Hemp companies are able to grow the plant for a variety of different products, including building materials, fabric, rope, and cannabidiol (CBD). Because hemp is legal nationally, hemp-derived CBD is also legal in Tennessee and nationally. The CBD market, in particular, has seen a surge recently, as its unverified but far-reaching health benefits have become more widely known. CBD can be extracted in oil form and used in bath products, cosmetics, capsules, and even foods. The CBD market alone is expected to bring in $16 billion by 2025. The Tennessee Right to Farm Act (T.C.A. § 43-26-101 et seq. and § 43-27-101 et seq.) defines “hemp” as “the Cannabis sativa L. and any part of this plant, including its seeds and all its derivatives, extracts, cannabinoids, isomers, acids, salts and salts of isomers, growing or not, with a concentration of delta-9-tetrahydrocannabinol (THC) not exceeding three-tenths of one percent (0.3%) on a dry weight basis. Our emerging growth, private equity and venture capital lawyers have the experience to help your hemp business secure the capital it needs for sustainable growth. An Industrial Hemp Producer Licence is required per person for each physical address where the person grows industrial hemp. There is no limit to the number of areas a licensee can grow at an authorized address. No cultivation licence may be issued for a growing area within ten (10) miles of a certified seed licence without the consent of the certified seed licence holder.

The annual fee is based on the total size of the growing area(s) at the address authorized as follows: Tennessee`s hemp industry is growing rapidly and you want to participate in the promotion. You have your big idea and a business plan ready. But at some point, you wonder if you should think about legal issues when you start your business. That`s where we come in. 1981: In 1981, HB 314 creates a therapeutic research program – surgical – for chemotherapy or radiology of cancer or glaucoma (cannabis or THC). The program was administered by a Patient Qualifications Review Committee within the Pharmacy Board, which was authorized to enter into contracts with the federal government for cannabis. The program was abolished by SB 1818 in 1992.2015: Tennessee Governor Bill Haslam signed SB 280 against his earlier opposition. The bill legalized the possession and use of cannabis to treat a limited number of serious illnesses, including epilepsy.

The bill does not include provisions for legal sale, so patients must purchase the drug outside the state of Tennessee. 2016: Tennessee streamlined its ineffective low THC law by passing HB 2144 on May 20, 2016. The law states that patients may possess CBD oils containing no more than 0.9% THC if they have “a legal order or recommendation” for the oil and they or an immediate family member have been diagnosed with epilepsy by a Tennessee physician.2017: The legislature enacted HB 1164 and amended the Tennessee Industrial Hemp Act to permit the production of hemp containing 0.3% THC or less. The law states that hemp growers must be licensed by the Ministry of Agriculture. It also provides that hemp is not cannabis under the state`s Controlled Substances Act if it is either (a) viable and owned by a licensed hemp producer or (b) non-viable and sourced under the ministry`s rules.2021: The legislature passed SB 118, which creates a medical cannabis study commission and improves the CBD law, making it available for more conditions and increasing the THC limit allowed to 0.9%. Certified industrial hemp seed licences are required for anyone growing industrial hemp for certified seed. To be certified, applicants must be members of the Tennessee Crop Improvement Association (“TCIA”) and provide the names and addresses of three letters of recommendation. Any crop and variety grown may be inspected and sampled by a Department of Agriculture plant inspector prior to harvest, and the grower must contact the Department of Agriculture for inspection thirty (30) days prior to harvest. The licensee is responsible for paying all fees associated with the sample, which cost $150. The Ministry of Agriculture encourages self-monitoring of industrial hemp plants, so sending your samples for testing is allowed and encouraged.

To grow your own hemp and ensure your business is set up for success, you need to understand the laws of the market, including federal regulations and Tennessee-specific regulations. In May 2014, Tennessee signed into law House Bill 2445 (Senate Bill 2495), which “permits the cultivation of industrial hemp subject to Department of Agriculture regulations.” Shortly thereafter, the Department of Agriculture launched the Industrial Hemp Pilot Program, which allowed anyone (except those convicted of a controlled substance crime within the last 10 years) to obtain a licence to grow industrial hemp. And our team is a leading voice in the hemp industry. We have talked about hemp at conferences across the country. Our work has been featured in the National Law Journal, Law360 and Westlaw Journal. And we`ve been quoted in a number of legal and mainstream publications, from Law360 and Super Lawyers to the Atlanta Journal-Constitution, the Associated Press and ABC News. Once the inspection is complete, only viable industrial hemp can be transferred to a licensed hemp processor. Schaffer Law Firm recently updated its focus on the hospitality industry, and we no longer represent clients in hemp and CBD. If you`d like to get started today, we recommend contacting Meridian Law, PLLC. They can help you prepare and submit your application. The 2018 Farm Bill legalized hemp by removing the crop and its derivatives from the definition of marijuana under the Controlled Substances Act (“CSA”).

The 2018 Farm Bill gave the U.S. Department of Agriculture (USDA) regulatory authority over hemp cultivation at the federal level. At the state level, individual states have the ability to retain primary regulatory authority over crops grown, processed, and sold within their borders by submitting a plan to the USDA. Don`t let yourself be tripped over the rules of the road. Our cannabis industry team can advise you on what you can and cannot legally do with your hemp operations. Intellectual property is the most valuable asset of many companies. Without a brand, your smart name and slogan are here to go. Have you invented a new method of processing hemp? A patent can be the right strategic choice for your business. Although hemp is legal at the federal level, the hemp industry is still heavily regulated by various levels of federal, state, and local government. For example, the Food and Drug Administration prohibits the introduction of hemp and hemp-derived products (including, for example, CBD) into certain products at the federal level.