Tennessee House passes bill regulating THC products amid concerns for public safety

The Tennessee State Legislature convened on April 10, 2025, for the 24th Legislative Day, where significant discussions centered around a bill aimed at regulating THC products, including delta-8, delta-9, and delta-10. The proposed legislation seeks to transfer oversight of these products from the Department of Agriculture to the Alcoholic Beverage Commission (ABC) and the Department of Revenue, with the intention of implementing taxation and regulation to ensure consumer safety.

Chairman Williams, the bill's sponsor, emphasized the need for regulation, stating that the current lack of oversight has led to a "wild west" scenario in the industry. He noted that the bill would allow for the taxation of THC products while preserving the interests of retailers and wholesalers. The legislation also includes an amendment to regulate pouches and absorptive materials containing THC.

During the session, representatives raised concerns about the potential impact of the bill on public health, particularly regarding youth access to THC products. Chairman Williams assured that the bill would enforce age restrictions, making it illegal for individuals under 21 to purchase these products. He highlighted the necessity of setting limits on THC content in beverages, which can currently contain high levels of THC, equivalent to several ounces of illegal marijuana.

The discussion also touched on the fiscal implications of the bill, with some representatives questioning whether the proposed tax rates would adequately support the enforcement of regulations. The bill sets a tax rate of 2 cents per milligram for gummies and vape products, and 10 cents for beverages, which is among the highest in the nation.

An amendment banning THCA products exceeding 0.3% was adopted, reflecting concerns about the intoxicating effects of these substances. This amendment sparked debate about the balance between regulation and the rights of businesses that have invested in the hemp industry since its legalization two years ago.

In conclusion, the bill represents a significant step towards regulating the THC market in Tennessee, aiming to protect consumers while addressing the complexities of a rapidly evolving industry. The legislature's actions will likely shape the future of hemp-derived products in the state, with ongoing discussions about the balance between regulation, taxation, and public health.