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TennesseeHB 1376114th General Assembly (2025-2026)House
AN ACT to amend Tennessee Code Annotated, Title 39; Title 40; Title 43, Chapter 27; Title 53, Chapter 11; Title 57 and Title 67, relative to the regulation of hemp-derived cannabinoid products.
Sponsored By: Sponsor information unavailable
Signed by Governor
Alcoholic Beverage Commission
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Bill Overview
Analyzed Economic Effects
18 provisions identified: 1 benefits, 12 costs, 5 mixed.
Hemp sellers face new product bans
The law bans making, growing, producing, or selling covered hemp products above 0.3% total or theoretical THC by dry weight. It also bans synthetic cannabinoids and products containing THCp; violations are Class A misdemeanors. The covered-product definition excludes products above 0.3% THCa by dry weight. Businesses cannot make, sell, provide, or serve hemp cannabinoid products mixed into beer or other alcoholic drinks.
Hemp businesses face inspections and penalties
The commission and Revenue oversee compliance, inspect businesses, and can jointly confiscate noncompliant products under beer-style seizure and forfeiture procedures. Supplier and retailer penalties are $1,000, $2,500, and $5,000, with retraining after each of the first three violations. Repeat violations must occur within two years of the first; a fourth brings license revocation, and licenses can be denied or revoked. Wholesalers violating the related Chapter 53 rules face the supplier-retailer penalty framework referenced there. Commission officers gain investigation and arrest powers for crimes on licensed premises or violations arising from Title 57 investigations, with probable cause required for arrests, plus subpoena powers.
Hemp businesses need licenses and annual fees
Businesses need a commission license before making, wholesaling, distributing, or selling covered products; unlicensed activity is a Class A misdemeanor. Products involved can be seized. Supplier and retailer applications cost $500, nonrefundable; annual fees are $2,500 per supplier location and $1,000 per retailer location. Licenses last one year, cannot transfer between people or locations, and renewals require the same annual fee and updated background information. Supplier and retailer license revenue funds administration of the title; fees under the related Title 53 rule fund only Title 53 administration.
Hemp license applicants face tighter checks
Supplier and retailer applicants must provide required information, accept inspections and applicable testing, and complete state and federal fingerprint checks. People serving drug-related felony sentences or within 10 years after conviction cannot hold direct or indirect license interests. Retail sites generally cannot be within 1,000 feet of any public, private, or charter K–12 school, measured straight-line. An exception requires records showing products were offered for retail sale there on December 31, 2023. Out-of-state suppliers must also follow their home jurisdiction's laws and rules.
Hemp wholesalers face costly entry requirements
Wholesalers pay $500 per application, nonrefundable, and $5,000 annually per licensed application and warehouse location. Applicants need background checks, inspection consent, an approved Tennessee warehouse of at least 1,000 square feet, and $750,000 in financial capacity. Warehouses cannot also serve covered cultivation, manufacturing, laboratory testing, or retail operations. Drug-related felony sentences and the 10 years after conviction bar license interests. Ownership or control changes need advance approval; other application changes must be reported within 30 days.
Youth protections limit hemp product access
Sellers must check government proof of age before selling or giving hemp cannabinoid products to anyone. People under 21 cannot knowingly buy, possess, or accept them, use false age proof, or receive help obtaining them. Age-rule violations are Class A misdemeanors; enforcement helpers need parental consent if minors, or their own consent otherwise. Suppliers and retailers cannot use marketing known to appeal mainly to under-21 audiences or make health-related claims. Knowingly handing out samples on public streets, sidewalks, or in parks is also a Class A misdemeanor.
Outside labs must test hemp products
Every manufactured batch needs testing by a qualified outside lab and a certificate showing the results. Products need full-panel cannabinoid testing before final production and potency testing as finished goods. Suppliers must certify compliance. The Alcoholic Beverage Commission sets safety and toxicity limits, lists qualified labs, and samples products sold in Tennessee.
Hemp users face storage and impairment rules
You must keep any unconsumed retail hemp cannabinoid product in its original package; violations are Class C misdemeanors. People under the influence cannot operate or control vehicles, aircraft, or motorized boats. They also cannot perform tasks that would be negligent or amount to professional malpractice. The law provides no exemption from impairment-related prosecution or legally required substance testing.
