Tennessee Code 43-27-206 – License to produce or sell cannabinoid products – License requirements – Prohibited retail locations – Authority of the department of agriculture
(a) A person or entity that is in the business of manufacturing or selling products containing a hemp-derived cannabinoid in this state, including as a supplier or retailer, must obtain a license from the department of agriculture authorizing the person or entity to engage in that business prior to the commencement of business or by July 1, 2024, whichever is later.
Terms Used In Tennessee Code 43-27-206
Agriculture: means :(i) The land, buildings and machinery used in the commercial production of farm products and nursery stock. See Tennessee Code 1-3-105
Conviction: A judgement of guilt against a criminal defendant.
Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
Manufacture: means to compound, blend, extract, infuse, cook, or otherwise make or prepare products containing a hemp-derived cannabinoid, including the processes of extraction, infusion, packaging, repackaging, labeling, and relabeling of products containing a hemp-derived cannabinoid. See Tennessee Code 43-27-202
Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
Retailer: means a person or entity that sells products containing a hemp-derived cannabinoid for consumption and not for resale. See Tennessee Code 43-27-202
Serving: means a quantity of a hemp-derived cannabinoid product reasonably suitable for a single person's daily use. See Tennessee Code 43-27-202
State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
Supplier: means a person or entity that manufactures hemp-derived cannabinoids or sells products containing hemp-derived cannabinoids to retailers. See Tennessee Code 43-27-202
(b)(1) In order to obtain and maintain a supplier or retailer license under subsection (a), a person must:
(A) Submit to the department of agriculture information prescribed by rules as necessary for the efficient enforcement of this part;(B) Pay to the department of agriculture a fee of five hundred dollars ($500) for supplier or two hundred fifty dollars ($250) per retailer per location;(C) Consent to reasonable inspection and sampling by the department of agriculture, or the department of revenue as applicable, of the person’s inventory of products containing a hemp-derived cannabinoid; and(D) Submit to a criminal history background check that includes fingerprint checks against state and federal criminal records maintained by the Tennessee bureau of investigation and the federal bureau of investigation.(2) A person is not eligible to obtain or maintain a supplier or retailer license while serving a sentence for, or for ten (10) years following the date of conviction for, a drug-related felony offense in any state or federal jurisdiction.(3)(A) A retail location that is within one thousand feet (1,000′) of a private school, public school, or charter school that serves any grades from kindergarten through grade twelve (K-12) shall not sell products containing a hemp-derived cannabinoid, unless the applicant provides the department with documentation that establishes that products containing a hemp-derived cannabinoid were being offered for sale at retail at such location on December 31, 2023.(B) The department shall accept business records, photographs, and video recordings as documentation for purposes of determining whether an applicant qualifies for the exception in subdivision (b)(3)(A).(C) For the purposes of subdivision (b)(3)(A), measurements shall be made in a straight line in all directions, without regard to intervening structures or objects, from the nearest point on the property line of a parcel containing a retail establishment to the nearest point on the property line of a parcel containing a private school, public school, or charter school that serves any grades from kindergarten through grade twelve (K-12).(c) A license issued pursuant to this section is valid for a period of one (1) year and may be renewed annually. The department of agriculture shall charge an annual renewal fee equal to the initial licensing fee.(d) The department of agriculture is authorized to:
(1) Determine requirements for and issue licenses for the manufacture or sale of products containing a hemp-derived cannabinoid in this state; and(2) Deny or revoke licenses and issue civil penalties in the following manner for each violation of this part, or a rule promulgated pursuant to this part, as follows:
(A) One thousand dollars ($1,000) for a first violation;(B) Two thousand five hundred dollars ($2,500) for a second violation that occurs within two (2) years of the first violation;(C) Five thousand dollars ($5,000) for a third violation that occurs within two (2) years of the first violation;(D) Revocation of the license for a fourth violation that occurs within two (2) years of the first violation; and(E) Require retraining of all employees of the licensee under the supervision of the department in addition to the civil penalty imposed pursuant to subdivisions (d)(2)(A)-(C).(e) The revenue collected from fees established under subdivision (b)(1)(B) must be deposited in the Tennessee agriculture regulatory fund, created by § 43-1-701, and used exclusively for the administration of this part.
