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Tennessee Hemp Businesses Win $735K Settlement Over Seizures

The state of Tennessee and the city of Spring Hill have agreed to pay $735,000 to settle claims from two businesses that had their legal hemp products unlawfully seized earlier this year. The lawsuit, filed after the raid, alleged that law enforcement failed to differentiate between hemp and marijuana despite clear legal distinctions.

Businesses Fight Back After Seizures

Last May, Spring Hill police confiscated 231 pounds of hemp products from Old School Vapor and SAK Wholesale, both based in Columbia, Tennessee. The products, valued at $1.35 million, were seized during what the businesses described as an aggressive and unwarranted action.

The legal battle began swiftly, with the businesses filing a federal lawsuit demanding the return of their goods and compensation for damages. The case named Spring Hill Police Chief Don Brit and 11 others, including local District Attorney Brent Cooper. According to the complaint, Cooper reportedly dismissed the distinction between hemp and marijuana, allegedly stating, “It’s the same damn thing.”

Tennessee hemp products seized settlement Douglas Sacha

Hemp vs. Marijuana: A Legal Gray Zone

Under both federal and Tennessee law, hemp is classified as a cannabis product containing less than 0.3% delta-9 THC. This contrasts with marijuana, which contains higher levels of THC and is illegal in Tennessee.

However, the line between the two can be hard to discern visually. Hemp flowers and marijuana appear nearly identical, and only lab testing can confirm THC levels. This distinction has created confusion, particularly for law enforcement agencies untrained in cannabis-specific regulations.

Temporary Win Against Proposed Restrictions

The $735,000 settlement comes amid another legal battle involving Tennessee’s hemp industry. Industry groups recently secured a temporary injunction against new state rules that would have heavily restricted hemp products starting December 26.

The proposed regulations from the Tennessee Department of Agriculture sought to include testing for THCA, a compound that converts to THC when heated. This move, according to industry advocates, could have effectively banned most hemp products.

A Nashville judge intervened this week, blocking the implementation of the rules until at least February 18. For now, hemp producers and retailers can continue operations without the added restrictions.

Industry and Community Impact

The hemp industry’s legal wins highlight the ongoing tension between regulatory authorities and cannabis businesses navigating evolving laws. While hemp remains a legal product under federal law, local enforcement often lags in understanding its nuances.

  • Settlement Details: The $735,000 will be jointly paid by the state and the city of Spring Hill.
  • Product Value: The seized goods were estimated to be worth $1.35 million.
  • Legal Costs: Both businesses incurred significant expenses in their fight to recover seized products and challenge the legality of the raid.

The settlement also brings attention to broader challenges faced by hemp businesses across the U.S., from navigating unclear regulations to addressing the stigma often associated with cannabis products.

A Complex Future for Hemp in Tennessee

Despite the settlement, hemp businesses in Tennessee face an uncertain future. The blocked THCA regulations are just one example of potential barriers that could limit the industry’s growth.

As the state and federal governments continue to refine cannabis laws, stakeholders will need to work together to ensure regulations protect consumers while supporting legitimate businesses. The latest legal victories are a step forward, but the battle for fair and clear rules is far from over.

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