C.Y. Wholesale, Inc. v. Holcomb

Federal 7th Circuit Court
Civil Court
Agriculture Improvement Act
Case Number: 
No. 19-3034
Decision Date: 
July 8, 2020
Federal District: 
S.D. Ind., Indianapolis Div.
Reversed and remanded

Dist. Ct. erred in granting plaintiffs’ request for issuance of preliminary injunction, seeking to enjoin Indiana statute that prohibited individuals from manufacture, delivery or possession of smokeable hemp, where plaintiffs argued that said statute was preempted by Agricultural Improvement Act of 2018 (AIA), which removed industrial hemp from DEA’s schedule of controlled substances, but also: (1) allowed States to regulate production of hemp; and (2) precluded states from prohibiting transportation or shipment of hemp. As such, instant injunction was overbroad because Indiana statute’s prohibition of manufacture of smokeable hemp did not fall within ambit of AIA’s express preemption clause, and because AIA indicated that states were still free to regulate industrial hemp production within their own borders. On remand, Dist. Ct. is free to issue injunction to prevent Indiana from enforcing portion of its statute that precluded transportation of smokeable hemp through Indiana in interstate commerce.