Proposed rules to regulate hemp in Tennessee could put a limit on the total amount of all forms of THC allowed in products, potentially closing what some see as a legal loophole that has led to the marketing of hemp flower high in THCA. When smoked, THCA converts to delta-9 THC, the cannabinoid primarily responsible for the psychoactive effects of weed.

In April 2023, Tennessee lawmakers passed legislation to regulate and tax hemp products grown, manufactured and sold in the state. Under the bill, the Tennessee Department of Agriculture was tasked with developing rules to govern the industry, including regulations for product testing, compliance and enforcement. In December, the department released a draft proposal of the new rules mandated by the legislation.

The 2018 Farm Bill legalized hemp at the federal level, defining hemp as cannabis that contains no more than 0.3% delta-9 THC. Using this definition, many hemp growers have begun producing cannabis that is high in THCA, a cannabinoid that is converted to delta-9 THC when subjected to heat through a process known as decarboxylation. 

Federal regulations require hemp to be tested for THC content within 30 days of harvest, using a test that combines the amounts of delta-9 THC and THCA using a specific formula to determine total THC. Cannabis with more than 0.3% total THC at testing time is considered marijuana under federal law and is still illegal.

Some hemp growers, however, have developed agricultural processes and strains of cannabis that do not express high levels of THCA until late in the 30-day testing window. By testing early in the window, growers can produce hemp flower that complies with regulations at testing time but has high levels of THCA after harvesting and packaging. As a result, THCA hemp flower is available in many states that have not legalized cannabis, despite the fact that it is psychoactive when smoked or vaped.

The companies marketing these products argue that they comply with the Farm Bill and thus are legal. Others, however, see this interpretation as a loophole that is likely to be closed. Already, several states have taken steps to regulate hemp cannabinoids.

“There is a very cat’s-out-of-the-bag mentality around it. Some people view this as the actual legalization of cannabis in America,” Madeline Scanlon, cannabis insights manager at market data analyst firm Brightfield Group, told MJBizDaily.

“Other people view this as a loophole to be squashed and are advocating for it. But no matter, it’s out there,” Scanlon added. “People can buy it just like they would normal cannabis.”

New Rules Tighten Legal Definition Of Hemp

The new rules proposed by the Tennessee Department of Agriculture would redefine hemp by requiring finished products to have no more than 0.3% total THC. Hemp advocates say the rule would make many THCA, delta-8 THC and CBD products that are available now illegal, with devasting effects on the state’s hemp growers and retailers.

“Unfortunately, they are regulating it out of business,” Kelley Hess, executive director of the Tennessee Growers Coalition, told the Chattanooga Times Free Press in January. “They are creating law in the rules and are exceeding their authority in creating a new definition of hemp in the rules outside of the law.”

The Department of Agriculture’s proposed rules would also allow it to conduct random inspections and test products being sold by retailers. Hemp advocates argue that by the time the products have been manufactured and received by retailers, some THCA may have decarboxylated, making them contain more than 0.3% delta-9. Hess says that the rule would “wipe out” the industry for THCA and CBD flower in Tennessee.

“There is practically no way that a farmer or grower could meet all the rigorous standards on the growing side in addition to all of the standards they have put on for their products to be put on the shelf,” Hess said.

Hemp Advocates Sound Off About Proposed Rules

The Department of Agriculture held a public hearing on the proposed rules in February. According to the Tennessee Growers Coalition, between 200 and 300 hemp industry supporters attended the hearing to express their views on the draft rules. Andy Chesney, owner of the Hemp House in West Knoxville, testified before regulators at the hearing.

“By eliminating THC, you’re not really gaining the full effects of the plant, or the full benefits of it,” Chesney said. “And so from a consumer perspective, the frustrating part is that what seems to be considered by the powers that be in Tennessee, is this getting high and regulating people who are attempting to get high.”

Kim Doddridge, public information officer for the Tennessee Department of Agriculture, said after the hearing that the agency is currently reviewing the public comments and developing the final rules. She also noted that the law requires the department to finalize the new rules by July 1.

“The record, responses, and final rule coming from the February 6 hearing will be submitted to the TN Attorney General’s Office,” Doddridge said, according to a report from local media. “Their office will review the final rule for legality and constitutionality, and if approved, the final rule will be filed with the Secretary of State’s Office and will be effective 90 days later.”

On Feb. 17, 2023, a Georgia-based Black family of seven (two parents, Deonte Williams and Bianca Claymore and five children, one of which was an infant at the time) were driving to a funeral and traveling through Tennessee to Chicago, Illinois, when they were detained at a traffic stop. Law enforcement initially pulled them over for dark tinted windows and traveling in the left lane while not passing, but after finding five grams of cannabis in the pocket of the Williams, he was arrested, Clayborne was cited, and they spent four hours at the Coffee County Justice Center.

