KNOXVILLE, Tenn. — A bill effectively banning the sale of THC-A is making its way to the state Senate floor after it was passed in the Tennessee House of Representatives, causing concern for local hemp businesses in East Tennessee.
Republican lawmakers in the House passed HB 1376, a bill that essentially bans the sale of THC-A.
The legislation, introduced by Representative William Lamberth (R-Portland), transfers regulatory authority over hemp-derived cannabinoid products from the Tennessee Department of Agriculture to the Alcoholic Beverage Commission.
“(These are) extremely intoxicating substances, and what we do with these products can change lives for better or worse,” Lamberth said on Thursday. “They should be regulated and sold just like wine, liquor and beer are, with the same type of restraints on them, recognizing that there is great danger in these products.”
For local businesses like Hemp House, the bill would strip around a third of the sales, according to Andy Chesney, who owns the store.
“It’s gonna be pretty devastating for a lot of people,” Chesney said. “The amount of sales that are gonna be lost, for each hemp business. Regardless of how they operate. Whether they’re wholesalers or retailers.”
But at other stores like the BLOM Shop, owner Travis McKinney said it could put his store out of business, which sees up to 80% of its sales from THC-A products. Popular products that could be pulled include vapes, smokable flower and pre-rolled joints.
“Not only small businesses, but hundreds of farmers are gonna go out of business that rely on hemp,” McKinney said. “When it became legal, I saw how many people it’s helped, whether it’s people that are close to you or just a stranger.”
An amendment to the bill added Wednesday, introduced by Representative Mark Cocharan (R-Englewood), prevents the sale of hemp that contains a total THC content, or a total theoretical THC content, of more than 0.3% when measured by weight. This would include most THC-A products because it’s a precursor of THC.
“It was rushed,” Chesney said. “It’s unfair in the sense that stakeholders were not allowed to speak on the amendments. The amendment that was put forth definitely pulled the rug out.”
Last year, TDA rules aimed at restricting THCA sales were temporarily halted by a Davidson County judge following a legal challenge. The injunction allowed businesses to continue selling THC-A products while the case remains unresolved.
Hemp business owners have expressed concern that banning THC-A could devastate their operations. Many say THC-A is one of their most popular products, and losing it could force them to close their doors.
In addition, a 2018 Federal Farm Bill protects the THC-A product, allowing neighboring states like North Carolina, for example, to ship to customers in Tennessee.
“It’s very disappointing for the industry, it’s disappointing for small businesses,” Chesney said. “But mainly, it’s disappointing for consumers that are using hemp products for therapeutic benefits.”
The Tennessee Senate still has to vote on the legislation, which must match the House bill, before it moves to Republican Governor Bill Lee’s desk to be signed into law.
Business owners like McKinney and Chesney are worried about a resurgence of sales on the black market, as well as the state losing tax dollars.
“The customers are still gonna buy it and they’re just not gonna pay Tennessee state taxes on it, so they’re gonna get it 100% legally across state lines,” McKinney said. “Unfortunately, some people will return to the black market.”
Businesses across the state are asking their local senators to hold back on pushing through this legislation and allow products they say are safe and regulated to remain on shelves.
Lamberth said he wanted to do “everything in his power” to ensure the House version of the bill was passed in the Senate, touting the importance of the amendment.
