Tennessee's hemp industry is facing major regulatory upheaval after Governor Bill Lee signed a bill on May 21 that will significantly restrict the production and sale of hemp-derived cannabinoid products beginning in 2026.
The legislation, House Bill 1376, bans products containing THCA and synthetic cannabinoids while also outlawing direct-to-consumer sales. It also transfers regulatory oversight of hemp-derived cannabinoid products (HDCPs) from the state Department of Agriculture to the Tennessee Alcoholic Beverage Commission (ABC). The bill passed the House 69-21 on April 10 and passed the Senate 23-9 on April 17.
The new law will prohibit sales of HDCPs in convenience stores and grocery stores, limiting them to retailers that restrict entry to those 21 and older or are licensed by the ABC. The hemp must be consumed on site. The legislation also introduces comprehensive regulations for HDCP manufacturers and wholesalers.
State Senator Richard Briggs, R-Knoxville, who sponsored the Senate version of the bill, described the intent as aligning the regulation of HDCPs with the framework used for alcohol sales. "We have a situation here in Tennessee where we essentially are dealing with unregulated recreational marijuana with no regulation," he said. "It's the wild west out there."
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