Tennessee Judge Issues Temporary Injunction Haltin
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A judge in Nashville, Tennessee has issued a temporary injunction that halts the implementation of new hemp product testing rules in the state. These rules would have resulted in a ban on highly demanded hemp products that became legal when the state established its hemp program back in 2019. The ban was slated to take effect on Boxing Day.
However, the ruling made by I’Ashea Myles on Monday put the rules on ice, at least up to February 18 when the judge will have had ample time to study the testing regulations and then make a decision on the two lawsuits that had been filed challenging those new testing rules.
This injunction doesn’t in any way invalidate the rules passed by state regulators. A decision on their validity or otherwise will be made when the judge next makes a ruling on the matter in February. The temporary injunction has given the hemp industry in the state some extra runway to operate as they were doing before; and this gives them an opportunity to continue serving their customers in this industry estimated to be worth approximately $250m-$280m each year.
Producers and retailers of hemp products contend that the new rules, formulated by the Agriculture Department, would have had an immediate result of massive employee layoffs and closures of outlets selling products which had until recently been legal. They also assert that the Department of Agriculture overreached when formulating those rules since the rules intended to criminalize products in a way that isn’t backed by legislative action.
The two lawsuits that the judge referenced while announcing the temporary injunction were filed by two groups representing industry actors. Tennessee Growers Coalition and Tennessee Healthy Alternatives Association separately filed legal challenges seeking to overturn the new rules.
At the core of these lawsuits is an objection to the plan of the agriculture department to have all hemp products tested for THCA. This is a natural acid found in every hemp plant, and it’s legal in the state. However, when THCA is smoked or is otherwise heated, it converts into THC, the cannabinoid responsible for producing a ‘high’ that it is currently outlawed in Tennessee.
The temporary injunction has been welcomed by the two groups which filed the lawsuits and they say Tennessee residents and businesses at least have a chance to access or sell products with THCA during this holiday period. It remains to be seen whether this reprieve is short-lived or will be sustained when the judge makes a final ruling on the lawsuits in the weeks to come.
Established hemp industry operators like Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) in other markets within the U.S. recognize that regulation is necessary, but it shouldn’t happen in ways that cripple innovation.
NOTE TO INVESTORS: The latest news and updates relating to Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) are available in the company’s newsroom at https://cnw.fm/SFWJ
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