Missouri Hemp Businesses File Federal Lawsuit Challenging HB 2641

ST. LOUIS - EntSun -- By MoHemp Trade Association

A coalition of hemp businesses filed a federal lawsuit today in the U.S. District Court for the Western District of Missouri challenging Missouri House Bill 2641, arguing the law conflicts with federal law, contains contradictory provisions, and leaves existing legal hemp businesses with no path to continue operating.

If allowed to take effect, HB 2641 threatens hundreds of Missouri businesses and farmers,  thousands of jobs across the state, and consumers who rely on hemp products for pain and stress reduction will be left without relief.

The Plaintiffs are the MoHemp Trade Association, which represents hemp businesses across Missouri; Lifted Liquids, Inc., a Wisconsin-based manufacturer and distributor of hemp products; and MNG 2005, Inc., a St. Louis-based retailer, manufacturer, and distributor with 55 stores in five states. The lawsuit asks the court to declare HB 2641 unconstitutional and prevent it from taking effect before its November 12, 2026, effective date. Case 2:26-cv-04170-WJE was filed in the US District Court for the Western District of Missouri Central Division.

No path to comply
Under HB 2641, hemp-derived products could be cultivated, manufactured, transported, and sold in Missouri only by entities holding marijuana licenses issued by the Department of Health and Senior Services. However, those licenses are capped and unavailable to existing hemp businesses, leaving legal operators with no legal path to obtain licenses.

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As a result, HB 2641 does not regulate Missouri's hemp industry. It eliminates it and hands the market to a closed group of existing marijuana license holders.

"For more than 13 years, we've built our business by following Missouri law and advocating for common sense hemp regulations, including age restrictions, testing requirements, and accurate labeling," said David Palatnik, President of MNG 2005 Inc. "HB 2641 is the first law we can't comply with because it wasn't written to be complied with. There is no license we can apply for. There is no standard we can meet. There is no clarity in the conflicting definitions. Businesses that have operated legally in Missouri for years are simply left with no lawful path forward and forced to watch everything they've built be handed to someone else."

A law so contradictory it exposes lawful businesses to criminal enforcement
HB 2641's text contradicts itself on the most basic question a law can answer: what it applies to.

HB 2641 defines the same products as both "hemp" and "marijuana" in different provisions, promises not to interfere with interstate hemp commerce while restricting who may transport hemp products through the state, and contains effective date provisions so convoluted that businesses cannot determine which products are covered or when.

Because unlicensed marijuana activity is a crime in Missouri, that confusion carries criminal consequences. HB 2641 leaves businesses, law enforcement, and prosecutors alike guessing about what conduct is legal. Additionally, despite being titled the "Intoxicating Cannabinoid Control Act," the law as written reaches all hemp-derived cannabinoid products, sweeping in even non-intoxicating products such as CBD.

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"This isn't consumer protection. It's the elimination of an entire legal industry coupled with a government-mandated monopoly," said Jay Patel, MoHemp Trade Association President. "Missouri small businesses are left in utter confusion while the state gives the market to a closed system of big marijuana businesses. Ultimately, Missouri consumers will pay more and have fewer options."

A direct conflict with federal law
The lawsuit further alleges HB 2641 is preempted by the federal Farm Bill, in which Congress legalized hemp nationally and expressly prohibited states from blocking the transportation of legal hemp products through their borders.

HB 2641 would redefine federally legal hemp products as "marijuana" under Missouri law and restrict their transport, even shipments merely passing through the state, to Missouri marijuana licensees.

"Congress made clear that states cannot block federally legal hemp shipments," said Nick Warrender, CEO of Lifted Liquids.  "HB 2641 would do exactly that and force companies like ours to reroute federally lawful shipments around an entire state."

What's at Stake
If HB 2641 takes effect as written, Missouri faces the loss of businesses built over decades, including retail locations, manufacturing facilities, and distribution networks, along with the Missouri jobs those operations support and millions of dollars in annual economic activity across the state.