HOUSE BILL 836
By Miller
SENATE BILL 809
By Yarbro
SB0809
001050
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AN ACT to amend Tennessee Code Annotated, Title 4;
Title 29; Title 33; Title 38; Title 39; Title 40; Title
41; Title 43; Title 45; Title 50; Title 53; Title 63;
Title 67; Title 68 and Title 71, relative to cannabis.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 43, is amended by adding the following
as a new chapter:
43-23-101. Short title.
This chapter is known and may be cited as the "Tennessee Cannabis Act."
43-23-102. Chapter definitions.
As used in this chapter:
(1) "Adult" means a natural person who is twenty-one (21) years of age or older;
(2) "Advertising":
(A) Means the act of providing consideration for the publication,
dissemination, solicitation, or circulation of visual, oral, or written communication
to induce, directly or indirectly, any person to patronize a particular marijuana
dispensary, or to purchase marijuana or marijuana products;
(B) Includes marketing and marketing materials; and
(C) Does not include product packaging or labeling;
(3) "Batch number" means a unique numeric or alphanumeric identifier assigned
prior to testing to allow for inventory tracking and traceability;
(4) "Cannabinoid":
(A) Means an active chemical compound that is found in cannabis; and
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(B) Includes, but is not limited to, delta-9 tetrahydrocannabinol (THC) and
cannabidiol (CBD);
(5) "Cannabis" means the plant species and subspecies of Cannabis sativa L.;
(6) "Child-resistant" means special packaging that is:
(A) Designed or constructed in accordance with 16 CFR Part 1700 to be
significantly difficult to open for children under five (5) years of age and not
difficult for normal adults to use properly;
(B) Opaque so that the outermost packaging does not allow the product
to be seen without opening the packaging material; and
(C) Resealable to maintain its child-resistant effectiveness for multiple
openings for any product intended for more than a single use or containing
multiple servings;
(7) "Clone" means a nonflowering plant cut from a mother plant that is capable
of developing into a new plant and has shown no signs of flowering;
(8) "Community facility" means:
(A) A licensed child care center, as defined in § 71-3-501;
(B) A public park;
(C) A public playground;
(D) A public swimming pool;
(E) A community center, the primary purpose of which is to provide
recreational opportunities or services to children; or
(F) A place of worship;
(9) "Completed application":
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(A) Means a document prepared in accordance with the requirements of
this chapter and rules promulgated by the department, and the forms and
instructions provided by the issuing department or agency; and
(B) Includes any required supporting documentation and the applicable
license application fee;
(10) "Cultivate" means to propagate, breed, grow, harvest, dry, cure, or separate
parts of the marijuana plant by manual or mechanical means;
(11) "Department" means the department of agriculture;
(12) "Disadvantaged business" has the same meaning as defined in § 4-26-102;
(13) "Dispense" means the selling of marijuana or marijuana products to an adult
consumer that is packaged in a suitable container appropriately labeled for subsequent
administration or use;
(14) "Edible marijuana product":
(A) Means a marijuana product that is intended to be ingested orally; and
(B) Includes, but is not limited to, food-based marijuana concentrate or
marijuana-infused food, drink, or pills;
(15) "Entity" means an individual, general partnership, limited partnership,
limited liability company, trust, estate, association, corporation, cooperative, or any other
legal or commercial organization;
(16) "Flowering" means the reproductive state of a marijuana plant in which
there are physical signs of flower or budding out of the nodes of the stem;
(17) "Food-based marijuana concentrate" means a marijuana concentrate that
was produced by extracting cannabinoids from marijuana through the use of propylene
glycol, glycerin, butter, olive oil, coconut oil, or other typical food-safe cooking fats;
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(18) "Good cause" for purposes of an initial, renewal, or reinstatement license
application, or for purposes of discipline of a licensee, means:
(A) The licensee or applicant has violated, does not meet, or has failed to
comply with this chapter or any rules promulgated pursuant to this chapter;
(B) The licensee or applicant has failed to comply with any special terms
or conditions that were placed upon the license pursuant to an order of the
department of agriculture, the department of revenue, or a local governmental
entity with specific governing jurisdiction established by statute or rules
promulgated pursuant to this chapter; or
(C) The licensed premises of a marijuana establishment or applicant
have been operated in a manner that adversely affects the public health or
welfare or the safety of the immediate vicinity in which the establishment is
located;
(19) "Healthcare practitioner" means a person licensed under title 63, or such
person's counterpart in another state, who has the authority to prescribe or dispense
controlled substances in the course of professional practice;
(20) "Heat- or pressure-derived marijuana concentrate" means a marijuana
concentrate that was produced by extracting cannabinoids from marijuana through the
use of heat or pressure;
(21) "Hemp" has the same meaning as defined in § 43-27-101;
(22) "Immature plant" means a nonflowering marijuana plant that has not
demonstrated signs of flowering;
(23) "Inhalation" means the consumption of marijuana by smoking or
vaporization;
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(24) "Licensed premises" means the premises specified in an application for a
marijuana establishment or marijuana research facility that is owned or in possession of
the licensee and within which the licensee is authorized to cultivate, manufacture,
distribute, sell, store, transport, test, or research marijuana or marijuana products
pursuant to this chapter;
(25) "Manufacture" means the production, compounding, or processing of a
marijuana product from marijuana, excluding natural marijuana plants or any part of such
plant;
(26) "Marijuana":
(A) Means all parts of the plant cannabis with a total THC of greater than
one percent (1%), whether growing or not; the seeds of the plant; the resin
extracted from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, including concentrates and oils, its
seeds, or resin; and
(B) Does not include hemp;
(27) "Marijuana biomass" means the aerial parts of the cannabis plant that are
removed from the roots, stalks, stems, or seeds to the extent possible and primarily used
for extracting marijuana concentrate;
(28) "Marijuana concentrate":
