HOUSE BILL 962
By Hawk
SENATE BILL 770
By Briggs
SB0770
002071
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AN ACT to amend Tennessee Code Annotated, Title 39
and Title 43, Chapter 27, relative to hemp.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 43-27-202, is amended by deleting
"As used in this part" and substituting "As used in this part and part 3 of this chapter".
SECTION 2. Tennessee Code Annotated, Title 43, Chapter 27, is amended by adding
the following as a new part:
43-27-301.
The requirements of this part are in addition to all other requirements of this
chapter, and must not be construed to prohibit or restrict the ability of the department to
enforce this chapter.
43-27-302.
As used in this part:
(1) "Local government" means an incorporated city or town, county, or
metropolitan government in this state; and
(2) "Retailer" means an establishment licensed pursuant to part 2 of this
chapter that sells hemp-derived cannabinoid products (HDCPs) to consumers at
retail.
43-27-303.
(a) A local government may create, by majority vote of its governing body, an
HDCP board for purposes of permitting retailers of HDCPs within the jurisdiction of the
local government.
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(b) An HDCP board formed pursuant to subsection (a) may pass an ordinance or
resolution:
(1) Requiring each retailer of HDCPs to obtain a permit from the board
authorizing the sale of such products at each retail location of the retailer; and
(2) If the HDCP board requires a retailer to obtain a permit, regulating the
sale of HDCPs within its jurisdiction to the extent that such regulation does not
conflict with state law or the rules or regulations of the department.
(c) The annual fee for the permit is two hundred fifty dollars ($250) per retail
location, and must be renewed annually. The HDCP board shall prescribe the
application form for the issuance and renewal of a permit.
(d) Upon request of an HDCP board, the department shall issue a notice of good
standing to the board for the purposes of issuing or renewing a permit to a retailer under
this section. Such notice may be requested and provided electronically.
43-27-304.
(a) The local law enforcement agency of a local government that has created an
HDCP board may:
(1) Enforce this chapter and any ordinance or resolution of the local
government regulating HDCPs;
(2) Enforce the rules and regulations of the department with respect to
HDCP retailers under an agreement executed with the department that specifies
the scope and manner of such enforcement; and
(3) Conduct random inspections of the premises of a retailer for purposes
of enforcement within the normal business hours of a retailer.
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(b) A retailer operating without a permit required under ยง 43-27-303, or that is in
violation of this chapter or the rules or regulations of the department, is subject to one (1)
or all of the following:
(1) A civil penalty of one thousand dollars ($1,000) per violation;
(2) Revocation of the retailer's permit for a period of up to one (1) year; or
(3) Ineligibility for permit renewal for up to one (1) year after the period of
revocation under subdivision (b)(2) expires.
(c) The HDCP board shall notify the department of a violation of its rules and
regulations by a retailer within thirty (30) days after discovery of the violation.
43-27-305.
Annual permit fees and civil penalties owed by a retailer under this part must be
remitted to the office or individual identified in the ordinance of the local government as
being responsible for the collection of such fees and penalties. Fees and penalties
remitted under this section must be deposited into the general fund of the local
government and accounted for separately, to be used for the enforcement of this part.
SECTION 3. This act takes effect July 1, 2025, the public welfare requiring it.