Tennessee 2025-2026 Regular Session

Tennessee House Bill HB1376 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	SENATE BILL 1413
3	3	By Briggs
4	4
5	5	HOUSE BILL 1376
6	6	By Lamberth
7	7
8	8
9	9	HB1376
10	10	003076
11	11	- 1 -
12	12
13	13	AN ACT to amend Tennessee Code Annotated, Title 39;
14	14	Title 40; Title 43, Chapter 27; Title 53, Chapter 11;
15	15	Title 57 and Title 67, relative to the regulation of
16	16	hemp-derived cannabinoid products.
17	17
18	18	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
19	19	SECTION 1. Tennessee Code Annotated, Title 43, Chapter 27, Part 2, is amended by
20	20	deleting the part.
21	21	SECTION 2. Tennessee Code Annotated, Title 57, is amended by creating the following
22	22	new chapter:
23	23	57-7-101. Purpose.
24	24	The purpose of this chapter is to regulate the sale and distribution of hemp-
25	25	derived cannabinoid products. It is the intent of general assembly that the manufacture,
26	26	sale, and distribution of hemp-derived cannabinoid products is strictly prohibited unless
27	27	specifically provided for in this chapter. In acknowledging that the products regulated in
28	28	this chapter may be intoxicating, the regulation and control of such products in this state
29	29	are in the interest of public health and safety through ensuring proper age verification
30	30	and the state's ability to efficiently enforce the requirements and restrictions contained in
31	31	this chapter.
32	32	57-7-102. Chapter definitions.
33	33	As used in this chapter, unless the context otherwise requires:
34	34	(1) "Batch" means a single stock-keeping unit with common cannabinoid
35	35	input or a hemp flower of the same varietal and harvested on the same date and
36	36
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40	40	manufactured during a defined cycle in such a way that it could be expected to
41	41	be of a uniform character and should be designated as such;
42	42	(2) "Dry weight" means the weight of plant material with a moisture
43	43	content that does not exceed thirteen percent (13%);
44	44	(3) "Hemp-derived cannabinoid":
45	45	(A) Means:
46	46	(i) A cannabinoid other than delta-9 tetrahydrocannabinol,
47	47	or an isomer derived from such cannabinoid, that is derived from
48	48	hemp in a concentration of more than one-tenth of one percent
49	49	(0.1%); or
50	50	(ii) A hemp-derived product containing delta-9
51	51	tetrahydrocannabinol in a concentration of three-tenths of one
52	52	percent (0.3%) or less on a dry weight basis;
53	53	(B) Includes, but is not limited to:
54	54	(i) Delta-8 tetrahydrocannabinol;
55	55	(ii) Delta-10 tetrahydrocannabinol;
56	56	(iii) Hexahydrocannabinol;
57	57	(iv) Tetrahydrocannabiphorol (THCp); and
58	58	(v) Tetrahydrocannabivarin (THCv); and
59	59	(C) Does not include:
60	60	(i) Cannabichromene (CBC/CBCa/CBCv);
61	61	(ii) Cannabicitran (CBT/CBTa);
62	62	(iii) Cannabicyclol (CBL/CBLa);
63	63	(iv) Cannabidiol (CBD/CBDa/CBDv/CBDp);
64	64	(v) Cannabielsoin (CBE/CBEa);
65	65
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69	69	(vi) Cannabigerol (CBG/CBGa/CBGv/CBGm);
70	70	(vii) Cannabinol (CBN/CBNa);
71	71	(viii) Cannabivarin (CBV/CBVa);
72	72	(ix) Hemp-derived feed products allowed under title 44,
73	73	chapter 6;
74	74	(x) Hemp-derived fiber, grain, or topical products;
75	75	(xi) Tetrahydrocannabinolic acid (THCa);
76	76	(xii) A synthetic cannabinoid; or
77	77	(xiii) A substance that is categorized as a Schedule I
78	78	controlled substance on or after July 1, 2023, including a
79	79	substance that may be identified in subdivision (3)(B);
80	80	(4) "Hemp-derived cannabinoid product" or "HDCP":
81	81	(A) Means a product that contains or that is labeled as containing
82	82	a hemp-derived cannabinoid and that is produced, marketed, or otherwise
83	83	intended to be ingested orally, inhaled, or absorbed through the skin, and
84	84	that may contain a hemp-derived cannabinoid that is extracted from hemp
85	85	plants or hemp plant parts; and
86	86	(B) Includes:
87	87	(i) Intermediate products intended for subsequent use as
88	88	a component in a later finished HDCP; and
89	89	(ii) Harvested hemp plant parts, otherwise known as hemp
90	90	flower;
91	91	(5) "Manufacture" means to compound, blend, extract, infuse, cook, or
92	92	otherwise make or prepare HDCPs, including the processes of extraction,
93	93	infusion, packaging, repackaging, labeling, and relabeling of HDCPs;
94	94
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98	98	(6) "Proof of age" means a valid driver license or other government-
99	99	issued identification card that contains a photograph of the person and confirms
100	100	the person's age as twenty-one (21) years of age or older;
101	101	(7) "Retailer" means a person or entity that sells, markets, or advertises
102	102	as a seller, provides samples with or without a fee or charge, or otherwise
103	103	distributes to the public, with or without compensation, HDCPs for consumption
104	104	and not for resale;
105	105	(8) "Serving" means a quantity of an HDCP reasonably suitable for a
106	106	single person's daily use;
107	107	(9) "Supplier" means a person or entity that manufactures hemp-derived
108	108	cannabinoids or HDCPs or contracts for the manufacture of hemp-derived
109	109	cannabinoids or HDCPs, whether located inside or outside of this state, and that
110	110	sells finished, packaged HDCPs to wholesalers licensed under this chapter for
111	111	resale and not for consumption;
112	112	(10) "Synthetic cannabinoid" means a substance with a similar chemical
113	113	structure and pharmacological activity to a cannabinoid, but that is not extracted
114	114	or derived from hemp plants, or hemp plant parts and is instead created or
115	115	produced by chemical or biochemical synthesis;
116	116	(11) "Tetrahydrocannabinolic acid" or "THCa" is the precursor of delta-9
117	117	THC;
118	118	(12) "THC" means a tetrahydrocannabinol, tetrahydrocannabinolic acid, a
119	119	THC component, or any derivative thereof;
120	120	(13) "THC component" means a naturally occurring cannabinoid
121	121	component of industrial hemp or hemp; and
122	122
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126	126	(14) "Wholesaler" means a person or entity that purchases finished and
127	127	packaged for consumption HDCPs, not considered intermediate products still in
128	128	the pre-packaging stage, from suppliers licensed under this chapter, or from
129	129	other wholesalers licensed under this chapter, and that sells HDCPs for resale
130	130	and not for consumption.
