CBD and Delta-8 products on a shelf at Cumberland Cannabis. (Photo: John Partipilo)
Critics of new rules governing Tennessee’s hemp retail industry say the state is on the verge of snuffing out a lucrative business and sending customers underground.
Hemp farmers pleaded with lawmakers this week not to remove the “flower” from retail sales with rules that are supposed to mesh with state law.
“I think it all needs to be regulated, but we can’t take the flower off the market,” Soddy-Daisy hemp farmer Chris Summerall told the Legislature’s Government Operations Committee Wednesday.
Otherwise, he said, customers will be driven to the “black market,” which conjures images of street-corner nickel bag deals.
One wonders whether law enforcement is behind this rule because when it swoops in for a bust, are officers confiscating weed or hemp?
Hemp and marijuana are related as forms of cannabis. But marijuana is considered a controlled substance that contains higher levels of THC, the stuff that makes people high, while hemp has no psychoactive effects even though it can be intoxicating.
Apparently, the flower is the part that gives people a buzz without making them have odd thoughts. The THC level is supposed to be .3% or less, yet hemp can morph after testing and reach higher rates, especially once the user “decarboxylates,” or lights up.
House Majority Leader William Lamberth, who backed the rule change this week, said it’s needed to ensure products sold at your local 7-Eleven are safe for customers.
Democratic state Rep. Gloria Johnson, who voted against the rule, countered that claim by saying Lamberth led the state Department of Agriculture in “killing a $200 million industry in Tennessee.”
Lamberth, a Portland Republican, said Thursday via text the new rule won’t come “remotely” close to destroying the hemp industry here.
“Hundreds of products will still be available on the market, just not those that contain dangerous contaminants or extremely high THC levels,” he said.
Anything at .3% THC or below is fine, Lamberth said, but joints and buds (sorry, I meant smoking products) above that level can’t be sold.
Lamberth also said the rule involves retailers and manufacturers, not farmers “unless they are vertically integrated,” and added that most of the products come from outside Tennessee.
That must be why people such as Jeff Sullivan of Snap Dragon Hemp out of Chattanooga told the committee this “one rule that would eliminate the THCA flower would get rid of most of the retail industry in the state of Tennessee.”
Farmers licensed by the state have been growing hemp for the retail market since 2015, and the rule represents a change likely to be challenged in court. Nothing like changing rules in the middle of the game, as the Department of Agriculture appears to be turning its back on farmers.
Asked Wednesday if some products become similar to marijuana at some point, the state’s go-to scientist, after whispering to attorneys, said, “Yes.”
If this marathon committee proved anything, though, it was that people are all over the place philosophically.
State Sen. Janice Bowling, a Tullahoma Republican who has moments of lucidity and sponsored medical marijuana bills but failed to pass them, said the state is trying to put new rules on something that isn’t a controlled substance. She sought a vote to scuttle the rule but couldn’t pass it.
In fact, an emergency rule is in effect until Dec. 25, but it probably hasn’t reached the marketplace yet where plenty of products are selling. You can’t drive a hundred yards without seeing a cannabis store, which should alert people that we have a high demand and, thus, need a strong supply. They even have a cannabis outlet right next to the grocery store in rural Linden, which makes things a lot easier than hiding a crop from the revenue man.
State Rep. John Ray Clemmons accused Republicans – though not all of them on the committee – of voting for enforcement of a rule “that isn’t fully supported by the statute, is arguably unconstitutionally vague and risks the livelihood of family farmers, business owners and thousands of employees statewide.”
For the technical-minded, the permanent rule will go into the Legislature’s omnibus bill to be considered in March. Some lawmakers call it a “murky” matter, But so far this is one step forward for the anti-cannabis crowd and a huge step backwards for cannabis, even though a majority of Tennesseans support some sort of legalized cannabis for medical purposes.
Now pass the decarboxylation device, please, before it’s too late.
Baby, you can drive my EV?
President-elect Donald Trump isn’t exactly going to the wall for the electric vehicle market, despite Tennessee manufacturers making EVs a central part of their production.
