Opinion ID: 6342258
Heading Depth: 4
Heading Rank: 1

Heading: The Farm Act: Plain Text

Text: When engaging in statutory interpretation, “we start where we always do: with the text.” Van Buren v. United States, 141 S. Ct. 1648, 1654 (2021). As we explain further, the plain and unambiguous text of the Farm Act compels the conclusion that the delta-8 THC products before us are lawful. The relevant portion of the Farm Act removes “hemp” from the definition of marijuana in the Controlled Substances Act, Pub. L. No. 91-513, 84 Stat. 1242 (1970). Specifically, “the term ‘marihuana’ means all parts of the plant Cannabis sativa L. . . . [, but] does not include . . . hemp.” 21 U.S.C. § 802(16). So, though marijuana remains a schedule-I controlled substance, see § 812 sched. I(c)(10), hemp has now been removed from schedule I. Likewise, although schedule I continues to list “tetrahydrocannabinols,” it now exempts “tetrahydrocannabinols in hemp.” § 812 sched. I(c)(17). Both of these sections reference the same statutory definition of hemp. See §§ 802(16)(B)(i), 812 sched. I(c)(17). We therefore turn to this definition. The Farm’s Act definition of hemp represents the crux of the parties’ disagreement, and we quote it in full. The term “hemp” means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a 14 AK FUTURES V. BOYD STREET DISTRO delta-9 [THC] concentration of not more than 0.3 percent on a dry weight basis. 7 U.S.C. § 1639o(1). Before interpreting this statutory language, we observe that the Drug Enforcement Administration has incorporated this definition into its regulations. The entry for tetrahydrocannabinols on the DEA’s regulatory schedule I exempts “any material, compound, mixture, or preparation that falls within the definition of hemp set forth in 7 U.S.C. [§] 1639o.” 21 C.F.R. § 1308.11(d)(31)(ii). And the DEA’s entry for “Marihuana Extract” mirrors the terms of the Farm Act’s definition. See § 1308.11(d)(58) (defining “Marihuana Extract” to include only cannabinoid extracts with greater than 0.3 percent delta-9 THC). AK Futures argues the Farm Act’s definition of hemp encompasses its delta-8 THC products so long as they contain no more than 0.3 percent delta-9 THC. Plain meaning supports this interpretation. A straightforward reading of § 1639o yields a definition of hemp applicable to all products that are sourced from the cannabis plant, contain no more than 0.3 percent delta-9 THC, and can be called a derivative, extract, cannabinoid, or one of the other enumerated terms. Importantly, the only statutory metric for distinguishing controlled marijuana from legal hemp is the delta-9 THC concentration level. In addition, the definition extends beyond just the plant to “all derivatives, extracts, [and] cannabinoids.” 7 U.S.C. § 1639o(1). The use of “all” indicates a sweeping statutory reach. See Lambright v. Ryan, 698 F.3d 808, 817 (9th Cir. 2012) (“The common meaning of the word ‘all’ is ‘the whole amount, quantity, or extent of; as much as possible’ . . . .” (quoting All, Merriam-Webster AK FUTURES V. BOYD STREET DISTRO 15 (online ed., visited Oct. 4, 2012))). This seemingly extends to downstream products and substances, so long as their delta-9 THC concentration does not exceed the statutory threshold. Certainly, a substance must be a derivative, extract, cannabinoid, or one of the other enumerated terms to fall within the Farm Act’s statutory definition. However, these terms do not impose meaningful constraints. We may consider whether a term carries a technical meaning in a particular context. For instance, in Van Buren, a case concerning the Computer Fraud and Abuse Act, the Supreme Court considered the technical meaning of the term “access” in the “computing context.” 141 S. Ct. at 1657. Here, the various terms of § 1639o all have technical meanings in the chemistry context, but these meanings are themselves broad. See, e.g., Derivative, Merriam-Webster (online ed., last visited Feb. 15, 2022) (“[A] chemical substance related structurally to another substance and theoretically derivable from it[.]”); Extract, Oxford English Dictionary (online ed., March 2022) (“The substance extracted[.]”); Cannabinoid, Oxford English Dictionary (online ed., Dec. 2021) (“Any of a group of substances including cannabinol, cannabidiol, and other structurally related compounds of natural and synthetic origin.”). Thus, even in the chemistry context, the terms in the Farm Act’s definition of hemp capture a wide variety of potential substances and products. On the available record, the delta-8 THC in AK Futures’ e-cigarette liquid appears to fit comfortably within the statutory definition of “hemp.” According to the company’s uncontradicted declaration, its delta-8 THC products are “hemp-derived” and contain “less than 0.3” percent delta-9 THC. The FDA materials cited by Boyd Street also refer to delta-8 THC as “one of over 100 cannabinoids produced 16 AK FUTURES V. BOYD STREET DISTRO naturally by the cannabis plant.” 5 Things to Know about Delta-8, supra (emphasis added). This indicates that the delta-8 THC in the e-cigarette liquid is properly understood as a derivative, extract, or cannabinoid originating from the cannabis plant and containing “not more than 0.3 percent” delta-9 THC. See 7 U.S.C. § 1639o(1). AK Futures is thus likely to succeed in showing its products are not illegal under federal law and are eligible for trademark protection. The conclusion that AK Futures’ delta-8 THC products are lawful necessarily depends on the veracity of the company’s claim that these products contain no more than 0.3 percent delta-9 THC. A showing that AK Futures’ products contain more than the permitted threshold level of delta-9 THC would defeat AK Futures’ entitlement to trademark protection. According to the DEA and FDA, “many cannabis-derived products do not contain the levels of cannabinoids that they claim to contain on their labels.” Implementation of the Agriculture Improvement Act of 2018, 85 Fed. Reg. 51,639, 51,641 (Aug. 21, 2020). So it is entirely possible that AK Futures may ultimately fail to show that its products stay within acceptable delta-9 THC limitations. But at the preliminary injunction stage we must assess likely success, and the only probative record evidence is AK Futures’ statement that its products contain less than 0.3 percent delta-9 THC. Further evidentiary support is not required at this stage. See K-2 Ski Co. v. Head Ski Co., 467 F.2d 1087, 1088–89 (9th Cir. 1972) (“A verified complaint or supporting affidavits may afford the basis for a preliminary injunction, [unless they] consist largely of general assertions which are substantially controverted by counter-affidavits . . . .”). Along with its complaint and motion for an injunction, AK Futures has provided a sworn declaration that remains uncontradicted regarding the factual AK FUTURES V. BOYD STREET DISTRO 17 particulars of its delta-8 THC products. This is sufficient to obtain an injunction.