Tennessee’s Hemp Law Has Changed. Here’s What It Means for You.

If you grow, make, or sell hemp products in Tennessee, the rules are shifting fast. A new state law signed in April 2025 creates an entirely new licensing, testing, and enforcement framework for hemp-derived cannabinoid products (HDCPs). This is a major departure from the USDA-focused system we’ve been working under since 2022.

Let’s walk through what’s changed and what stays the same, so we’re all on the same page and ready to move forward.

What the USDA Final Rule Required (Starting 2022)

We all adjusted to federal compliance when Tennessee adopted the USDA’s Final Rule on hemp. That system focused on:

• 0.3% total THC limit (including THCA).
• Growers becoming "producers" under USDA definitions.
• State-level sampling by the Department of Agriculture.
• Criminal background checks, lot-by-lot testing, and mandatory reporting.
• A 30-day pre-harvest testing window.
• Negligence threshold raised to 1.0% THC.
• Optional alternative disposal and remediation methods.

It was detailed and restrictive, but familiar. It gave us a roadmap for growing hemp legally. Now the state is moving in a new direction.

What’s Changing Under Tennessee’s New Law (Effective Jan 1, 2026)

The new law goes far beyond farming. It’s built around retail, manufacturing, licensing, and taxation — and it treats HDCPs more like alcohol or tobacco products.

Here are the big changes:

• Licenses are mandatory for suppliers, wholesalers, and retailers. No one can legally sell or manufacture HDCPs without one.
• Age restrictions apply. Sales are limited to customers 21 and up. Proof of age is required.
• Products are regulated by format — including flower, vapes, edibles, tinctures, beverages, and topicals.
• Retail rules are strict. Sales must happen in licensed storefronts. No vending machines. No shipping direct to consumers.
• Taxes now apply. There’s a new wholesale tax of 2 cents per milligram of cannabinoids, or flat fees for flower and liquids.
• Labeling and packaging rules are extensive. Testing is required for every batch, and results must be traceable via QR code.
• Delivery and online sales are banned. All purchases must be face-to-face, in person, and at a licensed location.
• THC limits stay at 0.3% total, but enforcement and penalties are sharper.
• HDCPs with THCp or synthetic cannabinoids are prohibited.

The Alcoholic Beverage Commission will now take the lead on inspections and enforcement.

What This Means for Hemp Businesses

This isn’t just an update. It’s a restructuring of how hemp-derived products are treated under the law.

We’re moving from a farm-centric model to a fully licensed, retail-regulated market. If you plan to keep growing, manufacturing, or selling, you’ll need to understand the new requirements and get licensed accordingly.

The good news? There’s time. The new law won’t fully take effect until January 1, 2026. But now is the time to prepare — especially if your current business model relies on direct-to-consumer sales, unlicensed wholesale, or cannabinoid formats that fall under new restrictions.

We’re Here to Help You Navigate It

This is a big shift, but you’re not in it alone. At Hemp Law Group, we’re tracking every step of this transition. Whether you need licensing support, compliance reviews, or help restructuring your operations, we’ve got your back.

We’ll keep you updated, and we’re always just a call or email away.

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