The children were terrified, and DCS caseworkers asked to obtain a urine sample from Clayborne, who refused because she didn’t want to leave her kids alone. They compromised to have her give a urine sample in her car, while surrounded by law enforcement, and she attempted to do so, but ultimately could not. DCS told her that not complying “made matters worse” for her, and an emergency order from Coffee County Judge Greg Perry was issued for the children; they were removed from Bianca’s side at the justice center and taken into state custody.

The children were placed in temporary separate foster homes, where Clayborne was not allowed to visit them, and later they were allowed to stay with a family friend while the case was ongoing. Finally, after 55 days of separation, the children were returned to their parents on April 13. Clayborne’s misdemeanor was dismissed, Williams pled guilty to a misdemeanor, and the Department of Children’s Services dismissed the case.

According to the Tennessee Lookout, the sudden separation caused Clayborne to suffer from intense anxiety, depression, and mental anguish, and she stopped producing breast milk during that time. The news report shared that the children have also shown signs of trauma because of the incident, including one child having nightmares, wetting the bed, and another child now “has a visceral reaction to seeing police.”

Nearly one year later on Feb. 8, the family is suing the three DCS caseworkers, four Tennessee Highway Patrol officers, 10 Coffee County Sheriff Department officers, all of which played a part in the incident. “These public officials illegally tore apart and terrorized Clayborne’s family. They acted outrageously and unlawfully. Their actions caused severe emotional trauma to Clayborne and each of her five children,” the lawsuit stated. “Clayborne and the children bring this lawsuit to vindicate their rights against people that harmed them, though the full extent of the harm to their family may never be undone.”

The lawsuit claims that the family’s fourth amendment rights were violated, that there is evidence of multiple counts of false arrest and imprisonment, in addition to many other counts. The family is represented by Herzfeld, Suetholz, Gastel, Leniski, and Wall, PLLC, and Rubenfeld Law Office, PC.

Last year, Williams’ and Claymore’s attorney, Jamaal Boykin, expressed the sheer horror of such an event taking place. “It’s just so shocking to the conscience that in 2023 this is happening,” said Boykin. “I just have to believe if my clients looked different or had a different background, they would have just been given a citation and told you just keep this stuff away from the kids while you’re in this state and they’d be on their way.”

Legislators who heard about the incident also stood up for the family, such as Tennessee Sen. London Lamar. “DCS, Coffee County, y’all need to do the right thing before the situation gets worse, and we have a nation of people coming to the rescue of this Black family,” said Lamar. “Give them their children back. It’s borderline discrimination, because if this was any other family, as their attorney said, we don’t even think this would be the outcome.”

Tennessee Sen. Raumesh Akbari also exclaimed her disappointment in the events that tore the family apart. “It is outrageous that the state forcefully separated Bianca Clayborne, a breastfeeding mother, and Deonte Williams from their kids and have allowed this to continue for nearly a month,” Akbari said. “The state exercised extreme and flawed judgment in taking their children and it seems they’ve doubled down on this poor decision. No family is perfect, but an imperfection, like a simple marijuana charge, is no excuse for tearing a family apart. The state is supposed to support reunification. If they don’t have a better reason, they must immediately return these five children to their parents.”

Cannabis laws in Tennessee are incredibly strict, even for the limited number of patients who are permitted to use medical cannabis as residents. In the 2022 State of the States Report written by Americans for Safe Access, Tennessee received an “F” grade for its medical cannabis program. “Tennessee policymakers should avoid delaying implementation of a medical cannabis program; patients in the state are actively harmed by the state’s inaction,” the ASA wrote. Other states with an “F” rating included Georgia, Idaho, Indiana, Kansas, Kentucky, Mississippi, Nebraska, North Carolina, South Carolina, Texas, Wisconsin, and Wyoming.

Hemp growers and retailers in Tennessee say that newly proposed regulations threaten the viability of businesses in the industry and vow to challenge the rules before they go into effect, according to media reports.

In April, the Tennessee General Assembly passed legislation to regulate and tax hemp products grown, manufactured and sold in the state. Under the bill, the Tennessee Department of Agriculture is tasked with drafting rules to govern the industry, including regulations for product testing, compliance and enforcement. Earlier this month, the Agriculture Department released a draft of proposed new regulations for the hemp industry, which are slated to go into effect next year.

Five years ago, the U.S. Congress legalized hemp agriculture with the passage of the 2018 Farm Bill. The legislation defines hemp as cannabis plants with less than 0.3% delta-9 THC. 

Tennessee’s hemp laws follow the Farm Bill’s definition, but the proposed rules from the Department of Agriculture would require products to have less than 0.3% THC in all its forms, including THCA and delta-8 THC. The proposed regulations would make many of the hemp products currently available in Tennessee illegal. Representatives of hemp businesses say the new rules go too far and threaten the viability of the industry. 