131	131	57-7-103. License required for manufacturing, producing, or selling hemp-derived
132	132	cannabinoid products — Offenses and penalties.
133	133	(a)
134	134	(1) It is an offense for a person or entity to engage in the business of
135	135	manufacturing, producing, the wholesale distribution of, or selling HDCPs in this
136	136	state without a valid license required by this chapter.
137	137	(2) An HDCP that is manufactured, produced, wholesaled, sold, or
138	138	offered for sale in violation of subdivision (a)(1) is subject to seizure and forfeiture
139	139	pursuant to § 53-11-451.
140	140	(b)
141	141	(1) It is an offense to knowingly sell or distribute an HDCP without having
142	142	first obtained proof of age from the purchaser or recipient.
143	143	(2) It is an offense for a person to knowingly sell or distribute an HDCP to
144	144	a person who is under twenty-one (21) years of age or to purchase an HDCP on
145	145	behalf of a person who is under twenty-one (21) years of age.
146	146	(3) It is an offense for a person to knowingly assist a person who is under
147	147	twenty-one (21) years of age to purchase, acquire, receive, or attempt to
148	148	purchase an HDCP.
149	149	(4) It is an offense for a person who is under twenty-one (21) years of
150	150	age to knowingly purchase, possess, or accept receipt of an HDCP or to
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155	155	knowingly present purported proof of age that is false, fraudulent, or not actually
156	156	that person's proof of age for the purpose of purchasing or receiving an HDCP.
157	157	(5) For purposes of enforcing this chapter, this subsection (b) does not
158	158	preclude commission or law enforcement efforts involving:
159	159	(A) The use of a minor if the minor's parent or legal guardian has
160	160	consented to assisting the commission or law enforcement; or
161	161	(B) The use of a person under twenty-one (21) years of age who
162	162	is not a minor if the individual has consented to assisting the commission
163	163	or law enforcement.
164	164	(c) It is an offense to knowingly distribute samples of HDCPs in or on a public
165	165	street, sidewalk, or park.
166	166	(d) A violation of this section is a Class A misdemeanor.
167	167	(e) Notwithstanding this chapter to the contrary and except as provided in § 57-
168	168	7-105, state and local law enforcement officers have concurrent jurisdiction with the
169	169	commission to enforce violations of this section and § 57-7-104.
170	170	57-7-104. Maintenance of hemp-derived cannabinoid products in retail
171	171	establishments — Violations.
172	172	(a) As used in this section, "barrier" means the point of purchase having an
173	173	actual physical separation between HDCPs on display and the consumer at a retail
174	174	establishment or another designated area of the retail establishment that is inaccessible
175	175	to the consumer and that requires assistance from a retail clerk in order to access and
176	176	purchase HDCPs.
177	177	(b) HDCPs may be sold at retail in the following locations:
178	178	(1) An establishment that limits entry into the premises to individuals who
179	179	are twenty-one (21) years of age or more;
180	180
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184	184	(2) An establishment that holds a valid license issued by the commission
185	185	pursuant to § 57-4-102. An establishment that qualifies under this subdivision
186	186	(b)(2) may only sell HDCPs in a quantity and manner intended for on-premise
187	187	consumption while present at the establishment in accordance with rules of the
188	188	commission;
189	189	(3) An establishment that holds a valid license issued by the commission
190	190	pursuant to § 57-3-204; or
191	191	(4) An establishment owned or leased by a licensee that holds a valid
192	192	supplier license, wholesale license, and retail license for the same location where
193	193	HDCPs will be manufactured and sold at retail, or an establishment owned or
194	194	leased by a licensee that holds a valid supplier license and retail license for the
195	195	same location where HDCPs will be manufactured and sold, and that has
196	196	contracted with a wholesale licensee for remitting the tax levied under § 57-7-108
197	197	and for the wholesale distribution of the supplier's products. For the products
198	198	that are manufactured on the supplier's licensed premises and that are sold at
199	199	retail on the supplier's licensed premises, if all requirements of this section have
200	200	been met, a supplier is not required to have the products that it manufactures
201	201	and sells at retail on its licensed premises warehoused by the supplier's
202	202	contracted wholesale licensee.
203	203	(c) Signage must be displayed in all areas where HDCPs are displayed, in a
204	204	manner to be determined by the commission, clearly advising and warning the consumer
205	205	that the HDCPs on display may have intoxicating effects and cause impairment. HDCPs
206	206	may only be displayed in an area of the retail establishment that is constantly visible to a
207	207	retail licensee employee. A HDCP in this state must not be dispensed by or sold via the
208	208	use of a self-checkout retail system or vending machine.
