Tennessee is poised to enact sweeping restrictions on intoxicating hemp-derived compounds as lawmakers across the United States continue efforts to rein in the unregulated but fast-growing sector. A bill redefining cannabinoids such as THCA and delta-8 THC to fall outside the legal definition of hemp passed both legislative chambers this month and now awaits Gov. Bill Lee’s signature, which is widely expected.
Meanwhile, lawmakers in Arizona, Arkansas, Florida, Hawaii and New Jersey are also advancing legislation or facing legal battles aimed at controlling the sale and distribution of hemp-derived intoxicants. In the absence of federal regulation, states are stepping in to fill a policy void left by the 2018 Farm Bill.
The Tennessee measure not only bans intoxicating hemp cannabinoids by redefining them as forms of marijuana, but also shifts oversight of products containing the substances – derived from hemp flowers – from the state’s Department of Agriculture to the Alcoholic Beverage Commission. The change positions the substances under a stricter regulatory regime, similar to alcohol and tobacco.
The bill, SB 1413/HB 1376, effectively closes a popular legal pathway for producing and selling high-inducing compounds under the hemp umbrella. Under the new definition, compounds like THCA – which converts to delta-9 THC when heated – are no longer considered hemp, even if the raw product contains less than 0.3% delta-9 THC by weight.
Arizona Cease And Desist
Arizona hemp stakeholders filed a lawsuit challenging the state’s impending ban on THC products sold outside licensed dispensaries. Now unlicensed retailers must cease sales of such products or face enforcement actions.
The lawsuit contends that the ban is overly broad and lacks clarity. Industry representatives have emphasized the need for a regulated framework that ensures product safety while allowing for the continued sale of hemp-derived intoxicants.
Tax push in Arkansas
In Arkansas, lawmakers are considering Senate Bill 605, which would impose a 50% excise tax on hemp-derived THC products. Industry opponents say the proposal would effectively shut down legal hemp commerce in the state by making such products prohibitively expensive to sell.
The bill has passed the Senate Revenue and Tax Committee and is awaiting further legislative review. It reflects a growing unease among state lawmakers about unregulated sales of potent hemp derivatives, particularly in gas stations and convenience stores where age restrictions and labeling requirements are often lacking.
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