Effective January 1, 2026, new restrictions on hemp/cannabis will be in place in Tennessee. These new legal provisions take the form of statutes and operating rules adopted by the Alcoholic Beverage Commission (ABC). The provisions govern production, use, sale, transfer, storage, transportation, taxes and fees, age restrictions, licensure requirements and set penalties.
The traffic safety community welcomes most of the new laws as they should contribute to safer roads.
Due to difficulty in enforcing hemp derived cannabis rules previously in effect, some observer’s concluded that Tennessee allowed barely regulated recreational cannabis. No more. There has been a complete overhaul of the law governing hemp products which are available in the state.
Hemp and marijuana are the same species of cannabis plant. Hemp is arbitrarily defined as cannabis that contains .3% or less of tetrahydrocannabinol (THC) by dry weight. Whereas marijuana comprises THC at concentrations exceeding 0.3% by dry weight.
When Tennessee established initial protocols for hemp use it was not fully understood by policymakers that when THC acid (THCa) was burned/smoked that it would convert to high levels of THC. So, THCa, an acidic precursor to THC was not specifically regulated in Tennessee. This led to an abundance of THCa laced products on the Tennessee market. In 2023, Tennessee tightened control of hemp derived cannabis. However, experience thereafter showed that the on-going effort to balance the protection of the public health with the cannabis business was failing.
Regulators with the Tennessee Department of Agriculture attempted to close the space with a rule change which resulted in a lawsuit brought by the hemp industry. A judge enjoined that rule on the grounds that it was beyond the scope of the enabling legislation.
The new law will ban the sale of products with a .3% or higher dry weight volume of cannabinoids including THCa. This will make many of the products which are legal now illegal. Those products which continue to be available on January 1, 2026, whether smokable or edible, will be fewer and will contain lesser amounts of impairing THC. Items with very low THC concentrations, like lotions, will probably remain available.
Other significant changes to the law include:
the prohibition of on-line sales;
regulation by the ABC, not the Department of Agriculture;
only licensed retailers may sell;
measures for testing adopted;
additional fees and taxes for wholesalers and retailers;
rules for retail display;
additional penalties;
only persons age 21 years and older may purchase hemp products as with alcohol and tobacco;
restrictions on packaging and quantity.
Unfortunately, for highway safety purposes, the new statute allows businesses holding an on-premises alcoholic beverage license to sell hemp derived cannabis products for consumption on site. These products will be, in theory, subject to ABC regulations as to dosage limits per individual serving. Oh my!
Note: At press time the State has agreed to push back the effective date of certain rules from January 1, 2026, until July 1, 2026, in part, because of recent actions by the United States Congress and the President which may redefine hemp under federal law. Stay tuned.