(A) Means the cannabinoid-rich oil or extract from marijuana extracted
from plant material or the resin created from the plant by physical or chemical
means; and
(B) Includes water-based marijuana concentrate, food-based marijuana
concentrate, solvent-based marijuana concentrate, and heat- or pressure-derived
marijuana concentrate;
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(29) "Marijuana dispensary" means a marijuana establishment that has been
licensed by the department to purchase marijuana or marijuana products from a
marijuana grower or marijuana processor for the purpose of reselling marijuana or
marijuana products to adult consumers, or selling or transferring such products to
another marijuana dispensary;
(30) "Marijuana establishment":
(A) Means an entity that is licensed by the department under this
chapter;
(B) Includes, but is not limited to, marijuana dispensaries, marijuana
processors, marijuana growers, marijuana testing facilities, and marijuana
transporters; and
(C) Does not include a marijuana research facility;
(31) "Marijuana flower" means the reproductive organs of the marijuana plant,
referred to as the "bud", and are parts of the plant, whether trimmed or not, that are
harvested and consumed orally or via inhalation in the plant's natural form;
(32) "Marijuana grower" means an individual or entity that is licensed pursuant to
this chapter to cultivate, prepare, and package marijuana for sale or transfer, or contract
for transfer, to a marijuana establishment or marijuana research facility;
(33) "Marijuana plant" means a rooted cannabis plant, of a variety not intended
to be cultivated as hemp that has a minimum of three (3) leaf sets;
(34) "Marijuana processor" means an individual or entity that is licensed
pursuant to this chapter to operate a marijuana establishment that is responsible for the
production, manufacture, extraction, processing, packaging, or creation of marijuana
concentrate or marijuana products, including edible marijuana products, marijuana-
infused products, and other marijuana products;
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(35) "Marijuana product" means a product that contains cannabinoids extracted
from marijuana by physical or chemical means and is intended for sale to and use by
adult consumers and takes the form of oils, tinctures, flower, edibles, pills, topical forms,
gels, creams, vapors, patches, suppositories, liquids, and forms administered by a
nebulizer;
(36) "Marijuana research facility" means a private postsecondary educational
institution located in this state with a postgraduate program in agriculture or medicine
conducting marijuana research or a public institution conducting marijuana research;
(37) "Marijuana testing facility" means an entity licensed by the department
under this chapter to analyze the safety and potency of marijuana and marijuana
products;
(38) "Marijuana transporter" means an individual or entity that is licensed by the
department under this chapter to transport marijuana or marijuana products;
(39) "Marijuana trim" means the byproduct of trimming marijuana flower that may
be used as marijuana biomass or as an ingredient in smokable or edible marijuana
products;
(40) "Marijuana waste" means unused, surplus, returned, or out-of-date
marijuana or marijuana products to be remediated or destroyed;
(41) "Material change" means a change that would require a substantive revision
to the standard operating procedures of a licensee;
(42) "Mature plant" means a harvestable female marijuana plant that is
flowering;
(43) "Medical condition" means any of the following conditions diagnosed by a
healthcare provider, including a medical doctor, physician's assistant, or nurse
practitioner:
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(A) Cancer;
(B) Human immunodeficiency virus (HIV) or acquired immunodeficiency
syndrome (AIDS);
(C) Inflammatory bowel disease, including Crohn's disease and
ulcerative colitis;
(D) Hepatitis C;
(E) Multiple sclerosis;
(F) Cerebral palsy;
(G) Cystic fibrosis;
(H) Osteogenesis imperfecta;
(I) Muscular dystrophy;
(J) Renal failure;
(K) Psoriatic arthritis;
(L) Fibromyalgia;
(M) Sickle cell disease;
(N) Chronic radiculopathy;
(O) Severe psoriasis;
(P) Post-laminectomy syndrome;
(Q) Epilepsy or any medical condition producing cachexia, persistent
muscle spasm, or seizures;
(R) Complex pain syndrome, including trigeminal neuralgia, amyotrophic
lateral sclerosis (ALS), and Parkinson's disease;
(S) Traumatic brain injury (TBI);
(T) Post-traumatic stress disorder (PTSD);
(U) Severe depression or anxiety;
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(V) Severe nausea or chronic pain;
(W) Tourette syndrome;
(X) Autism spectrum disorder;
(Y) Glaucoma; and
(Z) Terminal conditions or end-of-life pain management or palliative care;
(44) "Minor" means a person younger than twenty-one (21) years of age;
(45) "Mother plant" means a marijuana plant that is grown or maintained for the
purpose of generating clones;
(46) "Natural person" means an individual, living human being;
(47) "Owner" means a direct beneficial owner and is limited to the following:
(A) A shareholder owning at least a five percent (5%) interest of a
corporate entity;
(B) An officer of a corporate entity;
(C) A partner in a general partnership;
(D) A general or limited partner who owns an interest in a limited
partnership;
(E) A member who owns an interest in a limited liability company;
(F) A beneficiary who holds a beneficial interest in a trust;
(G) A trustee of a trust;
(H) A person who owns an interest in a joint venture;
(I) A person who owns an interest in an association;
(J) An owner of any other type of legal entity; and
(K) Any other person holding an interest or convertible note in any entity
that owns, operates, or manages a licensed facility;
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(48) "Package" or "packaging" means a container or wrapper that may be used
by a marijuana establishment to enclose or contain marijuana or marijuana products;
(49) "Person":
(A) Means a natural person, partnership, association, business trust,
company, corporation, estate, limited liability company, trust, or any other legal
entity or organization, or a manager, agent, owner, director, servant, officer, or
employee thereof; and
(B) Does not include a governmental entity;
(50) "Process" means to separate or otherwise prepare parts of the marijuana
plant and to compound, blend, extract, infuse, or otherwise make or prepare marijuana
concentrate or marijuana products;
(51) "Production batch":
(A) Means:
(i) An amount of marijuana concentrate of the same category that
is produced using the same extraction methods, standard operating
procedures, and harvest batch of marijuana; or
(ii) An amount of marijuana product of the same exact type that is
produced using the same ingredients, standard operating procedures,