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213	213	(d) An HDCP must be maintained by a retailer behind a barrier. For retailers
214	214	that hold a valid retail package store license issued by the commission pursuant to § 57-
215	215	3-204, HDCPs must be maintained behind a barrier of the retailer unless the HDCP is a
216	216	hemp-derived cannabinoid beverage product having a minimum container size of twelve
217	217	(12) fluid ounces.
218	218	(e) A violation of this section is a Class A misdemeanor.
219	219	57-7-105. Responsibilities of the commission — Responsibilities of the
220	220	department of revenue — Annual reports.
221	221	(a) The commission shall:
222	222	(1) Issue licenses to suppliers, wholesalers, and retailers under this
223	223	chapter;
224	224	(2) Oversee the manufacture of HDCPs by licensed suppliers and the
225	225	distribution of HDCPs by licensed wholesalers, including ensuring compliance
226	226	with labeling, product testing, and transportation requirements, and conducting
227	227	necessary inspections of HDCPs and HDCP proof of compliance documentation
228	228	at the facility of licensed wholesalers in a frequency and in a manner to be
229	229	determined by the commission, prior to the delivery or sale of HDCPs to a
230	230	retailer;
231	231	(3) Oversee the retail sale of HDCPs by licensed retailers to ensure
232	232	compliance with this chapter;
233	233	(4) Enforce this chapter in a manner that may reasonably be expected to
234	234	reduce the extent to which noncompliant HDCPs are sold and conducting
235	235	random, unannounced inspections at locations where HDCPs are manufactured,
236	236	stored for wholesale distribution, and sold at retail to ensure compliance with this
237	237	chapter in furtherance of protecting the health and safety of the public. The
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242	242	commission shall determine the frequency of random, unannounced inspections
243	243	required under this subdivision (a)(4); and
244	244	(5) Hire a sufficient number of employees, as determined by the
245	245	commission, to oversee the day to day operations and management of the
246	246	supervision and enforcement of this chapter and the rules of the commission.
247	247	The commission shall establish the salaries of the employees hired under this
248	248	subdivision (a)(5) and such employees serve at the pleasure of the commission.
249	249	(b) The department of revenue:
250	250	(1) Shall ensure wholesalers and retailers are in compliance with this
251	251	chapter and applicable tax provisions under title 67, including §§ 57-7-108 and
252	252	67-6-232;
253	253	(2) Shall, in conjunction with the commission, enforce this chapter in a
254	254	manner that may reasonably be expected to reduce the extent to which
255	255	noncompliant HDCPs are sold and shall conduct random, unannounced
256	256	inspections at wholesale locations where HDCPs are stored for distribution and
257	257	retail locations where such products are sold to ensure compliance with this
258	258	chapter. The department of revenue shall determine the frequency of random,
259	259	unannounced inspections required under this subdivision (b)(2); and
260	260	(3) May, in conjunction with the commission, confiscate noncompliant
261	261	HDCPs as contraband in the manner described in title 57, chapter 5, part 4. All
262	262	products that the department of revenue confiscates under this subdivision (b)(3)
263	263	are subject to seizure and forfeiture in the same manner prescribed for beer in §§
264	264	57-5-409 and 57-5-410.
265	265	(c) The commission and department of revenue shall submit an annual report to
266	266	the general assembly describing in detail the commission's and department's
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271	271	compliance and enforcement efforts under this chapter. The report must also be
272	272	published and made available to the public on the commission's and department's
273	273	websites, respectively.
274	274	57-7-106. License to produce or sell cannabinoid products — License
275	275	requirements — Prohibited retail locations — Authority of the commission.
276	276	(a) A person or entity that is in the business of manufacturing, distributing, or
277	277	selling HDCPs in this state, including as a supplier, wholesaler, or retailer, must obtain a
278	278	license from the commission authorizing the person or entity to engage in that business
279	279	prior to the commencement of business. If a person or entity holds multiple licenses
280	280	under this chapter, the person or entity shall maintain the business conducted under
281	281	each license on a separately designated premises or in wholly separate facilities in a
282	282	manner to be determined by the commission by rule.
283	283	(b)
284	284	(1) In order to obtain and maintain a supplier or retailer license under
285	285	subsection (a), a person or entity must:
286	286	(A) Submit to the commission information promulgated by rules
287	287	as necessary for the efficient enforcement of this chapter;
288	288	(B) Pay to the commission:
289	289	(i) A non-refundable application fee of five hundred dollars
290	290	($500) per application; and
291	291	(ii) Upon approval, an annual license fee of:
292	292	(a) For a retailer, one thousand dollars ($1,000),
293	293	and an additional annual license fee of one thousand
294	294	dollars ($1,000) for each additional location in this state;
295	295	and
296	296
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300	300	(b) For a supplier, two thousand five hundred
301	301	dollars ($2,500), and an additional annual license fee of
302	302	two thousand five hundred dollars ($2,500) for each
303	303	additional location in this state;
304	304	(C) Consent to reasonable inspection and sampling and testing
305	305	by the commission, or the department of revenue, as applicable, of the
306	306	person's inventory of HDCPs;
307	307	(D) Submit to a criminal history background check that includes
308	308	fingerprint checks against state and federal criminal records maintained
309	309	by the Tennessee bureau of investigation and the federal bureau of
310	310	investigation; and
311	311	(E) If the supplier is located out of state, remain in compliance
312	312	with the applicable governing laws, rules, and regulations of the
313	313	jurisdiction where the supplier is located.
314	314	(2) A person is not eligible to hold a direct or indirect interest in a supplier
315	315	or retailer license while serving a sentence for, or for ten (10) years following the
316	316	date of conviction of, a drug-related felony offense in any state, territory of the
317	317	United States, or federal jurisdiction.
