Category: CannaBeat

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CannaBeat: New Tipsy Tabs Are Tennessee-Made “Cocktails In A Tablet”

Credit: Tipsy Tabs

A Tennessee company with ties to Memphis launched a new cannabis product this summer to help consumers “make better bad decisions.” 

Tipsy Tabs appeared in stores throughout Memphis around August. Locals may have noticed colorful signs in liquor or cannabis shops inviting them to “bite into the party” for an experience that ”feels like a cocktail in a tablet.”

The sweet, colorful, little tablets (about the size of dime) pack 25 milligrams of hemp-derived THC apiece. For this, the company suggests consumers start by taking half a tablet to start and add another half every half hour until they reach their desired euphoric effect.   

Tipsy Tabs were created as a sublingual edible, meaning they are meant to dissolve under the tongue. This method helps with the fast onset of effects, within 10 minutes the company says. But the packaging is quick to note you take a Tab however you prefer. “Bite me,” it reads. “Chew me. Suck me.”

With Tipsy Tabs, the company hopes to tap into a growing (but slow) movement away from alcohol consumption and the rise of “California sober,” indulging in cannabis but not in booze. 

The product comes from Volunteer Botanicals, based in Christiana, Tennessee, just outside Murfreesboro. But company co-founder Jason Pickle and Matt Hale, vice president of retail sales for the company, are both originally from Germantown. Volunteer Botanicals started about six years ago, Hale said, specializing in converting hemp oils into a pharmaceutical-grade powder. 

Hale told us more about Tipsy Tabs in a recent interview. — Toby Sells

Memphis Flyer: Tell me about Tipsy Tabs. 

Matt Hale: The way we look at this thing is [most] of the cannabis products on the market are, “How high can we get you? How blasted can we get you?” In the grand scheme of things, that’s a small portion of the country or that industry. 

You’ve got all these functional, working parents — yoga moms, and people like that — that don’t want to get blasted. They’re scared of a lot of these products. So, what we saw the opportunity to do was, “let’s do this on a metered format.”

If you think about a gummy, a gummy filled with sugar, it melts. It’s inconsistent. I hear it all the time: “I don’t really want to eat a gummy because one time I eat it and I don’t feel anything and then the next time I eat it and I’m blasted.” With what we do, with every one of these, you feel the same thing every time and that’s what this industry is missing.

So, just like a cocktail, [consumers can] figure out their sweet spot. It’s not guessing every time. It’s like, “I’m going to my kid’s T-ball game. So, I’m going to pop half of one of these and I’m just going to relax.” Or, if you want to go out and party, eat two or three of them and — just like a cocktail — the more you drink, the more you feel.

How long has Tipsy Tabs been on the market?

We launched the product a little over a month ago. It’s blowing up! It’s just a great product. 

Where can you get Tipsy Tabs?

We are in about 15 stores in Memphis and growing everyday. We’re in discussions with a big distributor out of Nashville. We’re in the Carolinas. We’re in Texas. We’re in Georgia. And it’s just gong to keep growing. 

Anything you want to add?

A lot of people are intimidated by [cannabis products]. Tipsy Tabs gives them a chance to to dip their feet in the water and actually try something without taking it too far.  

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CannaBeat: Congress Grills DEA on Cannabis Re-Classification Timeline

Photo by Jeff W on Unsplash

Last year, President Joe Biden promised to reevaluate cannabis’ placement on Schedule I. On Thursday, two frustrated Congressmen wanted to know what is taking so long. 

Schedule I is the federal government’s classification for some of the worst drugs like meth and heroin. These drugs are highly addictive and have no medical use, according to the government.

Biden promised cannabis reform in a statement in October. It outlined three steps his adminstration would take to end what he called the government’s “failed approach” on cannabis so far. 

With a stroke of a pen, he pardoned all federal offenses of simple possession and urged governors to do the same. (Tennessee Governor Bill Lee did not even consider making these pardons here.) Biden’s third step was to ask the Secretary of Health and Human Services (HHS) and the U.S. Attorney General to “expeditiously” review how cannabis is scheduled under federal law. 

