Knoxville News Sentinel

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spend hours scrutinizi­ng over our human art,” Moore said. “When a machine can take my lived experience in seconds, that is wrong. That is theft. And we need to protect against it.”

State earns $1M per month from hemp-derived cannabis sales tax

Tennessee is collecting more than $1 million each month from a new 6% sales tax on hemp-derived cannabis products due to new regulation­s adopted by the General Assembly last year.

Last year, lawmakers approved new age restrictio­ns, testing and packaging requiremen­ts, and product location requiremen­ts, as well as the new sales tax on hemp-derived cannabis products including delta-8s in Tennessee. The sales tax went into effect on July 1, 2023.

Revenue Chief of Staff Courtney Swim told members of the House Finance Ways and Means Committee that state revenue collection­s have been strong since.

“The monthly total for collection so far has run around $1 million per month,” Swim said Monday. “As time has gone on, the monthly totals have increased, but we are looking at about one $1 million per month today.”

Revenue from the new tax is divided evenly between the Department of Revenue and the Department of Agricultur­e to go toward enforcemen­t of the new regulation­s. The Department of Revenue has hired six new positions to oversee and enforce new regulation­s, revenue officials said. Inspection­s required by the new law will go into effect on July 1.

GOP leaders abandon grocery tax holiday this year

While Lee’s budget proposal this year includes $1.6 billion in franchise tax breaks for businesses, it does not include funding for a grocery tax holiday for Tennessee families. For the past several years, lawmakers have approved a month-long sales tax holiday on food, passing on tax savings to consumers. Last year, lawmakers approved a threemonth sales tax holiday.

Lee has repeatedly said lawmakers can look to find funding for such a tax break if they want to.

But while they say $1.6 billion in franchise tax refunds is needed for this budget to avoid legal action, Senate leaders say they aren’t interested in discussing a grocery tax holiday this year.

“No,” Sen. Bo Watson, R-Hixson, flatly told reporters on Thursday, when asked if any conversati­ons have occurred around adding a grocery tax holiday this year. “We’re not looking at pursuing anything like that in this General Assembly. We’ll see what our colleagues in the House propose.”

House leadership indicated they’ll have conversati­ons with Senate colleagues when budget negotiatio­ns get under way, but stopped short of committing to support a tax break for consumers this year.

“We’ll get there when it’s time to talk to the Senate about the budget, and about items that we want to have included,” House Speaker Cameron Sexton, R-Crossville, said. “We’ll see. It may get in, it may not. There may be other tax cuts to consider – we’ll have to wait and see.”

House Majority Leader William Lamberth, R-Portland, called the tax cut “a good thing to do,” but noted that “it’s just a tough budget year.”

“Bidenomics is horrible,” Lamberth said. “This president has run the greatest economy in the world into the ditch, and we in Tennessee are having to suffer the consequenc­es of that.”

Lawmakers blast social media, consider new guardrails

Lee’s proposed “Protecting Children from Social Media Act” was delayed two weeks as lawmakers consider ways to streamline complaints and ensure enforcemen­t.

Sponsored by Rep. Jake McCalmon, R-Franklin, the bill would require social media companies to verify parental consent for minors to have their social media accounts. It would also requires the attorney general to take up any complaints against social media companies.

“Social media is the bane of my existence,” said Rep. Kevin Vaughan, RColliervi­lle, expressing support for the bill, but suggesting its enforcemen­t provisions be strengthen­ed before it moves forward. “I don’t want my knife to be dull.”

During a committee meeting, Hannah Richardson, from the governor’s legislativ­e team, told lawmakers that the bill puts the onus on social media companies to ensure accurate verificati­on of parental consent before allowing a child to create an account.

“The reason why we didn’t want to lay out specifical­ly how they should do that is because each company may do that differentl­y,” Richardson said, noting the speed of new technology developmen­ts. “It’s just too ever-changing to put into statute.”

While lawmakers almost universall­y shared support for the concept of the bill, they delayed considerat­ion for two weeks while revisions are considered to streamline and strengthen its enforcemen­t.

“What I’m afraid is that there’s just going to be a little checkbox that says ‘yes, I’m a minor, and yes, my mom and dad agree,” said Rep. Susan Lynn, R-Mt. Juliet. “Social media has really been so polluting for so many young people. It’s such a shame. I would really love to see parents have more control over that.”

Brian Beathard launches bid for State House

Williamson County Commission­er Brian Beathard has launched a bid for State House District 65, touting the endorsemen­t of retiring incumbent Rep. Sam Whitson, R-Franklin.

“I’m running for State Representa­tive to defend our conservati­ve Tennessee traditions,” Beathard said. “Biden’s destructiv­e agenda — on the economy, energy, law and order, schools, and values — is a serious threat to our way of life. In the State House, I’ll push back on the disastrous policies coming from Washington to keep Tennessee’s economy strong, uphold law and order, promote great schools, and defend our traditiona­l values.”

Beathard owns RevHD, which manufactur­es heavy duty truck parts, and Pearls, a restaurant in Sewanee. He has served on the Williamson County Commission since 2010. Beathard and his wife, Lisa, have two children and reside in Franklin.

In a news release, Beathard said his priorities, if elected, include fighting violent crimes, supporting Williamson County Schools, and opposing regulation­s on small businesses.

The Republican primary is Aug. 1.

Casada and Cothren get new trial date

Former House Speaker Glen Casada and political aide Cade Cothren will go to trial in November on a host of corruption charges after their March 5 trial date was pushed back.

U.S. District Judge Eli Richardson set Casada and Cothren’s trial date as Nov. 6, 2024, although it’s possible it may get delayed again.

Both sides asked the court for a new trial date, and prosecutor­s’ request was prompted by a recent seizure of Cothren’s cell phone as part of a separate, but somehow related, cyberstalk­ing investigat­ion.

The government expects it will find informatio­n relevant to the corruption case when a filter team searches Cothren’s phone, which prosecutor­s will then have to enter into evidence and share with the defense, a process they expect to take weeks if not months.

Prosecutor­s allege Cothren set up a shadowy consulting firm to exploit the lucrative campaign mailer business while Casada whipped up business among lawmakers.

Former Knoxville lawmaker fined for misusing campaign funds

Former Rep. Rick Staples, the Knoxville Democrat who violated the General Assembly’s sexual harassment policy and stepped down from his position as House minority leader in 2019, was hit with a $26,640 civil penalty for using campaign funds for personal use.

The Tennessee Registry of Election Finance filed the complaint against Staples in Davidson County Chancery Court on Feb. 1.

The registry said it found approximat­ely 80 unallowabl­e expenditur­es totaling $11,816 from Staples’ campaign account when auditing his campaign finance disclosure report from the fourth quarter of 2019.

According to the registry, Staples admitted the expenditur­es were unallowabl­e and after months of appeals agreed to pay $500 monthly until the penalty was fully paid, but he hasn’t yet done so.

Staples won the election to represent District 15 in the Tennessee House of Representa­tives in 2016 and was reelected in 2018. He was defeated in the Democratic primary in 2020.

Got a question for us?

Got a question about state politics you would like us to tackle? Let us know. Email us at mabrown@tennessean .com, vjones@tennessean.com or statehouse@tennessean.com.

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