Information Release: TABC Reminds Hemp Businesses of Current Regulations and Addresses Upcoming Changes
Effective May 21, 2025, House Bill 1376 was enacted as Public Chapter 526.
Pursuant to this legislation, regulatory oversight of the hemp-derived cannabinoid (HDC) product industry will transition from the Tennessee Department of Agriculture to the Tennessee Alcoholic Beverage Commission (TABC) on January 1, 2026. Until that date, the Department of Agriculture will retain jurisdiction over the manufacture and retail sale of HDC products. The Department will continue to regulate hemp cultivation and agricultural production beyond the transition date. During this transition time, the TABC reminds businesses of the current regulations they must continue to follow prior to January 1, 2026. Failure to follow these laws could result in civil and criminal penalties.
Current Key Legal Requirements for HDC Products
Current regulations that will remain in statute include but are not limited to the following:
- Manufacturing must be conducted by a licensed HDC supplier.
- Laboratory testing must be performed by a third-party laboratory registered with the state, verifying compliance with thresholds for THC content, heavy metals, residual solvents, pesticides, and other potential contaminants.
- Labeling must include an ingredient list, batch number, mandatory warning statements, and a QR code linking to a valid Certificate of Analysis (COA).
- Retail sales may only be conducted by licensed retailers, and only to individuals aged 21 and over.
Effective January 1, 2026:
Key Regulatory Changes Under Public Chapter 526 (Effective 2026):
The above-listed requirements remain in effect and additional regulations include but are not limited to the following:
- Separate licensing will be required for suppliers, wholesalers, and retailers of HDC products.
- Retail sales of HDCs will be limited to:
- Businesses holding a TABC retail package store license and a hemp retail license;
- Businesses holding a TABC on-premises consumption license and a hemp retail license; and
- Other establishments that restrict entry to persons 21 years of age or older and hold a hemp retail license.
- Establishments that hold a valid supplier or wholesaler hemp license and obtain a retail license for the same location, provided all statutory and regulatory conditions are met.
- Suppliers must ensure that all products do not exceed a total THC concentration of 0.3% on a dry weight basis, calculated as:
Total THC = [Δ9-THC] + (0.877 × [THCa])
- Several products currently found in the market will be prohibited including but not limited to the following:
- Products containing Tetrahydrocannabinolic acid (THCa) in a concentration exceeding 0.3% on a dry weight basis; or
- Products containing Tetrahydrocannabiphorol (THCp) in any amount.
- Products that do not meet labeling requirements which include an ingredient list, batch number, mandatory warning statements, and a QR code linking to a valid Certificate of Analysis (COA).
The full text of the new law can be found at this link.
The TABC intends to promulgate rules that substantially align with the Department of Agriculture’s existing safety standards related to product testing and labeling. This will help ensure continuity in compliance and safety standards during the transition period. Licenses issued by the Department of Agriculture that expire after January 1, 2026, remain valid until their expiration date.
As Tennessee undertakes this regulatory transition, the TABC remains committed to implementing a fair, transparent, and public health-focused framework that supports compliance among regulated businesses and ensures the safety of consumers.