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Tennessee Could Be Next to Legalize Recreational and Medical Cannabis as Dual Bills Put Forward

Tennessee could join the growing list of states legalizing cannabis for both recreational and medical use if two newly proposed bills pass the state legislature.

Sponsored by Democratic lawmakers, the Tennessee Cannabis Act (SB0809) and the Pot for Potholes Act aim to overhaul the state’s cannabis laws, allowing adults over 21 to possess, use, and cultivate cannabis while establishing a regulated market for its production and sale.

Both bills, introduced by state Sen. Jeff Yarbro (D-Nashville) and state Rep. Larry Miller (D-Memphis), along with state Sen. Heidi Campbell (D-Nashville) and state Rep. Aftyn Behn (D-Nashville), share many similarities but differ in how they allocate tax revenues generated from cannabis sales.

Under the proposed legislation, adults would be permitted to possess up to 60 grams of cannabis, with no more than 15 grams in concentrate form, and cultivate up to 12 plants in a secure, private area not visible to the public. The bills also allow parents or guardians to provide cannabis to minors for medical purposes, excluding smokable products.

However, public consumption, use in vehicles or watercraft, and possession on school grounds or correctional facilities would remain prohibited. Employers would retain the right to enforce workplace policies prohibiting cannabis use and consider it in hiring decisions, though employees and growers would be allowed to purchase firearms, and cannabis use would not disqualify individuals from leasing residential properties.

Both bills propose a 15% state tax on cannabis sales, with local governments authorized to add an additional 5% tax. However, they diverge in how the revenue would be allocated. The Tennessee Cannabis Act directs approximately 15% of funds to state agencies for program administration, with the remainder deposited into the state’s general fund.

In contrast, the Pot for Potholes Act earmarks 75% of cannabis tax revenue for the state highway fund, distributes most of the remaining funds to Tennessee’s 95 counties, and allocates 5% to state agencies for program management. While state budget experts have not yet estimated the potential revenue from these taxes, a similar medical cannabis bill proposed last year projected annual revenues exceeding $48 million.

The legislation also includes provisions to regulate the commercial production, packaging, and sale of cannabis products. Retail products would require child-resistant packaging, display a universal cannabis symbol, and indicate the total THC content. Additionally, the bills would legalize the possession of marijuana-related paraphernalia, such as water pipes, with certain exceptions.

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