due Process Clause because it is unconstitutionally vague, violates the dormant Commerce Clause by favoring products cultivated and manufactured in Missouri, and is preempted by the 2018 Farm Bill’s protections for interstate hemp transportation.
The plaintiffs are asking the court to declare the law unconstitutional and prevent state officials from enforcing it. The allegations have not yet been ruled on by the court.
