Missouri Hemp Businesses Sue to Block HB 2641 Ahead of November Effective Date

A coalition of hemp businesses and a hemp trade association has filed suit in the U.S. District Court for the Western District of Missouri seeking to stop Missouri House Bill 2641 from taking effect on November 12, 2026.¹ The plaintiffs are the MoHemp Trade Association, Wisconsin-based manufacturer Lifted Liquids, Inc. (d/b/a Urb), and MNG 2005, Inc., a St. Louis retailer, manufacturer, and distributor with 55 stores across five states. Named defendants are Missouri Governor Mike Kehoe, Attorney General Catherine Hanaway, and Department of Health and Senior Services (DHSS) Director Sarah Wilson.

What Does the Bill Do?

As explained in the lawsuit, HB 2641, signed by Governor Kehoe on April 23, 2026, creates the "Intoxicating Cannabinoid Control Act," codified at Section 195.900. It adopts definitions of "hemp," "industrial hemp," and "hemp-derived cannabinoid product" that largely track the federal definitions of those terms as amended by Congress in 2025 (effective November 12, 2026). As stated in the bill, those federal amendments will exclude certain products exceeding 0.3% total THC and final products exceeding 0.4 milligrams of THC per container from the definition of "hemp.”²

Despite tracking that federal framework in one provision, HB 2641 separately declares that all hemp-derived cannabinoid products are to be considered marijuana and requires that their cultivation, manufacturing, testing, transportation, and retail sale be conducted solely by entities holding a marijuana license from DHSS under Article XIV of the Missouri Constitution. Article XIV caps the number of licenses DHSS may issue, the lawsuit highlights, and DHSS has already issued the maximum number of cultivation, manufacturing, and dispensary licenses; it is not accepting new applications. Article XIV also requires that all marijuana and marijuana-infused products sold in Missouri be cultivated and manufactured entirely within the state.

What Are the Plaintiffs’ Claims?

The complaint raises three counts. Count I alleges HB 2641 is void for vagueness under the Fourteenth Amendment's Due Process Clause, arguing the bill's simultaneous and conflicting treatment of the same products as both "hemp" and "marijuana" leaves ordinary businesses unable to determine what conduct is lawful, exposing them to potential liability. Count II alleges a dormant Commerce Clause violation, contending the bill favors in-state cultivation and manufacturing over out-of-state competitors by tying legal sale to Missouri-grown, Missouri-made products sold through Missouri-licensed dispensaries. Count III alleges express preemption under the 2018 Farm Bill's provision barring states from prohibiting the transportation of hemp or hemp products through their borders, since HB 2641 restricts transport of hemp-derived cannabinoid products to DHSS licensees.

The MoHemp Trade Association's press release frames the stakes similarly, characterizing the law as eliminating a legal industry rather than regulating it, since existing hemp businesses have no license path to continue operating and DHSS licenses are already at capacity.³ MoHemp Trade Association President Jay Patel argues the law creates a "government-mandated monopoly" for existing marijuana operators.

David Palatnik, President of MNG 2005 Inc., argues hemp retailers and manufacturers are left with no route to compliance. “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,” explained Palatnik. “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.”

Why Does It Matter for the Industry?

For supplement developers and brands selling hemp-derived cannabinoid products into or through Missouri, the complaint underscores a structural risk beyond Missouri's borders: HB 2641 would restrict transportation of hemp-derived products through the state even when the shipment's origin and destination lie elsewhere.

References

1. MoHemp Trade Association, Lifted Liquids, Inc., and MNG 2005, Inc. v. Kehoe et al. Complaint. US District Court for the Western District of Missouri, Central Division. Case No. 2:26-cv-04170-WJE. Filed July 16, 2026.
2. Missouri House Bill 2641, Senate Substitute for House Committee Substitute, 103rd General Assembly (2026 Second Regular Session), 6366S.11T. Accessed July 20, 2026. https://documents.house.mo.gov/billtracking/bills261/hlrbillspdf/6366S.11T.pdf
3. MoHemp Trade Association. Missouri Hemp Businesses File Federal Lawsuit Challenging HB 2641. July 16, 2026. Accessed July 20, 2026. https://mohemptrade.org/missouri-hemp-businesses-file-federal-lawsuit-challenging-hb-2641/