The U.S. Department of Justice (DOJ) has asked a federal court to dismiss a case filed by a hemp company in Washington, D.C. The company, Capitol Hemp, is challenging restrictions from Congress that block local officials from setting up and overseeing a legal cannabis market in the District.
The DOJ submitted a motion to dismiss, arguing that the case should not move forward for procedural reasons.
Capitol Hemp wanted the court to declare that a congressional budget rider does not stop the city from creating a regulatory framework for hemp sales. The DOJ disagreed, saying the company has no legal standing to bring the case. According to the department, the suit is essentially a roundabout attempt to challenge federal law without directly confronting it.
In its filing, the government said the company’s alleged injuries—ongoing litigation against them and supposed confusion on the part of D.C. officials—do not meet the standard for standing. The department added that neither Congress’s appropriations law nor any U.S. action directly links those issues.
At the heart of the suit is the “Harris rider,” a provision named after Representative Andy Harris of Maryland. Since 2014, the rider has barred Washington, D.C., from using its local budget to establish a regulated cannabis market. The restriction has been renewed repeatedly, including in the most recent appropriations bills.
Capitol Hemp argues that the wording of the rider is unconstitutionally vague, as it uses the phrase “tetrahydrocannabinol derivative,” which, the company says, is undefined in federal law and overly broad. They contend this uncertainty makes it impossible for the District to know which substances it can regulate under its own laws.
The DOJ countered that even if the court made the declaration requested by Capitol Hemp, it would not require D.C. to pass laws the company wants. DOJ also argued that the lawsuit is built only on the Declaratory Judgment Act, which allows courts to issue rulings but does not itself create a cause of action. Without a genuine legal dispute between the parties, the government said, any ruling would amount to an advisory opinion.
While the DOJ avoided addressing the larger debate over whether D.C. should be allowed to regulate cannabis sales, the case highlights growing tension nationwide.
Lawmakers at both state and federal levels have been taking a closer look at THC-infused hemp products. Many of these products have become widely available due to gaps left by the 2018 Farm Bill. Critics say these products pose health risks since they are rarely tested for safety and are often sold to young people without restrictions.
The cannabis industry, including firms like Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF), will be watching how this lawsuit proceeds and assessing the implications of the ruling made by the federal court.
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