In case anyone forgets, Ford Motor Co. is building a huge battery plant with SK and an even larger facility at the state’s megasite in Stanton to manufacture the electric truck called Lightning. Full-scale production is pushed back to 2027, but experts say Trump’s desire to “drill, drill, drill” is expected to hurt electric vehicles further.
What to know: The new Ford BlueOval City plant poised to reshape West Tennessee
Asked recently if he’s worried Ford could delay production again because of Trump policies, Gov. Bill Lee said, “I think the market will determine production of vehicles. I think Ford Motor Co’s been a leading manufacturer of vehicles for generations and will continue to be. And their business, they are adaptable. They will adjust their market production to the market demand.”
The market? What the heck is the market? If it were up to the market, why would the state have to dole out nearly a billion dollars to help one of the biggest vehicle manufacturers in the world build a plant in rural West Tennessee.
Oops, that could be the reason. Pay to play is all the rage.
It’s funny, though, how the market – aka supply and demand – will work things out, until somebody’s rich buddies need a boost or break to make a few dollars more. Or, people want to drive a nail into someone’s political coffin.
Build it and they will walk (or take the bus) maybe
Nashville Moves Action Fund, under strict orders from the Tennessee Registry of Election Finance, filed reports recently showing who paid for the advertising blitz that helped lead to passage of Mayor Freddie O’Connell’s transit plan.
Six-figure donors included Greater Nashville Realtors at $350,000, the Sixteen Thirty Fund — a left of center advocacy group — also at $350,000 and Pinnacle Financial Partners at $100,000. From the tourism industry, the Nashville Chamber of Commerce kicked in $25,000 and the Nashville Convention Center Authority $30,000.
Also featuring prominently among big contributors were representatives of the construction and development industry, which would probably appreciate the work, including Barge Designs with $75,000, Gresham Smith with $50,000, Stansell Electric with $25,000, Charter Construction at $30,000, Smith Seckman Reid with $50,000 and Walker Building Group kicking in $25,000.
Others of interest who were fattening the kitty include former Nashville Mayor Karl Dean and wife Anne Davis with a frugal $1,000, former Gov. Bill Haslam with $25,000. A group called Preserving Our Future ponied up $50,000, while Stones River Group lobbying firm gave $5,000.
Nashville among wave of successful 2024 transit votes nationwide
It’s good to know the ex-governor is getting involved in this. God knows people have spent enough money at Pilot stores to power the U.S. Navy fleet to infinity and beyond.
Lest I forget, Nashville Moves raised more than $2 million and spent $1.3 million in the final weeks leading up to the Nashville vote to fund O’Connell’s sidewalks, bus and road plan with a sales tax increase.
Initially, it didn’t file a report with the Registry but wound up doing so. The line of thought was that some Republicans who donated money didn’t want to be linked with the Democratic O’Connell.
But after a 2-to-1 vote to approve the plan, there was no reason to keep the list secret. Preserving Our Future is about the only group that appears to be made up. Otherwise, it’s a list of the usual suspects.
As far as O’Connell’s plan, there is absolutely no doubt that Nashville needs to be more walkable and ride-able, if that’s a word.
Nothing to see here
The executive director of Tennessee’s District Attorneys General Conference declined to appoint a pro tem prosecutor to look into a complaint that Republican Sen. Brent Taylor might have broken state law by posting documents online containing a defendant’s personal information.
Steve Crump, who heads the DA conference, told the Lookout he saw no need to appoint a special district attorney because there was no conflict of interest in the case.
That’s a pretty good way to short-circuit an investigation.
In light of that interpretation, it would be OK for District Attorney General Fred Agee to take up the case even though he asked the Comptroller’s Office and TBI to look into the matter. Agee didn’t comment on Crump’s decision.
But it would be odd for the district attorney who filed the complaint against Taylor to investigate as well.
