Cornbread Hemp Sues Tennessee, Citing Unconstitutional Discrimination and First Amendment Concerns

Cornbread Hemp, a Kentucky-based hemp company, has filed a federal lawsuit against the Tennessee Alcoholic Beverage Commission (TABC), challenging the state’s regulations governing hemp-derived products. The lawsuit alleges that Tennessee’s system unconstitutionally discriminates against hemp and places undue burdens on interstate commerce, potentially forcing the company to leave the Tennessee market or establish a physical presence within the state.

The case, filed in Nashville federal court, centers on Tennessee’s request of a three-tier system – typically used for alcohol distribution – to hemp products.

The Core of the Dispute: Three-Tier System and Interstate Commerce

Cornbread Hemp argues that the three-tier system, while constitutionally permissible for alcohol under the Twenty-First Amendment, has no legitimate basis when applied to hemp.The Twenty-First Amendment grants Congress and states the power to regulate the transportation and sale of alcoholic beverages.Hemp, however, was federally legalized by the 2018 Farm Bill, removing it from the definition of marijuana under federal law and allowing for interstate commerce.

The lawsuit contends that Tennessee’s regulations create meaningful obstacles to Cornbread Hemp’s ability to sell its products in the state, effectively discriminating against out-of-state hemp businesses. The company states that the regulations require them to either withdraw from the Tennessee market or establish a costly physical presence within the state to comply.

First Amendment challenge: Restrictions on Health Claims

Beyond the commerce clause arguments, Cornbread Hemp is also challenging a provision that prohibits the company from making any health-related claims about its products. The company asserts this restriction violates its First Amendment rights to freedom of speech.

Cornbread Hemp believes it should be able to communicate the potential benefits of its hemp-derived products to consumers, provided those claims are truthful and substantiated.The lawsuit argues that a blanket prohibition on health claims is an unreasonable restriction on commercial speech.

Key Players and current Status

The federal lawsuit names Ashleigh Roberts,chairwoman of the Tennessee Alcoholic Beverage Commission,Russell Thomas,the executive director,and TABC members Tim Wirgau and David Tomita as defendants. The case is currently pending in the United States District Court for the middle District of Tennessee in Nashville.

What’s at Stake?

This lawsuit has broader implications for the hemp industry nationwide.A ruling in favor of Cornbread Hemp could set a precedent, preventing other states from imposing similar restrictions on hemp-derived products that impede interstate commerce or infringe on First Amendment rights.The outcome will likely influence how states regulate the rapidly growing hemp market and could shape the future of hemp commerce across the country.

Key Takeaways:

• Cornbread Hemp is suing Tennessee over regulations governing hemp-derived products.
• The lawsuit challenges the application of a three-tier system to hemp, arguing it violates the Commerce Clause.
• The company also claims a prohibition on health-related claims infringes on its First Amendment rights.
• The case is pending in federal court in Nashville.
• The outcome could have significant implications for the national hemp industry.

Publication Date: 2025/09/22