and production batch of marijuana concentrate; and
(B) Does not include marijuana flower;
(52) "Public institution" means an entity established or controlled by the federal
government, state government, or a local government, including, but not limited to,
institutions of higher education and related research institutions;
(53) "Public money" means funds or money obtained from a governmental entity
by a licensee, including, but not limited to, research grants;
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(54) "Registered to conduct business" means an eligible applicant who has
provided proof that the applicant's business is in good standing with the secretary of
state and department of revenue;
(55) "Remediation" means:
(A) The process by which marijuana flower or marijuana trim that has
failed required testing is processed into marijuana concentrate and retested for
compliance; or
(B) The process by which marijuana waste is recycled into usable
product, where possible;
(56) "Research project" means a discrete scientific endeavor to answer a
research question or a set of research questions related to hemp or marijuana as
required by a marijuana research license;
(57) "Revocation" means the final decision by the department to rescind a
license issued pursuant to this chapter because the licensee did not comply with the
applicable requirements set forth in this chapter or rules promulgated pursuant to this
chapter;
(58) "Solvent-based marijuana concentrate" means marijuana concentrate
produced by extracting cannabinoids from marijuana through the use of a safe solvent
medium, resulting in a finished product that meets state and federal guidelines for food
safety;
(59) "Strain" means the classification of cannabis or marijuana plants based on
the individual genetics of the plant that can be used to track genetic traits through the
cultivation and processing of marijuana products and to help licensees and consumers
predict the contents and effects of a marijuana product;
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(60) "Suitable container" means a child-resistant package that complies with
state law;
(61) "Terminal condition" means a progressive disease or medical or surgical
condition that causes significant functional impairment, is not considered by a treating
physician to be reversible without the administration of life-sustaining procedures, and is
expected to result in death within one (1) year after diagnosis if the condition runs its
normal course;
(62) "Test batch":
(A) With regard to usable marijuana, means a homogenous, identified
quantity of usable marijuana by strain that is harvested during a seven-day
period from a specified cultivation area; and
(B) With regard to oils, vapors, and waxes derived from usable
marijuana, means an identified quantity that is uniform, intended to meet
specifications for identity, strength, and composition, and manufactured,
packaged, and labeled during a specified time period according to a single
manufacturing, packaging, and labeling protocol;
(63) "THC" means delta-9 tetrahydrocannabinol, which is a cannabinoid in
cannabis formed by decarboxylation of natural tetrahydrocannabinolic acid, which
generally occurs by exposure to heat;
(64) "THCA" means delta-9 tetrahydrocannabinolic acid, the precursor to the
primary psychotropic cannabinoid contained in cannabis;
(65) "Total THC" means the sum of the amount of THC and the result of eight
hundred seventy-seven one-thousandths (0.877) multiplied by the amount of THCA;
(66) "Transporter agent" means a person who transports marijuana or marijuana
products for a licensed marijuana transporter and holds a transporter agent license;
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(67) "Universal symbol" means an image indicating that marijuana or a
marijuana product contains THC;
(68) "Veteran" means a person who has been honorably discharged from the
army, navy, air force, marine corps, coast guard, or space force, or any person who has
been honorably discharged from a reserve component, as defined in 10 U.S.C. § 10101,
having performed active federal service in the armed forces of the United States; and
(69) "Veteran-owned business" means a business that is a continuing,
independent, for-profit business located in this state that performs a commercially useful
function, and is at least fifty-one percent (51%) owned and controlled by one (1) or more
veterans; or, in the case of any publicly owned business, at least fifty-one percent (51%)
of the stock of which is owned and controlled by one (1) or more veterans and whose
management and daily business operations are under the control of one (1) or more
veterans.
43-23-103. Authorized conduct – Personal use of marijuana.
(a) An adult is authorized under this chapter to:
(1) Except as provided in subdivision (a)(4), use, possess, and transport
not more than sixty (60) grams of marijuana, except that not more than fifteen
(15) grams of that amount may be in the form of marijuana concentrate;
provided, that the restrictions regarding the amount of marijuana or marijuana
concentrate that may be possessed or transported do not apply to a marijuana
transporter or a transportation agent acting within the course and scope of the
transporter's or agent's license;
(2) Transfer without remuneration to another adult not more than sixty
(60) grams of marijuana, except that not more than fifteen (15) grams of that
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amount may be in the form of marijuana concentrate; provided, that the transfer
is not advertised or promoted to the public;
(3) Cultivate for personal use not more than twelve (12) marijuana plants
in an area on the premises of the adult's private residence; provided, that the
cultivation occurs in a private area that is:
(A) Equipped with locks or other security devices that restrict
access to the area; and
(B) Not visible from a public place without the use of aircraft or
optical aids;
(4) Possess, store, or process on the premises of the adult's private
residence not more than the amount of marijuana produced from plants
cultivated on the premises; provided, that:
(A) Not more than the twelve (12) marijuana plants are
possessed, cultivated, or processed on the premises at one (1) time; and
(B) Any other amount of marijuana in excess of sixty (60) grams
is stored in a locked container or secure area equipped with security
devices that restrict access; and
(5) Use, possess, transport, or transfer to another adult without
remuneration marijuana-related drug paraphernalia.
(b)
(1) A parent, legal guardian, or conservator may administer for medical
purposes a marijuana product, excluding a smokeable product, to a minor with a
medical condition, or symptoms resulting from a medical condition, for whom the
parent, guardian, or conservator has legal authority to provide for the care,
supervision, and control.
