Tennessee’s hemp sector will be dealt a serious blow in 2026, after the Governor signed legislation. Bill Lee, on the 21st of May signed legislation that will not only ban products containing THCA or synthetic cannabinoids, but also prevent direct sales to consumers.
It is important to understand the law. House Bill 1376The Tennessee Alcoholic Beverage Commission now has the authority to regulate hemp-derived products that contain cannabinoids.
The new regulation will ban the sale of hemp-derived cannabinoid products (HDCPs) in grocery and convenience stores. Instead, they’ll be limited to those establishments which limit access to people over 21 or who are ABC licensed. New law establishes high-quality regulatory standards for HDCP manufacturers and wholesalers.
Last month, Sen. Richard Briggs (R-Knoxville), who is the sponsor of the Senate version, stated that the intention of the bill was to regulate HDCPs as alcohol for the sake of public safety and health.
He explained: “Here in Tennessee we have an unregulated recreational cannabis market with no regulations.” It’s like the Wild West out there.
USHR opposes the proposed bill Call us today to learn more about our services. H.B. H.B. 1376, the “hemp killing” law that gives alcohol companies a monopoly over beverages with cannabinoids and reduces opportunities for small business owners and farmers.
Moreover, USHR claims that the new legislation would restrict the access of Tennesseans to health products, which they have used in lieu of the legalization medical marijuana in Volunteer State.
Tennessee Growers Coalition advocates local hemp farmers. It also held the same position. They urged their supporters to convey to elected officials a message regarding H.B. It is the intent of H.B. 1376 to restrict online and flower sales as well as ban THCA.
This is also a desperate attempt by the alcohol industry to compensate for revenue losses due to the popularity of legal hemp products. It’s not to protect consumers, as proponents claim; this is about capitalizing the hemp industry in order offset alcohol sales losses and padding the pockets of bureaucrats off the backs hardworking Tennesseans.
Briggs said last month that opponents of his sponsored legislation were overly focused on tetrahydrocannabinolic acid (THCA), a precursor to THC: When nonintoxicating THCA is heated, or decarboxylated, it converts into intoxicating THC.
The THCA that was omitted by the Farm Bill 2018 in its federal definition of hemp represents a significant business opportunity for the hemp industry, particularly in states where cannabis laws are more restrictive.
THCA, for many in the cannabis industry that is highly regulated and taxes are a loophole through which their competitors can undercut them and their tested and licensed products.
Briggs explained that only a small portion of his presentation dealt with the THCA, the subject matter most likely to generate the majority of discussion.
The Senator and other leaders of the legislative branch sent a formal letter to U.S. Department of Justice asking for clarity on the government’s classification of THCA in the Controlled Substances Act.
Similar letters from legal experts in other states have received the same response.
Terrence L.Boos, Ph.D. chief of Drug and Chemical Evaluation Section, Drug Enforcement Administration’s (DEA) Diversion Control Division wrote in a 2024 May 13. The letter To Attorney Shane Pennington THCA should be taken into consideration when determining if a product meets the legal definition for hemp or cannabis.
“The ‘decarboxylation’ process converts delta-9 THCA to delta-9-THC. Boos’ letter stated that the delta-9-THC level is required to enforce the hemp definition. “Accordingly, cannabis-derived THCA does not meet the definition of hemp under the CSA, because upon conversion for identification purposes as required by Congress, it is equivalent to delta-9 THC.”
Some legal experts Consider a number of alternatives to the word “against” Boos’s interpretation of THCA doesn’t align with Farm Bill 2018, because it only covers hemp products that are tested in the fields, and not the finished goods. As long as a dried-weight test of a preharvest plant is less than 0.3% delta-9 THC, federal law allows derivatives to contain any amount THCA.
Similarly, the DEA determined that “all synthetically derived tetrahydrocannabinols,” such as delta-8 THC and THC-O, “remain Schedule I controlled substances” in the agency’s Interim Final Rule From August 2020
In May 2022 the U.S. Ninth Circuit Court of Appeals and in September 2024 the U.S. Fourth Circuit Court of Appeals are expected to rule. rejected The DEA’s Interpretation
Kerry Roberts (R-Springfield), Tennessee State Senator, stated last month that H.B. H.B. 1376, a bill that would harm farmers in rural districts of Tennessee. Kerry Roberts (R-Springfield) said last month:
Briggs, like many other states who have legalized cannabis for adult use, said that “this is a matter of state sovereignty and we can put it wherever we want.”
Sen. Page Walley (R-Savannah) said that it was “a bit disconcerting”, after his colleagues decided to change rules, having set up definitions of hemp-derived cannabis, like THCA, and delta-8 THC, for industry participants by July 2023.
“My concern isn’t about the content; it’s about the process … We went through a lot of this work over the last few years, and we told our farmers, we told our retailers, we told small business people, who are honest, that are paying rents on facilities, that these were the rules,” Walley said. Walley said, “Law-abiding Tennesseans have been trusted by us to do what they were told. Now we are moving the goalpost.