A Kent store that shuttered in March plans to revive itself this week to once again sell THC derived from hemp.
Paper & Leaf owner Dave Keller said he’s had his “finger on the pulse” on court cases related to his products’ sales that have paved the way for Friday’s reopening.
Specific companies outside of Ohio’s regulated marijuana industry can – at least for two weeks – again sell products with more than 0.4% THC in the state after a temporary restraining order was issued June 15 in federal court.
Judge Jeffrey J. Helmick of the U.S. Northern District Court’s Western Division issued the order in favor of the plaintiffs, which operate in the hemp-derived THC industry.
Helmick wrote the defendants – county prosecutors from throughout northern Ohio – or any people they work for or with, cannot take “any criminal, civil, administrative, or regulatory enforcement action” against the plaintiffs.
The temporary restraining order expires after 14 days, unless it’s extended, and a preliminary injunction hearing will be held, the judge wrote.
THC is a naturally present intoxicant in marijuana. Ohio Senate Bill 56, which prompted the plaintiffs to file their case, reclassified any product in the state with more than 0.4% THC as marijuana. Under federal law, cannabis sativa plants with more than 0.3% delta-9 THC are “marijuana,” and those with that amount or less are “hemp.”
However, more than five years ago, operators in the hemp-derived THC market began extracting different forms of THC from hemp. Hemp-derived THC, such as the delta-9 and delta-8 forms, became more commonplace in Ohio and elsewhere, prompting the drafting of new laws and regulations – as well as lawsuits.
Kent business plans to reopen to sell hemp-derived THC products
For about two years, Paper & Leaf sold hemp-derived THC products at 168 Cherry St. in Kent. The business closed March 19 following the passage of Ohio Senate Bill 56 in December. Keller said he kept the lease on the storefront and plans to reopen it June 19 because of the federal court decision.
Keller said he specifically plans to sell the plaintiffs’ products.
“We want to remain in compliance with whatever the state laws are at the time,” Keller said. “And, so, we are very meticulous in terms of how we operate and assuring that everything that is going to be in our store is compliant with this TRO.”
Paper & Leaf also sells hemp-derived THC products in Kentucky and Pennsylvania stores, where Keller previously said he took product from the Kent location.
Keller of Paper & Leaf discusses federal hemp-derived THC case
The plaintiffs in the federal case are Titan Logistics Group LLC, doing business as 420 Beverage and Your Highness; Hopportunity Holding Company LLC; Saucy Seltzer LLC; App Girls LLC, doing business as Appalachian Girls; Modern Distribution, LLC; Grayscale Brewing, LLC; IHC Investments, Inc., doing business as The Hemp Collect; Know Naturals LLC, doing business as Slightly Elevated; Precision Fill and Pack LLC, doing business as Mellow Fellow; and JSZN LLC, doing business as Muffins.
Referencing the plaintiffs, Keller said, “So, I can tell you that each individual that was represented as a plaintiff in this was thoroughly vetted in order to be able to assure that they met the highest compliance standard that you could possibly find within this industry.
“That includes the testing of the products. … That assures documentation and chain of command on supply chain from seed to sale, or at least seed to the sale of the retailer itself, or when it leaves the hand of the manufacturer. It assures that everything historically that these manufacturers have released in public facing statements has been accurate.”
Keller said he’s not a party to the federal case. He said he has, though, performed lobbying in Columbus advocating for hemp-derived THC. He now is a contributing member to the American Healthy Alternatives Association, which he said performs lobbying on behalf of the industry and has an Ohio chapter.
“It’s certainly a possibility that I would need to close again,” Keller said. “My hope and frankly, expectation, is that this TRO is going to ultimately move to a full injunction.”
He said he has no intention of changing his business model if the temporary restraining order expires or a full injunction isn’t issued.
“Paper & Leaf, from its inception, has been chartered in order to be able to offer hemp products to the population and has exclusively focused on that,” Keller said. “To move away and sell other sorts of products would be a departure from the entire reason this company was started.”
Patrick Williams covers growth and development for the Akron Beacon Journal. He can be reached by email at pwilliams@usatodayco.com or on X, formerly known as Twitter, @pwilliamsOH. Sign up for the Beacon Journal’s business and consumer newsletter, “What’s The Deal?”
This article originally appeared on Akron Beacon Journal: Kent THC retailer to reopen Friday after order pauses ban on sales
Reporting by Patrick Williams, Akron Beacon Journal / Akron Beacon Journal
USA TODAY Network via Reuters Connect
By Patrick Williams, Akron Beacon Journal | USA TODAY Network