“Federal law currently classifies marijuana in Schedule I of the Controlled Substances Act, the classification meant for the most dangerous substances,” Biden wrote in the statement. “This is the same schedule as for heroin and LSD, and even higher than the classification of fentanyl and methamphetamine — the drugs that are driving our overdose epidemic.”

No word has yet emerged from the adminstration on the re-classification of cannabis. On Thursday, U.S. Rep. Steve Cohen and U.S. Rep. Matt Gaetz grilled Drug Enforcement Agency (DEA) Administrator Anne Milgram for details during a meeting of the House Judiciary Crime and Federal Government Surveillance Subcommittee. They got very few. 

Milgram said her agency cannot move on the matter without word from HHS. She said DEA has not heard anything and had not even heard of a timeline for when HHS might send word. 

“Well, that’s unsettling, isn’t it?” Gaetz asked Milgram. “When you don’t even know a timeline, it doesn’t really make it seem like something’s front of mind.”

Gaetz asked Milgram to encourage HHS for a timeline on the re-classification of cannabis and she agreed she would. 

Should HHS recommend removing cannabis from Schedule I, that would trigger a DEA review. That review could be lengthy. The agency considers eight factors in the process, including potential for abuse, public health risks, dependency risks, and more. From there, the DEA would also allow for a public comment period on re-classifiying cannabis. Then, a decision would be made.

The unknown length of this process could push a decision past next year’s presidential election and that could send removing cannabis from the Schedule I back to the drawing board. 

Keeping cannabis on Schedule I means Tennessee won’t likely see any sort of cannabis reform. Lawmakers here have said no reforms will (or should) happen unless the drug is re-classified on the federal level. The law that created the Tennessee Medical Cannabis Commission, for example, is predicated on this fact. That means, Tennesseans should not expect medical cannabis — or any other kind — until the drug is moved on the federal level.  

Cohen, a longtime advocate for cannabis reform, was clearly frustrated by the delay Thursday. 

“I’ve been here 17 years … and I’ve seen DEA heads, I’ve seen [Federal Bureau of Investigation] directors, I’ve seen attorney[s] general, exactly where you’re sitting and say governmental gibberish about marijuana. They’ve done nothing for 17 years, and for years before that. It goes back to the [1930s]. 

“The government has messed this up forever and you need to get ahead of the railroad. You’re going to get something from HHS. Biden understands [cannabis] should be reclassified. He said from [Schedule I to Schedule III] and it should be classified from [Schedule I] to 420. We ought to just clean it up and get over with it.” 

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New Bill Would Decriminalize Cannabis Across Tennessee

Photo by Jeff W on Unsplash

A new bill would decriminalize cannabis across the state.

The bill would lower simple posession to a $25 fine or three hours of community service. It would raise the felony amount for manufacture, delivery, or sale from a half ounce to one ounce.

It removes references of “marijuana, marijuana concentrates, and marijuana oil from the definition of drug paraphernalia.” It renames items used to ingest, inhale, prepare, or store cannabis as a “marijuana accessory.”

The wide-ranging bill would lower costs on local governments by nearly $15 million per year, according to a financial review of the bill conducted by the Tennessee General Assembly’s Fiscal Review Committee.

The committee said the figure is based on removing the roughly 17,101 annual simple-possession cannabis convictions across the state. The committee multiplied that number by 15, the average days of stay for those charged, by $58.21, the average daily cost of jailing such a person.

The math is more complicated to calculate how much money would be saved from lowering charges on manufacture, sale, and delivery. But the Tennessee Department of Corrections (TDOC) told the review office the state averages 137.8 admissions a year based on these charges. The office calculated the new legislation would lower that figure to an average of 20.76 prison admissions of these kinds annually.

The bill would increase state spending by $100,000 to create a new drug awareness program and by $30,000 each year to support the program.

The new simple possession definition would allow Tennesseans to carry up to one ounce of cannabis, up to five grams of resin extracted from cannabis, and infused products containing up to 1,000 milligrams of THC. Simple possession would become a civil violation and would not subject an offender to arrest. Offenders could pay a $25 fine or serve three hours of community service. Minor offenders would have to serve up to five hours of community service.

The bill also limits probable cause.

