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Tennessee committee advances bill to move retail hemp-derived intoxicants to ABC oversight after debate over THCA
Summary
The House moved House Bill 13-76 out of committee after lengthy testimony and an untimely amendment that allows some smokeable hemp (THCA) modalities; the measure shifts retail and wholesale regulation from the Department of Agriculture to the Alcoholic Beverage Commission and updates testing and labeling rules.
House leaders on Tuesday advanced House Bill 13-76, a measure that moves retail and wholesale regulation of certain hemp-derived intoxicants from the Tennessee Department of Agriculture to the State’s Alcoholic Beverage Commission (ABC) and adopts new testing and retail restrictions.
The committee voted to accept an untimely amendment offered on behalf of Chairman Kevin Vaughn, and then passed the bill as amended. The final roll call on the amended measure was 18 ayes, 2 nos and 2 present, all voting, according to the clerk.
The bill’s sponsor, Leader William Lambert (sponsor title listed in the hearing as “Leader Lambert”), told the committee the change is intended to treat intoxicating hemp-derived products more like other intoxicants and place retail sales behind stores that restrict access to those 21 and older. “If they’re going to be out there, we have liquor on the shelves. We have beer on the shelves. We have wine on the shelves… These products should be regulated. They should be fairly regulated so that this industry can move forward,” Lambert said during his explanation.
The debate focused heavily on THCA and similar cannabinoids that can convert to Delta-9 THC when heated. Representative Jeremy Fason offered the amendment (drafting code 5181) that rewrote key parts of the bill; supporters said it aligns retail modalities and some testing rules with federal USDA hemp definitions and adds a regulatory pathway for certain smokeable forms and synthetics under ABC oversight. Fason said the amendment “marries up with the federal USD regulations” and argued it would reduce black-market distribution and give law enforcement clearer guidance about legal products.
Opponents and business witnesses warned the committee the amendment and the underlying bill could upend investments and state-level regulatory work completed after the 2018 federal farm bill. John Kearns, co-founder of New Bloom Labs, told the committee enforcing the state rules already in place would address many safety concerns and said the industry had only recently completed required rulemaking. “This legislation will upend all of that. It will be ruinous for many. It will certainly cost jobs,” Kearns said.
Business owners said the state’s recent regulations — including testing, childproof packaging and behind-the-counter retail requirements — have only been in effect for a short time and that manufacturers, retailers and testing labs were still adapting. “Rather than shifting regulatory goalposts … the focus should be on strengthening actual enforcement to ensure compliance with the laws already in place,” Devin Aracena, founder of Canvast, said.
Small business representatives also warned about compliance costs tied to the ABC licensing framework and limits on vertical integration. Maggie Mink, CEO of Rooted Supply Company (Emerald Heart) and president of the Tennessee Growers Coalition, said licensing and facility-separation costs could be burdensome for vertically integrated mom-and-pop operators. “$750,000 to secure funds to maintain a license from the ABC is far too much of a burden,” Mink told the committee.
Committee members repeatedly framed the decision as a policy choice over whether to allow raw or smokeable THCA-type products to remain available in the regulated market. Several members said they supported moving retail oversight to ABC because ABC has experience regulating intoxicating products and can enforce age and labeling requirements.
Procedurally, the committee first voted to consider the untimely amendment (taking it up for consideration passed 15 ayes, 4 nos, 1 present not voting). The committee then placed the amendment on the bill (vote on amendment adoption: 13 ayes, 7 nos, 2 present). The committee then adopted the bill as amended (final committee vote: 18 ayes, 2 nos, 2 present).
The bill now goes to the calendar and rules committee. Transcript testimony and committee exchanges show the major remaining questions for later stages will be: whether enforcement of existing Department of Agriculture rules can address school and youth-access concerns, and whether ABC licensing and fee structures adopted later will impose prohibitive costs for small operators.
