INDIANAPOLIS (CN) — A major manufacturer of hemp extract products and the Midwest Hemp Council filed a federal lawsuit Monday asking the court to rule that all low-THC hemp extracts are agricultural products and not illegal drugs under Indiana law.
The hemp market grew rapidly in Indiana after the passage of a 2018 bill, Senate Enrolled Act 52, that allowed the sale of certain hemp extract products.
The law allows for the sale of these products as long as they do not contain more than 0.3% Delta 9 THC — a psychoactive compound found in cannabis.
If it contains higher percentages of the compound, the product is not considered a hemp product but rather marijuana and is still illegal under Indiana law.
In January, Indiana Attorney General Todd Rokita, a Republican, authored an official opinion that cast doubt on the legal status of certain hemp extract products.
Specifically, Rokita states in his opinion that types of THC variants — including Delta-8, Delta-10, THC-O and THC-P — would fall under the definition of controlled substances.
This led the nonprofit Midwest Hemp Council and hemp extract manufacturer 3C LLC to sue Rokita and Indiana in the hopes that the federal court will issue a ruling declaring that all low-THC extracts are considered agricultural products and are thus legal.
“This is a lawsuit challenging the Attorney General’s Official Opinion 2023-1, which attempts to unilaterally reclassify low-THC hemp extracts as Schedule I controlled substances in direct conflict with well-established state and federal laws encouraging the redevelopment of a domestic supply chain of hemp and hemp products in Indiana and across the country,” the lawsuit states.
The murkiness exists because the 2018 law does not mention different types of hemp extract derivatives but instead only contains language governing the allowed concentrations of Delta 9.
Rokita’s opinion could be seen as attempting to close a loophole that the 2018 law did not cover.
The lawsuit challenges Rokita’s opinion by saying that the attorney general attempts to differentiate between “synthetic” hemp derivatives and those that are “naturally occurring” despite no such distinction existing in state or federal law.
“As a result of the Official Opinion, 3Chi and members of the Midwest Hemp Council are in jeopardy of criminal prosecution for possessing or transporting Delta-8 THC and similar hemp extracts if law enforcement personnel act on AG Rokita’s admonition,” the lawsuit states.
Additionally, the plaintiffs claim that 3C LLC was forced to find another financial institution in the wake of Rokita’s opinion and that a small business was threatened by law enforcement.
“On June 2, 2023, as a direct result of AG Rokita’s Official Opinion, the Wayne County Prosecuting Attorney sent a letter to a Midwest Hemp Council member’s small business threatening the store owner to stop selling these products or face legal action from law enforcement,” the lawsuit states.
The plaintiffs also seek an injunction against Indiana law enforcement agencies to prevent them from attempting to criminalize or prosecute the sale, possession, manufacturing, financing or distribution of THC hemp extracts that fall below the 0.3% threshold.
Rokita’s office did not immediately respond to a request for comment.
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