CHATTANOOGA, Tenn. (WDEF) – A proposed bill at the Tennessee Capitol is putting small hemp businesses on edge.
House Bill 1376 would shift the regulation and taxation of hemp-derived products, like THC-A, to the alcohol industry.
Critics say the bill threatens to dismantle an industry that has operated legally under state oversight since 2023, when SB0378 was passed and a 6% hemp-derived cannabinoid tax was enacted.
Business owners say they complied from day one, paying thousands each month, money that supports schools, law enforcement, and infrastructure.
Now, many of those same businesses fear for their survival. One local shop says THC-A makes up 90% of its sales.
Under the proposed bill, two cannabinoids would be banned outright, while others would remain untouched, leaving many asking why some products are targeted and not others.
Advocates say if the true goal is protecting kids, regulation should start at the point of sale, not by shuttering legitimate, tax-paying businesses.
Supporters of the industry say they followed the rules, paid their dues, and invested in their communities.
Now they are calling on lawmakers to reject what they see as a bill that punishes compliance and threatens to send millions in tax dollars out of state.
Supporters of the bill say stronger oversight is needed to protect consumers and bring consistency to the market.
Lawmakers are expected to vote on the bill in the coming weeks.
A proposed Tennessee bill could upend the state’s hemp industry, leaving small business owners fighting to stay afloat. Read More
