CA: Hemp Farmers Lose In Federal Court

Ron Strider

Well-Known Member
A federal judge has rejected a Southern California cannabis company's request to resume growing hemp for "research" purposes in the Delta.

Cannabis Science Inc., along with the Winnemucca Shoshoni tribe of Native Americans and a business calling itself "American States University," asked the judge for a court order overturning a recently approved county ban on industrial hemp growing.

The groups claimed that the county had effectively stolen $77 million worth of hemp when sheriff's deputies raided the property two weeks after county supervisors approved the emergency ban. The growers sued in federal court and then sought a temporary restraining order that would allow them to resume operations.

But growing hemp still is illegal in California unless it's done by an established research institution such as a university. And San Joaquin County argued that American States University doesn't fit the bill.

The plaintiffs' own court filings say that the product is sold not only to provide medical benefits to thousands of people, but also to maintain and grow their business. They predict "devastating" economic impacts as a result of losing their "competitive" industry position.

"This is clearly a business enterprise, not an educational or research institution," the county argued in court papers filed with U.S. District Judge Kimberly Mueller.

American States University's corporate status with the state has been suspended, meaning it cannot legally conduct business and is not an institution of higher education, the county argued.

What's more, records show that Roger Agajanian, who describes himself in court papers as the "administrative dean and board member" of American States University, was disbarred by the California Supreme Court in 2010. According to records kept by The State Bar of California, Agajanian charged an illegal fee of $28,000 and committed "multiple acts of moral turpitude and dishonesty."

Agajanian could not be reached late Friday. In his own declaration filed with the court, he wrote that American States University is, in fact, conducting research and that its partner, Cannabis Science Inc., co-authored a study in September. He wrote that supervisors had been "fed lies" by county staff and that "thousands of Native Americans were counting on the (hemp)."

In the end, the judge sided with the county and denied the request for a court order. The lawsuit itself is yet to be decided, but the county's temporary ban – which has been extended into September 2019 – will stand for now.

"This sends a message to all growers that we will be vigorously enforcing the moratorium against commercial grow operations," County Counsel Mark Myles said in a prepared statement.

In recent months, the county has taken several tentative steps toward allowing limited commercial marijuana businesses. But supervisors extended the ban on hemp operations until clearer state guidelines are issued.

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