| 4 | 3 | | |
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| 5 | 4 | | SENATE BILL 770 |
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| 6 | 5 | | By Briggs |
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| 7 | 6 | | |
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| 8 | 7 | | |
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| 9 | 8 | | SB0770 |
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| 10 | 9 | | 002071 |
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| 11 | 10 | | - 1 - |
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| 12 | 11 | | |
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| 13 | 12 | | AN ACT to amend Tennessee Code Annotated, Title 39 |
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| 14 | 13 | | and Title 43, Chapter 27, relative to hemp. |
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| 15 | 14 | | |
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| 16 | 15 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE: |
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| 17 | 16 | | SECTION 1. Tennessee Code Annotated, Section 43-27-202, is amended by deleting |
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| 18 | 17 | | "As used in this part" and substituting "As used in this part and part 3 of this chapter". |
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| 19 | 18 | | SECTION 2. Tennessee Code Annotated, Title 43, Chapter 27, is amended by adding |
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| 20 | 19 | | the following as a new part: |
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| 21 | 20 | | 43-27-301. |
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| 22 | 21 | | The requirements of this part are in addition to all other requirements of this |
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| 23 | 22 | | chapter, and must not be construed to prohibit or restrict the ability of the department to |
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| 24 | 23 | | enforce this chapter. |
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| 25 | 24 | | 43-27-302. |
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| 26 | 25 | | As used in this part: |
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| 27 | 26 | | (1) "Local government" means an incorporated city or town, county, or |
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| 28 | 27 | | metropolitan government in this state; and |
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| 29 | 28 | | (2) "Retailer" means an establishment licensed pursuant to part 2 of this |
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| 30 | 29 | | chapter that sells hemp-derived cannabinoid products (HDCPs) to consumers at |
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| 31 | 30 | | retail. |
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| 32 | 31 | | 43-27-303. |
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| 33 | 32 | | (a) A local government may create, by majority vote of its governing body, an |
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| 34 | 33 | | HDCP board for purposes of permitting retailers of HDCPs within the jurisdiction of the |
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| 35 | 34 | | local government. |
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| 36 | 35 | | |
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| 37 | 36 | | |
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| 38 | 37 | | - 2 - 002071 |
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| 39 | 38 | | |
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| 40 | 39 | | (b) An HDCP board formed pursuant to subsection (a) may pass an ordinance or |
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| 41 | 40 | | resolution: |
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| 42 | 41 | | (1) Requiring each retailer of HDCPs to obtain a permit from the board |
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| 43 | 42 | | authorizing the sale of such products at each retail location of the retailer; and |
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| 44 | 43 | | (2) If the HDCP board requires a retailer to obtain a permit, regulating the |
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| 45 | 44 | | sale of HDCPs within its jurisdiction to the extent that such regulation does not |
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| 46 | 45 | | conflict with state law or the rules or regulations of the department. |
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| 47 | 46 | | (c) The annual fee for the permit is two hundred fifty dollars ($250) per retail |
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| 48 | 47 | | location, and must be renewed annually. The HDCP board shall prescribe the |
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| 49 | 48 | | application form for the issuance and renewal of a permit. |
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| 50 | 49 | | (d) Upon request of an HDCP board, the department shall issue a notice of good |
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| 51 | 50 | | standing to the board for the purposes of issuing or renewing a permit to a retailer under |
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| 52 | 51 | | this section. Such notice may be requested and provided electronically. |
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| 53 | 52 | | 43-27-304. |
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| 54 | 53 | | (a) The local law enforcement agency of a local government that has created an |
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| 55 | 54 | | HDCP board may: |
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| 56 | 55 | | (1) Enforce this chapter and any ordinance or resolution of the local |
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| 57 | 56 | | government regulating HDCPs; |
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| 58 | 57 | | (2) Enforce the rules and regulations of the department with respect to |
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| 59 | 58 | | HDCP retailers under an agreement executed with the department that specifies |
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| 60 | 59 | | the scope and manner of such enforcement; and |
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| 61 | 60 | | (3) Conduct random inspections of the premises of a retailer for purposes |
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| 62 | 61 | | of enforcement within the normal business hours of a retailer. |
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| 63 | 62 | | |
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| 64 | 63 | | |
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| 65 | 64 | | - 3 - 002071 |
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| 66 | 65 | | |
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| 67 | 66 | | (b) A retailer operating without a permit required under ยง 43-27-303, or that is in |
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| 68 | 67 | | violation of this chapter or the rules or regulations of the department, is subject to one (1) |
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| 69 | 68 | | or all of the following: |
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| 70 | 69 | | (1) A civil penalty of one thousand dollars ($1,000) per violation; |
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| 71 | 70 | | (2) Revocation of the retailer's permit for a period of up to one (1) year; or |
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| 72 | 71 | | (3) Ineligibility for permit renewal for up to one (1) year after the period of |
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| 73 | 72 | | revocation under subdivision (b)(2) expires. |
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| 74 | 73 | | (c) The HDCP board shall notify the department of a violation of its rules and |
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| 75 | 74 | | regulations by a retailer within thirty (30) days after discovery of the violation. |
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| 76 | 75 | | 43-27-305. |
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| 77 | 76 | | Annual permit fees and civil penalties owed by a retailer under this part must be |
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| 78 | 77 | | remitted to the office or individual identified in the ordinance of the local government as |
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| 79 | 78 | | being responsible for the collection of such fees and penalties. Fees and penalties |
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| 80 | 79 | | remitted under this section must be deposited into the general fund of the local |
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| 81 | 80 | | government and accounted for separately, to be used for the enforcement of this part. |
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| 82 | 81 | | SECTION 3. This act takes effect July 1, 2025, the public welfare requiring it. |
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