New Tennessee Cannabis Bill Would Legalize Adult-Use and Medical Marijuana

5 February 2025

In a historic move, Tennessee lawmakers have introduced two separate but complementary bills aiming to legalize both adult-use and medical cannabis in the state. Filed on February 5, 2025, SB 0809, known as the Tennessee Cannabis Act, was introduced by Democratic Senator Jeff Yarbro (Nashville), while HB 0872, the Tennessee Medical Cannabis Act, was introduced by Republican Representative Iris Rudder (Winchester). If enacted, the bills would allow adults aged 21 and older to legally possess up to 60 grams of cannabis, cultivate up to 12 plants, and establish a regulated marketplace for both recreational and medical marijuana.

The proposed legislation also outlines a framework for business licensing, taxation, consumer protections, and criminal justice reforms, including the release of individuals incarcerated for marijuana-only offenses. The bills mark a significant departure from Tennessee’s traditionally conservative stance on cannabis, making it one of the last states to consider full legalization.

If passed, SB 0809 and HB 0872 would have far-reaching economic, social, and medical implications for Tennessee:

• Market & Economy: The cannabis industry in Tennessee could generate significant tax revenue, with a 15% state tax on cannabis sales and additional local taxes up to 5%. The funds would primarily go into the state’s general fund, with 10% allocated to agriculture and 5% to administrative costs. Licensing prioritization for veterans, hemp license holders, and businesses in economically disadvantaged counties suggests a push toward small business growth and job creation.
• Medical Cannabis & Patients: The Tennessee Medical Cannabis Act (HB 0872) would establish a regulated system for medical marijuana patients, allowing access for individuals with cancer, HIV/AIDS, PTSD, epilepsy, chronic pain, and 21 other conditions. The law would permit caregivers and guardians to administer non-smokable forms of cannabis to minors with qualifying conditions.
• Criminal Justice Reform: The release of individuals convicted solely for marijuana-related offenses and mandatory reviews of marijuana-related sentences could significantly impact the state’s prison population and criminal justice system.
• Industry Regulation & Consumer Protection: The bill requires product testing, restrictions on pesticides, child-resistant packaging, and clear THC labeling. It also bans discriminatory practices against cannabis users in employment, housing, and public benefits.

If passed, Tennessee would join 41 other U.S. states with either medical or adult-use cannabis programs, potentially increasing interstate competition in the Southeastern cannabis market.

Listen to the podcast for more details