Judge blocks Arkansas ban on delta-8 THC, other hemp products

In at least a temporary victory for the Arkansas hemp industry, a federal judge blocked enforcement of a recent state ban on products containing intoxicating hemp-derived cannabinoids such as delta-8 THC.

Calling the ban confusing and arbitrary, U.S. District Court Judge Billy Roy Wilson on Thursday granted an injunction that stops the state from enforcing it, according to Little Rock TV station KTHV.

The judge’s ruling stemmed from a lawsuit filed by four hemp-product makers in July – the day before the ban was to take effect.

The suit argued the ban was “unconstitutionally vague.”

Arkansas in May became the latest state with a legal marijuana industry to regulate or ban intoxicating hemp-derived products, which have exploded in popularity since the 2018 Farm Bill legalized hemp production nationwide.

The judge wrote in his decision that “Arkansas law criminalizes hemp derived products without an effective exemption for interstate commerce.”

He noted that Arkansas has the right to restrict delta-8 products but can’t prohibit transporting them through the state.

The case is set to go to trial on Aug. 27, 2024, KTHV reported.

Meanwhile, Congress is set to review the Farm Bill this year, but it’s uncertain whether federal lawmakers will address the unintended rise of the hemp-derived cannabinoid industry.

State regulators want Congress to redefine, regulate hemp, delta-8 THC

An association of state cannabis regulators is asking Congress to include in the next Farm Bill new rules governing hemp and hemp-derived cannabinoids, including a new definition for what constitutes “hemp” versus marijuana.

If adopted, the proposed rules would have broad implications for products containing hemp-derived, intoxicating cannabinoids, including delta-8 THC.

Such products have exploded in popularity since the 2018 Farm Bill was enacted.

The Cannabis Regulators Association (CANNRA) asked House and Senate committee chairs in a Sept. 15 letter to include “key initial changes that are urgently needed” to rein in what’s become an unruly competitor to strictly regulated cannabis.

At the top of CANNRA’s wish list is a new definition that would draw a clear distinction between hemp grown for fiber, food or feed and hemp intended for THC or CBD extraction.

CANNRA, formed in 2020, is also asking Congress to redefine what constitutes hemp.

Currently, hemp is defined as any cannabis sativa plant containing 0.3% THC or less.

CANNRA wants that definition rewritten to include both THC and THCA, which converts to THC when heated.

The regulators also want:

Different THC limits for what’s allowed in a hemp plant versus what’s allowed in a final product.

A “federal regulator with a background in public health and consumer protection” to regulate hemp-derived products and close any future loopholes product makers might exploit.

The Farm Bill is rewritten every five years and is due for renewal in this Congress.

Federal legislators have yet to release any draft forms for a new Farm Bill.

But they are facing a long agenda, including avoiding a looming government shutdown as well as long-awaited cannabis banking reform.

Applications for hemp-derived business permits surge in Minnesota

More than 1,000 companies and entrepreneurs have applied for business licenses to be part of Minnesota’s booming low-dose, hemp-derived products market.

The run-up to the Oct. 1 application deadline has fueled applications filings, which more than doubled from mid-August to 1,250, the Minnesota Department of Health told MinnPost.

The application deadline applies to any business, including liquor stores, that “sell hemp-derived cannabinoid products containing THC, CBD, or both,” according to information from the Minnesota Department of Health.

Registration is free.

Once registration is completed, operators will receive a registration certificate and unique ID number via e-mail.

The new batch of registered businesses will face new regulations and taxation under Minnesota’s adult-use cannabis legalization law that went into effect in May.

The law also transferred oversight of hemp-derived products from the Board of Pharmacy to the health department’s Office of Medical Cannabis (OCM).

The agency is in the spotlight following the sudden resignation of Erin Dupree, who stepped down as director last week, a day after the state announced her newly created role.

An investigation by MPR News-APM Reports revealed DuPree “ran a business that sold products that exceeded state limits on THC potency, owed money to former associates and accumulated tens of thousands of dollars in tax liens.”

Her resignation will delay the rulemaking process for both hemp-derived products and adult-use cannabis goods while Gov. Tim Walz seeks a new appointee.

Hemp-derived product makers and sellers in Minnesota were largely given regulatory freedom following a groundbreaking state law in May 2022 that allowed the sale of hemp-derived THC edibles in mainstream retail outlets such as grocery and convenience stores – distribution channels largely prohibited in recreational and medical cannabis markets.

When the law took effect July 1 of last year, the state allowed retailers to sell hemp-derived THC products without a license, sparking a wave of product innovation and retail opportunities.

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Those dynamics have helped Minnesota become the hottest market for low-dose, hemp-derived THC beverages in the country – and likely anywhere else.

The 2018 Farm Bill legalized hemp and opened the door for sales of delta-8, delta-9 and other intoxicating hemp-derived cannabinoids with up to 0.3% THC by dry weight.