Arkansas can enforce hemp-derived THC ban, appeals court rules

Most hemp-derived THC products in Arkansas are illegal and state officials may enforce a 2023 ban, according to a ruling from the U.S. 8th Circuit Court of Appeals.

The Tuesday decision overturns a 2024 lower-court ruling in a case brought by four hemp companies that sued in an attempt to halt Arkansas officials from enforcing Act 629.

Signed into law by Gov. Sarah Huckabee Sanders in May 2023, Act 629 banned:

In a September 2023 ruling, a judge with the U.S. District Court for the Western District of Arkansas issued a preliminary injunction halting enforcement of the ban, ruling that the hemp companies were likely to prevail.

The hemp companies had argued that the U.S. Constitution’s supremacy clause prevented states from passing laws stricter than the 2018 Farm Bill.

A three-judge 8th Circuit panel rejected that argument, writing in part that “just because states may legalize hemp under the 2018 Farm Bill does not mean they must.”

States are also free to abandon “the federal definition of hemp,” according to the 8th Circuit’s opinion, which was signed by President Donald Trump appointee Judge Jonathan Kobes.

As Kobes’ opinion noted, the case is still active and will return to the district court for more proceedings.

But in the meantime, Arkansas officials are now allowed to enforce the state’s ban.

In a statement, the American Trade Association for Cannabis and Hemp (ATACH) welcomed the decision, “which affirms the right of states to regulate intoxicating hemp-derived products and provides clarity to state lawmakers seeking to address these products in their states.”

The decision comes amid serious reconsideration of the 2018 Farm Bill’s meaning and impact.

In Congress, House Republicans are pushing a redefinition of hemp meant to close a perceived “loophole” that’s allowed intoxicating hemp-derived THC products to proliferate across the country.

However, some conservative states are choosing to regulate rather than ban.

That would include Texas, where Gov. Greg Abbott recently vetoed a bill that would have outlawed the state’s estimated $5.5 billion hemp industry.

Notably, Abbott cited the Arkansas litigation as a reason for his veto, noting that Texas’ ban was also likely to end up in the courts.