Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB1413 Compare Versions

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

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2	2	<BillNo> <Sponsor>
3	3
4	4	SENATE BILL 1413
5	5	By Briggs
6	6
7	7
8	8	SB1413
9	9	003076
10	10	- 1 -
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12	12	AN ACT to amend Tennessee Code Annotated, Title 39;
13	13	Title 40; Title 43, Chapter 27; Title 53, Chapter 11;
14	14	Title 57 and Title 67, relative to the regulation of
15	15	hemp-derived cannabinoid products.
16	16
17	17	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	18	SECTION 1. Tennessee Code Annotated, Title 43, Chapter 27, Part 2, is amended by
19	19	deleting the part.
20	20	SECTION 2. Tennessee Code Annotated, Title 57, is amended by creating the following
21	21	new chapter:
22	22	57-7-101. Purpose.
23	23	The purpose of this chapter is to regulate the sale and distribution of hemp-
24	24	derived cannabinoid products. It is the intent of general assembly that the manufacture,
25	25	sale, and distribution of hemp-derived cannabinoid products is strictly prohibited unless
26	26	specifically provided for in this chapter. In acknowledging that the products regulated in
27	27	this chapter may be intoxicating, the regulation and control of such products in this state
28	28	are in the interest of public health and safety through ensuring proper age verification
29	29	and the state's ability to efficiently enforce the requirements and restrictions contained in
30	30	this chapter.
31	31	57-7-102. Chapter definitions.
32	32	As used in this chapter, unless the context otherwise requires:
33	33	(1) "Batch" means a single stock-keeping unit with common cannabinoid
34	34	input or a hemp flower of the same varietal and harvested on the same date and
35	35	manufactured during a defined cycle in such a way that it could be expected to
36	36	be of a uniform character and should be designated as such;
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41	41	(2) "Dry weight" means the weight of plant material with a moisture
42	42	content that does not exceed thirteen percent (13%);
43	43	(3) "Hemp-derived cannabinoid":
44	44	(A) Means:
45	45	(i) A cannabinoid other than delta-9 tetrahydrocannabinol,
46	46	or an isomer derived from such cannabinoid, that is derived from
47	47	hemp in a concentration of more than one-tenth of one percent
48	48	(0.1%); or
49	49	(ii) A hemp-derived product containing delta-9
50	50	tetrahydrocannabinol in a concentration of three-tenths of one
51	51	percent (0.3%) or less on a dry weight basis;
52	52	(B) Includes, but is not limited to:
53	53	(i) Delta-8 tetrahydrocannabinol;
54	54	(ii) Delta-10 tetrahydrocannabinol;
55	55	(iii) Hexahydrocannabinol;
56	56	(iv) Tetrahydrocannabiphorol (THCp); and
57	57	(v) Tetrahydrocannabivarin (THCv); and
58	58	(C) Does not include:
59	59	(i) Cannabichromene (CBC/CBCa/CBCv);
60	60	(ii) Cannabicitran (CBT/CBTa);
61	61	(iii) Cannabicyclol (CBL/CBLa);
62	62	(iv) Cannabidiol (CBD/CBDa/CBDv/CBDp);
63	63	(v) Cannabielsoin (CBE/CBEa);
64	64	(vi) Cannabigerol (CBG/CBGa/CBGv/CBGm);
65	65	(vii) Cannabinol (CBN/CBNa);
66	66
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70	70	(viii) Cannabivarin (CBV/CBVa);
71	71	(ix) Hemp-derived feed products allowed under title 44,
72	72	chapter 6;
73	73	(x) Hemp-derived fiber, grain, or topical products;
74	74	(xi) Tetrahydrocannabinolic acid (THCa);
75	75	(xii) A synthetic cannabinoid; or
76	76	(xiii) A substance that is categorized as a Schedule I
77	77	controlled substance on or after July 1, 2023, including a
78	78	substance that may be identified in subdivision (3)(B);
79	79	(4) "Hemp-derived cannabinoid product" or "HDCP":
80	80	(A) Means a product that contains or that is labeled as containing
81	81	a hemp-derived cannabinoid and that is produced, marketed, or otherwise
82	82	intended to be ingested orally, inhaled, or absorbed through the skin, and
83	83	that may contain a hemp-derived cannabinoid that is extracted from hemp
84	84	plants or hemp plant parts; and
85	85	(B) Includes:
86	86	(i) Intermediate products intended for subsequent use as
87	87	a component in a later finished HDCP; and
88	88	(ii) Harvested hemp plant parts, otherwise known as hemp
89	89	flower;
90	90	(5) "Manufacture" means to compound, blend, extract, infuse, cook, or
91	91	otherwise make or prepare HDCPs, including the processes of extraction,
92	92	infusion, packaging, repackaging, labeling, and relabeling of HDCPs;
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97	97	(6) "Proof of age" means a valid driver license or other government-
98	98	issued identification card that contains a photograph of the person and confirms
99	99	the person's age as twenty-one (21) years of age or older;
100	100	(7) "Retailer" means a person or entity that sells, markets, or advertises
101	101	as a seller, provides samples with or without a fee or charge, or otherwise
102	102	distributes to the public, with or without compensation, HDCPs for consumption
103	103	and not for resale;
104	104	(8) "Serving" means a quantity of an HDCP reasonably suitable for a
105	105	single person's daily use;
106	106	(9) "Supplier" means a person or entity that manufactures hemp-derived
107	107	cannabinoids or HDCPs or contracts for the manufacture of hemp-derived
108	108	cannabinoids or HDCPs, whether located inside or outside of this state, and that
109	109	sells finished, packaged HDCPs to wholesalers licensed under this chapter for
110	110	resale and not for consumption;
111	111	(10) "Synthetic cannabinoid" means a substance with a similar chemical
112	112	structure and pharmacological activity to a cannabinoid, but that is not extracted
113	113	or derived from hemp plants, or hemp plant parts and is instead created or
114	114	produced by chemical or biochemical synthesis;
115	115	(11) "Tetrahydrocannabinolic acid" or "THCa" is the precursor of delta-9
116	116	THC;
117	117	(12) "THC" means a tetrahydrocannabinol, tetrahydrocannabinolic acid, a
118	118	THC component, or any derivative thereof;
119	119	(13) "THC component" means a naturally occurring cannabinoid
120	120	component of industrial hemp or hemp; and
121	121
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125	125	(14) "Wholesaler" means a person or entity that purchases finished and
126	126	packaged for consumption HDCPs, not considered intermediate products still in
127	127	the pre-packaging stage, from suppliers licensed under this chapter, or from
128	128	other wholesalers licensed under this chapter, and that sells HDCPs for resale
129	129	and not for consumption.