“This bill specifies that the odor of marijuana generally does not constitute reasonable suspicion or probable cause but a law enforcement officer may test for impairment based on the odor of marijuana if the officer reasonably suspects the operator of a motor vehicle or boat to be under the influence of marijuana,” reads the bill.

The bill will not allow officials to revoke someone’s bail, parole, probation, or suspended sentence based solely on a positive drug test for cannabis. The review committee said TDOC told them doing this would not have any significant fiscal impact.

The bill would also prohibit officials from removing someone from public assistance programs just for having a positive cannabis test. According to the Tennessee Department of Human Services (TDHS), doing this would not significantly impact the total number of those eligible for programs like Temporary Aid to Needy Families (TANF). TennCare said the legislation would have no fiscal impact on any TennCare programs.

Under the legislation, a positive test would also not be grounds for any adverse employment action against a government employee.

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CannaBeat: New Bill Would Change the Way You Buy Cannabis in Tennessee

Credit: Toby Sells

Anxiety ripples through the Tennessee cannabis industry when state lawmakers get involved but a new bill this year could put the business on more solid footing here, leaders said. 

Industry opposition lined up against a bill during last year’s session of the Tennessee General Assembly. That bill threatened to ban all hemp-derived THC products like Delta 8 gummies if they contained more than 0.3 percent of THC on a dry weight basis, which was (and is) already the federal legal limit for such products. 

Lawmakers explained that the bill was really an effort to regulate these products in Tennessee. At the time, they described a marketplace with no limits on THC in products and no packaging requirements to alert consumers. 

A bill filed this year will do just this. Cannabis professionals said they worked with lawmakers on the regulations and believe it “will sustain a safe, legal marketplace for these products well into the future,” according to a blog post by Cultivate Tennessee, a hemp advocacy group. 

The new framework does not redefine hemp. It does not ban any products. It does not change how hemp professionals get licenses to grow or sell hemp here. 

The bill sets the buying age to 21. It outlaws driving vehicles under the influence of cannabis. It also adds a 5 percent privilege tax on product sales on top of local and state taxes.  

The bill limits the amount of THC in a product to 25 milligrams. It also mandates all products available for sale in Tennessee to be tested after being manufactured for cannabinoids and any toxic materials. 

 “[Consumers] are going to notice that products are most likely going to be behind the counter and having to show an ID to purchase,” said Devin Aracena, co-owner of Canvast, a Nashville-based cannabis company and co-chair of Cultivate Tennessee. “They’re going to notice a lot of packaging updates on products. They’ll see child-resistant packaging updates on products and clearly stated potency.

“They’ll notice a different dosage. So, there would no longer be edibles that are over 25 milligrams per serving.”

Meticulous testing of products has always been a foundation for Gold Spectrum CBD, an East Tennessee company that grows cannabis, makes products, and sells it online and at its franchise retail stores called the Smoky Grass Station. Company founder Zack Green said the new bill would up restrictions and require everything to be registered with the Tennessee Department of Agriculture, something not done now. The move could help remove some fly-by-night operators in the space, he said.   

“There’s a lot of people that have gotten into this industry because they think of it as the ‘Green Rush,’ the next Gold Rush,” Green said. “They’re trying to quickly make a dollar and get out. … They try to cut costs and do everything as cheaply as possible and are not as quality conscious as we would like for them to be.”

Cheaper oils in the marketplace might have pesticides in them, he said, and might not be backed with certificates showing they’ve been properly analyzed. Some of the facilities might not be accredited or inspected by a lab certified by the U.S. Drug Enforcement Agency (DEA). 

Doing all of this is expensive, Green said, and some companies operating in Tennessee are “flying under the radar.” Without taking the necessary steps could put consumers at risk. 

Aracena said the bill is a “great first step,” especially to create trust between the industry and lawmakers. 

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Cannabeat: Tenne-Snooze

It’s slow going on Tennessee’s cannabis legalization front. (Photo: Dmitry Tishchenko | Dreamstime.com)

Tennessee state law will not allow any more cannabis legalization here until the federal government moves, which may happen soon-ish (more on that below). But until then, don’t expect Tennessee cannabis news to be very exciting.

