Missouri Hemp Businesses Challenge HB 2641 in Federal Court
A coalition of Missouri hemp businesses has filed a federal lawsuit challenging House Bill 2641, arguing that the law conflicts with federal law and creates contradictory requirements for businesses operating in the state.
The lawsuit, filed in the U.S. District Court for the Western District of Missouri, asks the court to declare HB 2641 unconstitutional and block the law before its Nov. 12, 2026 effective date.
The plaintiffs include the MoHemp Trade Association, Wisconsin-based hemp manufacturer and distributor Lifted Liquids Inc. and St. Louis-based retailer, manufacturer and distributor MNG 2005 Inc., which operates 55 stores across five states.
Licensing Requirements
HB 2641 would require entities that cultivate, manufacture, transport or sell hemp-derived products in Missouri to hold marijuana licenses issued by the Missouri Department of Health and Senior Services.
The plaintiffs argue that existing hemp businesses cannot obtain those licenses because the state caps the number of marijuana licenses available. They contend the law therefore prevents current hemp operators from continuing their businesses after the law takes effect.
“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.”
The lawsuit also challenges provisions in HB 2641 that plaintiffs say create conflicting definitions for hemp and marijuana. The plaintiffs argue that the law treats certain products as both hemp and marijuana in different sections and creates uncertainty over which products fall under the law and when its various provisions take effect.
The plaintiffs also contend that HB 2641 could expose businesses to criminal penalties because unlicensed marijuana activity violates Missouri law.
The lawsuit argues that the law extends beyond intoxicating cannabinoid products despite its title, the “Intoxicating Cannabinoid Control Act,” and could apply to hemp-derived products that do not produce intoxicating effects, including CBD.
“This isn’t consumer protection. It’s the elimination of an entire legal industry coupled with a government-mandated monopoly,” said Jay Patel, president of the MoHemp Trade Association. “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.”
Federal Law Challenge
The plaintiffs also argue that HB 2641 conflicts with the federal Agriculture Improvement Act of 2018, commonly known as the Farm Bill, which legalized hemp under federal law.
The lawsuit cites federal provisions that prohibit states from restricting the transportation of federally legal hemp through their borders. The plaintiffs argue that HB 2641 conflicts with those provisions by treating federally legal hemp products as marijuana under Missouri law and limiting transportation of hemp products through the state.
“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.”
The plaintiffs argue that the law could affect Missouri hemp retailers, manufacturers, distributors and farmers as well as businesses transporting hemp products through the state.
If the court does not block HB 2641, the law is scheduled to take effect Nov. 12, 2026.
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