318	318	(3)
319	319	(A) An applicant for a license as a retailer with a proposed retail
320	320	location that is within one thousand feet (1,000') of a private school, public
321	321	school, or charter school that serves any grade from kindergarten through
322	322	grade twelve (K-12) shall not sell HDCPs at such location unless the
323	323	applicant provides the commission with documentation that establishes
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328	328	that HDCPs were being offered for sale at retail at such location on
329	329	December 31, 2023.
330	330	(B) The commission shall accept business records, photographs,
331	331	and video recordings as documentation for purposes of determining
332	332	whether an applicant qualifies for the exception in subdivision (b)(3)(A).
333	333	(C) For the purposes of subdivision (b)(3)(A), measurements
334	334	must be made in a straight line in all directions, without regard to
335	335	intervening structures or objects, from the nearest point on the property
336	336	line of a parcel containing a retail establishment to the nearest point on
337	337	the property line of a parcel containing a private school, public school, or
338	338	charter school that serves any grade from kindergarten through grade
339	339	twelve (K-12).
340	340	(4) The shipping of HDCPs directly to a retail licensee in this state or
341	341	directly to a consumer in this state is strictly prohibited.
342	342	(5) All sales of HDCPs and transfers of product from a retailer to
343	343	consumer must take place at a licensed retail location in a face-to-face
344	344	transaction. The delivery of HDCPs to consumers, directly or indirectly, is strictly
345	345	prohibited.
346	346	(c) A supplier or retailer license issued pursuant to this section is valid for a
347	347	period of one (1) year and may be renewed annually. The commission shall charge an
348	348	annual renewal fee equal to the initial licensing fee.
349	349	(d) The commission may:
350	350	(1) Determine requirements for and issue licenses for the manufacture or
351	351	sale of HDCPs in this state; and
352	352
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356	356	(2) Deny or revoke supplier or retailer licenses and issue civil penalties in
357	357	the following manner for each violation of this chapter, or a rule promulgated
358	358	pursuant to this chapter:
359	359	(A) One thousand dollars ($1,000) for a first violation;
360	360	(B) Two thousand five hundred dollars ($2,500) for a second
361	361	violation that occurs within two (2) years of the first violation;
362	362	(C) Five thousand dollars ($5,000) for a third violation that occurs
363	363	within two (2) years of the first violation;
364	364	(D) Revocation of the license for a fourth violation that occurs
365	365	within two (2) years of the first violation; and
366	366	(E) Require retraining of all employees of the licensee under the
367	367	supervision of the commission in addition to the civil penalties imposed
368	368	pursuant to subdivisions (d)(2)(A)-(C).
369	369	(e) The revenue collected from fees established under subdivision (b)(1)(B) must
370	370	be deposited with the state treasurer to be earmarked for and allocated to the
371	371	commission and used exclusively for the administration of this title.
372	372	(f)
373	373	(1) In order to obtain and maintain a wholesaler license under subsection
374	374	(a), a person or entity shall:
375	375	(A) Submit to the commission information included in this
376	376	subsection (f) and as promulgated by rule of the commission pertaining to
377	377	warehouse location, security measures, and as necessary for the efficient
378	378	enforcement of this chapter, including, but not limited to:
379	379	(i) Name of the applicant;
380	380
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384	384	(ii) Date of birth of each applicant who is an individual or a
385	385	partner in a general partnership, or stakeholder or investor in, or
386	386	member of, another legal entity;
387	387	(iii) Proof of registration or incorporation in this state for an
388	388	applicant that is a legal business entity authorized to engage in
389	389	business in this state;
390	390	(iv) Contact information for each applicant, including the
391	391	name of the person legally responsible for each applicant's
392	392	operations, telephone number, email address, and address of
393	393	principal place of business;
394	394	(v) Address of location to be licensed;
395	395	(vi) A detailed description of the square footage and
396	396	dimensions of the warehouse space, including a description of
397	397	how the product will be received, inventoried, stored, and
398	398	packaged, as applicable;
399	399	(vii) A detailed description of how records will be stored
400	400	and kept in a secure manner, and how the applicant will conduct
401	401	its review of all aspects of the compliance requirements contained
402	402	in this chapter and as set forth by the commission as it pertains to
403	403	HDCPs;
404	404	(viii) An identity history summary issued by the federal
405	405	bureau of investigation for the person identified as legally
406	406	responsible for the management of each applicant's operations;
407	407	(ix) Designation, if applicable, of each authorized
408	408	representative of the applicant; and
409	409
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413	413	(x) Other information as required by the commission;
414	414	(B) Pay to the commission:
415	415	(i) A nonrefundable application fee of five hundred dollars
416	416	($500) per application; and
417	417	(ii) Upon approval, an annual license fee of five thousand
418	418	dollars ($5,000) per application, per warehouse location;
419	419	(C) Consent to reasonable inspection and sampling by the
420	420	commission or the department of revenue, as applicable, of the person's
421	421	inventory of HDCPs;
422	422	(D) Submit to a criminal history background check that includes
423	423	fingerprint checks against state and federal criminal records maintained
424	424	by the Tennessee bureau of investigation and the federal bureau of
425	425	investigation; and
426	426	(E) Submit proof of the following:
427	427	(i) The applicant has secured or is readily able to secure a
428	428	warehouse located in this state, which meets all local
429	429	requirements for the applicant's specific use of the property, with a
430	430	minimum size of one thousand square feet (1,000 sq. ft.) that is
431	431	not also being used for the cultivation, manufacture, laboratory
432	432	testing, or the retail sale of hemp, hemp-derived products other
433	433	than HDCPs, or HDCPs. Other products regulated by the
434	434	commission may be stored in the same areas as HDCPs;
435	435	provided, that all required federal, state, and local licenses,
436	436	permits, and other requirements are satisfied for the storage of
437	437	such products;
438	438
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442	442	(ii) Certificate of occupancy or other proof of approval from
443	443	the local jurisdiction for the applicant's intended use;
444	444	(iii) Detailed business plan, including details pertaining to
445	445	the applicant's investment in the business and the capital required
446	446	to start the business;
447	447	(iv) Proof that the applicant possesses the financial
448	448	capacity necessary to engage in the warehousing and distribution
449	449	of HDCPs in a manner to be determined by the commission,
450	450	documenting access to a minimum of seven hundred fifty
451	451	thousand dollars ($750,000), that must be proven by providing the
452	452	following documentation:
453	453	(a) Certified business or personal financial
454	454	statements; and
455	455	(b) Checking or savings bank statements or
456	456	statements from money market or brokerage accounts;
457	457	provided, funds are readily convertible to cash; and
458	458	(v) If an applicant has obtained a loan as proof of financial
459	459	capacity under subdivision (f)(1)(E)(iv):
460	460	(a) Proof of the loan approval from a bank or
461	461	another insured depository institution or lender deemed
462	462	acceptable by the commission; or
463	463	(b) Proof of the loan approval from a private lender
464	464	via executed loan documents and sufficient proof of funds
465	465	in a manner to be determined by the commission;
466	466	provided, that the private lender and its individual owners
467	467
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471	471	or principals must be disclosed in the application as an
472	472	owner of the applicant.
