House Bill 13,76, as rewritten, passed the Judiciary Committee and was sent to the Commerce Committee by a 16-4-2 voice and roll-call decision after extended testimony from industry representatives and questions from lawmakers.

Leader Lambert, the bill sponsor, said the measure aims to move regulation of hemp-derived consumer products from the Tennessee Department of Agriculture to the Alcoholic Beverage Commission (ABC). He told the committee the Agriculture Department would continue to regulate growers but that ABC would manage retail licensing, bans on certain substances and retail standards. "This bill would move [regulation] under the Alcohol Beverage Commission... It does ban THCA and THCP," Leader Lambert said, explaining the proposal responds to THC-related public-safety concerns and the fact that THCA converts to active THC when heated.

Industry representatives opposed the change at the hearing. Clint Palmer, who identified himself as a long-time industry advocate and consultant, urged the committee to delay action and hold Agriculture accountable for enforcement of the 2023 law that governs hemp-derived cannabinoids. Palmer said the 2023 law already requires product labeling, restricts sales locations, and imposes licensing and taxation; he told lawmakers the Department of Agriculture was collecting roughly $1 million a month from the statutory 6 percent tax but had failed to hire inspectors to enforce the program. "If you pull the rug out from underneath these businesses by passing this bill, you'll close the doors on the majority of hemp businesses within the state," Palmer testified. He added that many manufacturers and retailers would find it impossible to meet new numerical THC/THCA limits in the bill and that banning THCA would effectively eliminate most in-state production.

Lawmakers questioned potential legal exposure under federal law. Representative Johnson asked whether the bill could face legal challenges under the federal 2018 Farm Bill, which legalized hemp at the federal level; witnesses responded that federal preemption could be an issue but also argued states can regulate beyond federal minimums. Palmer urged legislators to require the Department of Agriculture to explain its enforcement choices and to consider rolling the bill while that review occurs.

The committee approved House Amendment 39,59, which rewrote the bill, and then voted to send HB13,76 to Commerce by a roll call that recorded 16 ayes, 4 noes and 2 present not voting. Sponsors said ABC licensing would create clearer retail rules and ban products that convert to marijuana when heated; industry witnesses warned of substantial revenue and jobs impacts if in-state manufacturing and retail sales were curtailed.

Ending: The bill moves to the Commerce Committee; sponsors and critics said they will continue to negotiate technical details, and industry representatives asked lawmakers to press Agriculture for enforcement data before the Commerce Committee takes up the measure.