Cheyenne, WY: A 2024 state law prohibiting the production and sale of certain hemp-derived products, including those containing delta-8 THC or synthetically-derived cannabinoids, is not preempted by the 2018 federal Farm Bill, according to a ruling by the US Court of Appeals for the 10th Circuit.
Plaintiffs argued that federal law provides a “substantive right” for individuals to produce and provide hemp-derived products. The Court rejected this argument, opining, “No language in the statute speaks in terms of individual rights.” Rather, judges ruled that provisions in the Farm Bill explicitly identify hemp producers as entities to be “regulated,” not “protected.”
Judges also rejected plaintiffs’ argument that the hemp ban constitutes “an unconstitutional regulatory taking of their property without just compensation.” The court argued that the government’s police powers are well-established and that the courts have previously applied these powers with respect to alcohol.
“Plaintiffs should have been well aware that the Wyoming legislature might not continue to look as favorably upon hemp and hemp products,” the Court determined. “The state need not provide just compensation every time it adjusts its regulatory scheme, even if those changes incidentally impair or even destroy the businesses of some.”
The 10th Circuit decision is consistent with rulings issued earlier this year by federal courts in Arkansas and Virginia, which also determined that state governments retain the ability to restrict the sales of hemp-derived intoxicating products. In Alabama, a Montgomery Circuit Court judge also recently upheld that state’s newly imposed ban on smokable hemp products, as did a District Court judge in Alaska.
Nearly half of all US states impose severe restrictions on the retail sale of delta-8 THC and similar products, according to reporting provided by Courthouse News Service. However, Republican Governors in Florida and Texas recently vetoed legislation that sought to impose similar comprehensive bans.
The case is Green Room LLC et al. v. Wyoming.