Tennessee’s Hemp Switchover to the TABC: Your Questions Answered

The Tennessee Alcoholic Beverage Commission (the TABC). For years the Department of Agriculture oversaw HDCP licensing. That oversight has moved to the TABC, which handles HDCP licensing and enforcement going forward. A second agency, the Tennessee Department of Revenue, runs the hemp brand registry and the wholesale tax (covered in its own section below).

July 1, 2026. The TABC was originally slated to take over at the start of 2026 and had been active under emergency rules since December 2025. An agreement between the TABC and industry stakeholders extended the transition by six months, so July 1, 2026 was when the permanent rules took full effect and a TABC license became the requirement to operate.

Department of Agriculture licenses issued before the end of 2025 remained valid through June 30, 2026, and have now expired. The Department of Agriculture no longer issues or renews HDCP licenses, so to operate you need a license from the TABC.

A handful of documents are worth knowing by name. 2025 Public Chapter 526 created Tennessee’s HDCP framework in Title 57, Chapter 7. 2026 Public Chapter 698 (SB1761) amended that framework, rewriting the HDCP supplier definition, setting the QR and certificate-of-analysis rules, lowering the warning-statement minimum to six-point font, and barring the Department of Agriculture from issuing or renewing HDCP licenses after its effective date. Rule Chapter 0100-15 (suppliers and wholesalers) and Chapter 0100-16 (retail sale) were filed as emergency rules on December 26, 2025, and a permanent rule package filed with the Secretary of State in March 2026 took effect in 2026. Where the statute and a rule conflict, the statute controls.

Yes. As of July 1, 2026, a license from the TABC is required to operate as an HDCP supplier, wholesaler, or retailer in Tennessee.

Yes. The move to the TABC applies to hemp-derived cannabinoid products. Hemp farming is regulated separately, and growing the crop stays under the Tennessee Department of Agriculture’s hemp producer program, which follows the federal Farm Bill and the USDA-approved state plan. The Department of Agriculture has confirmed its requirements for licensed hemp producers are unchanged. A grower who also makes, distributes, or sells finished HDCPs needs the matching TABC license for that activity.

Three. A supplier sells finished, packaged HDCPs to wholesalers. Manufacturers are also considered suppliers, along with out-of-state companies that contract for manufacturing and sell into Tennessee. A wholesaler distributes HDCPs to retailers. A retailer sells HDCPs to the public. A business that performs more than one role needs the license for each role.

Each hemp license application carries a non-refundable $500 application fee. The annual license fee then depends on the type: $1,000 for a retailer, $2,500 for a supplier, and $5,000 for a wholesaler (per warehouse location). Licenses run for one year and renew annually at the same fee, with an added fee for each additional location. A business that performs more than one role pays for each license it needs. Current figures: the TABC fee schedule.

Hemp license applications go through the TABC’s online licensing system, Mockingbird. The TABC’s applicant guides walk through the process for each license type: the Retail Applicant Guide and the Supplier and Wholesaler Applicant Guide. If an event also needs an associated LBD license, that application is submitted through the TABC’s RLPS system.

No. As of January 1, 2026, gas stations are no longer eligible for HDCP retail licenses in Tennessee.

Yes. The license is tied to the role. A business that both wholesales and retails, for example, needs the license for each function it performs.

Not necessarily. Tennessee allows a vertically integrated operation. A business can hold supplier, wholesaler, and retailer licenses for the same location, or hold a supplier and retailer license and contract with a licensed wholesaler to remit the wholesale tax and handle distribution. Under that exception, for the products that are manufactured on the supplier’s licensed premises and that are sold at retail on the same premises under a retailer license, if all requirements have been met, a supplier is not required to have the products that it manufactures and sells at retail on its licensed premises warehoused by the supplier’s contracted wholesale licensee. Each license’s activity still has to stay in a separately designated area at the location. (2025 Public Chapter 526, T.C.A. §§ 57-7-104, 57-7-106.)

