Lawsuit seeks to block Missouri ban on intoxicating hemp products

A coalition of hemp businesses filed a federal lawsuit Thursday in an attempt to halt a statewide ban on intoxicating hemp products from going into effect in November.

The lawsuit, filed in the U.S. District Court for the Western District, claims the ban state lawmakers passed this spring contains “unconstitutionally vague” definitions for hemp and marijuana. 

Craig Katz, government relations and compliance manager for one of the plaintiffs, St. Louis-based MNG 2005, Inc., said the problem begins with lawmakers’ lack of understanding about the cannabis industry. 

“A lot of this stuff is kind of in the weeds,” Katz said. “It’s very difficult to understand. And when people are trying to legislate it, if they don’t understand it, you come up with something like HB2641, which doesn’t make a whole heck of a lot of sense.”

The coalition includes MNG, which is the parent company for 55 CBD Kratom stores nationwide, the Missouri Hemp Trade Association and a Wisconsin-based hemp business, Lifted Liquids Inc.

The bill in question was among the first Missouri Gov. Mike Kehoe signed this year and will take all intoxicating hemp products off the shelves starting Nov. 12 — including THC seltzers currently sold in bars and grocery stores.

The legislation largely aligns state law with the upcoming federal ban that Congress approved last year.

Under Missouri’s bill, if Congress reverses course and decides to allow the sale of these products, the state would only permit them in licensed marijuana dispensaries. And if Congress delays the ban for a couple years, Missouri law would still ban all products, except for intoxicating beverages. 

It also tasks Missouri Attorney General Catherine Hanaway with enforcement.

Kehoe, Hanaway and Sarah Wilson, director of the Missouri Department of Health and Senior Services which oversees the state’s marijuana program, are the named defendants.

Hanaway’s spokeswoman said the office had not been served the lawsuit. Kehoe’s office and DHSS declined to comment since it’s pending litigation.

Similar bills have been debated since 2023, but failed to pass. Without regulations, intoxicating hemp products with as much as 1,000 mg of THC are currently sold in smoke shops — outside of Missouri’s licensed marijuana dispensaries.

The bill’s sponsor, Rep. Dave Hinman, a Republican from O’Fallon, said the legislation largely gives state law enforcement and prosecutors the authority to enforce the federal hemp ban after Nov. 12. 

“ I believe this is the last ditch effort for the hemp industry,” Hinman said. “HB2641 passed the Missouri House, Senate and was signed by the governor. It was vetted throughout the entire process. I don’t believe this Hail Mary will get the results the Hemp Trade Association wants, and Missouri will mirror the federal government.”

The lawsuit argues that the bill defines the same products as both “hemp” and “marijuana” in different provisions, which leaves businesses, law enforcement and prosecutors confused about what is legal. 

“Because unlicensed marijuana activity is a crime in Missouri, that confusion carries criminal consequences,” states the coalition’s press release announcing the lawsuit.

While the bill “promises” not to interfere with interstate hemp commerce, the coalition notes that it also restricts who may transport hemp products through the state, the press release states. 

And it contains effective date provisions “so convoluted that businesses cannot determine which products are covered or when,” it said.

The coalition believes the “confusing” definitions will also take non-intoxicating CBD products off Missouri shelves. 

“This isn’t consumer protection,” said Jay Patel, the association’s president. “It’s the elimination of an entire legal industry coupled with a government-mandated monopoly.”