A Montgomery County Circuit Judge Wednesday suspended, at least temporarily, the Alabama Department of Public Health’s efforts to block Gadsden’s borohemp from manufacturing CBD and cannabinoid edible products.
Judge James H. Anderson granted the temporary restraining order sought by the borough (specifically TSLT Holdings LLC) against ADPH and state health officer Dr. Scott Harris, allowing the borough owners to go out of business. discourages taking actions that it claims lead to
Anderson said in the order that Boro would “suffer immediate and irreparable harm, without legally adequate remedies,” under the Alabama Code and supporting case law without the TRO. was proved.
The judge also found Boro “has at least a reasonable chance of winning on the final merits of the case.” He has scheduled a June 6 hearing for a permanent injunction against the Department of Health barring ADPH from interfering with the company’s operations pending final judgment in the lawsuit.
Boro, owned by Stacey Hamilton and Gordon Tinsley, manufactures CBD products at its own facility in the City of Alabama. According to the owner, he has 17 employees, earns $100,000 a month in sales, and products he sells to 20 states and retails online.
However, in January, following an inspection by ADPH and State Department of Revenue officials, the company received two “food denial orders” from ADPH directing it to stop manufacturing edible products and destroy existing inventories.
The order summarily states that it is illegal to manufacture or sell foods containing CBD or cannabinoid derivatives in Alabama, as it violates the department’s food processing facility hygiene regulations. And Boro failed to obtain a food manufacturing processing hygiene license from ADPH.
more:Gadsden says health department stance on CBD diet will put it out of business
The Department of Health has since expanded the scope of the order to include not just CBD, but edibles containing all cannabinoids, including delta-8, delta-9 and THC.
Chocolates, gummies, lollipops and other edible products account for 90% of the company’s business, owners said, and the ADPH’s order will put them out of business and into bankruptcy.
The ADPH filed a statement with The Times, citing its public notice, “Guidance on Alabama Law Concerning Possession, Use, Sale, and Distribution of CBD,” stating its position that a “sale ban/food denial order” would be issued in the case of food. . Products containing CBD were found at a facility operating under that license (a customer was able to add her separately purchased CBD to food and drink).
Alabama Attorney General Steve Marshall’s public notice provides background on Alabama’s marijuana laws and the exemptions granted to people with certain conditions (Curley’s Law for epilepsy and Leni’s Law for seizures). . CBD products with THC levels of 0.3% or less are legal in Alabama. And the Food and Drug Administration “rigorously scrutinizes the legality of CBD products sold or marketed as consumables, dietary supplements, or pharmaceuticals,” it said.
However, the borough owners said the 2016 Alabama Industrial Hemp Research Act, which legalized industrial hemp (the source of CBD) containing delta-9 tetrahydrocannabinol in concentrations of 0.3% or less as an agricultural product, was regulated by the State Department. Claims to be covered. Under the Farm Act, the definition of “hemp products” specifically includes food.
Three years later, the state legislature amended the law to cover all cannabinoid products, and Boro owners cited Boro’s efforts to promote Alabama’s cannabis industry.
The company had appealed the ADPH order, but after multiple delays in scheduled hearings, Hamilton said in an email to The Times last week that Boro had a “no chance of winning.” said to be withdrawn.
“This is not a decision that can be made in an administrative hearing as it is a fundamental disagreement about the rule of law in practice,” he added.
“We are pleased and encouraged that the court has granted a temporary restraining order from the Department of Public Health that will prevent the government from continuing its overreach,” said Christy Knowles, an attorney at the firm.
“We look forward to a preliminary hearing where this small business can get the justice and protection it deserves under the law,” she said.
An ADPH spokeswoman said the ministry would not comment because “the matter is still in litigation.”