Consider the sober, sometimes droning, sometimes arduous December 1st meeting of the Tennessee Medical Cannabis Commission. That group was established by the Tennessee General Assembly in May 2021 to study “federal and state laws regarding medical cannabis and the preparation of legislation to establish an effective, patient-focused medical cannabis program in this state” but only if the drug was removed from the federal Schedule I.

In its first report, published in January, the commission offered the legislature at least some recommendations on potential laws for such a program here. Back then, some hints were available at even just the prospect of new legalization laws that might pull the commission from the sidelines.

But those proposals came and went. And while Tennessee shelved any action on cannabis, every state that borders it has enacted some sort of legalization effort. So, instead of laying solid groundwork for a Tennessee program, the cannabis commission has quietly studied, and studied, and studied, and watched the growing pains other states have experienced while starting and building their own programs.

The commission is slated to meet this week to finalize its second report to the legislature. So sleepy is the material for the report this year, commission members spent much of its early December meeting trying to jazz it up to get the attention of lawmakers.

Commissioner Cari Parker said lawmakers should be handed a one-pager because that’s “the attention span we have to plan for to at least incite a little bit of interest.” Ray Marcrom, a pharmacist, said he does not want lawmakers to get the report and say, “‘Well, that’s nice.’ Because that’s kind of what we got last year.”

Two facts stuck out from the commission’s meeting, though. One was the reminder that Tennessee has, indeed, stuck the tiniest toe past federal cannabis laws, as it allows products with 0.9 percent THC, instead of the federal 0.3 percent. Another is that there is a desire from lawmakers and businesses to keep hemp-derived THC products (like Delta 8) separate from any medical cannabis program here and be regulated from the Tennessee Department of Agriculture.

On the federal side of cannabis news, though, things got pretty hot this year. Joe Biden, the president of the United States, said words every college sophomore (of a certain stripe) has wanted to hear a global leader to say:

“No one should be in jail just for using or possessing marijuana,” Biden said in an October statement. “Sending people to prison for possessing marijuana has upended too many lives and incarcerated people for conduct that many states no longer prohibit.”

Biden then outlined three steps in a plan to “end this failed approach” to cannabis law in the U.S. First, he pardoned all prior federal offenses of simple possession of marijuana. Second, he urged all governors to do the same with regard to state offenses. (Guess what Tennessee Governor said no to this. Hint: It rhymes with Bill Lee.)

Biden also asked the secretary of health and human services and the attorney general to review cannabis’ place in federal law. Now, as Biden said, it is up there with “the most dangerous substances” like “heroin and LSD, and even higher than the classification of fentanyl and methamphetamine — the drugs that are driving our overdose epidemic.”

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Hemp Fiber Gets State Review for Tennessee Farmers

(Credit: Tennessee Department of Agriculture)

Hemp fiber production is under review in Tennessee to see if it can be used in car manufacturing here and how the fiber fits in the state’s overall economy.  

The Hemp Alliance of Tennessee (HAT) has partnered with the Tennessee Department of Agriculture (TDA) to fund the research to be conducted by the University of Tennessee. The study began in June and will continue until the end of the year.

“We are an agricultural state, and we are proud to be a hemp-producing state,” said TDA Commissioner Charlie Hatcher. “This plant has numerous applications, and we believe fiber has potential to grow Tennessee’s industrial economy. 

“We are an agricultural state, and we are proud to be a hemp-producing state.”

Tennessee Department of Agriculture Commissioner Charlie Hatcher

The study will focus on creating a budget to grow hemp for Tennessee farmers. It will also look at transportation and supply chain logistics. The study will conclude whether or not Tennessee is suited for hemp fiber production. 

“Our organization and its members are invested in realizing the potential of this plant, and our hope is that this study will prompt significant industry investment in Tennessee hemp and its diverse applications,” said Frederick Cawthon, president of HAT. 

Tennessee was among the first states to create a hemp program under the 2014 Farm Bill allowing pilot programs for industrial hemp cultivation. State officials said hemp has been “recognized as a valuable crop to support Tennessee’s agricultural and industrial economy.” 