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(2) The department of health shall provide on the department's website a
form that, if executed by the parent, guardian, or conservator after consultation
with a healthcare practitioner, creates a rebuttable presumption:
(A) That the practitioner's patient, as a minor for whom the parent,
guardian, or conservator has legal authority to provide for the care,
supervision, and control, has a medical condition, or symptoms resulting
from a medical condition, for which the patient, parent, guardian, or
conservator seeks to use a marijuana product to treat the medical
condition, or alleviate the symptoms thereof; and
(B) Of legal conduct under subdivision (b)(1).
43-23-104. Authorized conduct – Retail marijuana operations.
This chapter authorizes:
(1) A marijuana grower director, manager, or employee acting within the
scope of the grower's license to:
(A) Cultivate marijuana for sale or transfer to a marijuana
establishment, including the sale or transfer of seeds, flower, mother
plants, mature plants, immature plants, or clones; and
(B) Possess marijuana and marijuana-related drug paraphernalia;
(2) A marijuana processor director, manager, or employee acting within
the scope of the processor's license to:
(A) Produce marijuana products for sale or transfer to a marijuana
establishment; and
(B) Possess marijuana and marijuana-related drug paraphernalia;
(3) A marijuana dispensary director, manager, or employee acting within
the scope of the dispensary's license to:
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(A) Possess marijuana and marijuana products; and
(B) Transfer and sell marijuana, marijuana products, and
marijuana-related drug paraphernalia to an adult;
(4) A marijuana transporter director, manager, employee, or agent acting
within the scope of the transporter's license to transport and transfer marijuana or
marijuana products between marijuana establishments; and
(5) A marijuana testing or research facility director, manager, or
employee acting within the scope of the facility's license to possess, test, and
transport marijuana, marijuana products, and marijuana-related drug
paraphernalia.
43-23-105. Protection from legal action for authorized conduct.
(a) A person is not subject to the denial of any right or privilege or to arrest,
prosecution, forfeiture of property, or penalty, including any civil penalty or disciplinary
action by a court or occupational or professional licensing board or other like
instrumentality solely due to conduct authorized under §§ 43-23-103 and 43-23-104.
(b) The fact that a person engages in conduct authorized by § 43-23-103 or §
43-23-104 does not in itself constitute grounds for denying, limiting, or restricting
conservatorship or custody or possession of or access to a child.
(c) Unless expressly required by federal law, a person in compliance with this
chapter shall not be denied eligibility, based on acts authorized under this chapter, for a
public assistance program, including, but not limited to, the special supplemental food
program for women, infants, and children; temporary assistance for needy families
(TANF); TennCare; the supplemental nutrition assistance program (SNAP); or other
such public assistance programs.
(d)
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(1) An employer is authorized to establish policies permitting, restricting,
or prohibiting the use of marijuana or marijuana products in the workplace.
(2) This chapter does not prohibit an employer from:
(A) Disciplining an employee for using marijuana or a marijuana
product in the workplace or for working while under the influence of
marijuana or a marijuana product; or
(B) Considering a job applicant's use of marijuana as a basis for
refusing to hire the applicant for employment responsibilities described in
§ 50-9-106(a)(3)(A) as long as that consideration, including testing of the
applicant, is consistent with and appropriate in its application to the
employer's hiring policy with regard to other adulterants that cause a
refusal of hiring for an applicant, including the time segment under review,
so as to not disproportionately restrict the legal rights of the applicant.
(3) Notwithstanding title 50, chapters 7 and 9, and for purposes of
eligibility for benefits under Tennessee Employment Security Law, compiled in
title 50, chapter 7, the use of marijuana or a marijuana product, when there is no
other action or cause by the employee or reason for the termination, shall not be
deemed a discharge for misconduct under § 50-7-303 or otherwise a termination
for cause.
(e) Notwithstanding title 39, chapter 17, part 13, the use of marijuana or
marijuana products, personal cultivation of marijuana, or status as a licensee under this
chapter or under title 43, chapter 27, are not grounds for the denial or infringement of the
right to own, purchase, or possess a firearm, ammunition, or firearm accessory under
state law.
43-23-106. Prohibition of marijuana on private property – Exception.
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(a) Except as otherwise provided by subsection (b), a person may prohibit or
restrict the possession, consumption, cultivation, distribution, manufacture, sale, or
display of marijuana or marijuana products on property the person owns, occupies, or
manages.
(b) A person shall not prohibit a residential tenant under a lease agreement from
possessing marijuana, marijuana products, or marijuana-related drug paraphernalia or
consuming marijuana by means other than smoking on the premises.
43-23-107. Conduct not authorized – Violations.
(a) This chapter does not authorize the following conduct:
(1) Smoking or otherwise consuming marijuana or marijuana products in:
(A) A motor vehicle;
(B) An aircraft;
(C) A watercraft on the public waters of this state; or
(D) A public place, unless:
(i) The public place is an area designated by a political
subdivision as an area where using marijuana or a marijuana
product is permissible; and
(ii) The area described by subdivision (a)(1)(D)(i) is not
accessible to minors;
(2) Possessing or consuming marijuana or possessing marijuana-related
drug paraphernalia:
(A) On the premises of a public or private child care facility, pre-
kindergarten, or primary or secondary school;
(B) On a school bus that serves a facility or school described by
subdivision (a)(2)(A); or
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(C) On the premises of a correctional facility; or
(3) The separation of resin from the marijuana plant by butane extraction
or another method that uses a substance with a flashpoint below one hundred
degrees Fahrenheit (100° F) in a public place or motor vehicle or within the
curtilage of a residential structure.
(b) A person commits an offense if the person:
(1) Under the authority of this chapter:
(A) Sells, transfers, or causes to be sold or transferred, marijuana
or a marijuana product to a minor; or
(B) Sells, transfers, or causes to be sold or transferred, marijuana
or a marijuana product to another person knowing the other person
intends to provide the marijuana or marijuana product to a minor, except
as authorized under § 43-23-103(b); or
(2) Sells marijuana or a marijuana product in or from:
(A) A marijuana dispensary that is not in compliance with this
chapter; or
(B) A marijuana establishment other than a dispensary and such
sale is not authorized under this chapter.
