Controlled Substances - As introduced, decriminalizes the possession of less than one ounce of marijuana or less than five marijuana plants; authorizes municipalities and counties to impose civil penalties on the possession of marijuana in certain circumstances. - Amends TCA Title 16, Chapter 18, Part 3; Title 39, Chapter 17, Part 4 and Title 40.

HB 981 decriminalizes possession of less than one ounce (28.35 grams) of marijuana or up to five marijuana plants in Tennessee, removing criminal penalties for these amounts. It allows cities and counties to impose civil fines (up to $250 total) for public possession or casual exchange of these small amounts, calculated at $25 per 0.1 ounce or $50 per plant. The bill does not cover marijuana in other forms (like oils or concentrates) and maintains criminal penalties for selling or distributing marijuana. Local governments may set these fines through ordinances or resolutions, with the law taking effect July 1, 2025.