HB 72 - SB 215 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly February 7, 2025 Fiscal Analyst: Natalie Dusek | Email: natalie.dusek@capitol.tn.gov | Phone: 615-741-2564 HB 72 - SB 215 SUMMARY OF BILL: Establishes mandatory penalties for a person convicted of knowingly selling or distributing a product containing a hemp-derived cannabinoid to a person who is under 21 years of age. Prohibits retail establishments from knowingly allowing an employee younger than 21 years of age to access, handle, or sell any product containing a hemp-derived cannabinoid on the premises of the establishment. FISCAL IMPACT: NOT SIGNIFICANT Assumptions: • Pursuant to Tenn. Code Ann. § 43-27-203(b)(2), it is an offense to knowingly sell or distribute a product containing a hemp-derived cannabinoid to a person under 21 years of age, or to purchase such a product on behalf of a person who is under 21 years of age. • Pursuant to Tenn. Code Ann. § 43-27-203(b)(3), it is an offense for a person to knowingly assist a person who is under 21 years of age to purchase, acquire, receive, or attempt to purchase a product containing a hemp-derived cannabinoid. • A violation of either of these prohibitions is a Class A misdemeanor offense. • The proposed legislation establishes mandatory penalties for such violations of not less than 48 consecutive hours nor more than 11 months and 29 days in a county jail or workhouse, and a fine of not less than $500 nor more than $1,500. • Based on information provided by the Administrative Office of the Courts (AOC), there have been zero convictions for these offenses since they were enacted in 2023; therefore, the establishment of the proposed mandatory penalties is not estimated to result in a significant increase in local incarceration expenditures, or in revenue from criminal fines. • Pursuant to Tenn. Code Ann. § 43-27-204, a retail establishment must maintain any product containing a hemp-derived cannabinoid behind the counter of the establishment in an area inaccessible to a customer. A violation of this requirement is a Class A misdemeanor offense. • Based on information provided by AOC, there have been zero convictions for this offense since its enactment in 2023. • The proposed legislation expands this requirement such that the area in which retail establishments maintain such products must also be inaccessible to any employee of the establishment that is younger than 21 years of age. The legislation also makes it unlawful for a retailer to knowingly allow an employee younger than 21 years of age to access, handle, or sell any such product on the premises of the establishment. HB 72 - SB 215 2 • It is assumed that retail establishments will endeavor to comply with these requirements and that violations will be rare. • Any increase in local incarceration expenditures or revenue related to fines is therefore estimated to be not significant. • Any fiscal impact to state or local government is estimated to be not significant. CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director