473	473	(2) A person is not eligible to hold a direct or indirect interest in a
474	474	wholesaler license while serving a sentence for, or for ten (10) years following
475	475	the date of conviction of, a drug-related felony offense in any state, territory of the
476	476	United States, or federal jurisdiction.
477	477	(3) A wholesaler license issued pursuant to this section is valid for a
478	478	period of one (1) year and may be renewed annually. The commission shall
479	479	charge an annual renewal fee equal to the initial licensing fee, unless otherwise
480	480	determined by the commission.
481	481	(4) Wholesaler licensees must receive preapproval from the commission
482	482	for any changes in ownership, control, or otherwise of the legal entity of the
483	483	license holder.
484	484	(5) Wholesaler licensees shall notify the commission of any changes to
485	485	the contents of their application on file and that do not otherwise require
486	486	preapproval, as determined by the commission, within thirty (30) days after the
487	487	change takes place, including any change of contact information or changes to
488	488	the warehouse premises.
489	489	(6) The commission may deny the issuance or renewal of an application
490	490	for a wholesaler license for an applicant that has not fully complied with this
491	491	section.
492	492	(7) Persons who warehouse and distribute HDCPs are subject to all rules
493	493	of the commission applicable to the type of product sold, including, but not limited
494	494	to, all applicable federal and state laws, rules, and regulations. HDCPs are
495	495
496	496
497	497	- 18 - 003076
498	498
499	499	excluded from all regulatory exemptions, including, but not limited to, those
500	500	exemptions prescribed by § 53-1-118.
501	501	(8) The revenue collected from fees established under this subsection (f)
502	502	must be deposited with the state treasurer to be earmarked for and allocated to
503	503	the commission and used exclusively for the administration of this title.
504	504	(9) A wholesaler that violates a provision of this chapter is subject to the
505	505	same penalties as a supplier or retailer under subdivision (d)(2).
506	506	(g) Supplier, wholesaler, and retailer licenses issued under this section are not
507	507	transferable from person to person or location to location.
508	508	(h) A supplier, wholesaler, and retailer license issued under this section expires
509	509	in accordance with rules promulgated by the commission establishing a schedule for
510	510	licensure expiration. An applicant for renewal must submit with the application for
511	511	renewal the annual license fee, an updated identity history summary, and any other
512	512	information required by the commission by rule, as applicable.
513	513	57-7-107. Product testing requirements — Commission maintenance of list of
514	514	qualified testing laboratories.
515	515	(a) Testing of products and substances must be conducted as follows:
516	516	(1) Full-panel testing on all active cannabinoid molecules must be
517	517	conducted prior to final production of HDCPs; and
518	518	(2) A potency test must be conducted on finished goods to confirm
519	519	potency is consistent with stated potency on the packaging.
520	520	(b)
521	521	(1) A supplier must contract with a third-party laboratory to provide the
522	522	testing required by subsection (a).
523	523
524	524
525	525	- 19 - 003076
526	526
527	527	(2) A supplier shall certify to the commission that all HDCPs provided by
528	528	the supplier are in compliance with all requirements of this chapter. The manner
529	529	of certification may be established by rule of the commission.
530	530	(3) The commission is authorized to promulgate rules specifying which
531	531	types of tests may be used to satisfy the requirements of subsection (a) and the
532	532	qualifications for laboratories from which the commission will accept test results.
533	533	(c) Each batch manufactured must undergo testing and obtain a certificate of
534	534	analysis by a third-party laboratory qualified under subsection (b).
535	535	(d) The commission shall:
536	536	(1) Promulgate rules specifying pass and fail action levels for safety and
537	537	toxicity with respect to the testing required by subsection (a);
538	538	(2) Maintain and post on its website a registry of testing laboratories that
539	539	are qualified to test intermediate manufactured material and finished HDCPs;
540	540	(3) Develop an application and process by which qualifying laboratories
541	541	are listed on the commission's website. The application submitted by a
542	542	potentially qualifying laboratory must include a sample certificate of analysis
543	543	issued by the applying laboratory; and
544	544	(4) Sample and analyze HDCPs produced, distributed, and offered for
545	545	sale in this state for cannabinoid concentrations, tested according to protocols
546	546	promulgated by rule of the commission. Commission testing must be conducted
547	547	by post-decarboxylation to determine a cannabinoid profile of samples tested,
548	548	including their THC concentrations. As used in this subdivision (d)(4), "post-
549	549	decarboxylation" means the quantification by percentage of the resulting
550	550	tetrahydrocannabinol of a sample if carboxyl groups are removed from all
551	551	molecules containing tetrahydrocannabinol within the sample.
