Tennessee’s hemp industry faces significant changes after Governor Bill Lee signed House Bill 1376 on May 21, 2023. This new legislation, effective starting in 2026, bans products containing tetrahydrocannabinolic acid (THCA) and synthetic cannabinoids. Additionally, it prohibits the direct-to-consumer sales of hemp-derived cannabinoid products (HDCPs) and shifts regulatory oversight from the Department of Agriculture to the Alcoholic Beverage Commission (ABC).
Under this regulatory structure, HDCP sales will be restricted to establishments that allow entry only to individuals aged 21 and older or are licensed by the ABC. Convenience and grocery stores will no longer be permitted to sell these products. The law also enforces strict regulations for wholesalers and manufacturers of HDCPs.
Senator Richard Briggs, a Republican from Knoxville and the bill’s Senate sponsor, emphasized that the intent of the legislation is to regulate HDCPs similarly to alcohol, aiming to address public health and safety concerns. He described the current situation in Tennessee as akin to an unregulated market, stating, “It’s the wild west out there.”
However, the U.S. Hemp Roundtable (USHR) criticized the bill, labeling it as “hemp-killing” legislation that favors the alcohol industry while limiting opportunities for farmers and small businesses. The USHR also argued that the law would restrict access to wellness products that many Tennesseans have come to rely on, especially in the absence of a medical cannabis program in the state.
The Tennessee Growers Coalition, advocating for local hemp farmers, echoed these concerns, suggesting that the legislation is driven by the liquor industry’s desire to recover lost revenue due to the popularity of legal hemp products. They claimed that this move is not about consumer protection but rather an attempt to profit off the hemp industry at the expense of local businesses.
Briggs addressed concerns over THCA, which, when heated, converts to tetrahydrocannabinol (THC), the psychoactive compound in cannabis. While THCA is not intoxicating in its natural state, it represents a business opportunity for hemp producers, especially in states with stricter cannabis laws.
The senator mentioned that he and other lawmakers had sought clarification from the U.S. Department of Justice (DOJ) regarding the federal classification of THCA under the Controlled Substances Act. Legal experts outside Tennessee have expressed differing opinions about how THCA fits into the 2018 Farm Bill framework, which defines hemp based on a THC content threshold.
Dr. Terrence L. Boos from the Drug Enforcement Administration (DEA) stated in a letter that THCA should be considered in the THC content analysis for determining if a product qualifies as hemp. This interpretation conflicts with the views of some legal experts who argue that the Farm Bill does not account for THCA in finished products.
State Senator Kerry Roberts raised concerns that H.B. 1376 would adversely impact farmers in rural areas, questioning why the bill deviates from the federal hemp definition.
Senator Page Walley expressed discomfort with the legislative changes, noting that clear definitions for hemp-derived products like THCA had already been established just months prior. He criticized the alteration of rules, stating that it undermines the trust of farmers and businesses who had followed previous guidelines.
As the landscape for hemp and cannabinoid regulations shifts in Tennessee, industry stakeholders are left grappling with the implications of this new law and its potential impact on the future of hemp production and sales in the state.
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