The Arizona hemp industry has initiated a lawsuit against state and local prosecutors in an effort to halt the enforcement of a deadline that requires the removal of THC-infused products from store shelves. The Hemp Industry Trade Association of Arizona filed the complaint and a request for a temporary restraining order in Maricopa County Superior Court, targeting Arizona Attorney General Kris Mayes and each of the state’s 15 county attorneys.
The lawsuit contends that consumable hemp products are legal under federal law, and challenges Mayes’ interpretation of Arizona law as unlawful. Mayes has argued that state regulations prohibit these products, despite their federal legality, and has set an enforcement deadline of April 24, 2023, after which retailers, distributors, and manufacturers risk facing fines and jail time for continuing sales.
The hemp industry claims that this enforcement threatens to eliminate thousands of jobs and could lead to significant financial losses for business owners. The lawsuit states that Mayes’ interpretation could penalize lawful businesses that have relied on assurances of legality from the Arizona Department of Agriculture.
In the motion, the hemp industry group seeks an immediate court order to prevent enforcement of the deadline, asserting that: – Consumable hemp products are allowable under Arizona law. – Commerce involving processed hemp consumables can occur without a state license. – The production and sale of these products do not violate any laws. – Prosecutors lack the authority to arrest or penalize individuals involved in the hemp industry.
The lawsuit also seeks reimbursement for legal fees and costs incurred by the hemp industry group.
The urgency of the lawsuit was underscored by recent actions affecting businesses in the industry, such as demands for product buy-backs and terminated contracts. Following Mayes’ warning, events like the canceled ‘Sonoran Brew Festival’ have compounded the distress, as this event was expected to attract around 3,000 attendees and showcase numerous brands of hemp-derived beverages.
The products at the center of this legal battle primarily include food and drinks infused with Delta-9 tetrahydrocannabinol (THC), the main psychoactive component in marijuana. While marijuana remains classified as a Schedule I drug federally, the 2018 federal farm bill created a loophole that allows for the extraction and concentration of THC from hemp, leading to an influx of products that mimic marijuana effects but evade state dispensary regulations and taxes.
Despite Mayes’ formal opinion issued in March 2023 stating that intoxicating hemp products are illegal under Arizona law, the market for these products has expanded. Notable retailers like Total Wine & More have begun selling THC-infused beverages, prompting questions about compliance with state laws.
Wake N Bakery, a café in Tempe selling hemp-derived products, has expressed intent to resist Mayes’ order, citing confidence in the legality of their operations under federal law. The café’s management stated their readiness to defend their rights and those of consumers seeking access to hemp-derived wellness products.
The ongoing conflict between state authorities and the hemp industry mirrors similar enforcement challenges in other states, where courts have issued mixed rulings. Notably, a federal judge ruled in October 2022 that New Jersey could not restrict sales of THC-infused products made legally in other states.
Critics of THC-infused hemp products point to regulatory gaps and potential safety concerns, particularly regarding untested products from states or countries lacking stringent quality controls. In Arizona, dispensary products are rigorously tested and subject to a 16% excise tax, which supports local community services.
The hemp industry’s lawsuit highlights that the Arizona law permits the commercial production and sale of industrial hemp as long as it aligns with federal law. The Arizona Department of Agriculture has established rules that do not impose restrictions on the ingestion of hemp products.
The lawsuit concludes that injunctive relief is necessary to prevent the loss of approximately 8,000 jobs and hundreds of millions of dollars in wages, while asserting that the state could delay enforcement without causing harm. The hemp industry group insists that the legal basis for their operations remains strong, calling for judicial protection against the impending ban.
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