NY Hemp Firms Refile Lawsuit Against Law Banning I
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Posted On: 04/04/2024 4:46:41 PM
NY Hemp Firms Refile Lawsuit Against Law Banning Intoxicants from Hemp
A coalition of companies in New York has refiled a suit against the Office of Cannabis Management and the state’s Cannabis Control Board. The state-licensed operators claim that New York’s new rules on hemp-derived cannabinoid products have cost them losses adding up to millions of dollars. The companies hope to be awarded an injunction that would allow them to continue selling hemp products. This comes after a judge dismissed a similar case filed prior to this one on technical grounds.
In their statement, the plaintiffs note that the raids were part of a larger crackdown on the illegal marijuana trade in the state and enfolded the market for intoxicating cannabinoids such as delta-8 THC. The coalition filing the suit includes CBD sellers, distributors and producers that trade in hemp products which contain synthetically produced compounds such as delta-8 THC. In concentrated qualities, these compounds induce a high in users.
Products that include these compounds are often marketed as alternatives to cannabis and have been dubbed “marijuana light” and “diet weed.” The producers claim that the revised hemp regulations are unconstitutional, noting that the state had, by imposing the new rules, violated their rights to due process.
The new regulations imposed a CBD to THC ratio of 15:1, which made more than 70% of already available products based on hemp illegal in New York. Various companies recalled hundreds of thousands’ worth of hemp products following the rules’ implementation, while others had to halt operations that had previously brought in profits.
A number of those involved in this latest filing claimed victory in a similar case that reached the Supreme Court in the United States. The court’s decision permitted them to bypass emergency measures adopted by the state in August 2023 that would prohibit the possession and sale of hemp compounds. The judge ruling in the plaintiffs’ favor could greatly limit the abilities of states to regulate intoxicating cannabinoids derived from hemp. On the other hand, a ruling in the regulators’ favor would strengthen the authority of all states to ban or regulate hemp-derived foods, even though the 2018 Farm Bill legalized hemp and its products.
Judge Edgardo Ramos, who was recently assigned to the newest New York case, has set up a hearing for May 9, 2024.
Currently, the state of New York is the third largest market for CBD among all states in America, the first being California and second being Florida. Projections expect sales of CBD products this year to hit $1.5 billion.
The highly fluid regulatory regime for hemp products in not just New York state but other jurisdictions as well is potentially holding back many opportunities that companies such as Astrotech Corp. (NASDAQ: ASTC) could have exploited in the growing hemp industry in the country.
NOTE TO INVESTORS: The latest news and updates relating to Astrotech Corp. (NASDAQ: ASTC) are available in the company’s newsroom at https://cnw.fm/ASTC
Please see full terms of use and disclaimers on the HempWire website applicable to all content provided by HW, wherever published or re-published: https://www.HempWire.com/Disclaimer
A coalition of companies in New York has refiled a suit against the Office of Cannabis Management and the state’s Cannabis Control Board. The state-licensed operators claim that New York’s new rules on hemp-derived cannabinoid products have cost them losses adding up to millions of dollars. The companies hope to be awarded an injunction that would allow them to continue selling hemp products. This comes after a judge dismissed a similar case filed prior to this one on technical grounds.
In their statement, the plaintiffs note that the raids were part of a larger crackdown on the illegal marijuana trade in the state and enfolded the market for intoxicating cannabinoids such as delta-8 THC. The coalition filing the suit includes CBD sellers, distributors and producers that trade in hemp products which contain synthetically produced compounds such as delta-8 THC. In concentrated qualities, these compounds induce a high in users.
Products that include these compounds are often marketed as alternatives to cannabis and have been dubbed “marijuana light” and “diet weed.” The producers claim that the revised hemp regulations are unconstitutional, noting that the state had, by imposing the new rules, violated their rights to due process.
The new regulations imposed a CBD to THC ratio of 15:1, which made more than 70% of already available products based on hemp illegal in New York. Various companies recalled hundreds of thousands’ worth of hemp products following the rules’ implementation, while others had to halt operations that had previously brought in profits.
A number of those involved in this latest filing claimed victory in a similar case that reached the Supreme Court in the United States. The court’s decision permitted them to bypass emergency measures adopted by the state in August 2023 that would prohibit the possession and sale of hemp compounds. The judge ruling in the plaintiffs’ favor could greatly limit the abilities of states to regulate intoxicating cannabinoids derived from hemp. On the other hand, a ruling in the regulators’ favor would strengthen the authority of all states to ban or regulate hemp-derived foods, even though the 2018 Farm Bill legalized hemp and its products.
Judge Edgardo Ramos, who was recently assigned to the newest New York case, has set up a hearing for May 9, 2024.
Currently, the state of New York is the third largest market for CBD among all states in America, the first being California and second being Florida. Projections expect sales of CBD products this year to hit $1.5 billion.
The highly fluid regulatory regime for hemp products in not just New York state but other jurisdictions as well is potentially holding back many opportunities that companies such as Astrotech Corp. (NASDAQ: ASTC) could have exploited in the growing hemp industry in the country.
NOTE TO INVESTORS: The latest news and updates relating to Astrotech Corp. (NASDAQ: ASTC) are available in the company’s newsroom at https://cnw.fm/ASTC
Please see full terms of use and disclaimers on the HempWire website applicable to all content provided by HW, wherever published or re-published: https://www.HempWire.com/Disclaimer
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