Hemp-Derived Cannabinoids
Notice to Customers
The Tennessee Department of Agriculture (TDA) is committed to providing clarity and transparency as regulation of hemp-derived cannabinoid (HDC) products transitions from TDA to the Tennessee Alcoholic Beverage Commission (TABC).
Under Public Chapter 526, regulatory oversight of HDC products will transfer from TDA to TABC January 1, 2026.
TDA understands that this impending change has raised questions among businesses and stakeholders regarding applicable testing and other regulatory requirements during the interim. At the same time, TDA’s rules governing manufacture, labeling, testing, inspection, recordkeeping, and sale of HDC products—which would otherwise remain in effect through the end of 2025—are currently temporarily enjoined by order of the Davidson County Chancery Court.
Due to the variety and complexity of HDC products available in the marketplace, the Court’s injunction for some—but not all—of the testing requirements and for some—but not all—of the products, cannot be clearly upheld for the public or for industry. Therefore, TDA has been unable to use the rules as a clear standard. The effect has been confusion in the marketplace and difficulty for industry in determining which products fall under TDA’s current authority and what testing standards, if any, are applicable now and into the future.
Rather than maintaining these currently unenforceable rules, TDA is repealing its rules to alleviate confusion, restore clarity for consumers and industry, and return the marketplace to the true, pre-injunction status quo. This approach aligns with the Court’s aim in issuing the temporary injunction, while also honoring the TABC’s imminent role in drafting and enforcing new regulations.
Importantly, the repeal will not include the portions of the rules specifying scope and licensing of HDC retailers and suppliers in Tennessee. In accordance with Public Chapter 526, TDA will continue to process and issue licenses for HDC retailers and suppliers through at least December 31, 2025.
Therefore, TDA’s licensing requirements for HDC retailers and suppliers remain unchanged under T.C.A. § 43-27-205 and Tenn. Comp. R. & Regs. 0080-10-02-.03 and 0080-10-03-.03.
Notice of the repeal and its effective date are provided on the Tennessee Secretary of State’s website.
TDA is proud of the work that has gone into building a regulatory foundation for this industry and is encouraged that many of the key regulatory principles originally adopted by TDA have been carried forward in the new statute for regulation of the industry. We look forward to a smooth transition to TABC and remain committed to supporting a framework that provides clarity, consistency, and consumer confidence.
On September 27, 2024, the Tennessee Department of Agriculture promulgated and filed permanent rules for hemp producers and retailers and suppliers of hemp-derived cannabinoid (HDC) products. These permanent rules became effective on December 26, 2024, and can be viewed here.
Licensing information, including the digital application form, is available here.
Questions can be emailed to hdc.inspection@tn.gov.