House Bill 703, known as the "Pot for Potholes Act," establishes a regulatory framework for the cannabis industry in Tennessee by introducing a new chapter to the Tennessee Code Annotated under Title 43. The bill includes comprehensive definitions related to cannabis, such as "adult," "marijuana," 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 and safety standards, and allows adults to use, possess, and cultivate marijuana under specific conditions. The legislation also mandates secure transportation, proper packaging, and labeling of marijuana products, and addresses conflicts of interest in the administration of marijuana laws.

Additionally, the bill amends existing laws regarding marijuana licensing and regulation, including a structured priority system for issuing licenses that favors disadvantaged and veteran-owned businesses. It imposes a 15% tax on marijuana sales, with local governments allowed to levy an additional 5%, and allocates a significant portion of tax revenue to the state highway fund. The bill decriminalizes certain amounts of marijuana by removing specific possession and distribution thresholds and updates the definition of "drug paraphernalia." It also allows for the immediate release of individuals incarcerated for marijuana-related offenses, with the Department of Correction tasked to review records and report by the end of 2025. The act will 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