“Unfortunately, they are regulating it out of business,” Kelley Hess, executive director of the Tennessee Growers Coalition, told the Chattanooga Times Free Press. “They are creating law in the rules and are exceeding their authority in creating a new definition of hemp in the rules outside of the law.”

Chris Sumrell, a hemp grower and the owner of Chattanooga’s FarmtoMed, said that he worked with lawmakers to help draft the bill to protect the reputation of the Tennessee hemp industry, fearing that untested and unreliable products would tarnish its image. 

“We all got together and put our two cents in to try to create a program along the lines of some programs running in other states that were successful,” Sumrell said, “and it really was going to get a lot of these products off gas station shelves.”

However, after the department released the proposed rules for enforcing the law, Sumrell pulled all dry flower products from his stores, a move that affected his sales during the holiday season. If the rules went into effect as currently written, he said, about 90% of his sales would be threatened. 

Rules Allow Random Inspections

The Department of Agriculture’s proposed rules would also allow it to conduct random inspections and test products being sold by retailers. Hemp advocates argue that by the time the products have been manufactured and received by retailers, some THCA may have decarboxylated, making them contain more than 0.3% delta-9. Hess says that the rule would “wipe out” the industry for THCA and CBD flower in Tennessee.

“There is practically no way that a farmer or grower could meet all the rigorous standards on the growing side in addition to all of the standards they have put on for their products to be put on the shelf,” Hess said.

Kim Doddridge, a spokesperson for the Department of Agriculture, said in a statement that the new rules are scheduled to go into effect in July. However, it could be later if the regulations are not finalized by that date. A hearing on the proposal will be held on February 6, and the department is currently accepting public comments on the proposed rules.

“I think the public comment period is going to see thousands and thousands and thousands of comments, not only from the industry, but from consumers of this industry who rely on these products as a matter of their personal wellness,” said John Kerns, the head of the Chattanooga-based testing facility New Bloom Labs.

The Department of Agriculture reports that 319 growers have been licensed to grow hemp in the state. The Tennessee Growers Association estimates that the state’s hemp industry now generates about $200 million per year in sales. But businesses in the industry say the proposed regulations put all of that in jeopardy.

“The way that the department is defining quote-unquote ‘compliance’ is so restrictive and such a gross misinterpretation that these products are never going to make it,” Kerns said. “They won’t be manufactured. They won’t be tested, and they won’t be sold.”

Tennessee’s hemp businesses have an ally in the state legislature who is monitoring the situation with the proposed regulations. State Representative Chris Hurt, a member of the Agriculture Committee who grew hemp for two years, said he has concerns about the new rules as they are written.

“It’s kind of changing the rules in the middle of the game, ” Hurt told local media.

Hurt has agreed to sponsor new legislation in 2024 to clarify the intent of the law passed earlier this year. Hess said that if the proposed rules go into effect as currently written, the Tennessee Growers Association will consider litigation to challenge the regulations.

Law enforcement officials in Tennessee have shut down a cannabis cultivation site that was operating in a converted church, seizing about 2,000 weed plants in the process. The raid on the church, which was conducted last week by the Stewart County Sheriff’s Office (SCSO), was the result of a weeks-long investigation, according to law enforcement officials.

Although the plant count was not especially high for commercial marijuana growing operations, Sheriff Frankie Gray noted that the bust shut down Stewart County’s largest discovered weed farm ever.

“The sheriff’s office shut down the largest marijuana grow in county history,” Gray said in a statement to local media.

In a social media post on Friday, the sheriff’s office noted that deputies had been conducting an investigation of the church for three weeks after local residents reported a strong odor emanating from the property. The investigators conducted traffic stops to question people they had seen coming from and going to the church and were told that hemp was being grown at the site, which is legal in Tennessee with a license from the state.

Sheriff’s deputies also investigated the electricity and water usage at the property, which was originally built as a Methodist church in 1960 and later sold. Investigators learned that the grow operation had a water bill that was characterized by local media as “high” and was using about $3,000 per month in electricity.

Last week, the SCSO obtained a search warrant for the church on Highway 46 in the community of Indian Mound. Sheriff’s deputies and law enforcement officers from the 23rd Judicial Drug Task Force then raided the site on Thursday and discovered about 2,000 cannabis plants including live plants and others that had already been harvested and dried. The Tennessee Bureau of Investigation also assisted in serving the search warrant.

Cops Fear Possible Booby Traps At Cultivation Site

The sheriff’s office said the marijuana cultivation operation included elaborate lighting and watering systems operated by automatic timers. The agency also reported that the search of the site was slowed as deputies investigated “the possibility of booby traps laid out for law enforcement.” The SCSO also reported that investigators found “a large amount of possibly toxic chemicals” at the site.