In 2015, the state had 49 producers licensed to grow on 660 acres. In 2019, after the 2018 Farm Bill lifted the controlled substance designation of industrial hemp, the number of producers peaked at 3,957 licensed to grow on 51,000 acres. As of May 2022, there are now 1,041 producers of industrial hemp licensed to grow 5 on,682 acres. The shift in recent years illustrated the potential for scale and interest from the state’s farmers and cultivation experts.

“After the 2018 Farm Bill was passed, there was a gold rush of growers wanting to enter the emerging market for consumable hemp products,” said Cawthon. “Tennessee is capable of becoming a leader in this industry if we engage our innovators and the industries that can benefit from the plant – and our legislature continues to help make the right investments in the plant’s myriad applications.”

According to the USDA, the value of hemp production in the United States totaled $824 million in 2021. Industry analysts estimated the global industrial hemp market size at $4.13 billion in 2021 and expect it to grow at a rate of 16.8 percent from 2022 to 2030.

Industrial hemp is grown for its seeds, fiber, shivs, flower, and oil. The applications for industrial hemp are varied including textiles, personal care, food and beverages, animal care, paper, automotive, construction materials, furniture, and more. 

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Bill to Possibly Ban Hemp-Derived THC Products Advances in House, Senate

Photo by Elsa Olofsson on Unsplash. Olofsson manages the CBD Oracle blog at cbdoracle.com.

State lawmakers and cannabis industry representatives began working out details of a bill that would regulate products here made with hemp-derived THC.

As it is written now, the bill would would ban the sale or possession of products that contain Delta 8, HHC, THC-O, and any others that have a THC concentration of more than 0.3 percent on a dry weight basis, which is already the federal legal limit for such products. 

The bill is sponsored by state Rep. William Lamberth (R-Portland) and Senator Richard Briggs (R-Knoxville). Both bills moved ahead Wednesday in the legislative process with positive votes from a House Criminal Justice subcommittee and the Senate Finance, Ways, and Means Committee.   

A recent fiscal review of the proposal says retailers would stop selling the products, costing state and local tax coffers $4.8 million in the next fiscal year and $1.9 million in the years following. The Tennessee Department of Corrections projected that felony incarcerations would rise by one each year if the bill was passed, adding $2,900 in state costs per year.

In Wednesday’s hearing, Rep. Lamberth said there are no regulations on these products, including the Delta 8 gummies that are widely available, and there are no packaging requirements on these products. He said 115 people overdosed on these products, specifically Delta 8 products, last year because they contain “extraordinarily” high levels of THC, and 30 percent of those people were under the age of five.   

The state and federal laws already set THC levels at 0.3 percent in these products. But products with higher concentrations are “being sold all over Tennessee. So, we must not have made it clear enough when we passed this before.” For all of this and more, Lamberth said he wants to clear up confusion on the issue for business owners and consumers. 

There needs to be a specific, consistent expectation for customers of this product.

Rep. William Lamberth (R-Portland)

”This needs to be a clear cut line,” Lamberth said. “There needs to be a specific, consistent expectation for customers of this product. I have heard from folks that said, ‘Well, look, I was buying this product from this retailer and it had this effect. Then, I switched to this one over here and it had a drastically different effect.’

“Again, there’s no standards here. This needs to be clear cut as to what is and is not legal and what exactly is on the shelves.”

Tennessee cannabis company owners testified before the committee Wednesday, with many arguing that the issue needs a scalpel while Lamberth’s bill was a blunt instrument. If the bill were to be passed as it is now, it would constitute a ban on these products, and cost many their livelihoods. 

Debate on the issue was calm and level-headed Wednesday. Lamberth said before the vote that while the bill was likely to pass out of Wednesday’s subcommittee, it will be up for debate and for testimony in other committees, and, perhaps, a final debate on the House floor. He invited all of the leaders from the cannabis companies to his office to speak about the bill as it progresses.   

“Quite frankly, there’s not as much daylight between where I am and where you guys are,” Lamberth said, speaking to the company representatives. “It’s just a matter of figuring that out.” 

