+ 0.44
+ 0.15%
+ 0.16
+ 0.05%
+ 1.34
+ 0.75%

Cannabis Law Firms Advise RE Botanicals In Lawsuit Challenging DEA's New Hemp Rule

September 22, 2020 5:11 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print More

Hoban Law Group filed a petition on behalf of RE Botanicals Inc. and the Hemp Industries Association (HIA) asking the U.S. Court of Appeals for the District of Columbia Circuit to review an interim final rule on hemp production.

Implementation of the Agriculture Improvement Act of 2018,” which was promulgated by the U.S. Drug Enforcement Administration (DEA) last month, stipulates all hemp derivatives and extracts exceeding 0.3% THC content will continue to be classified as Schedule I controlled substances.

The complaint, filed on Sept. 18, claims this interim final rule is unlawful, as it exceeds the DEA’s legal authority.

The plaintiffs also argue the move violates the Agriculture Improvement Act of 2018 (the Farm Bill), which Congress enacted seeking to establish a federal industrial hemp industry. Acting DEA administrator Timothy Shea ignored several procedures required by law when issuing the interim final rule, the petitioners alleged.

Hoban and Asheville, N.C.-based Knight Law Office are advising RE Botanicals and HIA, along with Vicente Sederberg LLP and Yetter Coleman LLP.

“We are a small, woman-operated company,” said RE Botanicals CEO Janel Ralph. “The DEA's new rule could put us out of business overnight."

Adding to these comments, HIA President Rick Trojan said, "When Congress passed the 2018 farm bill, it explicitly carved hemp and its derivatives out of the Controlled Substances Act so that hemp can be regulated as an agricultural commodity. The DEA’s interim final rule could create substantial barriers to the legal manufacturing of hemp-derived products, a critical component of the hemp supply chain, and devastate the entire hemp industry. Although the DEA states that is not its intention, the rule must be amended to ensure hemp remains an agricultural crop, as Congress intended."

According to Vicente Sederberg partner Shawn Hauser, the DEA implemented this rule "without following proper rule-making procedures, such as providing the public with notice and the opportunity to comment."

The petitioners believe legal action is necessary to protect the lawful U.S. hemp industry that Congress intended to establish when it enacted the 2018 farm bill, he added.

Image from OpenClipart-Vectors on Pixabay, edited by El Planteo.


Cannabis News Legal Markets

Related Articles

Magic Johnson-Backed Uncle Bud's To Enter Asia Market In November

Uncle Bud's, a hemp and CBD brand backed by Earvin "Magic" Johnson, is poised to debut in Asia. The NBA Lakers legend and Basketball Hall of Famer will launch the brand's newest shop on Nov. 6 on Tmall Global, China's business-to-consumer (B2C) cross-border online platform. read more

Jushi Raises CA$35.5M Equity Offering

Cannabis and hemp company Jushi Holdings Inc. (CSE: JUSH) (OTCQB: JUSHF) is poised to raise CA$35.5 million through an overnight marketed offering. read more

Puration Buys Dallas Area Farmland For $1.3M

Puration Inc. read more

Ontario Boosts Canadian Cannabis Sales To Reach $245M In August

Canada cannabis sales increased 94% over the year and 6% sequentially to CA$244.9 million in August. According to Statistics Canada, the growth can be attributed to the expansion of the retail footprint across provinces, including British Columbia and especially Ontario. read more

Diversity And Inclusion In Cannabis Security

This article was originally published on Hoban Law Group, and appears here with permission. Written By Tony Gallo – Guest Writer read more