(c) It is a defense to prosecution under subsection (b) that the person to whom
the marijuana or marijuana product was sold or transferred presented apparently valid
proof of identification. For purposes of this subsection (c), "apparently valid proof of
identification" means a government-issued photo identification that contains a physical
description and photograph consistent with the person's appearance and purports to
establish that the person is twenty-one (21) years of age or older. Such government-
issued photo identification may include a driver license issued by this state or another
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state, a passport, or other identification card issued by a state, territory, tribe, or the
federal government.
(d) A violation of this section is punishable as follows:
(1) A first, second, or third offense is a Class C misdemeanor; and
(2) A fourth or subsequent offense is a Class A misdemeanor, and if the
violator is a licensee, the revocation of the violator's license for a period of two (2)
years.
43-23-108. Duties of the department – Rules.
(a) The department shall implement and administer this chapter.
(b) The department shall promulgate all necessary rules for the administration
and enforcement of this chapter. All rules must be promulgated in accordance with the
Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(c) The department shall promulgate rules for the reasonable regulation of
marijuana establishments and marijuana research facilities, including rules that:
(1) Set application and license fees under this chapter in amounts
sufficient to administer this chapter and such fees may be adjusted annually for
inflation;
(2) Establish standards for:
(A) The operation of marijuana testing facilities;
(B) The testing of cultivated marijuana flower and marijuana
products; and
(C) The secure transportation of marijuana by marijuana
transporters, including standards to ensure all marijuana establishments
and marijuana research facilities are properly served;
(3) Restrict the use of dangerous pesticides;
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(4) Regulate the packaging and labeling of marijuana products available
at marijuana dispensaries, including requirements regarding:
(A) Child-resistant packaging;
(B) The use of a universal symbol; and
(C) The amount of THC or total THC present;
(5) Restrict advertising and display of marijuana and marijuana products;
(6) Restrict the maximum amount of THC or total THC, or regulate the
serving size, that may be contained in a marijuana product sold to an adult
consumer;
(7) Require recordkeeping and monitoring for identification of a
production batch or test batch through the use of a batch number;
(8) Require recordkeeping for any remediation conducted by a marijuana
establishment;
(9) Require recordkeeping and monitoring to track the transfer of
marijuana and marijuana products between marijuana establishments or
licensees;
(10) Require security measures; provided, that the security measures do
not restrict the cultivation of marijuana outdoors or in greenhouses; and
(11) Establish protocols or restrictions with regard to the proximity of
marijuana establishments to community facilities and elementary and secondary
schools.
(d) The department, in consultation with the department of health, shall
promulgate rules regarding the involvement of the state in sanctioning research projects
or licensing marijuana research facilities, including a process by which marijuana
research facilities may request and receive public money for research projects; provided,
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that a research project must include a description of a defined protocol, clearly
articulated goals, defined methods and outputs, and a defined start and end date in
order for the project to be sanctioned by the department.
(e) The department of health may promulgate rules and forms necessary to
facilitate a medical use component of this chapter. In promulgating rules and forms, the
department of health shall consider and prioritize the process by which patients,
practitioners, and caregivers are able to document recommendations for the medical use
of marijuana or marijuana products and by which patients and caregivers are able to
establish that marijuana and marijuana products are being obtained for medical use
when marijuana and marijuana products are purchased from a marijuana dispensary.
The department of health shall publish such forms on the department's website.
(f) Except where prohibited by federal law and notwithstanding any other law to
the contrary, in accordance with the Uniform Administrative Procedures Act, compiled in
title 4, chapter 5, the department of financial institutions shall promulgate rules
authorizing marijuana establishments to conduct cashless transactions and use banking
services, including the depositing of revenue, in Tennessee-chartered banks or other
Tennessee-chartered financial institutions.
(g) The department shall establish a universal symbol and publish the symbol on
the department's website.
43-23-109. Conflicts of interest.
(a) A person who is involved in the implementation, administration, or
enforcement of this chapter as a member or employee of the department, or a consultant
to the department, shall not also hold a pecuniary interest in any entity licensed by the
department under this chapter.
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(b) A person who holds a pecuniary interest in a marijuana testing facility or a
marijuana transporter that holds a license issued under this chapter shall not hold a
pecuniary interest in any entity that holds a marijuana dispensary, marijuana processor,
or marijuana grower license issued under this chapter.
(c) A person shall not hold a pecuniary interest in more than five (5) entities that
are licensed under this chapter as a marijuana grower, unless otherwise authorized by
the department.
43-23-110. Annual report.
The department shall annually submit to the governor and to the chief clerks of
the senate and the house of representatives a report providing the following information
regarding licensing and regulation under this chapter:
(1) The number of licenses issued for each class of license under this
chapter;
(2) Demographic information pertaining to licensees;
(3) A description of any fines imposed on a licensee or disciplinary
actions taken against a licensee by the department; and
(4) A statement of revenues and expenses of the department related to
the implementation, administration, and enforcement of this chapter.
43-23-111. Licensing.
(a) A license issued by the department under this chapter is required to operate
as a marijuana establishment.
(b) The department by rule shall provide classes of licensure to be issued under
this chapter and, for each class of license issued under this chapter, qualifications for
licensure that are demonstrably related to the operations authorized and duties imposed
under that class of license.
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(c) The department shall prioritize the issuance of licenses in the following order:
(1) First priority to:
(A) Disadvantaged businesses and veteran-owned businesses
that have held a hemp license, issued under § 43-27-102, in the prior
year; and
(B) Business entities located in a tier 3 or 4 enhancement county,
as described in § 67-4-2109, that have held a hemp license, issued under
§ 43-27-102, in the prior year;
(2) Second priority to business entities that have held a hemp license,
issued under § 43-27-102, in the prior year;
(3) Third priority to entities that are at least fifty-one percent (51%) owned
and controlled by one (1) or more residents of this state; or, in the case of any
publicly owned business, have at least fifty-one percent (51%) of the stock
owned and controlled by one (1) or more residents of this state and management
and daily business operations under the control of one (1) or more residents of
this state;
(4) Fourth priority to disadvantaged businesses and veteran-owned
businesses; and
(5) Fifth priority to all other qualified persons.
