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March 21, 2024

Jason Klimek Featured in Cannabis Insider Article on Hemp Lawsuit Dismissal

Jason Klimek, Cannabis Team co-leader, was featured in the Cannabis Insider article “Judge Tosses out NY Hemp Case on Procedural Grounds; Plaintiffs Say They’ll Refile.” The article examines a federal judge’s dismissal of a lawsuit filed in the Southern District of New York by nine hemp companies alleging civil rights violations by state officials and challenging the authority of the New York State Office of Cannabis Management and Cannabis Control Board to regulate hemp products. If refiled in federal court, a ruling in the plaintiffs’ favor could affect the legal cannabis and hemp markets nationwide. 

“States have the powers reserved to them that are not specifically enumerated for the federal government, one of which is called the police powers,” Jason said. “To the extent that a state like New York wants to implement regulations that curtail cannabinoid hemp . . . that seems to fit squarely within the police powers—they are allowed to regulate intoxicating substances.”

The article stated, “Klimek agrees that a ruling in the plaintiffs’ favor could invalidate hemp regulations across the country, which could undermine adult-use cannabis programs in states that have legalized. Hemp isn’t regulated as tightly as cannabis, Klimek said, so a judicial ruling that blocks states from setting restrictions on hemp could lead many to pursue hemp-derived business models, and avoid stricter cannabis regulations.”

Jason continued, “My knowledge is there hasn’t been an actual determination of whether this is legal or this is not legal under federal law. This is clearly within the OCM’s powers to regulate cannabinoid hemp.”

Cannabis Insider subscribers can read the full article here.


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