Tennessee Hemp Law 2026: THCa Ban, Kratom Ban, and What Changes July 1

Tennessee's 2026 legislative session reshaped the regulatory landscape for hemp businesses across the state. A THCa ban, a full Kratom ban, nitrous oxide ban, a new vape cartridge tax, and a medical cannabis program deferred to summer study all came out of this session. Several of these changes take effect July 1, 2026, and businesses that aren't ready will face enforcement immediately.

With federal rescheduling discussions ongoing and more than 40 states operating medical cannabis programs, Tennessee's legislature took several actions this session to define what state-level cannabis policy will and won't look like. Here's what passed, what didn't, and what hemp businesses should be doing about it.

Key July 1, 2026 deadlines at a glance:

• TDA legacy hemp licenses expire at 11:59 PM on June 30

• TABC enforcement begins under the new regulatory framework

• THCa products (those that convert to delta-9 THC above the legal threshold when heated) become non-compliant

• Kratom becomes a criminal offense to possess or sell

• Nitrous oxide products face new restrictions

• The vape cartridge tax takes effect (pending signature confirmation)

What Does Tennessee's Federal Rescheduling Guardrail Mean for Hemp?

Public Chapter 789 (SB1603 / HB1972) — Signed by Governor Lee on April 23, 2026. Effective immediately.

If cannabis moves from Schedule I to Schedule III at the federal level, does that automatically change its status under Tennessee state law? As of April 23, the answer is no.

PC 789 amends T.C.A. § 39-17-403(d) to prevent the Commissioner of Mental Health and Substance Abuse Services from rescheduling or removing marijuana as a controlled substance under state law, even if the federal government does so first. The Commissioner cannot act unless the General Assembly has first established a regulatory framework and authorized the change.

Before this bill, a federal rescheduling could have triggered automatic changes at the state level through the Commissioner's existing authority. That door is now closed.

PC 789 was a response to the possibility that federal rescheduling could trigger automatic state-level changes. Even if the DEA finalizes a federal rescheduling down the road, PC 789 ensures it won't cascade into Tennessee without the legislature weighing in first. Tennessee's regulatory landscape for cannabis won't shift overnight based on federal action.

Litson Government Relations tracked this bill through the legislative process. LGR Director Kelley Hess, who brings 18 years of Tennessee legislative experience and long-standing relationships across the General Assembly, monitored the bill as it evolved through committee and kept clients informed as the amendment narrowed it to its final enacted form.

Sponsors: Senators Haile, Gardenhire, and Yager; Representatives Farmer, Lamberth, and Sparks.

Is Kratom Banned in Tennessee?

HB1649 / SB1656 ("Matthew Davenport's Law") — Passed both chambers; awaiting governor's signature as of April 30, 2026. Effective July 1, 2026.

Yes. Starting July 1, the current framework that allows sale of Kratom in its natural, labeled form goes away entirely. In its place:

• Possession of Kratom becomes a Class A misdemeanor.

• Manufacturing, delivering, selling, or possessing with intent to do so becomes a Class C felony.

• Any of the above involving a minor (from an adult at least two years older who knows the buyer is a minor) becomes a Class B felony.

The bill defines Kratom broadly. It covers any part of the mitragyna speciosa plant (the tropical tree whose leaves produce the alkaloids mitragynine and 7-hydroxymitragynine), plus any extract, any synthetic or biosynthetic equivalent, and any derivative, analog, or preparation.

The bill also requires county medical examiners to test for Kratom in suspected drug overdose autopsies. Physicians must include Kratom in toxicology testing for suspected overdoses and neonatal abstinence syndrome. The Department of Labor and Workforce Development must add Kratom to its definition of a drug for workplace testing.

This bill had significant opposition, and Litson Government Relations was engaged in the fight to keep botanical Kratom allowable and legal in Tennessee. Kelley Hess coordinated and tracked advocacy efforts and brought Clint Palmer down to meet one-on-one with Representative Esther Helton-Haynes to educate on the distinction between natural botanical products and synthetic compounds.

For businesses currently selling Kratom products, the July 1 effective date means inventory decisions need to happen now.

What Is the New Tennessee Vape Cartridge Tax?

HB2172 / SB2295 (Williams Vape Tax Amendment) — Enrolled and awaiting signatures as of April 29, 2026. Effective July 1, 2026, if signed.

This bill adds a 10% tax on the wholesale cost of inhalable hemp-derived cannabinoid products (HDCPs) in cartridge form. This is on top of the existing $4.40-per-gallon wholesale tax that already applies to liquid HDCPs.