43-23-112. Licensure application.
(a) A person eligible for licensure may apply for an initial or renewal license
under this chapter by submitting a form prescribed by the department along with the
application fee in an amount set by the department.
(b) The completed application must indicate the class of license sought and
include:
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(1) The name and address of the applicant;
(2) The name of each owner, which the department shall make available
as a matter of public record;
(3) The name and address of each of the applicant's directors and
managers; and
(4) Any other information considered necessary by the department to
determine the applicant's eligibility for the license.
(c) In addition to satisfying the other requirements provided by department rule
under this chapter:
(1) An applicant for a license must submit to the department a complete
and legible set of fingerprints, on a form prescribed by the department, for the
purpose of obtaining criminal history record checks from the Tennessee bureau
of investigation and the federal bureau of investigation;
(2) The department may deny a license to an applicant who does not
comply with the requirement of subdivision (c)(1). Issuance of a license by the
department is conditioned on the department obtaining the applicant's criminal
history record check under this subsection (c); and
(3) Other than a conviction for an offense that involves the delivery, sale,
distribution, or casual exchange of a controlled substance to a minor under
eighteen (18) years of age where the person was an adult who was at least two
(2) years older than the minor at the time of the offense, a person's conviction for
an offense does not disqualify an applicant for licensure under this chapter.
43-23-113. Issuance, renewal, or denial of license.
(a) The department shall issue or renew a license under this chapter only if:
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(1) The department determines the applicant meets the qualifications for
the class of license sought, under §§ 43-23-111 and 43-23-112;
(2) The applicant is registered to conduct business; and
(3) The applicant is in compliance with any applicable local regulations.
(b) If the department denies the issuance or renewal of a license under
subsection (a), then the department shall give written notice of the grounds for denial to
the applicant.
(c) A license issued or renewed under this section expires on the second
anniversary of the date of issuance or renewal, as applicable.
43-23-114. Duty to maintain qualifications.
(a) A licensee shall maintain compliance at all times with the qualifications for
the applicable class of license established under § 43-23-111.
(b) A licensee shall notify the department in writing whenever there is a material
change in the operations of a licensee.
43-23-115. License suspension or revocation.
(a) The department may at any time suspend or revoke a license issued under
this chapter for good cause, including if the department determines that the licensee has
not maintained the qualifications established under § 43-23-111 or has failed to comply
with a duty imposed under this chapter.
(b) The department shall give written notice to a licensee of a license
suspension or revocation under this section and the grounds for the suspension or
revocation. The notice must be sent by certified mail, return receipt requested.
(c) After suspending or revoking a license issued under this chapter, the
department may seize or place under seal all marijuana, marijuana products, and
marijuana-related drug paraphernalia owned or possessed by the licensee. If the
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license is revoked, then a disposition shall not be made of the seized or sealed
marijuana, marijuana products, or drug paraphernalia until the time for administrative
appeal of the order has elapsed or until all appeals have been concluded. When a
revocation order becomes final, all marijuana, marijuana products, and drug
paraphernalia may be forfeited to the state as contraband.
(d) Proceedings under this section must be conducted pursuant to title 4,
chapter 5, part 3.
43-23-116. Duties of licensees relating to dispensing marijuana or marijuana
products.
Before dispensing marijuana or marijuana products to an adult consumer, a
marijuana dispensary must make reasonable efforts to verify that:
(1) The person receiving the marijuana or marijuana product is an adult;
(2) The marijuana or marijuana product complies with testing and
labeling rules promulgated by the department; and
(3) The amount of marijuana or marijuana products dispensed is not
greater than the amount authorized for personal use under § 43-23-103(a).
43-23-117. Duties of licensees relating to security.
(a) A licensee shall ensure that the cultivation, manufacture, sale, or display of
marijuana, marijuana products, and marijuana-related drug paraphernalia is not visible
from a public place without the use of optical aids or aircraft.
(b) A licensee shall not cultivate, manufacture, store, or sell marijuana,
marijuana products, or marijuana-related drug paraphernalia at a location other than the
physical address approved by the department for the establishment under the license
issued to the establishment under this chapter.
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(c) A licensee shall adopt reasonable security measures necessary to restrict
access to areas where marijuana or marijuana products are stored and to prevent theft
of marijuana and marijuana products.
43-23-118. Licensee employees.
A licensee shall not employ or otherwise accept the services of a person younger
than twenty-one (21) years of age.
43-23-119. Monthly sales report.
A marijuana dispensary shall submit a report to the department monthly
specifying the amount of marijuana sold, the number of marijuana products sold, and the
amount of money collected in sales by the establishment during the preceding month.
43-23-120. Taxes.
(a) Marijuana and marijuana products are taxable as tangible personal property
and subject to sales and use taxes imposed by title 67, chapter 6. Notwithstanding § 67-
6-702, a county, by resolution of the county legislative body, or an incorporated
municipality, by ordinance of its governing body, is authorized to levy a local sales tax in
a rate not to exceed five percent (5%) on the sale of marijuana and marijuana products
within such county or municipality. Such local sales tax is to be levied, collected, and
distributed in the same manner as local sales and use taxes under title 67, chapter 6,
part 7.
(b)
(1) A marijuana tax is imposed on each sale of marijuana or a marijuana
product by a marijuana dispensary.
(2) The rate of the tax is fifteen percent (15%) of the pre-tax sales price
of the marijuana or marijuana product.
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(3) The tax imposed by this subsection (b) is administered, collected, and
enforced in the same manner as the sales and use tax under title 67, chapter 6 is
administered, collected, and enforced.