552	552
553	553
554	554	- 20 - 003076
555	555
556	556	57-7-108. Wholesale tax levy – Enforcement – Disposition of collections.
557	557	(a) There is imposed a tax upon the sale of HDCPs at wholesale in the amount
558	558	of one cent (1¢) per milligram of hemp-derived cannabinoid in each HDCP sold at
559	559	wholesale in this state. The tax imposed under this subsection (a) must be paid monthly
560	560	by the wholesaler upon the amount of milligrams of hemp-derived cannabinoid sold by
561	561	the wholesaler during the preceding month to the department of revenue, fifty percent
562	562	(50%) of which tax must be distributed to the commission in accordance with subsection
563	563	(c).
564	564	(b) For the purpose of enforcing this chapter and ascertaining the amount of tax
565	565	due under this section, each wholesaler shall, on or before the fifteenth day of each
566	566	month, file a report with the commissioner upon forms prescribed, prepared, and
567	567	furnished by the commissioner showing information relative to sales and disposition of
568	568	all HDCPs and such other related information as the commissioner may require.
569	569	(c) All moneys collected under this section must be turned over to the state
570	570	treasurer for deposit in the general fund, to be distributed as follows:
571	571	(1) Fifty percent (50%) to be appropriated for use by local governments
572	572	for local road infrastructure projects in the manner prescribed by the general
573	573	assembly; and
574	574	(2) Fifty percent (50%) to be appropriated for use by the commission in
575	575	the enforcement of this title.
576	576	57-7-109. Transportation of hemp-derived cannabinoid products — Required
577	577	documentation — Exceptions.
578	578	(a) Except as provided in subsection (b), a person transporting HDCPs into,
579	579	within, or through this state shall carry:
580	580
581	581
582	582	- 21 - 003076
583	583
584	584	(1) Documentation sufficient to prove that the products being shipped or
585	585	transported:
586	586	(A) Were produced from hemp that was lawfully produced under
587	587	a state or tribal hemp plan approved by the United States department of
588	588	agriculture, under a hemp license issued by the United States department
589	589	of agriculture, or otherwise in accordance with federal regulations through
590	590	the state or territory of the Indian tribe, as applicable; and
591	591	(B) Do not exceed the cannabinoid limits for hemp-derived
592	592	cannabinoids; and
593	593	(2) A bill of lading that includes:
594	594	(A) Name and address of the owner of the products;
595	595	(B) Point of origin;
596	596	(C) Point of delivery, including name and address;
597	597	(D) Kind and quantity of packages or, if in bulk, the total quantity
598	598	of products in the shipment; and
599	599	(E) Date of shipment.
600	600	(b) Subsection (a) does not apply to a person in possession of HDCPs that were
601	601	purchased from a retailer that is licensed under this chapter.
602	602	57-7-110. Safety requirements for hemp-derived cannabinoid products — Proper
603	603	storage by consumer — Prohibited advertising.
604	604	(a) An HDCP that is sold at retail must:
605	605	(1) Satisfy the child-resistant effectiveness standards under 16 CFR
606	606	1700.15(b)(1) when tested in accordance with the requirements of 16 CFR
607	607	1700.20;
608	608
609	609
610	610	- 22 - 003076
611	611
612	612	(2) If the HDCP is a beverage product, utilize a traditional pull-tab, an
613	613	aluminum can device currently approved for soft drinks and malt beverages, or a
614	614	screw-top or cork-style cap used for containers of wine and other alcoholic
615	615	beverage products;
616	616	(3) For HDCPs other than beverage products, be packaged in a single
617	617	package, container, or cartridge that contains no more than the milligram
618	618	equivalent of ten (10) servings, or two hundred fifty (250) milligrams of hemp-
619	619	derived cannabinoids, in the aggregate, in a manner to be determined by the
620	620	commission by rule; and
621	621	(4) Be labeled with:
622	622	(A) A list of ingredients and possible allergens and a nutritional
623	623	fact panel;
624	624	(B) A conspicuous warning statement having a minimum font size
625	625	of 11-point font concerning the risk of impairment from consumption of the
626	626	product, keeping the product out of the reach of children, and other
627	627	warning information as required by rule of the commission;
628	628	(C) If the product is ingestible, the amount of hemp-derived
629	629	cannabinoid in each serving of the product, measured in milligrams;
630	630	(D) The total amount of hemp-derived cannabinoid in the entire
631	631	package, measured in milligrams;
632	632	(E) The net weight of the product;
633	633	(F) A quick response (QR) code that can be scanned to access a
634	634	website providing the product's batch number, date received, date of
635	635	testing completion, method of analysis for the testing report required
636	636
637	637
638	638	- 23 - 003076
639	639
640	640	under § 57-7-107, including information regarding results of the product's
641	641	full-panel and potency tests conducted pursuant to § 57-7-107(a); and
642	642	(G) An expiration date.
643	643	(b) A person who obtains an HDCP that is sold at retail shall store any
644	644	unconsumed portion of the product in its original packaging. It is a Class C
645	645	misdemeanor offense for a person to violate this subsection (b).
646	646	(c) A retailer or supplier of an HDCP shall not advertise, market, or offer for sale
647	647	an HDCP by using, depicting, or signifying, in the labeling or design of the product or
648	648	product packaging, or in advertising or marketing materials for the product, trade dress,
649	649	trademarks, branding, or other related product imagery or scenery, characters, or
650	650	symbols known to appeal primarily to persons under twenty-one (21) years of age,
651	651	including, but not limited to, superheroes, comic book characters, video game
652	652	characters, television show characters, movie characters, or unicorns or other mythical
653	653	creatures.