130	130	57-7-103. License required for manufacturing, producing, or selling hemp-derived
131	131	cannabinoid products — Offenses and penalties.
132	132	(a)
133	133	(1) It is an offense for a person or entity to engage in the business of
134	134	manufacturing, producing, the wholesale distribution of, or selling HDCPs in this
135	135	state without a valid license required by this chapter.
136	136	(2) An HDCP that is manufactured, produced, wholesaled, sold, or
137	137	offered for sale in violation of subdivision (a)(1) is subject to seizure and forfeiture
138	138	pursuant to § 53-11-451.
139	139	(b)
140	140	(1) It is an offense to knowingly sell or distribute an HDCP without having
141	141	first obtained proof of age from the purchaser or recipient.
142	142	(2) It is an offense for a person to knowingly sell or distribute an HDCP to
143	143	a person who is under twenty-one (21) years of age or to purchase an HDCP on
144	144	behalf of a person who is under twenty-one (21) years of age.
145	145	(3) It is an offense for a person to knowingly assist a person who is under
146	146	twenty-one (21) years of age to purchase, acquire, receive, or attempt to
147	147	purchase an HDCP.
148	148	(4) It is an offense for a person who is under twenty-one (21) years of
149	149	age to knowingly purchase, possess, or accept receipt of an HDCP or to
150	150
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154	154	knowingly present purported proof of age that is false, fraudulent, or not actually
155	155	that person's proof of age for the purpose of purchasing or receiving an HDCP.
156	156	(5) For purposes of enforcing this chapter, this subsection (b) does not
157	157	preclude commission or law enforcement efforts involving:
158	158	(A) The use of a minor if the minor's parent or legal guardian has
159	159	consented to assisting the commission or law enforcement; or
160	160	(B) The use of a person under twenty-one (21) years of age who
161	161	is not a minor if the individual has consented to assisting the commission
162	162	or law enforcement.
163	163	(c) It is an offense to knowingly distribute samples of HDCPs in or on a public
164	164	street, sidewalk, or park.
165	165	(d) A violation of this section is a Class A misdemeanor.
166	166	(e) Notwithstanding this chapter to the contrary and except as provided in § 57-
167	167	7-105, state and local law enforcement officers have concurrent jurisdiction with the
168	168	commission to enforce violations of this section and § 57-7-104.
169	169	57-7-104. Maintenance of hemp-derived cannabinoid products in retail
170	170	establishments — Violations.
171	171	(a) As used in this section, "barrier" means the point of purchase having an
172	172	actual physical separation between HDCPs on display and the consumer at a retail
173	173	establishment or another designated area of the retail establishment that is inaccessible
174	174	to the consumer and that requires assistance from a retail clerk in order to access and
175	175	purchase HDCPs.
176	176	(b) HDCPs may be sold at retail in the following locations:
177	177	(1) An establishment that limits entry into the premises to individuals who
178	178	are twenty-one (21) years of age or more;
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183	183	(2) An establishment that holds a valid license issued by the commission
184	184	pursuant to § 57-4-102. An establishment that qualifies under this subdivision
185	185	(b)(2) may only sell HDCPs in a quantity and manner intended for on-premise
186	186	consumption while present at the establishment in accordance with rules of the
187	187	commission;
188	188	(3) An establishment that holds a valid license issued by the commission
189	189	pursuant to § 57-3-204; or
190	190	(4) An establishment owned or leased by a licensee that holds a valid
191	191	supplier license, wholesale license, and retail license for the same location where
192	192	HDCPs will be manufactured and sold at retail, or an establishment owned or
193	193	leased by a licensee that holds a valid supplier license and retail license for the
194	194	same location where HDCPs will be manufactured and sold, and that has
195	195	contracted with a wholesale licensee for remitting the tax levied under § 57-7-108
196	196	and for the wholesale distribution of the supplier's products. For the products
197	197	that are manufactured on the supplier's licensed premises and that are sold at
198	198	retail on the supplier's licensed premises, if all requirements of this section have
199	199	been met, a supplier is not required to have the products that it manufactures
200	200	and sells at retail on its licensed premises warehoused by the supplier's
201	201	contracted wholesale licensee.
202	202	(c) Signage must be displayed in all areas where HDCPs are displayed, in a
203	203	manner to be determined by the commission, clearly advising and warning the consumer
204	204	that the HDCPs on display may have intoxicating effects and cause impairment. HDCPs
205	205	may only be displayed in an area of the retail establishment that is constantly visible to a
206	206	retail licensee employee. A HDCP in this state must not be dispensed by or sold via the
207	207	use of a self-checkout retail system or vending machine.
