A significant debate is brewing among Tennessee lawmakers regarding the regulation of hemp products, with differing viewpoints emerging from the House and Senate versions of a proposed bill. At the heart of this discussion lies the treatment of THCA, a compound that produces effects akin to marijuana when heated or burned. While both legislative bodies aim to refine the regulatory framework for an industry contributing millions to the state’s economy, their approaches diverge notably. The House proposal seeks to permit the sale of THCA in certain retail settings, whereas the Senate version advocates for stringent limitations.

Industry experts highlight the potential implications of these legislative measures. Clint Palmer, a legal advisor specializing in hemp matters, suggests that Tennessee could pioneer national regulation of the THCA market, a step generally welcomed by industry stakeholders as it might preserve business continuity. Both drafts propose transferring oversight responsibilities for hemp-derived items from the Department of Agriculture to the Alcoholic Beverage Commission, alongside introducing a wholesale tax of one cent per milligram on such goods. Originally, both bills intended to outlaw THCA, but amendments to the House legislation aimed to protect farmers' livelihoods.

As the legislative session progresses, the primary point of contention between the two versions revolves around permissible delta-9 THC levels in products. Hemp's distinction from marijuana hinges on its lower concentration of delta-9 THC; substances with less than 0.3% are classified as legal hemp under both state and federal law. Senator Richard Briggs, who sponsored the Senate version, recently revised his bill to ensure financial stability, aiming to retain up to $14 million in revenue from associated fees and taxes. Briggs insists his bill targets marijuana rather than hemp, referencing a 2024 Department of Justice letter. If both chambers pass their respective bills without alterations, a conference committee may reconcile discrepancies before adjournment.

The ongoing litigation surrounding new testing requirements for hemp products underscores the complexity of the issue. Retailers argue that current regulations provide adequate age enforcement and compliance mechanisms. Senator Briggs emphasizes the necessity for stricter enforcement to address alleged overages in THC levels on store shelves. By involving agencies like the Alcoholic Beverage Commission and potentially the Tennessee Bureau of Investigation, the state aims to uphold legal standards while fostering a balanced regulatory environment that supports legitimate businesses and protects public interests.