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HOUSE BILL 2241
By Hurt
SENATE BILL 2266
By Walley
SB2266
011927
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AN ACT to amend Tennessee Code Annotated, Title 57,
relative to hemp derived cannabinoid products.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 57-7-108(a)(1), is amended by
deleting the language "two cents (2¢) per milligram" and substituting instead the language "one
cent (1¢) per milligram".
SECTION 2. Tennessee Code Annotated, Section 57-7-106(b)(5), is amended by
deleting the subdivision.
SECTION 3. Tennessee Code Annotated, Section 57-7-113(a), is amended by deleting
the subsection and substituting instead the following:
(a) It is unlawful for a person or entity to ship an HDCP directly to a consumer in
this state.
SECTION 4. Tennessee Code Annotated, Section 57-7-102, is amended by adding the
following as a new, appropriately designated subdivision:
( ) "Delivery service":
(A) Includes a technology services company that provides software or an
application for connecting customers, retailers, or restaurants to a delivery driver;
and
(B) Does not include:
(i) A technology services company that does not employ or
contract with delivery drivers but rather provides software or an
application that connects licensed retailers with consumers for the
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delivery of hemp-derived cannabinoid products from a retailer to a
consumer;
(ii) A company that ships hemp-derived cannabinoid products to a
retailer;
(iii) A "motor carrier" or "freight forwarder" as those terms are
defined in 49 U.S.C. § 13102; or
(iv) An "air carrier" as that term is defined in 49 U.S.C. § 40102;
SECTION 5. Tennessee Code Annotated, Title 57, Chapter 7, is amended by adding
the following as new sections:
57-7-119.
(a) Notwithstanding this chapter to the contrary, a licensed retailer may provide
consulting services within this state related to hemp derived cannabinoid products and
products, merchandise, and supplies that the retailer is authorized to sell under this
chapter. A licensed retailer may also supply, sell, deliver, and install products authorized
to be sold by the retailer to locations outside of the licensed premises.
(b) A licensed retailer may deliver hemp-derived cannabinoid products to a
consumer, and such a delivery does not require the products to be purchased at the
physical location of the retailer in a face-to-face transaction. At the point of delivery, the
retailer, or agent of the retailer, shall require the consumer to present a valid driver
license or other government-issued identification that includes the photograph of the
person and confirms the person's age as twenty-one (21) years of age or older. The
retailer shall maintain a record of the delivery, including the name of the consumer who
placed the order and received the order, the products delivered, the time of delivery, and
the place of delivery. A delivery must be made only to the physical address indicated by
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the consumer placing the delivery order. The delivery must be documented by a
verification of the delivery signed by the recipient.
(c)
(1) Except as otherwise provided in subdivision (c)(3), a delivery service
that delivers prepared food from restaurants or food from a retailer to customers
as part of the delivery service's business is authorized to deliver sealed packages
of hemp-derived cannabinoid products sold by a retailer to the delivery service's
customers during the hours that these products may legally be sold if:
(A) The amount of hemp-derived cannabinoid products delivered
to a customer is in such an amount to satisfy the customer's order;
(B) At least fifty percent (50%) of the delivery service's gross
sales come from the delivery of food products or prepared food;
(C) A delivery service employee who delivers hemp-derived
cannabinoid products is twenty-one (21) years of age or older and is
licensed pursuant to § 57-7-121;
(D) The delivery service is licensed pursuant to § 57-7-120;
(E) The delivery service has a written agreement with the retailer
to serve as the retailer's agent for purposes of delivery of the retailer's
hemp-derived cannabinoid products to customers; and
(F) The delivery service and delivery service employee comply
with the requirements of subsection (b).
(2) A delivery service described in subdivision (c)(1) may charge a
delivery fee to customers or retailers with whom the delivery service has entered
into a written agreement as required by subdivision (c)(1)(E). The fee may be
based on a percentage of the sales price of the hemp-derived cannabinoid
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products being delivered. The delivery service shall not charge a fee that
exceeds ten percent (10%) of the price of each hemp-derived cannabinoid
product sold. The retailer, and not the delivery service, is responsible for
remitting applicable taxes on delivered hemp-derived cannabinoid products. The
charging of a delivery fee must not be construed as the delivery service reselling
hemp-derived cannabinoid products or having a direct or indirect interest in a
retailer.