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212	212	(d) An HDCP must be maintained by a retailer behind a barrier. For retailers
213	213	that hold a valid retail package store license issued by the commission pursuant to § 57-
214	214	3-204, HDCPs must be maintained behind a barrier of the retailer unless the HDCP is a
215	215	hemp-derived cannabinoid beverage product having a minimum container size of twelve
216	216	(12) fluid ounces.
217	217	(e) A violation of this section is a Class A misdemeanor.
218	218	57-7-105. Responsibilities of the commission — Responsibilities of the
219	219	department of revenue — Annual reports.
220	220	(a) The commission shall:
221	221	(1) Issue licenses to suppliers, wholesalers, and retailers under this
222	222	chapter;
223	223	(2) Oversee the manufacture of HDCPs by licensed suppliers and the
224	224	distribution of HDCPs by licensed wholesalers, including ensuring compliance
225	225	with labeling, product testing, and transportation requirements, and conducting
226	226	necessary inspections of HDCPs and HDCP proof of compliance documentation
227	227	at the facility of licensed wholesalers in a frequency and in a manner to be
228	228	determined by the commission, prior to the delivery or sale of HDCPs to a
229	229	retailer;
230	230	(3) Oversee the retail sale of HDCPs by licensed retailers to ensure
231	231	compliance with this chapter;
232	232	(4) Enforce this chapter in a manner that may reasonably be expected to
233	233	reduce the extent to which noncompliant HDCPs are sold and conducting
234	234	random, unannounced inspections at locations where HDCPs are manufactured,
235	235	stored for wholesale distribution, and sold at retail to ensure compliance with this
236	236	chapter in furtherance of protecting the health and safety of the public. The
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241	241	commission shall determine the frequency of random, unannounced inspections
242	242	required under this subdivision (a)(4); and
243	243	(5) Hire a sufficient number of employees, as determined by the
244	244	commission, to oversee the day to day operations and management of the
245	245	supervision and enforcement of this chapter and the rules of the commission.
246	246	The commission shall establish the salaries of the employees hired under this
247	247	subdivision (a)(5) and such employees serve at the pleasure of the commission.
248	248	(b) The department of revenue:
249	249	(1) Shall ensure wholesalers and retailers are in compliance with this
250	250	chapter and applicable tax provisions under title 67, including §§ 57-7-108 and
251	251	67-6-232;
252	252	(2) Shall, in conjunction with the commission, enforce this chapter in a
253	253	manner that may reasonably be expected to reduce the extent to which
254	254	noncompliant HDCPs are sold and shall conduct random, unannounced
255	255	inspections at wholesale locations where HDCPs are stored for distribution and
256	256	retail locations where such products are sold to ensure compliance with this
257	257	chapter. The department of revenue shall determine the frequency of random,
258	258	unannounced inspections required under this subdivision (b)(2); and
259	259	(3) May, in conjunction with the commission, confiscate noncompliant
260	260	HDCPs as contraband in the manner described in title 57, chapter 5, part 4. All
261	261	products that the department of revenue confiscates under this subdivision (b)(3)
262	262	are subject to seizure and forfeiture in the same manner prescribed for beer in §§
263	263	57-5-409 and 57-5-410.
264	264	(c) The commission and department of revenue shall submit an annual report to
265	265	the general assembly describing in detail the commission's and department's
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270	270	compliance and enforcement efforts under this chapter. The report must also be
271	271	published and made available to the public on the commission's and department's
272	272	websites, respectively.
273	273	57-7-106. License to produce or sell cannabinoid products — License
274	274	requirements — Prohibited retail locations — Authority of the commission.
275	275	(a) A person or entity that is in the business of manufacturing, distributing, or
276	276	selling HDCPs in this state, including as a supplier, wholesaler, or retailer, must obtain a
277	277	license from the commission authorizing the person or entity to engage in that business
278	278	prior to the commencement of business. If a person or entity holds multiple licenses
279	279	under this chapter, the person or entity shall maintain the business conducted under
280	280	each license on a separately designated premises or in wholly separate facilities in a
281	281	manner to be determined by the commission by rule.
282	282	(b)
283	283	(1) In order to obtain and maintain a supplier or retailer license under
284	284	subsection (a), a person or entity must:
285	285	(A) Submit to the commission information promulgated by rules
286	286	as necessary for the efficient enforcement of this chapter;
287	287	(B) Pay to the commission:
288	288	(i) A non-refundable application fee of five hundred dollars
289	289	($500) per application; and
290	290	(ii) Upon approval, an annual license fee of:
291	291	(a) For a retailer, one thousand dollars ($1,000),
292	292	and an additional annual license fee of one thousand
293	293	dollars ($1,000) for each additional location in this state;
294	294	and
295	295
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299	299	(b) For a supplier, two thousand five hundred
300	300	dollars ($2,500), and an additional annual license fee of
301	301	two thousand five hundred dollars ($2,500) for each
302	302	additional location in this state;
303	303	(C) Consent to reasonable inspection and sampling and testing
304	304	by the commission, or the department of revenue, as applicable, of the
305	305	person's inventory of HDCPs;
306	306	(D) Submit to a criminal history background check that includes
307	307	fingerprint checks against state and federal criminal records maintained
308	308	by the Tennessee bureau of investigation and the federal bureau of
309	309	investigation; and
310	310	(E) If the supplier is located out of state, remain in compliance
311	311	with the applicable governing laws, rules, and regulations of the
312	312	jurisdiction where the supplier is located.
313	313	(2) A person is not eligible to hold a direct or indirect interest in a supplier
314	314	or retailer license while serving a sentence for, or for ten (10) years following the
315	315	date of conviction of, a drug-related felony offense in any state, territory of the
316	316	United States, or federal jurisdiction.
