Fighting SB 494: How Overturning Chevron Deference Could Challenge Georgia’s New Hemp Regulations
Georgia Medical Cannabis Society
Georgia Medical Cannabis Society (Inc.)
The Impact of Loper Bright Enterprises v. Raimondo on Defending Farmers, Consumers, and Small Businesses
By Yolanda Bennett, Director of Operations, Social Justice & Legislative Initiatives, Georgia Medical Cannabis Society Date: September 5, 2024
Recently, my colleague Chelsea Breann shared valuable insights about the Chevron deference doctrine and its significance in regulatory law. After carefully reviewing the doctrine, especially in light of the recent Loper Bright Enterprises v. Raimondo ruling, I agreed with Chelsea how it could play a pivotal role in defending against Senate Bill 494 (SB 494). Although I am not an attorney, this discovery inspired me to write this article, illustrating how overturning Chevron deference can be a game-changer in challenging the damaging regulations of SB 494.
In June 2024, the U.S. Supreme Court overturned the Chevron deference doctrine in Loper Bright Enterprises v. Raimondo, altering the way courts interpret agency regulations. For 40 years, Chevron deference allowed administrative agencies to interpret ambiguous statutes, often filling gaps where Congress had not spoken directly. The new ruling mandates that courts exercise independent judgment, rather than deferring to agency interpretations.
This has profound implications for laws like SB 494, which impose severe restrictions on hemp products, such as potency caps on beverages, bans on smokables, and heightened compliance costs. These regulations threaten farmers, small businesses, and patients who rely on hemp products. At the Georgia Medical Cannabis Society (GMCS), we believe that the Loper Bright ruling provides a new opportunity to push back against these overreaching regulations.
The End of Chevron Deference: A New Legal Landscape
For decades, Chevron deference required courts to defer to administrative agencies’ interpretations of ambiguous statutes, granting them significant authority over law enforcement. However, Loper Bright rejected the notion that courts should automatically defer to agency interpretations when a statute is unclear. The Supreme Court ruled that courts must now independently interpret laws and determine whether an agency acted within its statutory authority.
In the context of Georgia’s hemp laws, this means that a court reviewing SB 494 would no longer defer to the Georgia Department of Agriculture’s interpretation of the law. Instead, the court would examine whether the agency’s regulations align with the intent of the legislature and whether the agency has exceeded its granted authority.
Challenging SB 494 Using Loper Bright
The passage of SB 494 has raised significant concerns among farmers, small business owners, and medical cannabis patients. The bill imposes strict potency caps on hemp-infused drinks, bans smokables, and increases compliance costs, likely leading to product shortages, price hikes, and business closures. For those most affected, Loper Bright offers a framework for challenging these regulations in court.
Here’s how Loper Bright can serve as a defense against SB 494:
1. Independent Judicial Review of SB 494’s Ambiguities
Before the Loper Bright ruling, courts would defer to the Georgia Department of Agriculture’s interpretation of ambiguous aspects of hemp law, such as potency caps or the ban on smokables. However, the ruling now requires courts to independently determine whether the agency’s interpretation aligns with the true legislative intent.
For instance, SB 213 (the Georgia Hemp Farming Act) opened the door for legal hemp production and sale. Now, the critical question is: Did the legislature intend for SB 213 to allow such stringent restrictions as those found in SB 494? If courts find that these regulations exceed legislative intent, they could invalidate portions of the law.
2. Limits on Administrative Authority
The Loper Bright ruling overturned the assumption that ambiguous statutes automatically delegate interpretive authority to agencies. Under SB 494, if the law is vague, courts must determine whether the Georgia Department of Agriculture had the authority to impose such broad restrictions in the first place.
For example, the ban on hemp smokables could be challenged by arguing that the Georgia legislature never intended for the Department of Agriculture to ban entire product categories without explicit legislative authorization. The courts must now decide if these actions align with the legislative intent of the Georgia Hemp Farming Act.
3. Constitutional Boundaries and Reasoned Decision-Making
The Loper Bright ruling also requires courts to ensure that agencies act within constitutional boundaries and engage in reasoned decision-making. This means that courts must now evaluate whether the regulations outlined in SB 494 are reasonable, well-founded, and within legal limits.
If it can be demonstrated that the Department of Agriculture imposed unwarranted restrictions—such as banning smokables or imposing strict potency caps on beverages—without clear legislative backing, the courts may strike down these parts of the law.
4. Reinterpreting Legislative Intent
One of the most significant aspects of the Loper Bright ruling is the focus on legislative intent. Courts can no longer assume that agencies are filling gaps left by Congress. Instead, they must determine what the legislature intended when passing the law.
For SB 213, the original hemp law, it could be argued that the legislature’s intent was to foster a thriving hemp industry. The restrictions in SB 494, such as banning smokables and imposing strict potency limits on beverages, may contradict that intent by stifling the industry.
Potential Arguments Against SB 494
The Path Forward: Accountability in Lawmaking
Beyond the specifics of SB 494, Loper Bright opens the door for greater accountability in lawmaking and regulation. For years, courts deferred to agencies, allowing unelected officials to craft policy. Now, courts must take a more active role in interpreting laws and determining whether agencies act within their statutory authority.
This shift is critical in industries like hemp and medical cannabis, where overregulation can have profound effects on farmers, small businesses, and patients. Agencies should not have free rein to impose sweeping restrictions without clear legislative intent. With Loper Bright, stakeholders in the hemp industry can challenge overly restrictive regulations and demand that courts ensure the legislative will is respected.
A Call to Action: Defending Georgia’s Hemp Industry
SB 494 threatens the future of Georgia’s hemp industry, but the overturning of Chevron deference gives us a path to challenge this law in court. At the Georgia Medical Cannabis Society, we are committed to defending the rights of farmers, consumers, and small businesses by advocating for fair and reasonable regulations.
The Supreme Court has made it clear that agencies cannot exceed their authority and that courts must ensure that regulations align with legislative intent. Now is the time to hold Georgia’s lawmakers and regulatory agencies accountable and protect the future of the hemp industry.
By challenging SB 494 under the framework established by Loper Bright, we can ensure that the will of the people—not the unchecked power of administrative agencies—guides the future of hemp in Georgia.
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About the Author:
This powerful article was written by Yolanda Bennett, Director of Operations, Social Justice & Legislative Initiatives for the Georgia Medical Cannabis Society (GMCS). Yolanda, also known as "The Herbal Trucker," is a passionate advocate for cannabis reform. Her activism is deeply personal—motivated by her own experiences as a medical cannabis patient and her journey navigating the complexities of Georgia's cannabis laws. Yolanda works tirelessly to educate and empower communities about the benefits of cannabis, and to fight for the rights of patients, farmers, and small businesses across the state. ????
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