Tennessee hemp regulation bill moves out of House Judiciary Committee
Jackson Campbell shows off hemp products in his Nashville store, Perfect Plant Hemp Co. A bill moving through the Tennessee Legislature could move the sale of hemp products to the liquor industry. (Photo: John Partipilo)
Despite warnings that the hemp industry would be decimated, the House Judiciary Committee passed a measure Wednesday that would put stricter regulations in place.
Sponsored by House Majority William Lamberth of Portland, House Bill 1376 would place the industry under the Alcoholic Beverage Commission instead of the Department of Agriculture and remove products from convenience and grocery stores. Only vape and liquor stores would be allowed to sell some hemp products.
The House bill is set to be heard next in the Commerce Committee where agreements with the industry could be reached.
'It does ban (derivatives) THCA and THCP. The reason for that is we have not legalized marijuana in this state,' Lamberth said.
Hemp is distinguished from marijuana in that it contains a compound called delta-9 THC. Cannabis with a concentration of less than 0.3% delta-9 THC is defined as legal hemp in Tennessee – and federally. Cannabis with concentrations greater than .3% is classified as marijuana and is illegal to grow, sell or possess in Tennessee.
Hemp flowers also contain THCA, a nonintoxicating acid that would be banned in Tennessee under this bill. When heated or smoked, the THCA in the plant converts into delta-9 THC – an illegal substance in Tennessee in greater than trace amounts.
Let's be perfectly honest. (Recreational marijuana would) help the businesses, we'll have great revenue, and everybody smoking the stuff will be a lot happier.
– Sen. Richard Briggs, R-Knoxville
Clint Palmer, a representative of the hemp industry, told lawmakers the bill is similar to one passed in 2023 that led to a lawsuit against the Department of Agriculture that remains in litigation.
If the new measure passes, Palmer said, hemp businesses will be forced to shut down, even after spending millions of dollars complying with state regulations.
'Bill sponsors have said it's the wild west in regards to the current hemp program. This is far from the truth,' Palmer said.
The 2023 law put new restrictions on products containing THC, he said, and noted retail stores, manufacturers and distributors are required to be licensed or face criminal charges. Palmer added that regulation is lacking from the Department of Agriculture, despite a 6% tax on hemp-derived products, half of which nets the department $1 million a month.
Tennessee hemp industry gets legal reprieve from product ban until summer
Lamberth has said that consumers should know the ingredients when they buy a hemp product. But Palmer said those are listed on labels, based on the 2023 law.
The House leader also indicated that the industry appears ready to sue the state again because the federal Farm Act sets standards on hemp.
Palmer didn't acknowledge whether a lawsuit could follow the new bill's passage, but he said the Alcoholic Beverage Commission doesn't 'have a clear understanding of the hemp plant, and it's clearly shown in this bill.'
The Senate version of the bill, sponsored by Republican Sen. Richard Briggs of Knoxville, is to be heard next by the finance committee.
Briggs said last week as soon as the products are heated, they become marijuana.
'We could withdraw the bill and let's just put another bill out there that says we're going to have recreational marijuana,' Briggs said. 'Let's be perfectly honest. It'll help the businesses, we'll have great revenue, and everybody smoking the stuff will be a lot happier.'
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