317	317	(3)
318	318	(A) An applicant for a license as a retailer with a proposed retail
319	319	location that is within one thousand feet (1,000') of a private school, public
320	320	school, or charter school that serves any grade from kindergarten through
321	321	grade twelve (K-12) shall not sell HDCPs at such location unless the
322	322	applicant provides the commission with documentation that establishes
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327	327	that HDCPs were being offered for sale at retail at such location on
328	328	December 31, 2023.
329	329	(B) The commission shall accept business records, photographs,
330	330	and video recordings as documentation for purposes of determining
331	331	whether an applicant qualifies for the exception in subdivision (b)(3)(A).
332	332	(C) For the purposes of subdivision (b)(3)(A), measurements
333	333	must be made in a straight line in all directions, without regard to
334	334	intervening structures or objects, from the nearest point on the property
335	335	line of a parcel containing a retail establishment to the nearest point on
336	336	the property line of a parcel containing a private school, public school, or
337	337	charter school that serves any grade from kindergarten through grade
338	338	twelve (K-12).
339	339	(4) The shipping of HDCPs directly to a retail licensee in this state or
340	340	directly to a consumer in this state is strictly prohibited.
341	341	(5) All sales of HDCPs and transfers of product from a retailer to
342	342	consumer must take place at a licensed retail location in a face-to-face
343	343	transaction. The delivery of HDCPs to consumers, directly or indirectly, is strictly
344	344	prohibited.
345	345	(c) A supplier or retailer license issued pursuant to this section is valid for a
346	346	period of one (1) year and may be renewed annually. The commission shall charge an
347	347	annual renewal fee equal to the initial licensing fee.
348	348	(d) The commission may:
349	349	(1) Determine requirements for and issue licenses for the manufacture or
350	350	sale of HDCPs in this state; and
351	351
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355	355	(2) Deny or revoke supplier or retailer licenses and issue civil penalties in
356	356	the following manner for each violation of this chapter, or a rule promulgated
357	357	pursuant to this chapter:
358	358	(A) One thousand dollars ($1,000) for a first violation;
359	359	(B) Two thousand five hundred dollars ($2,500) for a second
360	360	violation that occurs within two (2) years of the first violation;
361	361	(C) Five thousand dollars ($5,000) for a third violation that occurs
362	362	within two (2) years of the first violation;
363	363	(D) Revocation of the license for a fourth violation that occurs
364	364	within two (2) years of the first violation; and
365	365	(E) Require retraining of all employees of the licensee under the
366	366	supervision of the commission in addition to the civil penalties imposed
367	367	pursuant to subdivisions (d)(2)(A)-(C).
368	368	(e) The revenue collected from fees established under subdivision (b)(1)(B) must
369	369	be deposited with the state treasurer to be earmarked for and allocated to the
370	370	commission and used exclusively for the administration of this title.
371	371	(f)
372	372	(1) In order to obtain and maintain a wholesaler license under subsection
373	373	(a), a person or entity shall:
374	374	(A) Submit to the commission information included in this
375	375	subsection (f) and as promulgated by rule of the commission pertaining to
376	376	warehouse location, security measures, and as necessary for the efficient
377	377	enforcement of this chapter, including, but not limited to:
378	378	(i) Name of the applicant;
379	379
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383	383	(ii) Date of birth of each applicant who is an individual or a
384	384	partner in a general partnership, or stakeholder or investor in, or
385	385	member of, another legal entity;
386	386	(iii) Proof of registration or incorporation in this state for an
387	387	applicant that is a legal business entity authorized to engage in
388	388	business in this state;
389	389	(iv) Contact information for each applicant, including the
390	390	name of the person legally responsible for each applicant's
391	391	operations, telephone number, email address, and address of
392	392	principal place of business;
393	393	(v) Address of location to be licensed;
394	394	(vi) A detailed description of the square footage and
395	395	dimensions of the warehouse space, including a description of
396	396	how the product will be received, inventoried, stored, and
397	397	packaged, as applicable;
398	398	(vii) A detailed description of how records will be stored
399	399	and kept in a secure manner, and how the applicant will conduct
400	400	its review of all aspects of the compliance requirements contained
401	401	in this chapter and as set forth by the commission as it pertains to
402	402	HDCPs;
403	403	(viii) An identity history summary issued by the federal
404	404	bureau of investigation for the person identified as legally
405	405	responsible for the management of each applicant's operations;
406	406	(ix) Designation, if applicable, of each authorized
407	407	representative of the applicant; and
408	408
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412	412	(x) Other information as required by the commission;
413	413	(B) Pay to the commission:
414	414	(i) A nonrefundable application fee of five hundred dollars
415	415	($500) per application; and
416	416	(ii) Upon approval, an annual license fee of five thousand
417	417	dollars ($5,000) per application, per warehouse location;
418	418	(C) Consent to reasonable inspection and sampling by the
419	419	commission or the department of revenue, as applicable, of the person's
420	420	inventory of HDCPs;
421	421	(D) Submit to a criminal history background check that includes
422	422	fingerprint checks against state and federal criminal records maintained
423	423	by the Tennessee bureau of investigation and the federal bureau of
424	424	investigation; and
425	425	(E) Submit proof of the following:
426	426	(i) The applicant has secured or is readily able to secure a
427	427	warehouse located in this state, which meets all local
428	428	requirements for the applicant's specific use of the property, with a
429	429	minimum size of one thousand square feet (1,000 sq. ft.) that is
430	430	not also being used for the cultivation, manufacture, laboratory
431	431	testing, or the retail sale of hemp, hemp-derived products other
432	432	than HDCPs, or HDCPs. Other products regulated by the
433	433	commission may be stored in the same areas as HDCPs;
434	434	provided, that all required federal, state, and local licenses,
435	435	permits, and other requirements are satisfied for the storage of
436	436	such products;
437	437
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441	441	(ii) Certificate of occupancy or other proof of approval from
442	442	the local jurisdiction for the applicant's intended use;
443	443	(iii) Detailed business plan, including details pertaining to
444	444	the applicant's investment in the business and the capital required
445	445	to start the business;
446	446	(iv) Proof that the applicant possesses the financial
447	447	capacity necessary to engage in the warehousing and distribution
448	448	of HDCPs in a manner to be determined by the commission,
449	449	documenting access to a minimum of seven hundred fifty
450	450	thousand dollars ($750,000), that must be proven by providing the
451	451	following documentation:
452	452	(a) Certified business or personal financial
453	453	statements; and
454	454	(b) Checking or savings bank statements or
455	455	statements from money market or brokerage accounts;
456	456	provided, funds are readily convertible to cash; and
457	457	(v) If an applicant has obtained a loan as proof of financial
458	458	capacity under subdivision (f)(1)(E)(iv):
459	459	(a) Proof of the loan approval from a bank or
460	460	another insured depository institution or lender deemed
461	461	acceptable by the commission; or
462	462	(b) Proof of the loan approval from a private lender
463	463	via executed loan documents and sufficient proof of funds
464	464	in a manner to be determined by the commission;
465	465	provided, that the private lender and its individual owners
466	466
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470	470	or principals must be disclosed in the application as an
471	471	owner of the applicant.
