Bill To Regulate Hemp-Derived Cannabinoids Passes General Assembly In Tennessee

The Tennessee General Assembly passed a hemp-related bill sending it to Governor Bill Lee (R) for his signature. House Bill 403/Senate Bill 378 will regulate the production, distribution and sale of products with hemp-derived cannabinoids.

Cultivate Tennessee, a non-profit coalition of industry leaders advocating for the cannabis industry, partnered with House Majority Leader William Lamberth (R) and Senator Richard Briggs (R), chairman of the Senate State & Local committee, as well as a list of supportive State Reps to secure passage of the bill, which protects consumers and keeps them safe by requiring licenses, testing, child-safe packaging and proper disclaimers.

“The industry pushed for these regulations in order to demonstrate that it is solidly on the side of safety and accountability,” stated Devin Aracena, co-chair of Cultivate Tennessee. “The only way for us to grow this industry and educate Tennessee consumers is to create an environment where trust and consumer confidence is paramount. We think this bill is an incredible first step in the next phase of the industry in the state.”

Key Takeaways In The Bill

• Establishing a privilege tax of 6% of the sales price for these products, with revenue going to the state general fund;
• Manufacturers and sellers must obtain a license from the Department of Agriculture;
• Hemp-based cannabinoid products must be tested for safety and toxicity by an accredited laboratory;
• Creates child-resistant effectiveness standards for cannabinoid products, as well as requiring label warnings, disclaimers and one-year expiration dates on all products;
• Introduces new offenses for selling to or assisting someone under 21 to buy products with hemp-derived cannabinoids;
• The Department of Agriculture will enforce the new provisions and report annually to the general assembly.

“This is a huge step forward for Tennessee in terms of helping define the industry by creating needed safety, accountability and consumer protection guardrails,” said Jason Pickle, co-founder of Volunteer Botanicals and board member of Cultivate Tennessee. “The common-sense requirements of this new bill will ensure that Tennessee residents and resellers can feel comfortable with the safety and efficacy of hemp-derived products, as well as in the responsibility of the companies that produce them. This will help tremendously with the growth of the industry. This bill creates a legal framework to operate and distribute products.”

Volunteer Botanicals is a plant-based, biotechnology ecosystem designed to elevate plant-based medicines.

See also: We Can't 'Let Another Genie Out Of The Bottle,' Warns TN Official On Legalizing Medical Marijuana

Photo: Courtesy of Joel Muniz on Unsplash