News Summary
Tennessee lawmakers have approved new regulations on hemp-derived products, transferring oversight to the Alcoholic Beverage Commission. The law, effective in 2026, bans products containing THCA and synthetic cannabinoids, limiting sales to those over 21. This change raises concerns about the hemp industry’s future and consumer accessibility. Advocates support the regulations for public health, while critics argue they benefit the alcohol industry and could hinder market competition. Retailers predict significant sales impacts, potentially raising prices for consumers.
Tennessee lawmakers recently approved stricter regulations on hemp-derived products, following legislation signed by Governor Bill Lee on May 21, 2025. The new regulations are set to take effect on January 1, 2026, and represent a significant shift in how hemp-related products are managed within the state.
House Bill 1376, which was passed by state legislators, includes a ban on products containing THCA (tetrahydrocannabinolic acid) and synthetic cannabinoids. Additionally, the bill will shift oversight of hemp-derived products from the Agriculture Department to the Alcoholic Beverage Commission (ABC). This change is expected to impact the sale and distribution of these products throughout Tennessee.
Under the new law, the sale of hemp-derived cannabinoid products (HDCP) will only be permitted at businesses that restrict entry to individuals aged 21 and older, similar to liquor stores. This restriction will eliminate sales in convenience stores and grocery stores, potentially reducing accessibility for many consumers.
The legislation additionally establishes a rigorous framework for the regulation of HDCP wholesalers and manufacturers. Proponents of the bill argue that these measures are necessary for ensuring public health and safety, advocating for regulations akin to those governing alcohol sales.
While supporters hail the new regulations as a protective measure, critics express concern over the legislation’s implications for the hemp industry. The U.S. Hemp Roundtable condemned the bill, calling it “hemp-killing” and issuing claims that it could grant the alcohol industry a monopoly on hemp-derived products, ultimately limiting access to wellness products for residents of Tennessee. Moreover, the Tennessee Growers Coalition raised alarms that the new regulations primarily serve the interests of the alcohol industry rather than prioritizing consumer safety.
The regulations focus heavily on THCA, noting its illegal conversion to THC when heated. This issue has created legal ambiguity since THCA is excluded from the federal definition of hemp established under the 2018 Farm Bill. The laws further specify that any products containing 0.3% or higher by weight of cannabinoids such as THCA, THCv, Delta-8, and Delta-10 will be banned.
Additionally, the new regulations will change the taxation model for these products. The state will implement a shift from excise taxes to wholesale taxes, with varying tax rates: vapes and edibles will incur a tax of 2 cents per milligram; drink products will be taxed at 10 cents per milligram, while flower sales are set at $50 per ounce.
Retailers project that the new law might impact 30% to 70% of their sales, raising concerns that consumers may face higher prices as a result. Currently, Tennessee’s hemp industry generates an estimated $200 million to $360 million annually, contributing significantly to the state’s economy.
Although a lawsuit regarding previous regulatory changes from 2023 is still pending, it is not anticipated to hinder the passage of House Bill 1376. Governor Lee has historically refrained from vetoing bills passed by both chambers and is expected to officially enact this legislation.
If effectively implemented, the new law could radically transform the landscape of hemp-derived product accessibility and sales in Tennessee, altering both the market for retailers and the options available to consumers beginning in 2026.
Deeper Dive: News & Info About This Topic
- AOL News
- Wikipedia: Hemp
- Cannabis Business Times
- Google Search: Tennessee hemp regulations
- The Tennessean
- Encyclopedia Britannica: Cannabinoid
- Tennessee Lookout
- Google News: Tennessee hemp industry regulations
- Nashville Scene
Author: STAFF HERE CHATTANOOGA WRITER
The CHATTANOOGA STAFF WRITER represents the experienced team at HEREChattanooga.com, your go-to source for actionable local news and information in Chattanooga, Hamilton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Riverbend Festival, Chattanooga Oktoberfest, and Moon River Festival. Our coverage extends to key organizations like the Chattanooga Area Chamber of Commerce and United Way of Greater Chattanooga, plus leading businesses in manufacturing, insurance, and utilities that power the local economy such as Volkswagen Chattanooga, BlueCross BlueShield of Tennessee, and EPB. As part of the broader HERE network, including HEREBristol.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
