Tennessee lawmakers prepare for a crucial vote that may dramatically alter the state’s rapidly growing hemp sector. House and Senate competing bills have proposed drastically different approaches to the regulation of intoxicating hemp.
The state’s hemp market is estimated to generate $280–$560 million annually, supporting farms, processors, and retailers.
The two legislative proposals that are headed to finance committees in the coming week would impose a wholesale tax of $0.01 cents per milligram and transfer oversight from Department of Agriculture (DA) to Alcoholic Beverage Commission.
However, the main disagreement is how each chamber treats THCA. Richard Briggs is the sponsor of the Senate version which seeks to outlaw THCA, using a DOJ 2024 letter classifying it as a drug.
The House version of the bill, which was amended to protect farmers and allow for regulated sale, is the opposite.
Tennessee, say industry leaders, has a unique opportunity to create a regulated THCA marketplace that offers clarity and preserves revenue while preserving livelihoods.
The legislation, if both chambers approve their versions with no major modifications, will be sent to a committee of conference to settle any discrepancies. This is done before the General Assembly adjourns the session for the year.