Tennessee General Assembly Approves Regulations Regarding Hemp-Derived Cannabinoids

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Heading to Tennessee Governor Bill Lee’s desk, is a newly approved cannabis regulatory legislation, specifically for hemp-derived cannabinoids.

What could be some of the most important cannabis regulatory legislation is heading to Governor Bill Lee’s desk for his signature to become law. House Bill 403/Senate Bill 378 passed the full Tennessee General Assembly. This exciting bill will create necessary regulations on selling, distributing, and producing products containing hemp-derived cannabinoids. Cultivate Tennessee, a coalition of industry leaders, helped gather support for the legislation (1).

“This is a huge step forward for Tennessee in terms of helping define the industry by creating needed safety, accountability and consumer protection guardrails,” said Jason Pickle, Co-founder of Volunteer Botanicals and a Cultivate Tennessee board member (1). “The common-sense requirements of this new bill will ensure that Tennessee residents and resellers can feel comfortable with the safety and efficacy of hemp-derived products, as well as in the responsibility of the companies that produce them. This will help tremendously with the growth of the industry. This bill creates a legal framework to operate and distribute products.”


In the company’s press release, they revealed how this new law benefits the hemp industry (1):

  • Requires a privilege tax of 6% of the sales price for these products, with revenue going to the state general fund
  • Requires that manufacturers and sellers obtain a license from the Department of Agriculture
  • Requires hemp-based cannabinoid products to be tested for safety and toxicity by an accredited laboratory
  • Creates child-resistant effectiveness standards for cannabinoid products, as well as requiring label warnings, disclaimers and one-year expiration dates on all products
  • Introduces new offenses for selling to or assisting someone under 21 to buy products with hemp-derived cannabinoids

The federal agency enforcing these new provisions will be the Department of Agriculture and will report annually to the general assembly.

“The industry pushed for these regulations in order to demonstrate that it is solidly on the side of safety and accountability,” said Devin Aracena, Co-chair of Cultivate Tennessee (1). “The only way for us to grow this industry and educate Tennessee consumers is to create an environment where trust and consumer confidence is paramount. We think this bill is an incredible first step in the next phase of the industry in the state.”

To ensure House Bill 403/Senate Bill 378 succeeded, Cultivate Tennessee aligned with House Majority Leader William Lamberth and Senator Richard Briggs, Chairman of the Senate State and Local committee, as well as a lengthy list of several State Representatives, all of whom supported the bill. This legislation will help protect consumers and keep them safe by requiring proper disclaimers, testing, licenses, and child-safe packaging.