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State Bill Threatens Hemp-Derived THC (Like Your Delta 8 Gummies) in Tennessee

Photo by Elsa Olofsson on Unsplash. Olofsson manages the CBD Oracle blog at cbdoracle.com.

State lawmakers will review a bill Wednesday that threatens a number of hemp-derived THC product sales in Tennessee, would slightly increase felony incarcerations, and would cost the state millions of dollars.

The bill seems to tackle the thorny issue of federally legal, hemp-derived THC products like Delta 8, HHC, and THC-O in Tennessee. It would ban the sale or possession of such products that have a THC concentration of more than 0.3 percent on a dry weight basis, which is already the federal legal limit for such products.

The bill, sponsored by Republicans in the House and Senate, would redefine hemp products with more than the federally legal limit as “marijuana,” according to an official review of the bill. This would make selling or possessing these products criminal offenses equal to marijuana in state law.

The Farm Bill was updated in 2018 to clarify the main difference between hemp and “marihuana,” as it is spelled in federal law. It says marijuana does not include hemp. Hemp has a dry-weight THC concentration of less than .3 percent. Marijuana contains more than that.

HB-1927-AmendedDownload

The review of the bill from the Tennessee General Assembly Fiscal Review Committee is built on a set of assumptions. It says such products are unregulated at the state and federal level. Sales of the products are assumed to be due to psychoactive effects of the cannabinoids found in them.

Also, products sold here are “assumed to significantly exceed the concentration threshold of 0.3 percent.” Finally, “it is assumed that the majority of retailers who currently sell such products will cease sale of such products across the state, rather than risk criminal penalties.”

If retailers stopped selling these products, state and local taxes would decrease by more than $4.8 million in the next fiscal year and about $1.9 million in following years, according to the review. These figures are based on a study from the Brightfield Group, a hemp market study firm. Tennessee sales of the products targeted by the legislation were about $4.7 million in 2020, according to the study. State researchers valued the overall market for the products in question at $73.4 million in Tennessee.

As for felonies, the Tennessee Department of Corrections told state researchers that an average of 6.6 Class C felons have been admitted to its system each year for the last 10 years. That figure would increase by one under the new legislation, according to the review. With this, incarceration costs would rise by $2,900 annually under the legislation.

For this and more, the Tennessee Growers Coalition, a political action committee that supports hemp-friendly politicians, told its supporters on Facebook this week that “we must organize to oppose” the bill.

“This is to all but make [Delta 8] and all other hemp-derived THCs illegal, re-criminalizing what is now legal under state and federal law,” reads the post. “Please act on this. Not the time to remain on the sidelines or be apolitical. This is your livelihood.”

The state House Criminal Justice Subcommittee is slated to review the bill Wednesday.

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Bar Leafy Green Scheduled to Become City’s First “Canna Bar”

Credit: Bar Leafy Green/Facebook

Memphis’ first cannabis bar is readying to open, promising drinks and products infused with CBD and THCV (what some call “diet weed”).

Bar Leafy Green “South Bluff” is planned for 6 West G.E. Patterson in the South Main district, close to the corner of Front Street. No firm timeline was given for the date of the bar’s opening in the news release. But when it does, Bar Leafy Green will be open daily from 2 p.m.-7 p.m.

The bar will feature, ”infused mocktails,” including Strawberry Jasper, Peach Crystal, Mango Opal, and more. Bar Leafy Green will also offer “snacks and a rotating list of fun activities: live music, comedy, speed dating, bingo, spades tournament, movie nights, paint and sip, and much more!”   

”I want our locations to be warm, welcoming safe places for people to gather and create memorable canna experiences, learn all about canna effectiveness through our canna and community engagement and education,” said Bar Leafy Green founder Effren Bledsoe.  

The new bar is described as a place to “choose your mood and your journey.” It’ll be a “safe place to consume our premium products,” a “true Mid-South canna bar,” and a neighborhood gathering place.” 

The company is also planning to open a location in Jackson, Tennessee called (Green) Spa by Bar Leafy Green. 

Bar Leafy Green claims to be “Tennessee’s first canna bar.” But it’ll have to battle Buds & Brews for the title. That restaurant and bar is planned to open in Nashville’s Germantown neighborhood sometime this spring. There are not many details at Buds & Brews’ website, except that restaurant will feature ”a menu of upscale bar fare paired with our own line of delicious cannabis infused condiments.” The restaurant will also serve products from Craft Cannabis, a Nashville-based company.    

