
Tennessee retailers will soon have to take their most popular hemp products off the shelves.
The Tennessee General Assembly Thursday passed a measure that would ban THCa — a component in the majority of legal cannabis products sold in the state.
Sen. Richard Briggs, R-Knoxville, who sponsored the legislation, said the bill is about supporting local hemp growers.
“Our Tennessee farmers are doing the right thing, but they’re having trouble competing with the out-of-state people who now are selling directly to the retailers these products that really are not legal,” Briggs said on the Senate floor.
Tennessee hemp farmers say the bill is bad for their business — a business that generates $2 million in revenue monthly for the state, according to hemp researcher Clint Palmer.
He told lawmakers last month that a THCa ban would hurt small businesses, not out-of-state corporations.
“The manufacturers (are) the ones that can change their products, whereas the retailer is … going to be very limited on what they could sell,” Palmer said. “The majority of the stores are telling me about 70% of their retail sales would be removed if this bill went through.”
The Tennessee Growers Association has protested the bill, citing concerns that the THCa ban could potentially shutter a multi-million-dollar industry in the state.
The bill also means hemp products can only be sold by retailers with liquor or vape licenses, as it moves regulation of hemp from the Tennessee Department of Agriculture to the Alcoholic Beverage Commission.
Sen. Adam Lowe, R-Calhoun, said the move would help the trucking industry in his district guarantee that employees are driving sober.
“There are employers that I have that already struggle with the challenge of maintaining a sober driving force for their large trucks and equipment,” Lowe said. “And they’ve seen those problems exacerbate, since this has gotten out of control in recent years. So, I think it’s wise for us to take a step back.”
Sen. Page Walley, R-Savannah, opposed the bill, arguing that the change would be too sudden for investors.
“We’re saying to some of these law-abiding folks that have invested in businesses, that are growing legal crops, that ‘You know what? … We’re going to change this radically, and we’re going to do it now, and you’re just going have to take it,’” Walley said. “I think we can do better than that.”
The bill now heads to the governor’s desk for his signature.