Minnesota's new hemp-derived THC edible law is facing its first major legal challenge from one of the state's medical cannabis companies, which claims it should be able to sell its "chemically identical" marijuana edibles on the open market.
The lawsuit filed by Vireo Health last week claims the company's constitutional rights are being violated since its products remain illegal for those outside the state's medical marijuana program. If a judge rules in the company's favor, its marijuana edible products could be legally sold to Minnesotans 21 and older as long as they contain no more than 5 milligrams of THC per serving and 50 milligrams per package.
"Vireo would have to drastically change its business model to incorporate hemp and hemp-derived edibles," the suit states. "From a constitutional standpoint, Vireo should not have to change its business just to be treated equally with sellers of products that are identical to the products Vireo is already selling."
THC, the main intoxicating compound in cannabis, has the same effects whether it comes from hemp or marijuana, but the law treats the two cannabis varieties differently.
Hemp and marijuana are the same plant, except that state and federal law defines hemp as containing less than 0.3% THC. Hemp-derived THC is typically converted from CBD, which is found in ample quantities in hemp.
Since July 1, edibles and drinks containing up to 5 milligrams of hemp-derived THC per serving and 50 milligrams per package are legal in Minnesota for those 21 and older.
Steven Brown, owner of the store Nothing But Hemp and president of the Minnesota Cannabis Association, said Vireo Health can start its own retail brand selling hemp-derived edibles, separate from its medical cannabis business, whenever it wants.
"I think what happens is when these big behemoth companies come in, their whole goal is to just basically take over the entire market share," Brown said. He added that he thinks the state's two medical cannabis makers will lobby against the hemp industry during next year's legislative session.