Missouri Hemp Businesses File Federal Lawsuit Challenging New Rules

The bill could effectively kill the hemp-derived THC market in Missouri.

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A coalition of hemp businesses filed a federal lawsuit today in the U.S. District Court for the Western District of Missouri challenging Missouri House Bill 2641, arguing the law conflicts with federal law, contains contradictory provisions and leaves existing legal hemp businesses with no path to continue operating.

The plaintiffs said that, if allowed to take effect, HB 2641 threatens hundreds of Missouri businesses and farmers, thousands of jobs across the state and consumers who rely on hemp products for pain and stress reduction.

The plaintiffs are the MoHemp Trade Association, which represents hemp businesses across Missouri; Lifted Liquids, a Wisconsin-based manufacturer and distributor of hemp products; and MNG 2005, a St. Louis-based retailer, manufacturer and distributor with 55 stores in five states.

The lawsuit asks the court to declare HB 2641 unconstitutional and prevent it from taking effect before its November 12, 2026, effective date.

Under HB 2641, hemp-derived products could be cultivated, manufactured, transported and sold in Missouri only by entities holding marijuana licenses issued by the Department of Health and Senior Services. However, those licenses are capped and unavailable to existing hemp businesses, leaving legal operators with no legal path to obtain licenses. 

"For more than 13 years, we've built our business by following Missouri law and advocating for common sense hemp regulations, including age restrictions, testing requirements, and accurate labeling.” said David Palatnik, president of MNG 2005, in a statement. “HB 2641 is the first law we can't comply with because it wasn't written to be complied with. There is no license we can apply for. There is no standard we can meet. There is no clarity in the conflicting definitions. Businesses that have operated legally in Missouri for years are simply left with no lawful path forward and forced to watch everything they’ve built be handed to someone else.”

The lawsuit further alleges HB 2641 is preempted by the federal Farm Bill, in which Congress legalized hemp nationally and expressly prohibited states from blocking the transportation of legal hemp products through their borders.

HB 2641 would redefine federally legal hemp products as "marijuana" under Missouri law and restrict their transport, even shipments merely passing through the state, to Missouri marijuana licensees.

"Congress made clear that states cannot block federally legal hemp shipments,” said Nick Warrender, CEO of Lifted Liquids, in a statement.  “HB 2641 would do exactly that and force companies like ours to reroute federally lawful shipments around an entire state. "

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