(4) The tax imposed by this subsection (b) is in addition to any other tax
imposed by law.
(c)
(1) Notwithstanding another law to the contrary:
(A) A marijuana grower is entitled to a refund of twenty-five
percent (25%) of the sales and use tax levied on supplies and materials
purchased from a business located in this state and used for the
cultivation of marijuana;
(B) A marijuana processor is entitled to a refund of twenty-five
percent (25%) of the sales and use tax levied on supplies and materials
purchased from a business located in this state and used for the
manufacture or processing of marijuana and production of marijuana
products; and
(C) A marijuana dispensary is entitled to a refund of twenty-five
percent (25%) of the sales and use tax levied on supplies and materials
purchased from a business located in this state and used for the
dispensing and retail sale of marijuana and marijuana products.
(2) To receive a refund authorized under this subsection (c), a marijuana
establishment must submit the form prescribed by the department of revenue, in
addition to any documentation the department may require.
(d) Notwithstanding another law to the contrary, electronic payment and filing
requirements for taxes levied under title 67 are waived, and a marijuana establishment
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may file a return in paper form and remit payments in cash or other form approved by
the department of revenue. The commissioner of revenue is authorized to require that
any such paper filing be accompanied by a manual handling fee, not to exceed twenty-
five dollars ($25.00), that is reasonably calculated by the department of revenue to
account for the additional cost of preparing, printing, receiving, reviewing, and
processing any paper filing.
43-23-121. Allocation of marijuana tax.
The department of revenue shall allocate the revenue derived from the marijuana
tax imposed by § 43-23-120(b) to be distributed as follows:
(1) An amount equal to ten percent (10%) of the proceeds to the
department of agriculture to be used for administrative costs incurred pursuant to
this chapter, including collection and enforcement costs;
(2) An amount equal to five percent (5%) of the proceeds to be retained
by the department of revenue to be used for administrative costs incurred
pursuant to this chapter, including collection and enforcement costs; and
(3) The remaining proceeds of the tax to the general fund of the state.
43-23-122. Prohibited local regulation.
Except as provided in § 43-23-123(b), a political subdivision of this state shall not
enact, adopt, or enforce a rule, ordinance, order, resolution, or other regulation that
prohibits or unreasonably restricts the cultivation, production, manufacture, dispensing,
transportation, or possession of marijuana or marijuana products or the operation of a
marijuana grower, marijuana processor, marijuana dispensary, marijuana transporter,
marijuana research facility, or marijuana testing facility as authorized by this chapter.
43-23-123. Permissible local regulation.
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(a) A political subdivision may adopt regulations consistent with this chapter
governing the hours of operation, location, manner of conducting business, and number
of marijuana dispensaries; provided, that regulations must not be more restrictive than
those that apply to establishments that are licensed as retail package stores pursuant to
§ 57-3-204.
(b)
(1) A county or municipality seeking to ban the sale of marijuana or
marijuana products to adult consumers or the cultivation or manufacture of
marijuana or marijuana products by marijuana establishments within its
jurisdiction is authorized to do so by a two-thirds (2/3) vote of the local legislative
body; provided, that the initial vote on a local ban occurs no later than September
30, 2025.
(2) Notwithstanding another law to the contrary, a ban established
pursuant to this subsection (b) expires one (1) year from the ban's effective date;
provided, that a ban may be renewed under the same procedure established in
subdivision (b)(1).
(3) A county or municipality that bans the sale, cultivation, or
manufacture of marijuana or marijuana products within its jurisdiction is
disqualified from receiving any grant funds authorized under this chapter while
the ban is in effect.
43-23-124. Use of gas chromatography mass spectrum tests.
Notwithstanding another law to the contrary:
(1) A person's bail, parole, probation, or suspended sentence shall not be
revoked based solely on a positive confirmatory urine drug test conducted via a
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gas chromatography mass spectrum test (GC-MS) for THC-COOH (11-nor-9-
carboxy-delta 9 tetrahydrocannabinol);
(2) A student shall not be prohibited or otherwise restricted from
participation in voluntary extracurricular activities, or be required to receive
referral information under § 49-6-4213(k)(3), based solely on a positive
confirmatory urine drug test conducted via a gas chromatography mass spectrum
test (GC-MS) for THC-COOH (11-nor-9-carboxy-delta 9 tetrahydrocannabinol)
when the minor is administered a marijuana product in accordance with § 43-23-
103(b);
(3) A governmental entity acting in its capacity as a public employer shall
not take adverse action against an employee based solely on a positive
confirmatory urine drug test conducted via a gas chromatography mass spectrum
test (GC-MS) for THC-COOH (11-nor-9-carboxy-delta 9 tetrahydrocannabinol);
and
(4) A person shall not be required to receive a referral to a treatment
resource or be prohibited from receiving public assistance based solely on a
positive confirmatory urine drug test conducted via a gas chromatography mass
spectrum test (GC-MS) for THC-COOH (11-nor-9-carboxy-delta 9
tetrahydrocannabinol). For purposes of this subdivision (4), "public assistance"
includes, but is not limited to, assistance from the special supplemental food
program for women, infants, and children; temporary assistance for needy
families (TANF); TennCare; the supplemental nutrition assistance program
(SNAP); and other public assistance or welfare programs under title 71.
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SECTION 2. Tennessee Code Annotated, Section 4-3-610(a), is amended by deleting
the language "dogs trained to detect marijuana and other illicit substances" and substituting
instead the language "dogs trained to detect illicit substances".
SECTION 3. Tennessee Code Annotated, Section 4-7-115, is amended by deleting the
language "dogs trained to detect marijuana and other illicit substances" and substituting instead
the language "dogs trained to detect illicit substances".