(3) A delivery service shall not deliver hemp-derived cannabinoid
products to a location that is:
(A) Greater than fifty (50) miles from the licensed premises of the
retailer from whom the hemp-derived cannabinoid products were
purchased; or
(B) In a county that is other than the county in which the retailer is
located or a county contiguous to such county.
57-7-120.
(a) The commission shall establish and issue delivery service licenses in
accordance with this section. A delivery service license may be issued to a delivery
service that delivers or facilitates delivery of prepared food from restaurants or items
from a retail store to customers as part of the delivery service's business and seeks to
deliver sealed packages of hemp-derived cannabinoid products sold by any retailer
licensed under this chapter as part of the delivery service.
(b)
(1) Any person or business entity, including a partnership, limited liability
company, or corporation, may apply to the commission for a delivery service
license on forms and pursuant to procedures established by the commission.
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The commission shall issue delivery service licenses in accordance with this
section.
(2)
(A) An applicant must be at least twenty-one (21) years of age to
be eligible for a delivery service license and must not have been
convicted of a felony involving moral turpitude, within ten (10) years prior
to the time the applicant applies for a license.
(B) The commission may issue a delivery service license to a
person or business entity, including a partnership, limited liability
company, or corporation, that is registered to do business in this state
regardless of state residence.
(c) An applicant for a delivery service license shall pay to the commission a one-
time, nonrefundable application fee in the amount of three hundred dollars ($300) when
the application is submitted for review. If approved, an additional, annual license fee of
one hundred fifty dollars ($150) is due prior to issuance or renewal of the license.
57-7-121.
(a) A delivery service may use either employees or independent contractors to
deliver hemp-derived cannabinoid products. A person delivering products for a delivery
service shall comply with the requirements of this section.
(b) A delivery service licensee shall conduct, or have a third party conduct, a
state and national criminal history background check on any potential employee or
independent contractor that seeks to be licensed pursuant to this section. The
background check must include a multistate criminal records locator or other similar
commercial nationwide database with validation.
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(c) A delivery service licensee shall ensure that each employee or independent
contractor who delivers hemp-derived cannabinoid products pursuant to this chapter is
licensed pursuant to this section.
(d) A person used or employed by a delivery service licensee to deliver an
HDCP must meet the following requirements:
(1) Be at least twenty-one (21) years of age;
(2) Have passed a background check conducted pursuant to subsection
(b) to ensure the person has not been convicted of a crime involving the sale and
distribution of hemp-derived cannabinoid products or controlled substances
within the previous seven (7) years and has not been convicted of any felony
within the previous five (5) years; and
(3) Have a valid driver license.
(e) In addition to the annual license fee in § 57-7-120(c), a delivery service
licensee shall pay a fee based on the total number of delivery service employees or
independent contractors used by the delivery service licensee to deliver HDCPs. The
fee schedule is as follows:
(1) 0-15 delivery drivers..........................$50
(2) 16-30 delivery drivers......................$100
(3) 31-45 delivery drivers......................$150
(4) 46-60 delivery drivers......................$200
(5) 61-100 delivery drivers....................$250
(6) 101-150 delivery drivers...................$300
(7) 151-200 delivery drivers...................$350
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(8) For each additional fifty (50) delivery drivers over two hundred (200)
an additional fifty dollars ($50.00), up to a maximum fee of one thousand dollars
($1,000).
(f) A delivery service licensee may be subject to fines or the suspension or
revocation of its license by the commission based on a delivery driver violating this
chapter. A retailer is not subject to a fine or the suspension or revocation of its license
based on conduct of a delivery service driver after the driver picks up or receives a
hemp-derived cannabinoid product from the retailer.
(g) Beginning January 15, 2028, and by each January 15 thereafter, a licensed
delivery service is required to submit a report detailing the number of delivery drivers
used by the delivery service to deliver hemp-derived cannabinoid products in the prior
calendar year. Each delivery service licensee shall maintain for each delivery driver
covered by the licensee's delivery service license, records sufficient to verify the identity
of each delivery driver, a copy of the driver license for each delivery driver, and a copy of
the background check conducted for that delivery driver pursuant to subsection (b).
SECTION 6. The commission shall promulgate rules to effectuate this act, including, but
not limited to, rules for the duration and renewal of licenses issued pursuant to this act.
SECTION 7. This act takes effect upon becoming a law, the public welfare requiring it.