Taylor has been going after Shelby County District Attorney Steve Mulroy, claiming he is “soft on crime,” for at least a year. He’s also got Agee in his sights and told the Lookout he posted documents about a defendant’s plea deal to show Agee is similar to Mulroy.
Taylor also said on a recent Memphis radio show that this column reported he had enough votes in the Republican-controlled Senate to oust Mulroy “for cause.” In fact, a previous Stump said he likely has enough votes if senators want to micromanage the Shelby County DA. None of them are trained for such work.
Where do we go from here?
Republican U.S. Sen. Bill Hagerty, once a typical business-friendly bureaucrat under former Gov. Bill Haslam, is said to be back in the running for a Trump cabinet spot.
The secretary of state seat was pulled out from under him, but now he’s surfacing as treasury secretary after displaying fealty to the president-elect for the last eight years.
Truth be told, he’s probably Trump’s best cabinet pick. Granted, the bar is pretty low. But he doesn’t have any outstanding sex complaints or human trafficking investigations against him.
Hagerty would breeze through Senate hearings while others such as Tulsi Gabbard, who’s a tad light on Russia, will face a mountain of opposition. Fortunately for senators and the American public, former Congressman Matt Gaetz withdrew Thursday from his nomination for attorney general. He might have been worried that the Senate would unveil a House ethics report after he was accused of sex with underage women and human trafficking.
Sumner County resident Pete Hegseth, the nominee for defense secretary, avoided sexual assault charges in connection with a 2017 incident in California. He told reporters this week he was “completely cleared,” but his own attorney said the woman received money as part of a confidential settlement last year to stop her from filing suit.
Good grief, are we living out a “Ray Donovan” episode called “fixer’s delight”? And what about Hegseth’s admission that his National Guard unit found him to be an “extremist” because of several crusader tattoos? He reportedly wants to start a system of “classical Christian schools” to train recruits for an army that would lead an “educational insurgency.” Sounds like he’s lining up students for Gov. Lee’s private-school voucher program or maybe Hillsdale charter schools, so he’s bound to be popular.
Getting back to Hagerty, if he becomes treasury secretary, the governor will have to appoint a replacement for the last two years of his six-year term.
Tennessee Economic and Community Development Commissioner Stuart McWhorter tends to be on everyone’s short list for the job. He seems to be tied to Lee at the hip, so it wouldn’t be surprising to see him take the post. Whether he’s conservative enough to win an election after two years is another question, if he even wants to keep the post.
House Speaker Cameron Sexton always draws mentions, too, along with Knox County Mayor Glenn Jacobs (aka Kane the ‘rassler), who is much more likely to be a gubernatorial candidate in 2026. Sexton is probably leaning toward a congressional run in two years. But he’s got it made in the Legislature, where we know he enjoys sparring with the “Tennessee Three,” of Reps. Gloria Johnson, Justin Jones and Justin J. Pearson.
It keeps Sexton young.
Clash for relevance
This is nothing new, but the House Democratic Caucus is seeing competition for officer spots as the election arrives Saturday.
Rep. G.A. Hardaway is running against Minority Leader Karen Camper for the top spot, and Pearson is challenging Democratic Caucus Chairman John Ray Clemmons for the other key post in a body with 24 members out of 99 and few options for swaying authority.
Nobody has applied to whip votes or take notes as secretary. (Who can blame them?) Just about any time someone goes against the grain on a critical vote, the Tennessee Democratic Party kicks them out. And as far as being secretary? Boring.
Camper remains the odds-on favorite to retain her leader post against Hardaway simply because her speeches are shorter, and Clemmons is likely to keep his spot too, though Pearson could make some noise. Clemmons led the way as the caucus raised $1 million this year. Pearson also raised nearly a million last year but spent some of it on the Memphis mayor’s race and, according to sources, put a goodly amount toward a Williamson County House race that couldn’t be won.
The one who lobbies the hardest is likely to win. But even if Clemmons keeps the position, Pearson’s time is coming.
One might even say, “It’s been a long, a long time coming, but I know a change gon’ come.” *
* “A Change is Gonna Come,” Sam Cooke.
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