Wholesaler applications carry extra requirements, including a security plan, an owner affidavit confirming the warehouse space, and proof of financial eligibility: documented access to at least $750,000, which an applicant can show through a bond, a line of credit, or financial statements. The $750,000 is a total you prove, so a surety bond only needs to cover the gap above your liquid funds. If your most recent bank statement shows $200,000, for example, a $550,000 bond covers the rest. The warehouse must be at least 1,000 square feet and dedicated to HDCPs.

The TABC has published a surety bond form on its Public Information and Forms page. A surety bond is one way a wholesaler applicant can show the financial eligibility the rules require.

The TABC publishes running lists of the HDCP businesses it has licensed so far, updated as it works through applications: licensed suppliers, licensed wholesalers, and licensed retailers. The TABC is still working through a large volume of applications, so a business that has applied but is not yet on a list may simply have its license pending. After July 1, 2026, new product has to come through a TABC-licensed wholesaler, so checking the wholesaler list is a useful step before you order.

No. Two agencies share Tennessee’s hemp program. The TABC handles HDCP licensing and enforcement. The Tennessee Department of Revenue runs a separate hemp brand registry and collects the wholesale tax on HDCPs. A supplier needs a TABC license to operate and a Department of Revenue brand registration for each product brand before that brand moves to a wholesaler.

A supplier must register each HDCP brand with the Department of Revenue, and pay an annual fee, before that brand can move into distribution. Under 2025 Public Chapter 526 (T.C.A. § 57-7-112), a supplier may not deliver an HDCP to a wholesaler for distribution in Tennessee unless the brand is registered, and a wholesaler or retailer may not order, accept, or offer for sale a brand that is not registered.

Registration is by product category. The Department of Revenue has said an HDCP brand registers by category, edibles, beverages, and inhalables, at $300 per category, rather than by individual SKU or strain. A brand that sells across all three registers in all three. The registration form reads more broadly, and Revenue’s written confirmation is still pending, so confirm how it applies to your catalog before you file.

$300 per brand, paid with the brand registration return, Form HDC 101. The fee renews each year.

Brand registration is annual and runs on the Department of Revenue’s own clock, separate from the TABC licensing transition. The first registration was due January 1, 2026, with renewals due January 1 each year after, so the registry obligation does not move with the July 1, 2026 licensing deadline. Either way, a brand cannot be delivered to a wholesaler for distribution until it is registered.

Two ways. The Department of Revenue encourages online filing through TNTAP: set up a “hemp supplier” account, then submit the registration return, the supporting documents, and payment electronically. A supplier can instead mail the paper return (Form HDC 101), the required documents, and a check payable to the Tennessee Department of Revenue to the Andrew Jackson State Office Building, 500 Deaderick Street, Nashville, TN 37242.

Each brand listed on Form HDC 101 needs its brand name, product type, the wholesaler authorized to distribute it, and the Tennessee counties where it is sold, along with four documents per brand: a copy of the registrant’s Tennessee supplier license (or, for an out-of-state registrant, a current valid permit to process or manufacture HDCPs issued by a state regulator); the front and back of the product label; a certificate of analysis from an accredited third-party laboratory certified by the TABC; and the original Tennessee wholesaler contract listing the exact brand name and each county where the wholesaler will distribute it.

According to the Department of Revenue, a supplier who has already mailed a completed return and check does not need to take further steps until the next brand registration is due, unless the Department reaches out for more information. To check on a mailed submission, the Department points suppliers to its Taxpayer Services Division at (615) 253-0600.

The Department of Revenue publishes a searchable Hemp Brand Directory on TNTAP listing the HDCP brands registered for distribution in Tennessee, with each product’s type, cannabinoids, authorized wholesalers, and counties. From the TNTAP home page, choose “View Approved Brands and Products Lists,” then “Hemp Brand Directory.” The Department’s Approved Brands page links to the same directory. It is a useful check for a wholesaler or retailer confirming that what they carry is registered.