654	654	(d) An HDCP must not be mixed with or otherwise used as an ingredient in beer
655	655	or alcoholic beverages.
656	656	(e) An HDCP must not be labeled or otherwise marketed to make any health-
657	657	related claims, including, but not limited to, claims pertaining to diagnoses, cures, or
658	658	mitigation or treatment of any human disease or other condition.
659	659	(f) An ingestible HDCP containing a hemp-derived cannabinoid must not:
660	660	(1) Be sold in a serving that contains more than twenty-five (25)
661	661	milligrams, in the aggregate, of one (1) or more hemp-derived cannabinoids;
662	662	(2) If the HDCP product is a hemp-derived cannabinoid beverage
663	663	product, be sold:
664	664
665	665
666	666	- 24 - 003076
667	667
668	668	(A) In a concentration greater than two hundred fifty (250)
669	669	milligrams, in the aggregate, of one (1) or more hemp-derived
670	670	cannabinoids, per seven hundred fifty milliliters (750 ml) by volume;
671	671	(B) In a container with a volume greater than seven hundred fifty
672	672	milliliters (750 ml); or
673	673	(C) In a container that contains more than two (2) servings, with
674	674	the exception of a seven hundred fifty milliliter (750 ml) container; or
675	675	(3) Be formed into the shape of an animal or cartoon character.
676	676	(g) The commission may promulgate rules for the packaging, labeling, and
677	677	display of HDCPs that are offered for sale in this state.
678	678	57-7-111. Limitations on right to use hemp-derived cannabinoid — Rights of
679	679	others.
680	680	(a) This chapter does not permit a person to:
681	681	(1) Undertake any task under the influence of a hemp-derived
682	682	cannabinoid or HDCP when doing so would constitute negligence or professional
683	683	malpractice; or
684	684	(2) Operate, navigate, or be in actual physical control of a motor vehicle,
685	685	aircraft, motorized watercraft, or any other vehicle while under the influence of a
686	686	hemp-derived cannabinoid or HDCP.
687	687	(b) This chapter does not require:
688	688	(1) An employer to accommodate the use of hemp-derived cannabinoids
689	689	or HDCPs in a workplace or an employee working while under the influence of a
690	690	hemp-derived cannabinoid or an HDCP;
691	691
692	692
693	693	- 25 - 003076
694	694
695	695	(2) An individual or establishment in lawful possession of property to
696	696	allow a guest, client, customer, or other visitor to use a hemp-derived
697	697	cannabinoid or HDCP on or in that property; or
698	698	(3) An individual or establishment in lawful possession of property to
699	699	admit a guest, client, customer, or other visitor who is visibly impaired as a result
700	700	of the person's use of a hemp-derived cannabinoid or HDCP.
701	701	(c) This chapter does not exempt a person from prosecution for a criminal
702	702	offense related to impairment or intoxication resulting from use of a hemp-derived
703	703	cannabinoid or HDCP or relieve a person from any requirement under law to submit to a
704	704	breath, blood, urine, or other test to detect the presence of a controlled substance.
705	705	(d) This chapter does not:
706	706	(1) Limit the ability of an employer to establish, continue, or enforce a
707	707	drug-free workplace program or policy;
708	708	(2) Create a cause of action against an employer for wrongful discharge
709	709	or discrimination; or
710	710	(3) Allow the possession, sale, manufacture, or distribution of any
711	711	substance that is otherwise prohibited by title 39, chapter 17, part 4.
712	712	57-7-112. Registration requirements for brands – Fees.
713	713	(a) As used in this section, "brand" means each category and type of HDCP, as
714	714	distinguishable to a consumer by supplier, name or trademark, brand or product line
715	715	name or trademark, or another distinction between HDCPs as promulgated by rule of the
716	716	department of revenue or commission.
717	717	(b) A supplier shall not deliver one (1) or more HDCPs to a wholesaler for
718	718	distribution in this state unless each HDCP brand is registered by the supplier with the
719	719	department of revenue.
720	720
721	721
722	722	- 26 - 003076
723	723
724	724	(c) The department of revenue shall prescribe a form for registering an HDCP
725	725	brand with the department, which must include each wholesaler authorized to distribute
726	726	the HDCP in this state and each county in this state in which the product is being sold at
727	727	retail.
728	728	(d) The department of revenue shall collect from the supplier an annual brand
729	729	registration fee of three hundred dollars ($300) per brand of HDCP registered with the
730	730	department.
731	731	(e) A wholesaler shall not give an order, receive, accept, or offer for sale an
732	732	HDCP brand unless the brand is registered with the department of revenue.
733	733	57-7-113. Direct-to-consumer shipping and delivery services unlawful.
734	734	(a) It is unlawful for a person or entity:
735	735	(1) Within or without this state, to ship an HDCP directly to a consumer;
736	736	or
737	737	(2) To utilize a delivery service to deliver an HDCP to a consumer.
738	738	(b) A person or entity that violates subsection (a) is subject to a civil penalty
739	739	levied by the commission of:
740	740	(1) One thousand dollars ($1,000) for a first offense;
741	741	(2) Five thousand dollars ($5,000) for a second offense; and
742	742	(3) Ten thousand dollars ($10,000) for a third or subsequent offense.
743	743	57-7-114. Unlawful to manufacture, cultivate, produce, or sell certain
744	744	cannabinoids.
