MJ Business Daily ran an article yesterday incorrectly analyzing Hemp Industries Association v. DEA. MJ Biz incorrectly stated the D.C. Court of Appeals ruling, claiming that “the common methods of CBD production violate federal law. That’s because many methods for extraction produce extract material that temporarily goes ‘hot,’ or above 0.3% THC.”
Bottom line, it didn’t happen. Rather, the Court of Appeals held that it did not have jurisdiction to rule because the Petitioners could not show that they had suffered an injury yet. So, the Court dismissed the case and DID NOT rule on the merits. The Court stated: “jurisdiction is absent – over the major issue – not just because the Petitioners lack injury, but also because we do not even have before us a case or controversy.”
This is a very important distinction for any involved in the hemp industry. A test case could be set up to test the question of whether the Farm Bill requires each manufacturing process to result in THC at .3% or less – but this one was not it. The D.C. Court of Appeals correctly dismissed the case on jurisdictional grounds.
DEA is not enforcing this interim rule yet – nor should it. The DEA’s interpretation of the Farm Bill is simply wrong.