A wholesale tax on HDCPs, paid monthly by the wholesaler on what it sold the prior month. Only businesses licensed by the TABC under Title 57, Chapter 7 are subject to it. A business still operating under a Department of Agriculture license is not, but once that license expires it falls under the TABC and the wholesale tax applies. The tax is set by product form: two cents per milligram of hemp-derived cannabinoid (based on the most recent lab results the supplier provides), $50 per ounce of hemp flower or plant parts, and $4.40 per gallon of liquid product (with a proportional amount for other container sizes). The older additional 6% retail sales tax on HDCPs was repealed effective January 1, 2026. Details are in the Department’s Important Notice 25-11.

Likely not, though the TABC’s guidance here is not definitive. The TABC has indicated it will work with applicants so that one temporary HDCP retail license can cover the same event held at the same location across multiple non-consecutive dates, which would mean one application, one $500 application fee, one $1,000 license fee, and one license for the date range. Apply as early as you can and tell the TABC’s staff up front that the event recurs, so you can confirm how yours will be handled.

No. The TABC’s written guidance says there is no requirement to “reverse-distribute” product purchased before July 1. Inventory bought on or before June 30, 2026 can stay on the shelf and sell after July 1, even if it did not come through a licensed wholesaler, as long as it is fully compliant with the rules and you can show proof of the purchase date on request. The relief covers how product moves; it does not change whether the product meets the standard. Non-compliant product, such as THCa flower, THCp, synthetic cannabinoids, or anything over 0.3% total THC, cannot stay on the shelf regardless of when it was bought. Any product bought after June 30 must come through a TABC-licensed wholesaler.

It depends on age restriction. A temporary event that is open to the public and not restricted by age qualifies for an HDCP retail license only under the provision that also requires an LBD license, and the only LBD licenses available to temporary events are the LBD Festival license and the Special Occasion license. A temporary event that controls the premises and restricts entry to attendees 21 and older can apply under a provision that requires no LBD license at all. For many operators, restricting the event to 21 and up is the cleaner route.

Total THC must remain at or under 0.3%. It is measured as total THC, not delta-9 alone, and the 0.3% figure includes THCa.

No. THCa flower is not legal to sell in Tennessee. Tennessee’s definitions exclude THCa above 0.3% by dry weight from what counts as a hemp-derived cannabinoid (T.C.A. § 57-7-102), and the legal limit is measured as total THC, which converts THCa into its delta-9 equivalent. Marketable THCa flower carries THCa far above that line, so it does not qualify as legal hemp. THCp and synthetic cannabinoids are excluded outright, at any level.

Flower can be sold at retail only if it tests at or under 0.3% total THC, the same total-THC standard that governs every HDCP, and flower or plant-part packages are capped at one-half ounce. THCp and synthetic cannabinoids are not permitted at any level, and high-THCa flower does not qualify because its THCa runs above the 0.3% line. The TABC has signaled that more guidance on flower, including items like pre-rolls, is expected.

A retail HDCP package can hold no more than 20 servings or 300 milligrams of hemp-derived cannabinoids in the aggregate, and the finished product must still test at or under 0.3% total THC. Hemp flower and plant parts are capped at one-half ounce per package, and an ingestible serving cannot exceed 15 milligrams.

The plus-or-minus 15% labeling tolerance applies only when a product is labeled before the wholesaler takes possession for compliance testing.

Rule 0100-15-.07 is the operative section. It prohibits imagery that appeals to minors, packaging that mimics commercial food, snack, candy, or beverage brands, government-style seals or insignia, and false or unsupported health claims. Every HDCP must carry a conspicuous warning statement in at least six-point font (the minimum set by 2026 Public Chapter 698), with the word “WARNING” in bold capital letters, and inhalable products require an additional lung-injury warning.

