News Summary
In Georgia, a coalition of hemp companies is suing the state due to new regulations that threaten their business operations. The lawsuit focuses on Senate Bill 494, which restricts certain hemp products and imposes stringent licensing requirements. The plaintiffs argue that these changes negatively impact small businesses and contradict the federal 2018 Farm Bill. With significant sales declines reported, the outcome of this legal battle could reshape the hemp industry in Georgia and set precedents for future regulations.
Atlanta, Georgia – A group of hemp companies in Georgia has initiated legal action against the state, asserting that new regulations significantly jeopardize their business viability. The lawsuit targets Senate Bill 494, which enforces a ban on certain hemp products and introduces stringent licensing and product testing requirements.
The plaintiffs contend that the restrictions outlined in the new law are excessively severe and detrimental. Scott Ellison, the owner of THC Atlanta, an e-commerce platform, originally aimed to expand his operations by opening a physical store following federal legislation that legalized hemp production in 2018. However, new state laws have obstructed these plans, severely limiting business opportunities.
Enacted in October 2024, Georgia SB 494 restricts the sale of hemp products strictly to customers aged 21 and above. The legislation has created prohibitions on the sale of various items, including smokeable hemp flower and a substantial portion of food products infused with THC. Additionally, the law mandates specific THC warning labels and imposes new licensing requirements on hemp operators, which could further complicate their operations.
The impact of these regulations has been significant, with Ellison reporting a sharp decline in sales, estimated between 60% to 75%. This downturn has resulted in the closure of multiple local shops that previously thrived in the hemp market. Fellow industry participant Joe Salome from Georgia Hemp Company shared similar concerns about the revenue impacts and decreased customer traffic that have followed the implementation of these regulations.
The lawsuit claims that the new regulations impose irreparable harm to small businesses within the hemp industry in Georgia. Zakiya Watson-Caffe, the attorney representing the hemp companies, emphasizes that state legislation undermines provisions in federal law, specifically referring to the 2018 Farm Bill, which permits the production and sale of hemp products containing less than 0.3% Delta-9 THC.
Plaintiffs are requesting an injunction to halt the enforcement of the state law and restore the sale of THCA products that are currently banned under SB 494. In light of this situation, the Georgia Attorney General’s Office has acknowledged receipt of the lawsuit and stated its intention to uphold the statutes established by the General Assembly and signed by the Governor. The office intends to defend the validity of the new regulations vigorously.
The new law imposes strict limits on THC-infused edibles, capping the allowed THC content at 10 milligrams per serving. This restriction further complicates the landscape for businesses reliant on hemp products, as they must now navigate a maze of compliance issues and potential market losses due to the change in legal frameworks.
As the lawsuit progresses, the outcome could have widespread implications for the hemp industry in Georgia and beyond. Stakeholders are closely monitoring the developments, recognizing that the results may determine the future of hemp business operations within the state, particularly for small businesses striving to adapt to recent legislative changes. The legal and economic outcomes of this case could reshape not only local markets but also set precedents for how hemp regulations align with federal standards in the future.
Deeper Dive: News & Info About This Topic
- Fox 5 Atlanta
- Wikipedia: Hemp
- WSB TV
- Google Search: Georgia hemp regulations
- AJC
- Encyclopedia Britannica: Cannabis
- MJ Daily
- Google News: Georgia hemp lawsuit
Author: STAFF HERE SAVANNAH WRITER
SAVANNAH STAFF WRITER The SAVANNAH STAFF WRITER represents the experienced team at HERESavannah.com, your go-to source for actionable local news and information in Savannah, Chatham County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Savannah Music Festival, St. Patrick's Day Parade, and Savannah Jazz Festival. Our coverage extends to key organizations like the Savannah Area Chamber of Commerce and United Way of the Coastal Empire, plus leading businesses in aerospace, education, and logistics that power the local economy such as Gulfstream Aerospace, Savannah College of Art and Design, and Colonial Group. As part of the broader HERE network, including HEREAtlanta.com and HEREAugusta.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
