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New Legislation Impacts Tennessee’s Hemp Industry

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Tennessee Hemp Business

News Summary

Tennessee Senators have passed bill SB1413/HB1376, regulating the manufacture and sale of THCA products. This new legislation prevents sales of hemp products exceeding 0.3% THCA, causing anxiety among local business owners. With an expected significant impact on around 90% of their products, the bill’s enforcement could lead to widespread job losses and revenue drops. Business owners are calling for action before the bill takes effect in January 2026, while some consider adapting to market demands including potential shifts towards synthetic products.

New Legislation Hits Tennessee’s Hemp Industry

Nashville, TN – In a recent turn of events that has left local hemp business owners feeling anxious, Tennessee Senators passed a bill, SB1413/HB1376, that regulates the manufacture and sale of THCA products. This new piece of legislation has stirred quite the buzz, as it prohibits the sale of all hemp products containing more than 0.3% THCA.

The Impact on Local Businesses

Local business owners are predicting dire consequences, estimating that this new bill could affect around 90% of their products. David Saylor, who leads the Anchored Cannabis Company & CBD Plus USA, has expressed grave concerns that this legislation could lead to the downfall of all hemp companies operating in Tennessee.

Saylor has established a considerable presence in the state with around 40 retail stores and a workforce of about 250 employees. This includes a significant number, estimated between 60 to 70 workers, at his manufacturing facility in Piney Flats. The CEO fears that if the bill is enacted, he might find himself scrambling for answers, as he currently lacks a backup plan for his business’s future.

The stakes are high; Saylor highlights that the potential fallout includes the loss of thousands of jobs and substantial revenue, reaching millions, leaving the state’s economy in a precarious position.

Continuing Business, But Not without Concerns

On a slightly more optimistic note, Zack Green of Gold Spectrum THC has stated that while they will continue their operations as usual, he understands the importance of rallying against the bill until it officially comes into effect in January 2026. Green recently took the bold step of acquiring property for expansion, though he is keeping the option to relocate out of state on the table should the situation require it.

It’s clear that both Saylor and Green are disheartened by how this legislative process unfolded. Both businessmen had been proactive, actively collaborating with lawmakers on draft regulations concerning THCA. Their efforts included implementing stringent testing on products to ensure they meet safety and compliance standards, or so they believed.

Adapting to Market Demands

With the passing of this bill, there is a palpable sense of urgency in the air. Green points out the undeniable market demand for THCA, and although there are plans to diversify, it may now involve pivoting towards synthetic products should the need arise. The message is clear: the industry may need to be prepared for some significant shifts.

Next Steps for the Bill

The bill is now set to be reviewed by Governor Bill Lee, who has a track record of not vetoing legislation. If signed into law, the regulations will take effect in January 2026, creating a ticking clock for local entrepreneurs looking to navigate through this new landscape.

Pundits and business owners alike are left to ponder the long-term implications of such regulations. As Tennessee’s hemp industry finds itself at a crossroads, it appears that the community will need to come together to voice concerns and seek solutions to protect local interests in the face of looming statewide changes.

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