SECTION 4. Tennessee Code Annotated, Section 29-38-104, is amended by deleting
the following:
(1) From subdivision (5), the language "; or possession of one pound (1 lb.) or
twenty-five (25) plants or more, but less than four pounds (4 lbs.) or fifty (50) plants, or
distribution of less than one pound (1 lb.), of marijuana";
(2) From subdivision (6), the language "; or possession of four pounds (4 lbs.) or
more or fifty (50) plants or more, but less than eight pounds (8 lbs.) or seventy-five (75)
plants, or distribution of more than one pound (1 lb.), but less than five pounds (5 lbs.),
of marijuana";
(3) From subdivision (7), the language "; or possession of eight pounds (8 lbs.)
or more or seventy-five (75) plants or more, but less than sixteen pounds (16 lbs.) or one
hundred (100) plants or more, or distribution of more than five pounds (5 lbs.), but less
than ten pounds (10 lbs.), of marijuana"; and
(4) From subdivision (8), the language "; or possession of sixteen pounds (16
lbs.) or more or one hundred (100) plants or more, or distribution of ten pounds (10 lbs.)
or more, of marijuana".
SECTION 5. Tennessee Code Annotated, Section 38-6-108, is amended by deleting the
language "dogs trained to detect marijuana and other illicit substances" and substituting instead
the language "dogs trained to detect illicit substances".
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SECTION 6. Tennessee Code Annotated, Section 39-17-402(12), is amended by
deleting subdivision (C) and substituting instead the following:
(C) Objects used, intended for use, or designed for use in ingesting, inhaling, or
otherwise introducing cocaine into the human body;
SECTION 7. Tennessee Code Annotated, Section 39-17-402, is amended by deleting
subdivision (16) in its entirety.
SECTION 8. Tennessee Code Annotated, Section 39-17-415(a), is amended by
deleting subdivisions (1) and (2) in their entireties.
SECTION 9. Tennessee Code Annotated, Section 39-17-417, is amended by deleting
subsection (g), subdivision (i)(14), and subdivision (j)(14) in their entireties.
SECTION 10. Tennessee Code Annotated, Section 39-17-418, is amended by deleting
subsection (b); and deleting the language "subsections (a) or (b)" in subsection (d) and
substituting instead the language "subsection (a)".
SECTION 11. Tennessee Code Annotated, Section 39-17-428(b), is amended by
deleting the language "classified as marijuana or hashish" wherever it appears.
SECTION 12. Tennessee Code Annotated, Section 40-32-101(g)(1), is amended by:
(1) Deleting subdivision (A)(xxxiii) and substituting instead the following:
(xxxiii) Section 39-17-417(g)(1) — Manufacture, delivery, sale, or
possession of Schedule VI controlled substance;
(2) Deleting subdivision (D)(xxv) and substituting instead the following:
(xxv) Section 39-17-417(g)(2) — Manufacture, delivery, sale, or
possession of Schedule VI controlled substance; and
(3) Deleting subdivision (E)(xxii) and substituting instead the following:
(xxii) Section 39-17-417(g)(3) — Manufacture, delivery, sale, or
possession of Schedule VI controlled substance;
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SECTION 13. Tennessee Code Annotated, Section 41-1-118, is amended by deleting
the language "marijuana and other illicit substances" wherever it appears and substituting
instead the language "illicit substances".
SECTION 14. Tennessee Code Annotated, Section 67-4-2802, is amended by deleting
subdivision (7) in its entirety.
SECTION 15. Tennessee Code Annotated, Section 67-4-2803, is amended by deleting
subdivisions (a)(1), (2), and (3) in their entireties; and deleting the language "marijuana or other"
in subsection (b) and substituting instead the language "an".
SECTION 16. Tennessee Code Annotated, Section 67-4-2804, is amended by deleting
subsection (b) in its entirety.
SECTION 17. Tennessee Code Annotated, Section 71-3-1201(4), is amended by
deleting the language "marijuana,".
SECTION 18. Tennessee Code Annotated, Section 63-1-126, is amended by adding
the following as a new subsection:
(f) Notwithstanding this section to the contrary, neither the board nor the
employer of the healthcare practitioner shall take adverse action against a healthcare
practitioner based solely on a positive confirmatory urine drug test via GC-MS (gas
chromatography mass spectrum) THC-COOH (11-nor-9-carboxy-delta 9
tetrahydrocannabinol).
SECTION 19. The Department of Correction shall review the records of persons who
are incarcerated in this state for the cultivation, manufacture, delivery, sale, possession, or
transfer of marijuana under Tennessee Code Annotated, Section 39-17-417 or Section 39-17-
418. The department shall identify and list persons incarcerated for such offenses and include
information as to whether the person was also convicted of a felony offense involving violence
or the use of a firearm or a felony drug offense for a controlled substance other than marijuana.
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The department shall provide the list to the Governor and the Chief Clerks of the House of
Representatives and the Senate by December 31, 2025.
SECTION 20. Persons serving a sentence for the cultivation, manufacture, delivery,
sale, possession, or transfer of marijuana under Tennessee Code Annotated, Section 39-17-
417 or Section 39-17-418, who are not also serving a sentence for a felony offense involving
violence or the use of a firearm or a felony drug offense for a controlled substance other than
marijuana are eligible for immediate release from incarceration, probation, and parole, and the
Department of Correction shall take action to secure such release.
SECTION 21. The headings to sections in this act are for reference purposes only and
do not constitute a part of the law enacted by this act. However, the Tennessee Code
Commission is requested to include the headings in any compilation or publication containing
this act.
SECTION 22. If any provision of this act or its application to any person or circumstance
is held invalid, then the invalidity does not affect other provisions or applications of the act that
can be given effect without the invalid provision or application, and to that end, the provisions of
this act are severable.
SECTION 23. For the purposes of promulgating rules and forms and initiating local
bans, this act takes effect upon becoming a law, the public welfare requiring it. Section 19 of
this act takes effect upon becoming a law, the public welfare requiring it. For all other purposes,
this act takes effect January 1, 2026, the public welfare requiring it.