745	745	(a) It is an offense to manufacture, cultivate, produce, or sell in this state:
746	746	(1) Hemp or hemp plant parts which contain a THCa concentration in
747	747	excess of one-tenth of one percent (0.1%) on a dry weight basis;
748	748	(2) Any derivative of hemp or an HDCP that contains THCa;
749	749
750	750
751	751	- 27 - 003076
752	752
753	753	(3) Hemp, hemp plant parts, a derivative of hemp, HDCPs, or another
754	754	product that contains a total THC concentration, or a total theoretical THC
755	755	concentration, in excess of three-tenths of one percent (0.3%) on a dry weight
756	756	basis; or
757	757	(4) A synthetic cannabinoid, or an HDCP or any other product, which
758	758	contains a synthetic cannabinoid.
759	759	(b) A person who violates subsection (a) is guilty of a Class A misdemeanor.
760	760	(c) As used in this section:
761	761	(1) "Total THC" means a combination of tetrahydrocannabinol,
762	762	tetrahydrocannabinolic acid, a THC component, or a derivative thereof; and
763	763	(2) "Total theoretical tetrahydrocannabinol content" or "total theoretical
764	764	THC" is the maximum amount of possible delta-9 tetrahydrocannabinol if total
765	765	conversion were to occur, calculated as the sum of the concentration of delta-9
766	766	tetrahydrocannabinol added to the amount of tetrahydrocannabinolic acid after
767	767	such amount is multiplied by eight hundred seventy-seven ten-thousandths
768	768	(0.877) on a dry weight basis and reported to two significant figures, and
769	769	expressed in mathematical formula as follows:
770	770	Total theoretical THC = ([delta 9 THC] + ([THCa] x 0.877))
771	771	57-7-115. Authority to promulgate rules.
772	772	The commission and department of revenue are authorized to promulgate rules
773	773	to effectuate this chapter in accordance with the Uniform Administrative Procedures Act,
774	774	compiled in title 4, chapter 5.
775	775	57-7-116. Applicability of chapter with conflicting provisions of law.
776	776
777	777
778	778	- 28 - 003076
779	779
780	780	This chapter governs the manufacturing, distribution, and sale of HDCPs, and to
781	781	the extent that a provision of this code conflicts with this chapter, the applicable
782	782	provisions of this chapter prevail.
783	783	SECTION 3. Tennessee Code Annotated, Section 67-6-232, is amended by deleting the
784	784	section and substituting:
785	785	(a) For the exercise of the privilege of engaging in the business of selling hemp-
786	786	derived cannabinoid products (HDCPs), as defined in § 57-7-102, in this state pursuant
787	787	to title 57, chapter 7, there is levied an additional tax at the rate of six percent (6%) of the
788	788	sales price of HDCPs when sold at retail in this state.
789	789	(b) The tax levied under this section is due and payable monthly on the first day
790	790	of each month, and for the purpose of ascertaining the amount of tax payable under this
791	791	section, all retailers making taxable sales on or before the twentieth day of each month
792	792	shall transmit to the commissioner of revenue, upon forms prescribed by the
793	793	commissioner, returns showing gross sales during the preceding month.
794	794	(c) All revenue generated from the tax levied pursuant to subsection (a) must be
795	795	deposited into a special account in the state general fund, with fifty percent (50%) being
796	796	allocated to the department of revenue and fifty percent (50%) being allocated to the
797	797	alcoholic beverage commission. Unused funds remaining in the account at the end of a
798	798	fiscal year must not revert to the general fund but must be carried forward and remain
799	799	available for expenditure in accordance with this chapter.
800	800	SECTION 4. Tennessee Code Annotated, Section 57-3-404(e)(4)(Q), is amended by
801	801	deleting the subdivision.
802	802	SECTION 5. Tennessee Code Annotated, Section 53-11-451, is amended by deleting
803	803	subdivision (a)(8), and is further amended by deleting the second sentence of subsection (b).
804	804
805	805
806	806	- 29 - 003076
807	807
808	808	SECTION 6. Tennessee Code Annotated, Section 39-17-1507(a), is amended by
809	809	deleting the language:
810	810	It is unlawful for any person to sell tobacco, smoking hemp, vapor products, or
811	811	smokeless nicotine products through a vending machine unless the vending machine is
812	812	located in any of the following locations:
813	813	and substituting:
814	814	It is unlawful for a person to sell smoking hemp and hemp derived cannabinoid products
815	815	through a vending machine. It is unlawful for a person to sell tobacco, vapor products,
816	816	or smokeless nicotine products through a vending machine unless the vending machine
817	817	is located in any of the following areas:
818	818	SECTION 7. Tennessee Code Annotated, Section 39-17-1509, is amended by deleting
819	819	the language "smoking hemp," wherever it may appear, and is further amended by adding the
820	820	following new subsection (g):
821	821	(g) Notwithstanding this part to the contrary, the alcoholic beverage commission
822	822	and department of revenue have administrative oversight of hemp derived cannabinoid
823	823	products, including inspections and the assessment of civil penalties, in accordance with
824	824	title 57, chapter 7.
825	825	SECTION 8. Notwithstanding this act to the contrary, a license issued pursuant to
826	826	Tennessee Code Annotated, Title 43, Chapter 27, Part 2, before the effective date of this act
827	827	remains valid and in full force until the expiration of the license. Such license and license holder
828	828	are subject to Tennessee Code Annotated, Title 43, Chapter 27, Part 2, as it existed prior to the
829	829	effective date of this act, until the expiration of the license.
830	830	SECTION 9. The headings in this act are for reference purposes only and do not
831	831	constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
832	832	requested to include the headings in any compilation or publication containing this act.
833	833
834	834
835	835	- 30 - 003076
836	836
837	837	SECTION 10.
838	838	(a) For purposes of promulgating rules and carrying out administrative duties
839	839	necessary to effectuate this act, this act takes effect upon becoming a law, the public
840	840	welfare requiring it.
841	841	(b) For all other purposes, this act takes effect January 1, 2026, the public
842	842	welfare requiring it.
843	843