TVA Re-clarifies Its Mississippi Position

The Tennessee Valley Authority (TVA) said, again, this week that it will continue to provide power to all of its customers in Mississippi, even those in the cannabis business, but said it’s still checking in with the feds about it. 

Last month, TVA said it was unsure if providing power to cannabis businesses violated federal law. Cannabis is illegal on the federal level, on the scale with heroin and meth. So, when Mississippi Governor Tate Reeves signed the state’s medical cannabis program into law in February, TVA said it wanted to see if there was a conflict with the U.S. Department of Justice (DOJ). 

In response, Brandon Presley, Mississippi’s Public Service Commissioner, said cannabis businesses should be treated like any other. Presley said TVA’s authority ends when it delivers power to a local utility. He noted, too, that TVA’s questions had “caused some medical marijuana facilities to look at other areas of the state and therefore possibly denying North Mississippians the benefits of the newly passed medical marijuana program.” 

In a latter to Presley on Monday, February 28th, TVA general counsel David Fountain said, again, power would continue to flow to all customers in Mississippi, with the following caveat:

“TVA respects the role of state governments, and the democratic will of their voters, in making decisions regarding state law,” Fountain said. “However, as a federal agency, TVA is required to adhere to federal law and regulations.”

As for Presley’s concern on losing business, Fountain wrote, “we recognize the opportunities for economic development that the new law presents in northern Mississippi. As we receive additional guidance from the appropriate federal agencies, we will share more insight and information.”

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TVA Clarifies Mississippi Cannabis Question

Photo by Add Weed on Unsplash

The Tennessee Valley Authority (TVA) clarified Thursday that it will continue to provide electricity to customers in Mississippi, even if they’re growing cannabis. 

Mississippi voters approved a medical marijuana program for the state in a ballot initiative in 2020. A court ruling threatened to overturn the will of the voters last year, but Mississippi Governor Tate Reeves signed the bill into law earlier this month with restrictions that limited amounts of cannabis patients could buy. 

Days after Reeves signed the bill, TVA asked the federal government for guidance on delivering power to cannabis companies, according to Tupelo’s Daily Journal newspaper. Cannabis remains illegal on the federal level, listed on the government’s Schedule I category along with heroin, peyote, and meth. The utility said it wanted to ensure it was not breaking a federal law by supplying power to cannabis growers.   

But TVA officials said Thursday the company has an obligation to deliver the power. 

“There will be no interruption in service because of this newly signed law.”

Tennessee Valley Authority

”We want to be clear about TVA’s position on the implications to our energy service to Mississippi customers: TVA has an obligation to serve our customers with safe, reliable, low-cost energy and we will continue to do so,” reads the statement. “There will be no interruption in service because of this newly signed law.

“The broader issue is a complex one and represents a conflict between state and federal law. We are looking to the appropriate federal agencies for further clarification and have requested additional guidance.

”Our service to our customers remains unchanged and we will continue to carry out our mission.”

“TVA’s statement has already caused some medical marijuana facilities to look at other areas of the state and therefore possibly denying North Mississippians the benefits of the newly passed medical marijuana program.”

Brandon Presley, Mississippi’s Public Service Commissioner

Confusion over TVA’s response and clarification was loud enough to merit a statement from Brandon Presley, Mississippi’s Public Service Commissioner. 

“TVA’s statement has already caused some medical marijuana facilities to look at other areas of the state and therefore possibly denying North Mississippians the benefits of the newly passed medical marijuana program,” Presley said in a statement posted to Twitter Thursday. “It is a long-held principle in state law that electric utilities have an obligation to serve customers without discrimination. 

“A licensed medical marijuana facility under Mississippi law is no different. It is my position that any licensed medical marijuana facility should be served with electricity upon application and request.

“Once power is delivered by the TVA to a local utility, TVA’s oversight ends and controlling state law and Public Service Commission statutes ensure that these facilities should be served with electricity like any other licensed business.”