Hemp Retailers In Tennessee Make Last-Minute Effort To Block State Rules Banning Many Cannabinoid Products

Tennessee Hemp Industry Fights New Regulations in Court

Tennessee’s hemp industry is mounting a legal challenge against new state rules set to take effect on December 26, arguing that the regulations could devastate the sector.

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The Tennessee Growers Association and Tennessee Healthy Alternatives Association are seeking a temporary injunction to halt the enforcement of the rules, which they claim exceed the Tennessee Department of Agriculture’s authority.

Key Issues with the New Rules

1. Product Testing for THCA Content

   
   

   • The rules mandate testing for THCA (tetrahydrocannabinolic acid), a naturally occurring compound in hemp.

   • While THCA itself is nonintoxicating, it converts to delta-9 THC—a federally and state-defined illegal substance—when heated or smoked.

     
     

2. Impact on Legality of Hemp Products

   
   

   • Previously, hemp legality was determined solely by delta-9 THC content (less than 0.3%).

   • The new rules combine delta-9 THC and THCA concentrations to determine legality, effectively banning many hemp products that have been legally sold since 2019.

     
     

Potential Economic Consequences

Legal filings claim the rules would:

• Render a significant portion of the $280–$560 million hemp market illegal overnight.

• Force businesses to close, resulting in layoffs and financial losses.

  
  

Legal Arguments

1. Overreach by the Department of Agriculture

   
   

   • Industry groups argue the department lacks the authority to outlaw THCA products that the legislature has explicitly defined as legal.

   • The Tennessee Healthy Alternatives Association contends the department’s rules contradict legislative intent.

     
     

2. Hemp Plants vs. Hemp-Derived Products

   
   

   • The Tennessee Growers Association differentiates between the hemp plant itself and processed hemp-derived products.

   • They argue that unprocessed hemp flowers cannot be categorized as “hemp-derived products” subject to the 2023 law’s regulations.

     
     

What’s at Stake

Without judicial intervention, businesses across Tennessee could face widespread closures, and the once-thriving hemp industry may be significantly curtailed.

The court’s decision on the preliminary injunction will determine whether the rules take effect as scheduled or are paused pending further legal review