Since 2018, industrial hemp, defined as not having more than 0.3 percent Delta 9 THC, has been federally legal across the country. A majority of states have adopted the same federal definition of industrial hemp. But as the popularity of industrial hemp grows, many are concerned. Industrial hemp is unregulated, making several lawmakers, and cannabis businesses who are regulated, nervous about the potential concern individuals may be exposed to. In order to combat this, Tennessee Representative Chris Hurt, R, along with Joe Kirkpatrick of the Tennessee Growers Coalition (TGC) introduced HB 1690. This bill looks to regulate psychoactive hemp-derived cannabinoids. Those include:
These cannabinoids will be regulated in an industrial hemp market if they contain more than 0.1 percent Delta 9 THC. This is three times less than the federal limit established in the 2018 Farm Bill. Under current state law, Delta 8 and other products are legal to sell as long as they contain less than 0.3 percent Delta 9 THC in them.
“No one is testing these products to make sure products have what they really say they have in them,” Representative Hurt said.
HB 1690
This Tennessee bill looks to accomplish three things. First, it looks to create licensing requirements for retailers and wholesalers. Each year, they must purchase a $200 license to sell any psychoactive cannabinoid with more than 0.1 percent Delta 9 in it. This is suspected to generate $160,000 annually in fees for Tennessee.
Next, a wholesale excise tax on hemp would be established at 6.6 percent. According to Representative Hurt, this could generate anywhere from $4-5 million a year in tax revenue. This revenue would funnel into the Tennessee Department of Agriculture to help them ensure product safety.
Finally, any psychoactive, hemp-derived cannabinoid products would only be available to adults 21 and older. This falls in line with other states, which have established recreational cannabis possession and consumption for those only 21 and older.
Next Steps
This isn’t the first time a state has looked to regulate cannabinoids in the hemp industry, especially Delta 8. Michigan enacted a bill late last year requiring Delta 8 producers to be regulated in the state and only sold at licensed retailers. Louisiana lawmakers looked to do the same thing at the end of last year. Other states have looked to just ban Delta 8 products. New York banned Delta 8 shortly after legalizing recreational cannabis. Connecticut also legalized recreational cannabis, but doesn’t allow businesses to legally sell Delta 8 products in house. North Dakota was one of a few states that banned Delta 8 all together from the state last year.
There will still be time between now and when the full legislation debate HB 1690. The bill heads to a House committee. There, it will be debated before potentially going to the full House chamber. If HB 1690 becomes approved in the House, then it moves to the Senate. Currently there is no Senate sponsor for HB 1690, so no one is currently lobbying in favor of HB 1690 to gain support. As more information becomes available, we will update you with the latest.
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