A single landing page can serve multiple products and batches, but the certificate of analysis for any given batch must be reachable within three navigational steps of that landing page, and no landing page can carry more than 150 links or options. The required information must stay publicly accessible for the longer of 12 months after a product is no longer offered for sale in Tennessee or 90 days past its stated expiration date. A QR code that does not resolve to a valid COA is itself a violation. These requirements come from 2026 Public Chapter 698.

Yes. Under the rules, “distribute” includes holding HDCPs for subsequent sale or manufacturing, so storing or warehousing product for later sale requires a license even when storage is the only activity at the location.

Tennessee sets specific retail conditions. HDCPs must be kept behind a barrier at the point of purchase, meaning a physical separation that requires a clerk’s help to access, unless the store limits entry to people 21 and older or the product is a hemp beverage in a container of at least 12 fluid ounces. Product may only be displayed where an employee can constantly see it. HDCPs cannot be sold through a self-checkout system or a vending machine, and every retail sale to a consumer has to be a face-to-face transaction at the licensed location. Signage warning that the products may be intoxicating and cause impairment must be posted wherever HDCPs are displayed. The TABC has published a printable HDCP warning sign retailers can download and post to meet this requirement. (T.C.A. § 57-7-104; § 57-7-106(b)(5).)

The TABC has administrative oversight of HDCPs, including inspections and the assessment of civil penalties. The Department of Revenue enforces the wholesale tax and related provisions and can confiscate noncompliant product. For the criminal offenses in the statute, state and local law enforcement officers have concurrent jurisdiction with the TABC.

For each violation of the chapter or a TABC rule, the statute sets an escalating schedule: $1,000 for a first violation, $2,500 for a second violation within two years of the first, $5,000 for a third violation within two years of the first, and revocation of the license for a fourth violation within two years of the first. The TABC can also require the licensee’s employees to be retrained on top of the civil penalty. The same schedule applies to suppliers, retailers, and wholesalers.

Manufacturing, wholesaling, or selling HDCPs without a valid license is a Class A misdemeanor, and product made, sold, or offered for sale without a license is subject to seizure in the same manner as beer. The age and point-of-sale offenses in the statute, such as selling to someone under 21 or selling without checking proof of age, are also Class A misdemeanors.

Direct-to-consumer shipping and delivery of HDCPs is prohibited, and all retail sales must happen face to face at a licensed retail location. The TABC may levy a civil penalty of $1,000 for a first offense, $5,000 for a second offense, and $10,000 for a third or subsequent offense.

Yes. Noncompliant HDCPs can be confiscated as contraband and are subject to seizure and forfeiture in the same manner as beer. The state treats product made or sold without a license the same way.

Yes. It is an offense to manufacture, cultivate, produce, or sell hemp, hemp plant parts, or any product with a total THC or total theoretical THC content over 0.3% on a dry-weight basis, along with synthetic cannabinoids and THCp. A violation is a Class A misdemeanor.

After June 30, 2026, only TABC-licensed retailers may offer HDC products for sale, and everything offered must be fully compliant with Title 57, Chapter 7 and the rules. A retailer who cannot show that non-wholesaler-sourced product was purchased before July 1, or whose product does not meet the standard, may face a citation or other consequence under the applicable statutes and rules.

Yes. Compliant HDCPs remain available from licensed retailers. What changes is who regulates and licenses those businesses, the TABC, and the standards the products must meet.

No. Tennessee requires HDCPs to be sold in a face-to-face transaction at a licensed Tennessee retailer, and direct-to-consumer shipping or delivery into the state is not permitted, whether the seller is in Tennessee or out of state. If a product does arrive by mail from an out-of-state seller, that seller is operating outside Tennessee’s rules. The restriction, and its penalties, fall on the business doing the shipping.

Yes. Under Tennessee law, it is an offense for a person under 21 to purchase, possess, or accept an HDCP.

Look for a scannable QR code that links to a valid certificate of analysis and a warning label. Compliant products do not use packaging that mimics candy, snacks, or familiar food and drink brands, and they do not make unsupported health claims. If the QR code does not pull up a valid COA, treat that as a red flag.