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Editor’s note: This story has been updated since original publication to reflect that Gov. Jeff Landry, Attorney General Liz Murrill and East Baton Rouge Parish District Attorney Hillar Moore were dropped from the lawsuit. Business Report sincerely regrets the error.
Cypress Hemp, a Baton Rouge-founded hemp and CBD company, along with the Hemp Association of Louisiana—a nonprofit co-founded by Cypress Hemp’s owners—has filed a lawsuit against the state of Louisiana, alleging that House Bill Act No. 952 is unconstitutional.
The law, which redefines what constitutes consumable and legal hemp products, adds new restrictions on sales and distribution and effectively criminalizes certain hemp-derived items. Passed during the 2024 regular session, Act No. 952 took effect on January 1.
Among the changes: Retailers that sell gasoline or motor fuel can no longer sell consumable hemp products. The law also bans floral hemp and lowers the legal concentration of consumable delta-9 THC from 8 milligrams to 5 milligrams per serving, with a maximum of 40 milligrams per package. Tinctures are limited to 1 milligram of total THC per serving, and oil-based consumable hemp liquids are capped at one ounce per package.
Blake Bilger, co-founder and CEO of Cypress Hemp, says the new law not only restricts small hemp businesses in Louisiana but also makes it difficult for them to compete in other state markets.
“We started our company in Louisiana and now do business in many states across the U.S.,” Bilger tells Daily Report. “Louisiana has proven to be one of the most arbitrarily complicated and non-small-business friendly states in the country when it comes to hemp.”
Cypress Hemp and the Hemp Association of Louisiana filed the suit in October 2024, which specifically named Gov. Jeff Landry, Attorney General Liz Murrill and East Baton Rouge Parish District Attorney Hillar Moore as defendants. While the court has since dismissed the three as defendants from the lawsuit, the lawsuit is still being considered.
Bilger says the plaintiffs hope to overturn the law and urge the state legislature to consider small business impacts when crafting future regulations.
Founded in 2017, Cypress Hemp has since expanded its operations to Virginia and Texas, growing its wholesale footprint across the U.S. The company is now evolving from a Louisiana-based hemp business into a multistate cannabis wellness brand.
“If we did not diversify our business by entering other states and expanding nationally, we would potentially be out of business by now,” Bilger says. “The losses from no-longer-legal-Louisiana-specific inventory every year is one of the biggest expenses we’ve had.”
As of publication, Landry, Murrill and Moore had not responded to requests for comment.
