Hemp companies in Tennessee and Nebraska are confronting regulatory changes that could reshape or end large parts of their businesses.
In Tennessee, a new law known as Public Chapter 526 takes effect July 1, according to The Tennessean. It bans psychoactive hemp products, including THCA and delta-8, by reclassifying THCA as a precursor to THC.
When smoked, THCA delivers the same psychoactive effects as marijuana, something policymakers say earlier rules failed to address.
How is the change impacting intoxicating hemp businesses?
The change is hitting Nashville retailers hard.
At Clara Jane in East Nashville, manager Ally Drumright said the banned products account for about 60% of the store’s business, The Tennessean reported.
Clara Jane will remain open and focus on beverages, edibles and self-care products that meet state concentration limits, Drumright said.
“We are going to definitely be seeing people travel out of state,” Drumright told The Tennessean. “They’re going to be buying things on the black market. They’re going to be traveling out of state to the recreational states around us.”
In Nebraska, the industry faces a separate threat.
Gov. Jim Pillen issued an executive order directing the Nebraska Department of Agriculture to propose rules reclassifying consumable hemp products as adulterated, similar to how regulators treat unsafe food, according to KETV in Omaha.
Pillen told KETV the order is meant to protect children from intoxicating hemp products.
The proposed rules drew heavy pushback at a public hearing, particularly over THC-infused beverages.
Industry advocates at the hearing also warned of a federal deadline to ban all hemp products by Nov. 12 unless Congress acts, KETV reported.
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What’s happening to the hemp industry in other states?
Other states where the intoxicating hemp industry has faced regulatory threats include Texas and Ohio.
In Ohio, nearly all intoxicating hemp THC products were outlawed in March.
In Texas, a judge in April halted enforcement of state regulations banning the sale of smokable hemp products.
