Hemp extractors worried about a federal crackdown over THC levels have dim prospects for getting help from the judicial system.
Instead, they’re looking to the words of the U.S. Drug Enforcement Administration in hopes the agency won’t put much effort into enforcing its 2020 rule about hemp extracts that go “hot,” or beyond 0.3% THC.
The hemp industry is largely keeping quiet in the wake of a June ruling by a federal appeals court in Washington DC.
The court sided with the DEA and ruled that hemp materials become illegal marijuana the moment they exceed the federal THC limit.
That interpretation alarmed CBD processors because common CBD extraction methods produce material with elevated THC amounts that are later remediated to meet the legal limit.
The court rejected arguments from the Hemp Industries Association and South Carolina CBD maker RE Botanicals, which argued that the DEA was violating the intent of the 2018 Farm Bill, which exempted hemp and its derivatives from the U.S. Controlled Substances Act.
In fact, the judges seemed nothing short of annoyed that hemp activists would challenge a rule that the DEA promised was a simple clarification of the new law.
Writing for a three-judge panel, U.S. Circuit Judge Laurence Silberman said the hemp plaintiffs were “wholly unable to show their injury” and that related arguments about prescription CBD were “frankly ridiculous.”
The decision frustrated Jody McGinness, head of the Hemp Industries Association, who told MJBizDaily after the decision that hemp arguments “weren’t given a real hearing.”
“We’re disappointed in the court’s ruling,” McGinness said.
One hemp company that was not involved in the case and does not perform extraction said the decision could harm all hemp operators.
“The result is bad for business and will continue to be a drag on investment, research and innovation in the hemp industry,” Cynthia Cabrera, chief strategy officer at Texas-based e-commerce hemp retailer Hometown Hero CBD, told MJBizDaily via email.
Next steps
The Hemp Industries Association and RE Botanicals have limited legal options after the defeat.
Because the case was heard before a federal appeals court, the only other court that could review the hemp claim is the U.S. Supreme Court.
Problem is, the nation’s highest court isn’t obliged to take any cases except when states sue each other (which actually happened over cannabis in 2014, when Oklahoma and Nebraska sued Colorado for legalizing adult-use cannabis; the U.S. Supreme Court declined to interfere).
In this case, the hemp activists concede that the Supreme Court is highly unlikely to intervene.
They could try another legal maneuver and ask for what is called an “en banc review,” where the appeals court takes another look. But even that is a long shot.
“The odds of that being granted are something less than 1%, statistically,” McGinness said.
The other plaintiff in the case, RE Botanicals, did not respond to requests for comment from MJBizDaily.
...
Excerpt only …
By Kristen Nichols, Hemp Editor
July 6, 2022 - Updated July 6, 2022
Images Credit:
- (Photo courtesy of Northeast Kingdom Hemp)
Source : MJBizDaily
Link to original article: After legal setback, hemp extractors hope DEA won’t make any big moves
