Tennessee lawmakers are gearing up for a key vote that could dramatically reshape the state’s booming hemp sector, with competing bills in the House and Senate proposing sharply different approaches to regulating intoxicating hemp.
The state’s hemp market is estimated to generate $280–$560 million annually, supporting farms, processors, and retailers.
Both legislative proposals, which head to finance committees this week, would impose a $0.01 per milligram wholesale tax and shift oversight from the Department of Agriculture to the Alcoholic Beverage Commission (TABC).
But the central divide lies in how the two chambers treat THCA. The Senate version, sponsored by Sen. Richard Briggs, seeks to ban the compound, citing a 2024 DOJ letter that classifies it as a controlled substance.
Conversely, the House version, amended to protect farmers, would permit regulated sales.
Industry leaders say Tennessee has a chance to pioneer a regulated THCA market, offering clarity while preserving revenue and livelihoods.
If both chambers pass their respective versions without major changes, the legislation will head to a conference committee to resolve discrepancies before the General Assembly adjourns for the year.
