Welcome to 2025 – A Year of Change for Hemp Businesses
Happy New Year! As we step into 2025, the hemp and cannabis industry continues to navigate regulatory changes, legal challenges, and evolving compliance requirements. Keeping track of shifting laws across all 50 states is a massive undertaking, especially for business owners already managing day-to-day operations.
That’s why I provide these monthly compliance updates to highlight the most significant legal and regulatory developments affecting hemp businesses. This month’s update covers major wins in Tennessee, pending restrictions in Florida and Texas, and crucial updates in Georgia, Ohio, New Jersey, and Missouri.
Major Win in Tennessee: $735,000 Settlement for Unlawful Hemp Seizures
In a landmark case, Tennessee hemp businesses secured a significant legal victory after the city of Spring Hill and local law enforcement illegally seized over 200 pounds of hemp, falsely claiming it was illegal marijuana. The affected businesses quickly filed suit, arguing the seizures caused substantial financial harm.
The court ruled in favor of the hemp businesses, awarding a $735,000 settlement against the sheriff’s department. This ruling sets an important precedent, reinforcing the legal protections for hemp businesses and sending a clear message to law enforcement: Hemp is legal, and unlawful seizures won’t go unchallenged.
This case is expected to deter future raids and seizures in Tennessee and beyond, helping to safeguard businesses operating within federal and state laws.
North Carolina: New Lawsuit Challenges Illegal Hemp Raids
In another legal battle, several North Carolina businesses have sued the Eno County Sheriff’s Department over a series of aggressive law enforcement raids under “Operation Vapor Trail.” The lawsuit alleges that authorities wrongfully raided hemp businesses, seized legal products, and arrested business owners under the mistaken belief that hemp is illegal.
This case is ongoing, but its outcome could further strengthen legal protections for hemp businesses facing overreach by law enforcement.
Key State Compliance Updates for January 2025
While some states are working to protect hemp businesses, others are introducing stricter regulations. Here’s what’s happening across key markets:
Georgia: New Testing, Labeling, and Licensing Requirements
Georgia has finalized new hemp regulations, introducing tighter compliance requirements for:
✔ Testing Standards – Laboratories must now test for specific analytes not required in other states. Ensure your Certificates of Analysis (COAs) meet Georgia’s updated requirements.
✔ THC Warning Labels – All hemp products sold in Georgia must now carry a black, white, and red “THC WARNING” sticker similar to those used in the regulated cannabis market.
✔ Licensing Rules – New licensing requirements apply to certain businesses selling or distributing hemp products.
💡 Action Step: If you sell in Georgia, contact your testing lab to ensure compliance, and make sure your packaging meets the new labeling rules.
Texas: Looming Threat of a THC Ban
At the end of 2024, Texas Lieutenant Governor Dan Patrick announced an aggressive plan to ban all hemp-derived THC products in the state. The expectation was that this ban would be included in Senate Bill 3, which was introduced this month. However, SB 3 currently does not contain any ban language—yet.
We are still waiting to see whether the ban will be introduced through amendments or separate legislation. Given Texas’ massive hemp market, a full ban seems unlikely, but tighter regulations are expected.
💡 Action Step: If you operate in Texas, stay engaged with trade associations and lobbyists to push back against potential bans.
Ohio: Restrictive Hemp Bill Gaining Traction
Ohio lawmakers have revived legislation that would severely limit the hemp industry. This bill, which nearly passed last year, seeks to:
✔ Limit THC content in hemp products to 0.5mg per serving and 2mg per package—effectively banning many existing products.
✔ Restrict sales of Delta-8 and other cannabinoids.
💡 Action Step: If you sell products in Ohio, monitor legislative updates and consider joining lobbying efforts to oppose these severe restrictions.
Florida: New Bill Would Ban THCA Flower & Restrict Marketing
A new bill was introduced in Florida that aims to redefine hemp as a total THC standard—effectively banning THCA flower. Additional restrictions include:
✔ Banning Delta-8, Delta-10, HHC, THCO, THCV, and THCP.
✔ Imposing a 2mg THC per serving / 20mg per package limit.
✔ Requiring all stores selling hemp to be permitted by the Florida Department of Agriculture.
✔ Banning hemp product sales at festivals, food stalls, and temporary retail setups.
✔ Restricting marketing—prohibiting storefronts from displaying hemp-related signage visible from the street.
💡 Action Step: If this bill moves forward, businesses will need to reformulate products, change marketing strategies, and obtain new permits to stay compliant.
Missouri: Renewed Push to Ban Delta-8 & THCA
Missouri lawmakers are reviving efforts to ban Delta-8, Delta-10, and synthetic cannabinoids, while also considering a ban on THCA flower. There’s ongoing discussion about allowing low-dose hemp beverages as a compromise, but the industry faces uncertainty.
💡 Action Step: If you operate in Missouri, stay informed on legislative updates and consider advocacy efforts.
New Jersey: Expect Major Licensing Changes
New Jersey temporarily shut down hemp product sales in 2024, promising a new licensing system in 2025. The state’s regulatory body (CRC) is expected to release new rules next month, likely introducing:
✔ New licensing fees for hemp businesses.
✔ Tighter product testing and age restrictions.
✔ Increased oversight for hemp-derived cannabinoids.
💡 Action Step: Businesses selling in New Jersey should prepare for stricter compliance requirements in the coming months.
What This Means for the Hemp Industry
📌 The Good News: Legal wins in Tennessee and North Carolina signal stronger protections for hemp businesses facing unlawful enforcement actions.
📌 The Challenges: States like Texas, Florida, Ohio, and Missouri are actively working to restrict hemp sales, with bans and regulations looming.
📌 The Takeaway: Stay informed, advocate for your business, and be ready to pivot if regulations change in your state.
How to Stay Compliant in 2025
✔ Monitor state laws closely – Regulations can shift rapidly, and non-compliance can shut down businesses overnight.
✔ Join industry trade groups – Get involved with organizations that advocate for your business’s rights.
✔ Work with a legal expert – Ensure your business structure, testing, labeling, and marketing are fully compliant with state and federal laws.
If you need state-specific compliance support, contact my firm today. We offer customized compliance reviews to help protect your business and ensure you stay ahead of legal changes.
📞 Let’s Talk! Get expert guidance to keep your hemp business legally protected in 2025.
Stay Updated
Check back next month for new compliance updates as regulations evolve!
Morgan Davis, Health & Wellness Attorney
