HB0703/SB0921

House Sponsors: Behn Aftyn (D - Nashville) main, John Ray Clemmons (D-Nashville), Gloria Johnson (D- Knoxville) Senate Sponsor: Heidi Campbell (D-Nashville)

Summary: Controlled Substances - As introduced, enacts the "Pot for Potholes Act"; establishes a regulatory structure for the cultivation, processing, and retail sale of marijuana and marijuana products in this state to be administered by the department of agriculture. - Amends TCA Title 4; Title 5; Title 6; Title 7; Title 29; Title 33; Title 38; Title 39; Title 40; Title 41; Title 43; Title 45; Title 50; Title 53; Title 54; Title 63; Title 67; Title 68 and Title 71.

 

What is the Pot for Potholes Act?

The Pot for Potholes Act is a proposed bill in Tennessee that aims to legalize and regulate marijuana sales while using tax revenue to fund road repairs and infrastructure projects. The bill is designed to boost Tennessee’s economy, support farmers, and ensure safe access to cannabis for adults.

Key Features of the Bill

  • Legalization for Adults: Adults (21+) can legally purchase, possess, and use marijuana within set limits.

  • Tax Revenue Allocation: 75% of the marijuana tax revenue will go toward fixing roads and highways.

  • Business Opportunities: The bill prioritizes Tennessee-based farmers and businesses in the cannabis industry.

  • Consumer Protections: Strict product safety standards, packaging regulations, and age restrictions are in place.

  • Decriminalization & Expungement: Many past marijuana-related offenses would be removed from records, and nonviolent offenders would be released.

How This Bill Puts Farmers, Small Businesses, and Tennesseans First

The Pot for Potholes Act is designed to keep the cannabis industry local and benefit Tennesseans rather than out-of-state corporations. Here's how:

Supporting Tennessee Farmers

  • Hemp Farmers Get First Priority: Farmers who have already been licensed to grow hemp in Tennessee will have the first opportunity to enter the cannabis industry.

  • Tax Refunds on Farming Supplies: Licensed cannabis farmers will receive a 25% tax refund on supplies and materials purchased from Tennessee businesses.

  • Encouraging Local Agriculture: The bill ensures that Tennessee-grown cannabis is the foundation of the industry, keeping profits and jobs within the state.

Boosting Small Businesses

  • Small & Veteran-Owned Businesses Get Priority: Tennessee-based small businesses and veteran-owned businesses are prioritized for licenses.

  • Fair Market Access: The bill prevents large corporations from monopolizing the industry by limiting the number of businesses any one entity can own.

  • Retail Tax Breaks: Cannabis retailers will also receive a 25% tax refund on supplies purchased from local businesses, helping small dispensaries compete.

Creating Jobs and Generating Revenue for Tennessee

  • New Industry, New Jobs: The bill will create thousands of jobs in farming, retail, processing, and transportation.

  • Revenue Stays Local: Tennessee’s tax revenue will be invested in infrastructure, improving roads and public safety, rather than going to corporate profits.

  • Expanding Economic Growth: The cannabis industry will drive tourism, increase retail spending, and provide long-term financial benefits for communities.

Cultivation Regulations

The bill allows adults to cultivate marijuana for personal use under specific guidelines:

  • Individuals 21 years or older can grow up to 12 marijuana plants at their private residence.

  • Cultivation must take place in a secured, private area that is not visible to the public.

  • Marijuana produced from home cultivation cannot be sold but can be shared with other adults (within legal possession limits).

For commercial cultivation, businesses must obtain a state-issued license and follow regulations set by the Tennessee Department of Agriculture, including security requirements, tracking systems, and product testing.

Where Will the Money Go?

The tax on marijuana sales will be distributed as follows:

  • 75% to the State Highway Fund for road maintenance and pothole repair.

  • 20% to Tennessee counties for local infrastructure projects.

  • 5% to cover administrative costs.

Who Can Buy Marijuana Under This Bill?

  • Anyone 21 years or older.

  • Consumers will be limited to purchasing up to 60 grams of marijuana at a time.

What Does This Mean for Tennessee?

  • Safer roads and improved infrastructure.

  • A new, regulated cannabis industry creating jobs and economic growth.

  • Protection of consumers and minors through responsible regulations.

  • Reduced burden on law enforcement and the legal system.

When Will It Take Effect?

If passed, the law would take effect on January 1, 2026.