House adopts wide regulatory framework for hemp-derived intoxicants, bans THCA flower above 0.3% and sets taxation and licensing rules

The Tennessee House adopted a comprehensive regulatory and taxation framework for hemp-derived intoxicants on third and final consideration, passing House Bill 13 76 as amended after extended floor debate and numerous committee and floor amendments. The final package establishes licensing and brand registration requirements, moves excise collection to the wholesale level (similar to spirits taxation), sets possession and retail rules, and creates enforcement and minimum bonding standards for wholesalers. The House also adopted a floor amendment that bans THCA (the plant flower product) in excess of 0.3% total THC—bringing the House version into alignment with the Senate language on that specific point.

Key components discussed on the floor and adopted in amendments include:

- Regulation and oversight: The bill moves oversight authority to the appropriate regulatory body (discussed on the floor as the ABC/Dept. of Revenue and a dedicated licensing unit) and requires brand registration for products. Sponsors argued shifting oversight would let the state better monitor product safety and tax compliance.

- THCA/flower ban: A floor amendment (adopted as Amendment 11) prohibits products containing THCA above 0.3% total THC. Supporters said this reduces the indistinguishability between marijuana and hemp derivatives; opponents argued the change effectively removes the natural flower product from Tennessee’s legal market while allowing manufactured synthetics to remain.

- Taxation: The measure moves excise taxation to the wholesale level (a model used for wine/spirits) and sets specific per-milligram tax rates for different product types in the amendment discussion: gummies, vapes, and beverages were discussed with per-milligram or per-unit wholesale excise structures; one adopted floor amendment aligned beverage wholesale taxation to a barrelage-like $4.40 per gallon parity with spirits for wholesale beverages. The bill’s authors presented fiscal estimates but several members asked for clearer fiscal scoring; leaders said some numbers were provided to committee and that oversight would be managed by Revenue and ABC.

- Licensing/financial assurance: The bill includes a substantial financial-responsibility requirement for wholesalers (the transcript references a $750,000 figure), intended to ensure wholesalers have fiscal capacity and reduce the risk of underreporting or illegal trade.

Floor debate was extensive. Supporters said the state must regulate an already-present marketplace that has been operating as “the Wild West,” protect children via age limits and product standards, and secure tax revenue. Opponents warned of public-health harms—citing evidence from other states that youth poisonings and traffic incidents rose after legalization—and criticized elements that they said favored synthetic or processed products over the unadulterated plant product.

Several amendments were debated and either adopted or withdrawn on the floor. Amendment 12 (adopted) and Amendment 10 (adopted) modified tax parity and barrelage language for beverages; Amendment 11 (adopted) implemented the THCA ban above 0.3%; other committee amendments were filed and withdrawn or rolled to the "heel" of the calendar during the day’s session. The final recorded roll call on the bill showed 69 ayes, 21 nays and 3 present/not voting; the Speaker declared the bill passed.

Sponsors and floor leaders repeatedly framed the measure as a regulatory and consumer‑safety package—moving enforcement from an Agricultural model to an alcohol/regulatory model and consolidating tax collection at wholesale to improve compliance. Opponents emphasized potential social costs and urged caution. The House adopted the final amended package and the bill will proceed in the legislative process toward the Senate/engrossment as required.