House Bill 703, known as the "Pot for Potholes Act," establishes a regulatory framework for the cannabis industry in Tennessee, introducing a new chapter to the Tennessee Code Annotated under Title 43. The bill includes comprehensive definitions related to cannabis, such as "adult," "cannabis," and "marijuana dispensary," while emphasizing support for local agriculture, product safety, and the protection of minors. It outlines provisions for the cultivation, processing, and sale of marijuana, including licensing requirements for dispensaries, growers, and processors, and mandates child-resistant packaging for products. The act aims to create a competitive market for Tennessee businesses while safeguarding against monopolistic practices and upholding constitutional protections for cannabis use and possession.

The bill also amends existing laws regarding marijuana-related offenses, effectively decriminalizing certain amounts by removing specific possession and distribution thresholds. It allows for the immediate release of individuals incarcerated for marijuana-related offenses, with the Department of Correction tasked to review records and provide a list of eligible individuals by the end of 2025. Additionally, the legislation imposes a 15% tax on marijuana sales, with local governments permitted to levy an additional 5% tax, directing a significant portion of the revenue to the state highway fund. The act includes provisions to protect individuals from adverse actions based solely on positive drug tests for THC-COOH and establishes a structured priority system for issuing licenses, favoring disadvantaged and veteran-owned businesses. The bill is set to take effect in stages, with some provisions becoming law immediately and others on January 1, 2026.

Statutes affected:
Introduced: 4-3-610(a), 4-3-610, 4-7-115, 4-26-102, 29-38-104, 38-6-108, 39-17-402, 39-17-415(a), 39-17-415, 39-17-417, 39-17-418, 39-17-428(b), 39-17-428, 40-32-101(g)(1), 40-32-101, 41-1-118, 67-4-2802, 67-4-2803, 67-4-2804, 71-3-1201(4), 71-3-1201, 63-1-126