Whitt Steineker, Hunter Robinson and Slates Veazey Quoted in Oxford American on Recent Tennessee Legislation Concerning THC Industry

Bradley attorneys Whitt Steineker, Hunter Robinson and Slates Veazey were quoted in Oxford American on the challenges facing Tennessee’s THC industry, which includes shifting regulations, legal ambiguities, and the resulting strain on local businesses and consumers.

“The science is ahead of the law right now, and it’s probably going to stay that way,” said Steineker. “That’s what makes some lawmakers really, really jumpy.” He estimates that about 70% of his business deals with cannabis.

“The statute itself, I think, was sort of exactly what the industry was looking for,” said Robinson. “It said you can’t sell to people under twenty-one. The products need to be back behind the counter, minimum testing requirements, etc. And everybody’s like, ‘great.’”

Some states, such as South Carolina, currently have no age restriction on delta-8 products and are rushing legislation to deal with the obvious problem of underage use. But beyond that clear fix, virtually every other aspect of regulation faces a confounding number of issues across states. The problem in Tennessee came when the Tennessee Department of Agriculture (TDA), which was put in charge of implementing the regulations to enforce the statute, did it in a way no one was expecting.

“The TDA said total THC is what counts, and total THC takes into account the THCA that is present in the hemp. And THCA, when it is burned, converts into delta-9 THC,” Robinson explained. In effect, THCA would count as delta-9, and that, according to Robinson, “would essentially ban THCA flower in Tennessee.”

Robinson said that his clients believe the rule would knock out anywhere from 40% to 80% of their business.

This dissatisfaction, which Robinson says is felt by folks in the industry as well as the legislature, led many to the conclusion that ABC might actually be a more apt overlord. “Putting it into a regulatory agency that has a little more experience with . . . a vice area [like alcohol] . . . could maybe be a good thing,” he explained.

Whether it is a good thing remains to be seen, but there is a certain logic and a lot of momentum behind the plan. “Tennessee . . . probably has the strongest alcohol lobby of any state,” added Robinson. “So read into that what you will.”

It’s not just Tennessee. “You’re going to see more and more legislation in states that are either banning consumable hemp products, or very much clamping down on them, but that allows for beverages separately and has them regulated like beer, like wine might be regulated already in the state,” said Veazey. He cited a bill in Mississippi that “doesn’t ban necessarily everything right now other than beverages, but it does have a carve-out for beverages and treats them separately.”

A market research report released in February estimated that cannabis beverage sales amounted to $382 million last year and will nearly double that by 2029.

“If I were buying stock, I’d be buying,” said Steineker.

But Big Booze isn’t the only threat in the new legislation for smaller businesses like Jarboe’s in Tennessee. The proposed legislation would also prohibit selling products in grocery or convenience stores and would require a business to have at least $750,000 on hand in order to operate. This last bit would definitely put the squeeze on small businesses — and feels to many like another move to give away the industry to big alcohol companies.

“I’m definitely aware of instances where people writing the laws were working with well-heeled operators who just sort of used that as a gate or a barrier to entry for potential competition,” said Steineker. But, he said, the monetary requirement is also justifiable, because it requires a certain amount of money to be able to operate safely and comply with the regulations. “If they’re cutting it that tight, you know, are they cutting corners on their testing, the quality of the products and that kind of stuff?” Still, Steineker sees how a cynical application of the statute could “have a disparate impact on less well-off companies or individuals.”

The full article, “The Delta-8 Blues: The THC Industry in Tennessee Faces Crisis,” was published by Oxford American on June 3, 2025.