For retailers and distributors handling vape cartridges, this means higher wholesale costs that will likely flow through to shelf prices. Plan accordingly in your purchasing and pricing for Q3.

Does Tennessee Have a Medical Cannabis Program?

SB0459 / HB0390 — Deferred to summer study.

Not yet. The most-watched bills of the session, which would have established a comprehensive medical cannabis program for Tennessee, did not advance to a floor vote. SB 459 was deferred to summer study on March 25, 2026. Federal rescheduling movement and action from more than 40 states with medical cannabis programs have added urgency to the conversation, even though the legislation didn't cross the finish line this session.

The proposed framework outlined a full-scale program: lottery-based licensing for cultivators, processors, dispensaries, and testing laboratories; a medical cannabis commission; reciprocity with approved states including Arkansas, Missouri, Ohio, and Utah; seed-to-sale tracking; and a qualifying conditions framework.

Representative Jason Powell has publicly called for a special session to address medical cannabis. Whether that materializes remains to be seen.

Hemp Law Group and Litson Government Relations have been engaged on medical cannabis in Tennessee for over a decade. HLG Compliance Director Clint Palmer was involved with the first GOP medical cannabis bill introduced with Representative Faison in 2016. The group's work, backed by Litson PLLC, has tracked the issue through every subsequent session, from early legislative efforts to the 2024 THCa injunction to the current summer study.

On the government relations side, Kelley Hess has been in the room for every committee hearing, every amendment, and every version of this legislation, blending direct legislative advocacy with strategic litigation coordination alongside Litson's legal team.

For businesses interested in positioning for a future medical cannabis market, the summer study will be worth watching closely. The framework under discussion would create an entirely new licensing and compliance structure, and having representation in that process matters.

What Changed About the Medical Cannabis Commission?

SB550 / HB2404 — Signed by Governor Lee on April 27, 2026.

This bill amends T.C.A. § 68-7-103(a)(1) to change the composition of appointments the Speaker of the Senate makes to the medical cannabis commission. Under the revised statute, the Speaker appoints three members: one physician, one pharmacist, and one specialist in the area of substance abuse prevention. The substance abuse prevention appointee must be selected from a list of three names submitted by the Prevention Alliance of Tennessee.

For hemp and cannabis businesses watching the medical cannabis commission, this is a meaningful structural change. The commission's composition shapes how any future medical cannabis framework gets evaluated and recommended in Tennessee.

What Should Tennessee Hemp Businesses Do Before July 1?

Multiple threads from this session converge on the same date: July 1, 2026. This is a regulatory transition point, and Tennessee regulators have shown they are willing to enforce.

The time to audit your product lines, clear non-compliant inventory, and confirm your licensing status is now, in May and June, while there's still room to make adjustments.

How a Tennessee Cannabis Attorney and Hemp Lobbyist Can Help

Hemp Law Group provides compliance oversight and legal defense for hemp businesses under a flat monthly subscription. The group's compliance side is led by Clint Palmer, a Murfreesboro-area native with more than 15 years in hemp across legislative testimony, university research, and industry advocacy — including work on the 2024 THCa injunction that protected Tennessee growers and retailers. HLG's attorneys handle the legal defense side, from regulatory matters to enforcement response.

Whether you need to understand how these new laws affect your specific product line, confirm your licensing transition from TDA to TABC, or prepare for the July 1 enforcement date, the subscription covers it.

Tennessee Hemp Lobbying & Government Relations

Litson Government Relations is the premier Tennessee lobbying and government affairs firm for hemp businesses. LGR actively runs, supports, opposes, and tracks legislation affecting hemp businesses in the Tennessee General Assembly. Director Kelley Hess is a 7th-generation Tennessean with 18 years of Tennessee legislative experience, a Master of Public Administration from Tennessee State University, and deep roots and relationships in the Tennessee General Assembly. Her track record for the Tennessee hemp industry includes securing the passage of numerous pieces of legislation to support and strengthen the industry, partnering with Litson's litigation team to obtain a legal injunction against the Tennessee Department of Agriculture, and mobilizing over 19,000 public comments during rulemaking. If you want a voice in the process and the most up-to-date information on policies that affect your business before they become law, contact LGR.

‍^{Hemp Law Group and Litson Government Relations are divisions of Litson PLLC. This article is for informational purposes only and does not constitute legal advice. Hemp regulations vary by state and change frequently. Consult with a qualified attorney for guidance specific to your situation.}