Tennessee is poised to enact sweeping restrictions on intoxicating hemp-derived compounds as lawmakers across the United States continue efforts to rein in the unregulated but fast-growing sector. A bill redefining cannabinoids such as THCA and delta-8 THC to fall outside the legal definition of hemp passed both legislative chambers this month and now awaits Gov. Bill Lee’s signature, which is widely expected.
Meanwhile, lawmakers in Arizona, Arkansas, Florida, Hawaii and New Jersey are also advancing legislation or facing legal battles aimed at controlling the sale and distribution of hemp-derived intoxicants. In the absence of federal regulation, states are stepping in to fill a policy void left by the 2018 Farm Bill.
The Tennessee measure not only bans intoxicating hemp cannabinoids by redefining them as forms of marijuana, but also shifts oversight of products containing the substances – derived from hemp flowers – from the state’s Department of Agriculture to the Alcoholic Beverage Commission. The change positions the substances under a stricter regulatory regime, similar to alcohol and tobacco.
The bill, SB 1413/HB 1376, effectively closes a popular legal pathway for producing and selling high-inducing compounds under the hemp umbrella. Under the new definition, compounds like THCA – which converts to delta-9 THC when heated – are no longer considered hemp, even if the raw product contains less than 0.3% delta-9 THC by weight.
Arizona deadline tomorrow
Arizona hemp stakeholders filed a lawsuit challenging the state’s impending ban on THC products sold outside licensed dispensaries – set to take effect tomorrow (April 24). After the deadline, unlicensed retailers must cease sales of such products or face enforcement actions.
The lawsuit contends that the ban is overly broad and lacks clarity. Industry representatives have emphasized the need for a regulated framework that ensures product safety while allowing for the continued sale of hemp-derived intoxicants.
Tax push in Arkansas
In Arkansas, lawmakers are considering Senate Bill 605, which would impose a 50% excise tax on hemp-derived THC products. Industry opponents say the proposal would effectively shut down legal hemp commerce in the state by making such products prohibitively expensive to sell.
The bill has passed the Senate Revenue and Tax Committee and is awaiting further legislative review. It reflects a growing unease among state lawmakers about unregulated sales of potent hemp derivatives, particularly in gas stations and convenience stores where age restrictions and labeling requirements are often lacking.
Florida bills advance
Florida is also moving toward stricter oversight through a pair of legislative proposals. House Bill 7029 would limit THC content per serving, restrict marketing to minors, and prohibit consumption near schools. A companion bill, HB 7027, would add a 15% excise tax on qualifying products. Both measures are advancing in the legislature, with broad support from public health advocates and concern from hemp industry operators.
Hawaii cracks down
In Hawaii, lawmakers are focused on closing illegal dispensaries and banning synthetic cannabinoids such as delta-8 THC. Proposed legislation would expand enforcement authority to shut down unlicensed sellers and bring the state’s patchwork hemp regulations under tighter control.
The state has seen a proliferation of stores and pop-ups selling intoxicating hemp products, often without clear legal or health oversight. Lawmakers say this undermines the regulated medical cannabis system and creates safety risks for consumers.
Legal fight in N.J.
New Jersey’s attempt to regulate hemp-derived intoxicants through amendments to the New Jersey Hemp Act has hit a legal wall. A federal court recently ruled in favor of hemp operators challenging the law, finding that it discriminated against out-of-state products and potentially violated the federal Commerce Clause.
The ruling underscores the murky legal terrain for state efforts to control these products, especially when federal law remains silent or ambiguous.
Farm Bill loophole
The surge in hemp-derived intoxicants can be traced to the 2018 Farm Bill, which legalized all hemp derivatives and downstream products as long as they have a delta-9 THC concentration of no more than 0.3% by dry weight. That definition, however, did not account for synthetic conversions or other psychoactive compounds derived from hemp, leaving a loophole that entrepreneurs quickly exploited.
Without federal rules to distinguish between non-intoxicating hemp products and chemically altered cannabinoids, states are left to build their own frameworks – some more permissive, others moving swiftly toward restriction or outright bans. As Congress debates a new Farm Bill this year, industry stakeholders and regulators alike are calling for clearer guidance to bring consistency and safety to the marketplace.