Law enforcement officers took one person into custody when the search warrant was served, although officials did not specify what charges the individual was being held on. Others are wanted for questioning, the sheriff’s office said.

The converted church, which is located in northern central Tennessee about 70 miles northwest of Nashville, is listed for sale on Zillow, according to media reports. The property is listed as having four bedrooms and three bathrooms. The listing also notes that the site, which formerly had two buildings, was converted into one building with the addition of a breezeway. The person posting the listing said they were “looking for a quick sale” of the property.

Tennessee is one of only about a dozen U.S. states that have not adopted a comprehensive plan to legalize medical marijuana, although a limited measure to legalize low-THC CBD oil was passed in 2015. Possession of even small amounts of cannabis is still a misdemeanor criminal offense.

Those who commented on the social media post from the sheriff’s office in conservative Stewart County were mostly in favor of the law enforcement action to shut down the cannabis cultivation site discovered at the church last week.

“Our Law Enforcement Agency is always on top of things. Great job!” one person commented.

“Thank you for shutting this operation down,” said another. “Your hard work is appreciated. Stay safe.”

“Thankful for our sheriff’s department and all involved,” added a third Facebook user.

McapMediaWire –– North American Cannabis Holdings, Inc. (OTC: USMJ) – USMJ.com has established a new partnership with Nature’s Perfect Hemp, out of Tennessee. Nature’s Perfect Hemp has a wide variety of products that range from CBD, Delta-8, Delta-9 & Delta-10 in various formats for customers to take their cannabinoids.

Link to Nature’s Perfect Hemp products

Some key facts about the partnership & products:

• All new products have been 3 party tested
• Vapes, Prerolls, Gummies come in a variety of flavors
• All Products are available for wholesale through

USMJ looks to cultivate and grow partnerships with American Based companies for the ever-growing cannabis market.

“I couldn’t be more excited about this partnership with David Cooper & Nature’s Perfect Hemp” says, Steven Rash, CEO, North American Cannabis Holdings. “It’s been a while since I’ve been excited from an opportunity standpoint, and we’ve been working hard to get this done. It’s ready and I hope our customers are ready.”

David Cooper, CEO of Nature’s Perfect Hemp, started his company back in 2017. After dealing with pain from surgeries and rehabilitation he encountered Hemp. Just a couple drops a day relieved his pain and turned a complicated lifestyle into a normal lifestyle. Experimenting with his own personal formulation which allowed him to modify for his personal needs. These formulas became Nature’s Perfect Hemp.

“Steve is a professional businessman, and exiting our meeting he was extremely about our future business together. We’re happy to have our products listed on USMJ.com” says, David Cooper, CEO of Nature’s Perfect Hemp. “When we first chatted with USMJ, we knew there would be synergy and an opportunity for growth on both fronts.”

Vendors looking to partner with USMJ.com may read about the process and apply here: https://usmj.com/pages/vendor-inquiries

Background: USMJ.com is a line of business of North American Cannabis Holdings, Inc. USMJ.com is one of the largest and fastest growing marketplaces to shop for CBD, CBG, hemp and cannabis essentials. Additionally, UMSJ.com has multiple B2B programs and partnerships offering them access to the tools and products USMJ.com has to offer.

Disclaimer/Safe Harbor:

This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company’s current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies’ contracts, the companies’ liquidity position, the companies’ ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur. These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.

For More Information Contact

Steven Rash

North American Cannabis Holdings, Inc

+1 888 694 8765

info@shopusmj.com

David Cooper

https://naturesperfecthemp.com

info@naturesperfecthemp.com

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Forty-one states have legalized medical cannabis to some extent. Tennessee isn’t one of them. Lawmakers both Democratic and Republican have attempted to create a system for medical marijuana, but all have failed. Some are so against it they won’t even pose the question to their constituents.

Memphis Democrat Jesse Chism is the sponsor of a bill that would put three questions on the 2024 ballot in November.

1. Should the State of Tennessee legalize medical marijuana?
2. Should the State of Tennessee decriminalize possession of less than one ounce of marijuana?
3. Should the State of Tennessee legalize and regulate commercial sales of recreational use marijuana?

It would be unusual for the state to approve a non-binding referendum, and the chair of the committee quickly shot the idea down. Kingsport Republican John Crawford used ballot fatigue as an excuse.

“Our ballots are getting so long now; a lot of people aren’t even completing the ballot,” Crawford said. “They vote for a few spots, and then, they don’t even go any further.”

The bill failed, and its quick death tells a story of how far Tennessee is from becoming a cannabis-friendly state. Other bills to allow for medical and recreational marijuana have also not advanced this session.

[Read more at WKU]