The Delta-8 craze has caught the attention of Tennessee lawmakers, but the industry is spared regulations — for now

In the past year, Delta-8 THC products have become popular among people wanting to experience a euphoric high. It’s been advertised as “legal weed” and is now sold at many gas stations and nearly every smoke shop. But at one point during the legislative session, it seemed that Tennessee lawmakers were trying to knock people off Cloud Nine by banning Delta-8.

Derek Besenius is the owner of Labcanna, one of the first hemp companies in Tennessee. At its East Nashville location, the store is decorated with bongs used as vases, comfy couches and friendly dogs roaming the store. 

Delta-8 is a cannabis product derived from hemp, which is legal to grow in Tennessee. Earlier in the session Besenius says people at Labcanna started getting nervous after lawmakers explored a ban on the substance.

“This industry here was all up in arms, extremely nervous,” said Besenius.

The ban would’ve affected retailers across the Tennessee, and the state also would’ve taken a hit. Estimates show the product brings in about $5 million in sales tax revenue. 

Stephen Jerkins WPLN News

Sumner County Republican William Lamberth wants to make sure kids don’t get a hold of Delta-8 gummies. Credit: Stephen JerkinsWPLN (File photo)

Rep. William Lamberth, R-Portland, from was the main driver of the effort to reign in the industry. His main gripe is that there are no regulations, which allows bad actors to falsely advertise what they’re selling.

“If you buy a Coca-Cola, you expect it to be what you purchased. You don’t expect to buy a Coca-Cola and it’s a beer,” said Lamberth. “If you buy a beer, you expect it to be a can of beer not a can of tequila.”

Lamberth says vendors are not advertising their products properly.  

“I would consider that probably false advertising. I have not talked to a single vendor that actually has a 100% THC product and they can show a test that proves that,” said Lamberth.

His proposed bill would have put new rules in place for stores selling Delta-8, as well as a 5% tax on the product — a compromise he reached with industry stakeholders like Joe Kirkpatrick.   

“I think we could probably see by 2020, 2024, we could probably see $15 or $20 million in additional revenue coming in,” said Lamberth.

Kirkpatrick is the go-to guy for hemp related action on Capitol Hill. He’s the president for the Tennessee Growers Coalition. Kirkpatrick says the regulations would put testing in place to make sure products are accurately labeled, as well as limit the amount sold in a serving to 25 milligrams of THC. 

He says currently some companies are going overboard. 

“If I eat 250 milligrams and I’ve never tried it before, I’m going to outer space. And then I’m going to sleep for three days,” said Kirkpatrick. “So, we obviously don’t want those things happening out there.”

The rules also would have required child-proof packaging, disclaimers on labels, and age restrictions of 21 and older. 

Labcanna owner Derek Besenius says a lot of companies are already doing these things. 

“We’ve always been self-policing. That said not everyone, not all players in this industry self-police. A lot of money-driven rather than overall benefit-to-society-driven,” said Besenius.

Besenius says in a lot of ways he and Rep. Lamberth are in agreement. 

“Ultimately, all of our goals are the same, consumer protection, making sure that good players and good actors as businesses are able to move forward in the free market that exist here in Tennessee,” said Besenius.

But the industry won’t have to worry for now. The legislation didn’t make it out of committee this session, but will likely be back next year. And Besenius prefers that, he says the conversation around regulation helps move the needle closer toward wider acceptance of cannabis in society.