TGC Files a Lawsuit Against The TN Dep. of Agriculture
On Friday, September 6th, The Tennessee Growers Coalition (TGC) filed a lawsuit against the Tennessee Department of Agriculture (TDA), challenging the Emergency Rules issued in June 2024 concerning the regulation of hemp-derived cannabinoids (HDC) products.
The May 2023 law the General Assembly passed and the Governor signed charged the TDA with broad oversight and responsibility in the regulation of HDC products. The deadline was July 1, 2024 but the Department dragged its feet despite collecting over $6 million dollars in tax revenue that began in July 2023.
The TDA proposed their Final Rule issued in December 2023 and over 19,000 public comments received and hundreds of oral comments were taken during the Public Hearing on February 6, 2024. This is how rulemaking is supposed to work, however instead of issuing Final Rules with the public comment taken into consideration, the TDA issued Emergency Rules. In other words, TDA had three full months to take the Proposed Final Rules it drafted and prepare them for final release. It failed to do so. (Find out more about the TGC’s journey to save the hemp industry here!)
The Tennessee Uniform Administrative Procedures Act (“TUAPA”) forbids an agency from enacting emergency rules “based upon the agency’s failure to timely process and file rules through the normal rulemaking process.” TDA violated those rules and by doing so imposed an immediate and irreparable threat of harm to each of TGC’s members. TGC Members’ businesses and livelihoods are at stake by being forced to adapt their business practices to regulations, change the type of products they sell, and how they manage compliance while paying a license fee under regulations that are void as a matter of law.
The Tennessee Department of Agriculture has nothing to lose while TGC Members risk losing everything. TGC Member’s want common sense, pro-business regulation that Tennessee is widely known for. TGC wants regulations that protect children and promote consumer confidence and knowledge. The current proposed rules promote out-of-state, online commerce while killing small businesses and 1,000s of jobs they create across Tennessee. In addition to filing the lawsuit, TGC continues the fight by preparing legislation for the 2025 General Assembly to address these issues as well.
The Tennessee Growers Coalition has been the leading voice for hemp businesses and consumers in Tennessee since 2018. With years of experience advocating for pro-hemp legislation, the TGC ensures the industry's interests are protected at the state level. From influencing legislative decisions to providing legal support, the TGC remains dedicated to defending the rights of hemp farmers, retailers, and consumers.
The court date has been moved to September 23, 2024. It orginally was set for September 19th.