The Tennessee General Assembly last week gave final approval to a hemp-derived cannabinoid regulation bill, sending it to Gov. Bill Lee (R), WATE reports. The legislation aims to regulate the production, sale, and distribution of hemp products that contain delta-8 and delta-9 THC.  

Under the measure, manufacturers and sellers of hemp products that contain THC must obtain a license from the Tennessee Department of Agriculture by January 1, 2024. The bill also requires that hemp products that contain THC are tested for safety at an accredited third-party laboratory. 

The legislation would also impose a 5% tax on the sale of hemp-derived cannabinoid products sold in the state. Under the bill, the revenues must be deposited into a special account in the state general fund and allocated to the agriculture department to be used exclusively for the regulation of products containing hemp-derived cannabinoids. 

The bill will also create new criminal offenses, such as a Class-A misdemeanor for a person knowingly selling or distributing hemp-derived THC products to individuals under 21 years old and selling or distributing the products in or on a public street, sidewalk, or park. 

In Tennessee, neither medical nor adult-use Cannabis is permitted.  

Lee is expected to sign the bill into law. 

Get daily Cannabis business news updates. Subscribe