City Council

TOWN OF JONESBOROUGH VISITORS CENTER 117 Boone Street Jonesborough, TN 37659 BOARD OF MAYOR & ALDERMEN WORK SESSION NOVEMBER 25, 2025 6:00 PM – 8:00 PM AGENDA 1. Call to Order 2. Opening Prayer 3. Pledge to the Flag 4. Roll Call 5. Work Session for Discussion on an Ordinance to Amend Title 2 of the Municipal Code Regulating Alcoholic Beverages and Hemp Derived Cannabinoid Products and Amending Title 11 of the Municipal Code to Establish a Hemp Derived Cannabinoid Manufactory and Retail Store Overlay District. 6. Adjournment  TOWN OF JONESBOROUGH BOARD OF MAYOR AND ALDERMEN WORK SESSION - AGENDA PRESENTATION DATE: November 25, 2025 WORK SESSION AGENDA ITEM #: 5 SUBJECT: Work Session Discussion on an Ordinance to Amend the Municipal Code Regulating Alcoholic Beverages and Hemp Derived Cannabinoid Products BACKGROUND: The proposed ordinance amends two different Titles of Jonesborough’s Municipal Code, including (1) An Ordinance to Amend Title 2 of the Municipal Code of the Town of Jonesborough, Tennessee, Regulating Alcoholic Beverages and Hemp Derived Cannabinoid Products; and (2) Amending Title 11 of the Jonesborough’s Municipal Code, of the Town of Jonesborough, Tennessee, to Establish a Hemp Derived Cannabinoid Manufactory and Retail Store Overlay District. The subject of HDC, or Hemp-Derived Cannabinoids has been a subject matter of discussion for many Tennessee local governments, including the Town of Jonesborough. The Tennessee Municipal League (TML) longstanding Tennessee Town and City publication recently published “TABC outlines hemp law changes for city leaders”. Following the Tennessee General Assembly’s overhaul of the state’s hemp regulations, officials are working to familiarize local leaders and law enforcement agencies in advance of the new law taking effect. Russell F. Thomas, Executive Director of the Tennessee Alcoholic Beverage Commission (TABC), explained how the new law, Public Chapter 526, will impact the sale and distribution of hemp-derived cannabinoid (HDC) products, as well as well as new rules for licensing, regulation, and enforcement at TML’s 85th Annual Conference in Chattanooga. Thomas that, “If your city has questions or headaches about these products showing up in your local stores, you are not alone.” “We in Tennessee over the past few years have been through a patchwork of laws, definitions, new products coming up every day, and enforcement gaps. I am here to tell you today that the landscape is changing in Tennessee.” The full article is provided as part of the agenda packet for informational purposes. In collaboration with our Town Attorney Jim Wheeler and Mr. Matthew Musgrove, an attorney in Mr. Wheelers office, their office has been working on drafting an ordinance to address Hemp- Derived Cannabinoid products. I had asked Mr. Musgrove to provide some background and context related to the draft version of the proposed ordinance, which is provided below: From a scientific viewpoint, hemp and marijuana are both varieties of the plant species Cannabis sativa L. (the “L.” referring to Carl Linnaeus), and differ not by species but by chemical composition (primarily the concentration of Δ-9 tetrahydrocannabinol, or Δ-9 THC). Under U.S. federal law (via the 2018 Farm Bill), hemp is defined as any part of that plant—including its seeds, extracts, cannabinoids, isomers, acids, salts, and salts of isomers—with a Δ-9 THC concentration of not more than 0.3 percent on a dry weight basis. In practice, plants (or derivatives) that exceed the 0.3 % Δ-9 THC threshold do not qualify as “hemp” and are subject to different regulation under laws governing cannabis/marijuana. Δ-9 THC is the primary psychoactive compound in cannabis, responsible for the “high” feeling by binding to CB1 receptors in the brain and nervous system. Also, the “Δ-9” designation refers to the location of the double bond in the THC molecule (between carbon 9–10). From a legal perspective in Tennessee, the state has established a licensing system for hemp- derived cannabinoid (HDC) products under the Tennessee Department of Agriculture (TDA). Regulation of those products will shift to the Tennessee Alcoholic Beverage Commission (TABC) effective January 1, 2026, under Public Chapter 526 (2025). Existing TDA-issued licenses that extend past that date remain valid until their individual expiration. The purpose of the draft ordinance regarding HDC is to promote the safety and general welfare of the public and to place restrictions, as allowed by Tennessee Statutes, on the location of said businesses. This ordinance authorizes the Town of Jonesborough to protect the public health, safety, and welfare of town residents by regulating HDC businesses within the corporate limits of Jonesborough. Jonesborough finds and concludes that the proposed provisions are appropriate and lawful land use regulations for the Town of Jonesborough, that the proposed amendments will promote the community's interest in reasonable stability in zoning for now and in the future, and that the proposed provisions are in the public interest and for the public good. The draft HDC ordinance mirrors both Tennessee state law/regulations and integrates with the existing provisions of the Jonesborough Municipal Code. You may recall that under state law, there is a local option (TCA 57-3-208) for municipalities to require a certificate of compliance before the issuance of State licenses. At present, there is not a similar option afforded for HDC. Since one of the two proposed ordinances is zoning related, “Hemp Derived Cannabinoid Manufactory and Retail Store Overlay District”, the Jonesborough Planning Commission will need to review and make a recommendation on this proposed ordinance to the Board of Mayor and Aldermen (BMA) prior to second and final reading by the BMA. Further, a public hearing is required to be held prior to second and final reading by the BMA.