Louisiana's largest CBD manufacturer sues state to keep products on shelf. Here's why.

Greg Hilburn, Lafayette Daily Advertiser
·2 min read

Louisiana's largest manufacturer of adult consumable hemp products has filed a lawsuit seeking to prevent regulators and enforcement officials from removing items from hemp retailers throughout the state.

The lawsuit, which was filed in 19th Judicial District Court in Baton Rouge, argues that all of the products manufactured by 318 LABZ and distributed and sold by STRSW8 Cannabis are legal under federal and state law.

It comes as lawmakers, regulators and entrepreneurs in the exploding industry grapple with what consumable hemp products from gummies to inhalables containing THC should be legal and how they can be packaged and sold, especially in relation to serving sizes.

THC is the chemical that creates a high or euphoria and is often credited with helping manage pain, stress and insomnia, among other conditions. Hemp's THC levels are much lower than in its cannabis-cousin marijuana.

Louisiana law limits THC levels in hemp products like edible gummies, chocolate bars, cookies and beverages to 8 milligrams per serving, but manufacturers often stack multiple servings into a single package, as do other makers of other products like soft drinks, candy and food items.

The House Health and Welfare Committee has conducted two oversight hearings this year to debate a proposed emergency rule by the Louisiana Department of Health that would modify packaging requirements, among other product aspects. Lawmakers on the committee have twice postponed action on the rule.

But the lawsuit claims the Louisiana Office of Alcohol and Tobacco Control began illegally removing products from retailers on Jan. 31, 2023 through "aggressive enforcement" against hemp products, "regardless of LDH approval."

"ATC subsequently seized, and continues to seize, products from the shelves of distributors, wholesalers and retailers throughout the state of Louisiana without warning, notification or justification," the lawsuit claims.

The owner of STR8W8 Cannabis, who owns this hemp store in Monroe, La., is suing prevent the state from removing products from the shelves.
The owner of STR8W8 Cannabis, who owns this hemp store in Monroe, La., is suing prevent the state from removing products from the shelves.

During the recent House hearings, the top attorney for the state health agency said it has mistakenly approved at least 230 hemp consumable products that should be illegal.

Louisiana Office of Alcohol and Tobacco Control Commissioner Ernest Legier Jr., who is being sued along with his agency, told USA Today Network Thursday he hasn't yet been served with the lawsuit and can't comment.

Hemp industry businessmen and businesswomen said during the House hearings that the crackdown on what they believe are legal products could bankrupt them and tank the industry, a claim repeated in the lawsuit.

More:Louisiana health agency approved hundreds of illegal hemp products

Jason Garsee of Monroe, president of the Gulf South Hemp Association, owns both of the companies suing the state.

"We're being destroyed today because of all of this," Garsee testified during the March 1 hearing.

Greg Hilburn covers state politics for the USA TODAY Network of Louisiana. Follow him on Twitter @GregHilburn1 

This article originally appeared on Lafayette Daily Advertiser: Louisiana hemp manufacturer sues state to keep products on shelves