472	472	(2) A person is not eligible to hold a direct or indirect interest in a
473	473	wholesaler license while serving a sentence for, or for ten (10) years following
474	474	the date of conviction of, a drug-related felony offense in any state, territory of the
475	475	United States, or federal jurisdiction.
476	476	(3) A wholesaler license issued pursuant to this section is valid for a
477	477	period of one (1) year and may be renewed annually. The commission shall
478	478	charge an annual renewal fee equal to the initial licensing fee, unless otherwise
479	479	determined by the commission.
480	480	(4) Wholesaler licensees must receive preapproval from the commission
481	481	for any changes in ownership, control, or otherwise of the legal entity of the
482	482	license holder.
483	483	(5) Wholesaler licensees shall notify the commission of any changes to
484	484	the contents of their application on file and that do not otherwise require
485	485	preapproval, as determined by the commission, within thirty (30) days after the
486	486	change takes place, including any change of contact information or changes to
487	487	the warehouse premises.
488	488	(6) The commission may deny the issuance or renewal of an application
489	489	for a wholesaler license for an applicant that has not fully complied with this
490	490	section.
491	491	(7) Persons who warehouse and distribute HDCPs are subject to all rules
492	492	of the commission applicable to the type of product sold, including, but not limited
493	493	to, all applicable federal and state laws, rules, and regulations. HDCPs are
494	494
495	495
496	496	- 18 - 003076
497	497
498	498	excluded from all regulatory exemptions, including, but not limited to, those
499	499	exemptions prescribed by § 53-1-118.
500	500	(8) The revenue collected from fees established under this subsection (f)
501	501	must be deposited with the state treasurer to be earmarked for and allocated to
502	502	the commission and used exclusively for the administration of this title.
503	503	(9) A wholesaler that violates a provision of this chapter is subject to the
504	504	same penalties as a supplier or retailer under subdivision (d)(2).
505	505	(g) Supplier, wholesaler, and retailer licenses issued under this section are not
506	506	transferable from person to person or location to location.
507	507	(h) A supplier, wholesaler, and retailer license issued under this section expires
508	508	in accordance with rules promulgated by the commission establishing a schedule for
509	509	licensure expiration. An applicant for renewal must submit with the application for
510	510	renewal the annual license fee, an updated identity history summary, and any other
511	511	information required by the commission by rule, as applicable.
512	512	57-7-107. Product testing requirements — Commission maintenance of list of
513	513	qualified testing laboratories.
514	514	(a) Testing of products and substances must be conducted as follows:
515	515	(1) Full-panel testing on all active cannabinoid molecules must be
516	516	conducted prior to final production of HDCPs; and
517	517	(2) A potency test must be conducted on finished goods to confirm
518	518	potency is consistent with stated potency on the packaging.
519	519	(b)
520	520	(1) A supplier must contract with a third-party laboratory to provide the
521	521	testing required by subsection (a).
522	522
523	523
524	524	- 19 - 003076
525	525
526	526	(2) A supplier shall certify to the commission that all HDCPs provided by
527	527	the supplier are in compliance with all requirements of this chapter. The manner
528	528	of certification may be established by rule of the commission.
529	529	(3) The commission is authorized to promulgate rules specifying which
530	530	types of tests may be used to satisfy the requirements of subsection (a) and the
531	531	qualifications for laboratories from which the commission will accept test results.
532	532	(c) Each batch manufactured must undergo testing and obtain a certificate of
533	533	analysis by a third-party laboratory qualified under subsection (b).
534	534	(d) The commission shall:
535	535	(1) Promulgate rules specifying pass and fail action levels for safety and
536	536	toxicity with respect to the testing required by subsection (a);
537	537	(2) Maintain and post on its website a registry of testing laboratories that
538	538	are qualified to test intermediate manufactured material and finished HDCPs;
539	539	(3) Develop an application and process by which qualifying laboratories
540	540	are listed on the commission's website. The application submitted by a
541	541	potentially qualifying laboratory must include a sample certificate of analysis
542	542	issued by the applying laboratory; and
543	543	(4) Sample and analyze HDCPs produced, distributed, and offered for
544	544	sale in this state for cannabinoid concentrations, tested according to protocols
545	545	promulgated by rule of the commission. Commission testing must be conducted
546	546	by post-decarboxylation to determine a cannabinoid profile of samples tested,
547	547	including their THC concentrations. As used in this subdivision (d)(4), "post-
548	548	decarboxylation" means the quantification by percentage of the resulting
549	549	tetrahydrocannabinol of a sample if carboxyl groups are removed from all
550	550	molecules containing tetrahydrocannabinol within the sample.
