Louisiana Hemp Companies Sue State Over New Strict THC Limits, Alleging Recriminalization

Benzinga · 10/21 21:07

Louisiana’s hemp industry faces a legal showdown. Local businesses and farmers filed a federal lawsuit Friday against state authorities over recent legislative changes. Act 752, enacted in June, has come under fire for tightening THC limits in consumable hemp products, which industry stakeholders argue violates federal standards.

Recriminalization Of Hemp Products Alleged

The Hemp Association of Louisiana and Cypress Hemp LLC have taken legal action against Governor Jeff Landry (R), Attorney General Liz Murrill (R) and Baton Rouge District Attorney Hillar Moore III (D). 

Their complaint alleges that Act 752 redefines “industrial hemp” by total THC content rather than solely delta-9 THC, the main psychoactive element in cannabis. This redefinition, they claim, unjustly recriminalizes numerous hemp-derived products previously deemed legal under both state and federal law.

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“This law impermissibly narrows the definition of hemp to recriminalize the possession, manufacturing, transportation, and shipment of certain popular hemp-derived cannabinoid products,” states the lawsuit, according to Law360 via Green Market Report. Plaintiffs argue that the state’s new policy creates a stark misalignment with the 2018 federal Farm Bill, which permits hemp containing up to 0.3% delta-9 THC.

The lawsuit seeks to have Act 752 declared unconstitutional on multiple grounds, asserting it infringes the Supremacy Clause, the Commerce Clause and due process rights under the Constitution. Additionally, the plaintiffs criticize the law for its vague language, suggesting it fails to provide “fair notice as to which products are forbidden.”

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Lawsuit Seeks Restraining Order Against Act 752, Warns Of Economic Impact

With a temporary restraining order or preliminary injunction against the law’s enforcement being requested, the legal battle highlights a growing rift between state and federal policies on hemp products. This legal friction mirrors similar disputes in other states, such as South Dakota, where a federal judge recently halted enforcement of a ban on smokable hemp products.

Furthermore, the lawsuit says enforcing Act 752 could lead to “thousands of lost jobs around the state and turn farmers, business owners, and consumers into criminals overnight, despite no change in federal law."

Legal Battle Mirrors Other State Disputes

Louisiana’s situation reflects a broader national trend of states tightening regulations on hemp-derived products. Recently, courts in California and New Jersey upheld strict controls on substances like delta-8 THC, impacting businesses statewide. 

Similarly, Tennessee and Utah are advancing legislation to limit psychoactive hemp products, prompting legal challenges from industry groups. These developments underscore the growing legal complexities faced by the hemp industry across the United States.

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