Local business owners anticipating the next hearing soon on a lawsuit filed by the Tennessee Growers Coalition against the Tennessee Department of Agriculture over new rules banning products containing THCa.
THCa is a natural non-intoxicating acid in all hemp plants. However, when heated or smoked it turns into THC, an illegal substance in Tennessee. Snapdragon Cannabis Company Principal Owner Daniel Vacks said he is taking it day by day and hopes both sides of the lawsuit can reach an agreement that preserves the hemp industry in Tennessee.
“To be self-serving I would say that I hope that we can sell THCa,” Vacks said. “I think we could find a good common ground where we are compliant and we do adhere to the standards that are given to us but we could still carry the products.”
The new law was set to take effect on December 26. A Davidson County judge awarded an injunction that temporarily blocked the implementation of the new law. The next hearing on the lawsuit will be held on February 18. Greenhaus Cannabis Co. Owner Jessica Mogensen said she hopes the judge will send the state back to the drawing board.
“During that lawsuit, they had no argument as to why they made up these rules,” Mogensen said. “The TDA is set to get millions and millions of dollars in tax revenue yet they are literally going to put themselves out of business.”
According to state data the hemp industry has generated over $18 million in tax revenue since July of 2023. Mogensen said lawmakers met and discussed the new law. Mogensen said she was hoping for lawmakers to take a stand against the changes but was largely disappointed.
“I think they were confused,” Mogensen said. “I watched the whole interview and most of them really didn’t even know what was going on. It’s really unfortunate in that aspect that they are not willing to put the time in to understand our industry.”
Crossville Vapor Owner Stephen Crabtree said the state had a lawsuit after law enforcement went into a cannabis store and confiscated products and did not realize how they were testing the products was incorrect. Crabtree believes the state is backtracking on its decision to legalize the industry.
“I think they tried to double back and cover tracks by changing the verbiage of the bill which would then hurt the state greatly versus having to overturn some cannabis offenses,” Crabtree said. “That’s just my personal opinion.”
Crabtree said a majority of the products in cannabis shops contain THCa. Vacks said he is already doubling down on products that do not contain THCa in the event that the judge does not rule in the industry’s favor. Mogensen said some shops have already begun the process of shutting down and that being a cannabis shop owner in Tennessee has been frustrating.
“We’re in purgatory is how it feels constantly,” Mogensen said. “We are constantly donating money. We are joining these lawsuits and fighting and it just feels like it is never-ending for us, When really we are just trying to run businesses, pay our employees, live our lives, and it is just a constant battle.”