551	551
552	552
553	553	- 20 - 003076
554	554
555	555	57-7-108. Wholesale tax levy – Enforcement – Disposition of collections.
556	556	(a) There is imposed a tax upon the sale of HDCPs at wholesale in the amount
557	557	of one cent (1¢) per milligram of hemp-derived cannabinoid in each HDCP sold at
558	558	wholesale in this state. The tax imposed under this subsection (a) must be paid monthly
559	559	by the wholesaler upon the amount of milligrams of hemp-derived cannabinoid sold by
560	560	the wholesaler during the preceding month to the department of revenue, fifty percent
561	561	(50%) of which tax must be distributed to the commission in accordance with subsection
562	562	(c).
563	563	(b) For the purpose of enforcing this chapter and ascertaining the amount of tax
564	564	due under this section, each wholesaler shall, on or before the fifteenth day of each
565	565	month, file a report with the commissioner upon forms prescribed, prepared, and
566	566	furnished by the commissioner showing information relative to sales and disposition of
567	567	all HDCPs and such other related information as the commissioner may require.
568	568	(c) All moneys collected under this section must be turned over to the state
569	569	treasurer for deposit in the general fund, to be distributed as follows:
570	570	(1) Fifty percent (50%) to be appropriated for use by local governments
571	571	for local road infrastructure projects in the manner prescribed by the general
572	572	assembly; and
573	573	(2) Fifty percent (50%) to be appropriated for use by the commission in
574	574	the enforcement of this title.
575	575	57-7-109. Transportation of hemp-derived cannabinoid products — Required
576	576	documentation — Exceptions.
577	577	(a) Except as provided in subsection (b), a person transporting HDCPs into,
578	578	within, or through this state shall carry:
579	579
580	580
581	581	- 21 - 003076
582	582
583	583	(1) Documentation sufficient to prove that the products being shipped or
584	584	transported:
585	585	(A) Were produced from hemp that was lawfully produced under
586	586	a state or tribal hemp plan approved by the United States department of
587	587	agriculture, under a hemp license issued by the United States department
588	588	of agriculture, or otherwise in accordance with federal regulations through
589	589	the state or territory of the Indian tribe, as applicable; and
590	590	(B) Do not exceed the cannabinoid limits for hemp-derived
591	591	cannabinoids; and
592	592	(2) A bill of lading that includes:
593	593	(A) Name and address of the owner of the products;
594	594	(B) Point of origin;
595	595	(C) Point of delivery, including name and address;
596	596	(D) Kind and quantity of packages or, if in bulk, the total quantity
597	597	of products in the shipment; and
598	598	(E) Date of shipment.
599	599	(b) Subsection (a) does not apply to a person in possession of HDCPs that were
600	600	purchased from a retailer that is licensed under this chapter.
601	601	57-7-110. Safety requirements for hemp-derived cannabinoid products — Proper
602	602	storage by consumer — Prohibited advertising.
603	603	(a) An HDCP that is sold at retail must:
604	604	(1) Satisfy the child-resistant effectiveness standards under 16 CFR
605	605	1700.15(b)(1) when tested in accordance with the requirements of 16 CFR
606	606	1700.20;
607	607
608	608
609	609	- 22 - 003076
610	610
611	611	(2) If the HDCP is a beverage product, utilize a traditional pull-tab, an
612	612	aluminum can device currently approved for soft drinks and malt beverages, or a
613	613	screw-top or cork-style cap used for containers of wine and other alcoholic
614	614	beverage products;
615	615	(3) For HDCPs other than beverage products, be packaged in a single
616	616	package, container, or cartridge that contains no more than the milligram
617	617	equivalent of ten (10) servings, or two hundred fifty (250) milligrams of hemp-
618	618	derived cannabinoids, in the aggregate, in a manner to be determined by the
619	619	commission by rule; and
620	620	(4) Be labeled with:
621	621	(A) A list of ingredients and possible allergens and a nutritional
622	622	fact panel;
623	623	(B) A conspicuous warning statement having a minimum font size
624	624	of 11-point font concerning the risk of impairment from consumption of the
625	625	product, keeping the product out of the reach of children, and other
626	626	warning information as required by rule of the commission;
627	627	(C) If the product is ingestible, the amount of hemp-derived
628	628	cannabinoid in each serving of the product, measured in milligrams;
629	629	(D) The total amount of hemp-derived cannabinoid in the entire
630	630	package, measured in milligrams;
631	631	(E) The net weight of the product;
632	632	(F) A quick response (QR) code that can be scanned to access a
633	633	website providing the product's batch number, date received, date of
634	634	testing completion, method of analysis for the testing report required
635	635
636	636
637	637	- 23 - 003076
638	638
639	639	under § 57-7-107, including information regarding results of the product's
640	640	full-panel and potency tests conducted pursuant to § 57-7-107(a); and
641	641	(G) An expiration date.
642	642	(b) A person who obtains an HDCP that is sold at retail shall store any
643	643	unconsumed portion of the product in its original packaging. It is a Class C
644	644	misdemeanor offense for a person to violate this subsection (b).
645	645	(c) A retailer or supplier of an HDCP shall not advertise, market, or offer for sale
646	646	an HDCP by using, depicting, or signifying, in the labeling or design of the product or
647	647	product packaging, or in advertising or marketing materials for the product, trade dress,
648	648	trademarks, branding, or other related product imagery or scenery, characters, or
649	649	symbols known to appeal primarily to persons under twenty-one (21) years of age,
650	650	including, but not limited to, superheroes, comic book characters, video game
651	651	characters, television show characters, movie characters, or unicorns or other mythical
652	652	creatures.
