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KNOXVILLE, Tenn. (WVLT) – The Tennessee Department of Agriculture wants to change the way the state tests for THC in hemp products, just months after lawmakers enacted rules and regulations.
The state legislature introduced a 6% cannabis tax on all products and made it illegal for cannabis stores to sell to anyone under 21.
Local cannabis dispensaries said the proposed rules could have a negative impact on their operations.
“This will essentially have a negative impact on the retail market,” said Hemp House owner Andy Chesney.
Chesney said if the USDA proposal is approved, the company’s smokable hemp products would be illegal.
Blomshop owner Travis McKinney said this hurts the business as well as the customers.
“Unfortunately, people are going to go back to the black market,” McKinney said.
The Department of Agriculture has proposed changes to the way it tests for THC in products. THC is the ingredient that gives people a high feeling.
The state currently tests each product for THC levels below 0.3%. This makes the product legal, but THC levels around 0.3% are classified as marijuana.
The state wants to test not only for THC levels, but also for potential THC levels when a product is smoked.
Cannabis store owners said smokable products would be illegal if they were tested this way.
“What the TDA is trying to do is exactly what we worked so hard to regulate and pass this industry through,” McKinney said.
The Department of Agriculture sent WVLT News the following statement:
The proposed rules were created to align with federal standards already in place for Tennessee cannabis producers and new state law requirements in 2023 for manufacturers and retailers of hemp-derived cannabinoid products. The Department welcomes all public comments regarding potential rule changes and will accept them until the close of business on February 9, 2024. Comments may be submitted orally or in writing at the Feb. 6 public hearing. ”
McKinney said the nonprofit organization he works with, Cultivate Tennessee, is actively working with the state Legislature and the Tennessee Department of Agriculture to amend the proposed regulations before entering public comment. He said he is doing so. If the state doesn’t act, McKinney said the group will take the state to court.
“We’re going to sue the USDA, but we won’t sue unless we think we can win,” McKinney said.
State Sen. Richard Briggs (R-Knox County), who sponsored the rules and regulations for hemp products, said the state could earn $12 million if the hemp tax is fully implemented.
The proposed rule has not yet been finalized.
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