Tennessee’s Pot for Potholes Act, Which Would Legalize Recreational Marijuana, Set for March 23 Senate Judiciary Hearing

Key Points
  • The Tennessee Senate Judiciary Committee is set to consider Senate Bill 2440, the Pot for Potholes Act, on March 23, which aims to legalize recreational marijuana and establish a regulated statewide system for its cultivation, processing, testing, transportation, and retail sales.
  • The bill would allow adults 21 and older to possess up to 60 grams of marijuana and grow up to 12 plants at home, provided the cultivation area is secure and not visible to the public.
  • It proposes a regulated commercial marijuana market overseen by the Tennessee Department of Agriculture, including licensing for growers, processors, retailers, transporters, testing facilities, and researchers, along with strict rules on packaging, labeling, testing, security, advertising, and preventing youth access.
  • Sales would incur a new 15% marijuana tax in addition to existing state sales taxes, with most revenue directed to the state highway fund, supporting infrastructure projects, while other funds would support county distributions, administration, and a cannabis community reinvestment fund.

A Tennessee bill that would legalize recreational marijuana and create a statewide system for cultivation, processing, testing, transportation and retail sales has been placed on the Senate Judiciary Committee calendar for March 23. Senate Bill 2440, filed by State Senator Heidi Campbell (D), is titled the Pot for Potholes Act. The measure was introduced in early February, passed first and second consideration in the Senate, and is now scheduled for committee consideration.

A similar version was filed last year but didn’t advance, leading to the proposal being refiled last month.

The legislation would allow adults 21 and older to possess up to 60 grams of marijuana, including up to 15 grams of concentrate. It would also allow adults to grow up to 12 marijuana plants at a private residence, so long as the cultivation area is secured and not visible to the public.

In addition, the bill would establish a regulated commercial marijuana market overseen by the Tennessee Department of Agriculture. That includes licenses for growers, processors, dispensaries, transporters, testing facilities and research operations. The proposal also includes packaging, labeling, testing, security and advertising restrictions, along with rules meant to keep marijuana out of the hands of minors.

Under the measure, marijuana sales would be subject to the state’s existing sales taxes plus a new 15% marijuana tax. Most of that revenue would go to the state highway fund, which is where the bill gets its Pot for Potholes name. A portion would also be distributed to counties, while some funds would go toward administration and a cannabis community reinvestment fund.

House Bill 2525, the companion measure, was filed in February by Rep. Aftyn Behn (D). It is currently sitting in the Criminal Justice Subcommittee.