NASHVILLE, Tenn. (WKRN) — The Tennessee Alcoholic Beverage Commission (TABC) will soon become the new regulatory body of the hemp industry thanks to new legislation that passed this year, but some hemp industry experts worry the change will have negative consequences for consumers, businesses and beyond.

The TABC issued initial guidance on its rules, which closely mirror regulations enacted by the previous regulatory body, the TN Dept. of Agriculture, before the hemp industry sued the agency over its rules.

The new rules include manufacturing, labeling, testing and licensing requirements, which lawmakers believe are necessary to regulate the industry.

“It is the wild west out there,” House Majority Leader William Lamberth (R-Portland) said. “You do not know what you’re buying, and that is a problem.” 

However, those in the hemp industry have pushed back against the legislation because it also bans natural hemp flower by restricting THCA levels to .3%.

Lawmakers have argued THCA, the chemical compound in hemp, turns to THC when burned, the same substance in marijuana that gets you high.

“If we vote this bill down, then Tennessee has totally regulated recreational marijuana,” Sen. Richard Briggs (R-Knoxville).

Jim Higdon, co-founder and chief communications officer for Cornbread Hemp, told News 2 the bill will not only impact people in Tennessee but also across state lines.

“Here at Cornbread Hemp, we’re in Kentucky,” Higdon said. “We serve 5,000 or more, 10,000 customers in Tennessee, and those relationships are threatened by this new bill.” 

Higdon believes hemp businesses will be forced to shut their doors for good as a result. He’s also concerned about the impact it’ll have on consumers.

“Consumers are going to be forced into looking for black market or illegal solutions for the products they’ve grown used to getting legally, that are lab tested and safe,” Higdon said. “Prohibition is going to force those people underground, and that’s not good for consumers, and it’s not good for law enforcement, and it’s not good for the state. It’s only good for alcohol distributors who pushed this bill through the legislature.”

The new regulations are set to go into effect Jan. 1. To read all of the new rules, click here.