653	653	(d) An HDCP must not be mixed with or otherwise used as an ingredient in beer
654	654	or alcoholic beverages.
655	655	(e) An HDCP must not be labeled or otherwise marketed to make any health-
656	656	related claims, including, but not limited to, claims pertaining to diagnoses, cures, or
657	657	mitigation or treatment of any human disease or other condition.
658	658	(f) An ingestible HDCP containing a hemp-derived cannabinoid must not:
659	659	(1) Be sold in a serving that contains more than twenty-five (25)
660	660	milligrams, in the aggregate, of one (1) or more hemp-derived cannabinoids;
661	661	(2) If the HDCP product is a hemp-derived cannabinoid beverage
662	662	product, be sold:
663	663
664	664
665	665	- 24 - 003076
666	666
667	667	(A) In a concentration greater than two hundred fifty (250)
668	668	milligrams, in the aggregate, of one (1) or more hemp-derived
669	669	cannabinoids, per seven hundred fifty milliliters (750 ml) by volume;
670	670	(B) In a container with a volume greater than seven hundred fifty
671	671	milliliters (750 ml); or
672	672	(C) In a container that contains more than two (2) servings, with
673	673	the exception of a seven hundred fifty milliliter (750 ml) container; or
674	674	(3) Be formed into the shape of an animal or cartoon character.
675	675	(g) The commission may promulgate rules for the packaging, labeling, and
676	676	display of HDCPs that are offered for sale in this state.
677	677	57-7-111. Limitations on right to use hemp-derived cannabinoid — Rights of
678	678	others.
679	679	(a) This chapter does not permit a person to:
680	680	(1) Undertake any task under the influence of a hemp-derived
681	681	cannabinoid or HDCP when doing so would constitute negligence or professional
682	682	malpractice; or
683	683	(2) Operate, navigate, or be in actual physical control of a motor vehicle,
684	684	aircraft, motorized watercraft, or any other vehicle while under the influence of a
685	685	hemp-derived cannabinoid or HDCP.
686	686	(b) This chapter does not require:
687	687	(1) An employer to accommodate the use of hemp-derived cannabinoids
688	688	or HDCPs in a workplace or an employee working while under the influence of a
689	689	hemp-derived cannabinoid or an HDCP;
690	690
691	691
692	692	- 25 - 003076
693	693
694	694	(2) An individual or establishment in lawful possession of property to
695	695	allow a guest, client, customer, or other visitor to use a hemp-derived
696	696	cannabinoid or HDCP on or in that property; or
697	697	(3) An individual or establishment in lawful possession of property to
698	698	admit a guest, client, customer, or other visitor who is visibly impaired as a result
699	699	of the person's use of a hemp-derived cannabinoid or HDCP.
700	700	(c) This chapter does not exempt a person from prosecution for a criminal
701	701	offense related to impairment or intoxication resulting from use of a hemp-derived
702	702	cannabinoid or HDCP or relieve a person from any requirement under law to submit to a
703	703	breath, blood, urine, or other test to detect the presence of a controlled substance.
704	704	(d) This chapter does not:
705	705	(1) Limit the ability of an employer to establish, continue, or enforce a
706	706	drug-free workplace program or policy;
707	707	(2) Create a cause of action against an employer for wrongful discharge
708	708	or discrimination; or
709	709	(3) Allow the possession, sale, manufacture, or distribution of any
710	710	substance that is otherwise prohibited by title 39, chapter 17, part 4.
711	711	57-7-112. Registration requirements for brands – Fees.
712	712	(a) As used in this section, "brand" means each category and type of HDCP, as
713	713	distinguishable to a consumer by supplier, name or trademark, brand or product line
714	714	name or trademark, or another distinction between HDCPs as promulgated by rule of the
715	715	department of revenue or commission.
716	716	(b) A supplier shall not deliver one (1) or more HDCPs to a wholesaler for
717	717	distribution in this state unless each HDCP brand is registered by the supplier with the
718	718	department of revenue.
719	719
720	720
721	721	- 26 - 003076
722	722
723	723	(c) The department of revenue shall prescribe a form for registering an HDCP
724	724	brand with the department, which must include each wholesaler authorized to distribute
725	725	the HDCP in this state and each county in this state in which the product is being sold at
726	726	retail.
727	727	(d) The department of revenue shall collect from the supplier an annual brand
728	728	registration fee of three hundred dollars ($300) per brand of HDCP registered with the
729	729	department.
730	730	(e) A wholesaler shall not give an order, receive, accept, or offer for sale an
731	731	HDCP brand unless the brand is registered with the department of revenue.
732	732	57-7-113. Direct-to-consumer shipping and delivery services unlawful.
733	733	(a) It is unlawful for a person or entity:
734	734	(1) Within or without this state, to ship an HDCP directly to a consumer;
735	735	or
736	736	(2) To utilize a delivery service to deliver an HDCP to a consumer.
737	737	(b) A person or entity that violates subsection (a) is subject to a civil penalty
738	738	levied by the commission of:
739	739	(1) One thousand dollars ($1,000) for a first offense;
740	740	(2) Five thousand dollars ($5,000) for a second offense; and
741	741	(3) Ten thousand dollars ($10,000) for a third or subsequent offense.
742	742	57-7-114. Unlawful to manufacture, cultivate, produce, or sell certain
743	743	cannabinoids.
