NASHVILLE, Tenn. (WKRN) — A new set of rules aimed at regulating hemp in Tennessee will go into effect Dec. 26, and hemp farmers, retailers, and manufacturers are worried one of them will put the industry up in smoke.
The rule in question, which was announced by the Tennessee Dept. of Agriculture (TDA) in September and goes into effect Dec. 26, prohibits hemp products that contain more than .3% THCA when burned. THCA is a hemp-derived cannabinoid that turns into THC when burned, causing a high similar to that of marijuana, according to the TDA.
However, those in the hemp industry argue hemp does not cause an intoxication like marijuana.
Multiple hemp farmers, retailers, and manufacturers testified to lawmakers during a rule review hearing Wednesday that the rule banning hemp products containing more than .3% THCA when burned will essentially prohibit hemp flower in the state, resulting in negative consequences for businesses and consumers.
"This is 85% of our sales," Michael Soloman, who owns multiple hemp businesses said. "There's going to be nothing to regulate. You don't need to hire any inspectors. We'll all go out of business."
"This is going to take the flower, the plant that we are permitted to grow by the state of Tennessee, off the table for retail," Chris Sumrell, the owner of Farm to Med and a hemp farmer said. "What do people do with the flower? They smoke it. We can't stop people from doing that. If we take this off the counter and don't regulate and tax it, they're going to go to the black market or take their business across state lines."
Those involved in the hemp industry testified they support all the other rules the TDA introduced, which include licensing, testing, and labeling requirements. They asked lawmakers to consider reworking the other rule regarding THCA levels.
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However, House Majority Leader Rep. William Lamberth (R-Portland) said all the rules are necessary in order to ensure consumers are protected.
"It absolutely was the intent of this legislation to ban products over .3%," Lamberth said. "Flower, any other products, anything. We wanted products to be available out there that are hemp-derived that, quite frankly, are not what I see on the billboards right now, [that say] 'Real weed. Buy it now in Tennessee.'"
Lawmakers hashed out the controversial rule for hours but concluded they wouldn't have the power to toss out one, singular rule without getting rid of all the others until the next legislative session.
"The bottom line is this: if we don't like it, and I know a lot of us have problems with this, we do, the only real way to fix this effectively is to fix this in January. It's legislation in January," Sen. Kerry Roberts (R-Springfield) said.
Sen. Janice Bowling (R-Tullahoma) expressed concerns over waiting until after the rules go into effect to take action.
"If we fix it the very first session in January, how many people will have gone out of business?" Bowling asked. "What would be the negative impact of the black market swooping in? Do we know?"
Bowling added the state's rules are stricter than federal regulations.
After taking votes on multiple ways to move forward, including a proposal to throw out all the rules, and another to put a temporary stop to the rules, House members agreed upon a neutral recommendation and Senate members took no action. The rules are set to go into effect Dec. 26.