What We Do
Cultivate Tennessee has developed a foundation for the future of all cannabis in Tennessee that will be built with the business and the end consumer in mind.
HB403/SB378
The hemp-derived cannabinoid regulation bill (HB403/SB378) was crafted in close partnership with our legislative sponsors, House Majority Leader William Lamberth and Senator Richard Briggs, Chairman of the Senate State & Local Committee.
What The HB403/SB378 Bill Addresses —
Increase consumer protection by limiting the access to and sale of hemp-derived products to those 21 years old and older.
Requires products be tested before reaching stores and makes those testing results accessible, so consumers understand what they are purchasing.
Serving is limited to 25mg or less
Protects children from being targeted by marketing schemes directed at those underage by prohibiting the use of cartoon characters and similar imagery.
Proposed additional 5% sales tax ensures that state agencies will have the support needed to ensure that these regulations are enforced.
Cultivate Tennessee began as a public awareness event held in November 2021. The organization was then founded in early 2022 to build a broader coalition for a comprehensive policy for medical cannabis reform in Tennessee. However, shortly after the organization's establishment, during the 112th General Assembly session, Tennessee House Bill 1927 was introduced to eliminate a significant number of hemp-derived cannabinoids that could cause irreparable damage to the current hemp cannabis industry in the state.
Cultivate Tennessee sprung into action and engaged its government relations team to respond in defense of the industry. Along with other industry groups and organizations, we were successful in our proposed amendments that would provide appropriate consumer protections for hemp-derived products while preserving the robust hemp cannabis industry in Tennessee.
Although the session ended without the bill coming to vote, the progress made was significant. During the time the bill was active, the Co-chairs of our organization combined with others in the industry to present the industry's impact on Tennessee and answer questions for the legislature. Education for our legislators was at the forefront of our efforts during the 2022 general assembly, and it has continued to be our primary focus following. Our team has been diligently meeting with influencers throughout the summer to continue the education and generate support for proposed hemp-derived cannabinoid legislation in 2023.
What We Have Done
Primary Focus
in 2023
Our primary focus at this time is to stabilize the hemp-derived cannabinoid market in Tennessee. To do that, we must work with our state policymakers to educate them on the current state of the industry, its challenges, and its opportunities. At the same time, we are drafting proposed legislation that will meet the desires of the concerned public while bringing stability to the hemp market in our state. In meeting this policy objective, Cultivate Tennessee will be supporting legislation that includes the following:
-
Stringent Testing criteria and procedures to ensure that products are safe and free from harmful contaminants along the entire supply chain. Some of our key elements here include:
Advanced technical rigor is required for testing labs' analytical methods and quality assurance programs, including adopting TNI accreditation as the base standard for eligibility for licensing.
Full panel safety testing is required on all final retail products.
State maintenance of a registry of approved testing labs with regular inspection requirements.
-
Protections for children, minors and susceptible individuals so that products are kept in the hands of responsible users. We will do this through policy that includes:
Child-resistant packaging standards.
Age restrictions of 21 and older for consumption.
Standard labeling for responsible use that includes warnings for consumption while operating machinery and during pregnancy.
-
Proper licensing and standards in operating methodologies effectively control quality, thwart diversion to bad actors and provide professional guidance for those seeking it. This will be accomplished through:
New licensing for hemp-derived cannabis retailers and processors for quality control in manufacturing and distribution.
Policies and regulations ensure high-quality assurance in manufactured products in clean and safe environments.
How We Are Doing It
Cultivate Tennessee has developed a foundation for the future of all cannabis in Tennessee that will be built with the business and the end consumer in mind. Each policy that we intend to put in place with legislation will be done to create a foundation that can be used to build further access to cannabis in the future. As we look beyond the hemp-derived cannabinoid market, we focus first on a safe and open market for medical cannabis.
To that end, we are developing the foundations for that program built on the following principles:
-
Cannabis programs take on many different forms state-to-state in this country. Although Tennessee may be one of the last to have programs beyond the hemp-derived market, the patience has allowed us to see what works and what does not work for quality, competitive programs. We do not want to see any program in our state move towards a limited licensure program that rewards large corporations and allows out-of-state capital to control the industry, which has occurred in large markets such as Florida and New York.
In Tennessee, we will work to keep the market accessible to all qualified participants and to operate in the areas that best suit their strengths to create the best cannabis market in the nation.
-
Establishing effective and defensible priority access to current and new programs for Tennessee residents and those that have invested in establishing the Tennessee hemp industry.
The burgeoning Tennessee hemp-derived cannabis industry has been built from the ground up through the efforts of hard-working Tennesseans who fought for quality programs and took effective entrepreneurial risks. At Cultivate Tennessee, we will work to continue building upon that foundation to bring in a broader coalition of Tennessee businesses from a wider variety of sectors that will lift the cannabis industry in this state to new heights and into a leader for the nation. We will do this by consistently focusing on Tennessee entrepreneurs and consumers.
-
Focusing on building accessible and competitive licensure programs that will keep the market free, yet with an appropriate focus on creating market forces that allow for sustainable incomes for Tennessee businesses, employees, and families.
-
Creating smart tax policy that will balance competitive prices with generating revenue for thoughtful public programs.
Tennessee is already one of the leaders in low taxes in this country, which contributes to the business-friendly nature of the state’s economy. As cannabis has evolved in this country, several states have made poor policy design decisions that have led to ineffective and uncompetitive markets. For instance, in California, when the state moved from a medical to an adult-use cannabis program, the state government decided to tax each piece of the supply chain. The effect created a burdensome regulatory environment that drove up prices and profitability and effectively made the legal market uncompetitive with the black market. As a result, two-thirds of California’s cannabis market today is still dominated by black market transactions.
However, states that have allowed for the free flow of commerce by taxing transactions in a modest amount at the retail level have created scalable markets that ultimately provide for more tax revenue because black market transactions decrease in a safe and regulated market that is also competitive and affordable.
-
Establishing effective foundational policy with the end in mind so that Tennessee will be a leader for the Southeast and the rest of the nation.
At Cultivate Tennessee, our current objective is to stabilize the hemp-derived cannabis market with smart policy. However, federal legislation for all cannabis markets has moved from a question of “if” it will occur to a question of “when” it will occur. What was once thought to be a political issue only has become a topic of health, wellness, and freedom. Over 65%2 of Americans polled support full federal legalization, and over 90%3 of Americans support the legalization of cannabis for medical purposes. And unlike virtually any other issue, support for cannabis legalization is largely bipartisan. At the federal level, Republicans and Democrats are working together to draft and introduce legalization bills.
Due to this environment, it can not be taken lightly how important it is to set a strong foundation for policies that smoothly transition from program to program in the future. We have already seen disastrous consequences in other states when proper foundations were not in place before turning a program on.