744	744	(a) It is an offense to manufacture, cultivate, produce, or sell in this state:
745	745	(1) Hemp or hemp plant parts which contain a THCa concentration in
746	746	excess of one-tenth of one percent (0.1%) on a dry weight basis;
747	747	(2) Any derivative of hemp or an HDCP that contains THCa;
748	748
749	749
750	750	- 27 - 003076
751	751
752	752	(3) Hemp, hemp plant parts, a derivative of hemp, HDCPs, or another
753	753	product that contains a total THC concentration, or a total theoretical THC
754	754	concentration, in excess of three-tenths of one percent (0.3%) on a dry weight
755	755	basis; or
756	756	(4) A synthetic cannabinoid, or an HDCP or any other product, which
757	757	contains a synthetic cannabinoid.
758	758	(b) A person who violates subsection (a) is guilty of a Class A misdemeanor.
759	759	(c) As used in this section:
760	760	(1) "Total THC" means a combination of tetrahydrocannabinol,
761	761	tetrahydrocannabinolic acid, a THC component, or a derivative thereof; and
762	762	(2) "Total theoretical tetrahydrocannabinol content" or "total theoretical
763	763	THC" is the maximum amount of possible delta-9 tetrahydrocannabinol if total
764	764	conversion were to occur, calculated as the sum of the concentration of delta-9
765	765	tetrahydrocannabinol added to the amount of tetrahydrocannabinolic acid after
766	766	such amount is multiplied by eight hundred seventy-seven ten-thousandths
767	767	(0.877) on a dry weight basis and reported to two significant figures, and
768	768	expressed in mathematical formula as follows:
769	769	Total theoretical THC = ([delta 9 THC] + ([THCa] x 0.877))
770	770	57-7-115. Authority to promulgate rules.
771	771	The commission and department of revenue are authorized to promulgate rules
772	772	to effectuate this chapter in accordance with the Uniform Administrative Procedures Act,
773	773	compiled in title 4, chapter 5.
774	774	57-7-116. Applicability of chapter with conflicting provisions of law.
775	775
776	776
777	777	- 28 - 003076
778	778
779	779	This chapter governs the manufacturing, distribution, and sale of HDCPs, and to
780	780	the extent that a provision of this code conflicts with this chapter, the applicable
781	781	provisions of this chapter prevail.
782	782	SECTION 3. Tennessee Code Annotated, Section 67-6-232, is amended by deleting the
783	783	section and substituting:
784	784	(a) For the exercise of the privilege of engaging in the business of selling hemp-
785	785	derived cannabinoid products (HDCPs), as defined in § 57-7-102, in this state pursuant
786	786	to title 57, chapter 7, there is levied an additional tax at the rate of six percent (6%) of the
787	787	sales price of HDCPs when sold at retail in this state.
788	788	(b) The tax levied under this section is due and payable monthly on the first day
789	789	of each month, and for the purpose of ascertaining the amount of tax payable under this
790	790	section, all retailers making taxable sales on or before the twentieth day of each month
791	791	shall transmit to the commissioner of revenue, upon forms prescribed by the
792	792	commissioner, returns showing gross sales during the preceding month.
793	793	(c) All revenue generated from the tax levied pursuant to subsection (a) must be
794	794	deposited into a special account in the state general fund, with fifty percent (50%) being
795	795	allocated to the department of revenue and fifty percent (50%) being allocated to the
796	796	alcoholic beverage commission. Unused funds remaining in the account at the end of a
797	797	fiscal year must not revert to the general fund but must be carried forward and remain
798	798	available for expenditure in accordance with this chapter.
799	799	SECTION 4. Tennessee Code Annotated, Section 57-3-404(e)(4)(Q), is amended by
800	800	deleting the subdivision.
801	801	SECTION 5. Tennessee Code Annotated, Section 53-11-451, is amended by deleting
802	802	subdivision (a)(8), and is further amended by deleting the second sentence of subsection (b).
803	803
804	804
805	805	- 29 - 003076
806	806
807	807	SECTION 6. Tennessee Code Annotated, Section 39-17-1507(a), is amended by
808	808	deleting the language:
809	809	It is unlawful for any person to sell tobacco, smoking hemp, vapor products, or
810	810	smokeless nicotine products through a vending machine unless the vending machine is
811	811	located in any of the following locations:
812	812	and substituting:
813	813	It is unlawful for a person to sell smoking hemp and hemp derived cannabinoid products
814	814	through a vending machine. It is unlawful for a person to sell tobacco, vapor products,
815	815	or smokeless nicotine products through a vending machine unless the vending machine
816	816	is located in any of the following areas:
817	817	SECTION 7. Tennessee Code Annotated, Section 39-17-1509, is amended by deleting
818	818	the language "smoking hemp," wherever it may appear, and is further amended by adding the
819	819	following new subsection (g):
820	820	(g) Notwithstanding this part to the contrary, the alcoholic beverage commission
821	821	and department of revenue have administrative oversight of hemp derived cannabinoid
822	822	products, including inspections and the assessment of civil penalties, in accordance with
823	823	title 57, chapter 7.
824	824	SECTION 8. Notwithstanding this act to the contrary, a license issued pursuant to
825	825	Tennessee Code Annotated, Title 43, Chapter 27, Part 2, before the effective date of this act
826	826	remains valid and in full force until the expiration of the license. Such license and license holder
827	827	are subject to Tennessee Code Annotated, Title 43, Chapter 27, Part 2, as it existed prior to the
828	828	effective date of this act, until the expiration of the license.
829	829	SECTION 9. The headings in this act are for reference purposes only and do not
830	830	constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
831	831	requested to include the headings in any compilation or publication containing this act.
832	832
833	833
834	834	- 30 - 003076
835	835
836	836	SECTION 10.
837	837	(a) For purposes of promulgating rules and carrying out administrative duties
838	838	necessary to effectuate this act, this act takes effect upon becoming a law, the public
839	839	welfare requiring it.
840	840	(b) For all other purposes, this act takes effect January 1, 2026, the public
841	841	welfare requiring it.
842	842