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West  ·  September 14, 2026

Federal Judge Dismisses Hawaii Hemp Beverage Lawsuit

A federal judge ruled Hawaii's stricter hemp rules are not preempted by federal law, closing out the region's longest-pending case, while Arizona's licensing dispute and California's beverage labeling bills remain unresolved.


Key Facts

WEST, September 14, 2026: A federal judge dismissed a lawsuit challenging Hawaii's hemp product restrictions this week, closing out a case this report has tracked as pending since July. U.S. District Judge Jill A. Otake ruled September 4 that the 2018 Farm Bill does not preempt Hawaii's stricter standards for hemp sales and distribution, granting the state's motion to dismiss and denying the plaintiffs' request for a preliminary injunction, according to The Marijuana Herald.

The suit, brought by Oahu Dispensary and Provisions LLC operator Lance Saher Alyas and Elevated Enterprises LLC operator Kyler Falces-Cachola against Hawaii Attorney General Anne Lopez and Health Department Director Kenneth Fink, argued the state's hemp rules conflict with federal law. Otake found Hawaii's testing methodology, which counts THCA toward total THC, applies equally to in-state and out-of-state businesses and therefore does not violate the Dormant Commerce Clause. She dismissed the plaintiffs' due-process claim as premature, since neither business had faced an actual enforcement action, and declined to rule on a remaining state-law claim now that the federal claims are gone. The court denied the plaintiffs leave to amend their complaint again.

Elsewhere in the region, Arizona's Court of Appeals has gone eight consecutive weeks without ruling on the Hemp Industry Trade Association's challenge to Attorney General Kris Mayes' dispensary-only enforcement position. In California, AB 2250 and AB 2532, which would set new labeling, dosing, and CBN-isolate rules for cannabis beverages, remain on Governor Gavin Newsom's desk with no action reported ahead of his September 30 deadline to sign or veto.

Sources: - [Federal Judge Rules Hawaii's Stricter Hemp Product Restrictions Are Not Preempted by Federal Law](https://themarijuanaherald.com/2026/09/federal-judge-rules-hawaiis-stricter-hemp-product-restrictions-are-not-preempted-by-federal-law/) (The Marijuana Herald) - [Court of Appeals to rule on Mayes' contempt of hemp](https://pro.stateaffairs.com/az/courts/hemp-industry-trade-association-kris-mayes) (State Affairs Pro) - [California Bill to Require Free Measuring Devices for Multi-Serving Marijuana Drinks Sent to Governor Newsom Following Unanimous Votes](https://themarijuanaherald.com/2026/09/california-bill-to-require-free-measuring-devices-for-multi-serving-marijuana-drinks-sent-to-governor-newsom-following-unanimous-votes/) (The Marijuana Herald)

Hawaii Arizona California
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Forma works embedded on hemp and THC beverage formulation and commercial scale-up, from compliant dosing and label claims through co-packer qualification. This wire is a byproduct of the same regulatory tracking that informs that work.

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