Hemp buyers lose shipping and delivery
Consumers must buy or receive hemp cannabinoid products face-to-face at licensed retail locations. Direct shipping to Tennessee consumers or retail licensees is prohibited, and retailers cannot deliver to consumers directly or indirectly. Consumer shipping or delivery violations carry civil penalties of $1,000, then $5,000, then $10,000 for later offenses. License holders may ship out of Tennessee when the shipment is lawful in the receiving jurisdiction.
Workers lack hemp use accommodation rights
Employers do not have to allow hemp cannabinoid use at work or let employees work under its influence. They may enforce drug-free workplace policies. This law creates no wrongful-discharge or discrimination claim against employers on that basis. Property holders do not have to allow visitor use or admit visibly impaired visitors.
Hemp retailers face location and checkout limits
Retail sales are limited to age-restricted locations, specified licensed premises, and qualifying supplier premises. Certain alcohol-licensed locations must sell for on-site use; supplier premises need required licenses or supplier-retail licenses plus a wholesale contract. Retailers must post warnings, keep displays visible to employees, and generally place products behind barriers. Barrier exceptions cover drinks of at least 12 fluid ounces and licensed locations admitting only people 21 or older. Self-checkout and vending-machine sales are banned, including vending-machine sales of smoking hemp.
Hemp suppliers pay yearly brand fees
Suppliers must register each brand with the Department of Revenue and pay $300 per brand each year. Brands are distinguished by category, type, and delivery system. Suppliers cannot deliver unregistered brands, and wholesalers and retailers cannot order, receive, accept, or offer them for sale. Revenue must publish supplier and wholesaler identities, addresses, brands, and registered distribution territories, and may do so online.
Hemp wholesalers pay new product taxes
The supplied text lists wholesale taxes of 2 cents per cannabinoid milligram, $50 per flower ounce, and $4.40 per liquid gallon. Other container volumes use proportional rates; the supplied summaries do not resolve how the milligram and unit-based models fit together. The milligram tax uses the latest supplier lab results; wholesalers pay monthly and report prior-month sales by the 20th. Collections go 80% to the general fund, 10% to a commission account, and 10% to Revenue administration. At least half the commission account supports hemp administration and enforcement; unused account funds return to the general fund.
Safer hemp packages carry quantity limits
Retail products need child-resistant packaging and labels with ingredients, allergens, warnings, cannabinoid amounts, expiration dates, and a testing QR code. Packages generally cannot exceed 20 servings or 300 milligrams, with exceptions for specified product forms. Limits include 15 milligrams per ingestible serving, 500 milligrams per cartridge, and one-half ounce of hemp flower or plant parts. Pouch packages cannot exceed 15 pouches, with 6 milligrams per pouch. Beverage rules vary by container size and servings, and products cannot be shaped like animals or cartoon characters.
Teens cannot handle hemp products professionally
Suppliers, wholesalers, and retailers cannot knowingly employ people under 18 to physically make, store, sell, or distribute hemp cannabinoid products. They also cannot knowingly permit that work on their premises. This does not ban every job for people under 18 at these businesses. Violations are Class A misdemeanors.
Hemp transporters must carry shipment records
Transporters moving covered products into, through, or within Tennessee must carry proof of lawful production and compliance with cannabinoid limits. They also need a bill of lading listing the owner, origin, destination, package type, quantity, and shipment date. Products obtained from a retailer licensed under the new hemp chapter are exempt.
Smoking definitions now include hemp use
The law's smoking definition includes inhaling, exhaling, burning, or carrying lighted hemp, hemp flower, or hemp plant parts. It also includes vapor products delivering nicotine, hemp cannabinoids, or another substance. The law removes separate references to “smoking hemp” from an existing tobacco-related section. The supplied text does not identify the resulting restrictions or penalties.
Tennessee replaces its earlier hemp rules
The law replaces the prior hemp framework and repeals a related tax section and alcohol-law subdivision. The supplied text does not show the contents or separate effects of those deleted rules. Administrative setup takes effect immediately; the main rules begin January 1, 2026. Agriculture handles transitional supplier and retail licensing until that date or commission readiness, and transition licenses last at least 12 months. The commission and Revenue must submit their first joint compliance report by July 1, 2027, then annually.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
Fred Atchley
Republican • House
Kip Capley
Republican • House
Elaine Davis
Republican • House
Rick Eldridge
Republican • House
Ron M. Gant
Republican • House
Johnny Garrett
Republican • House
Michael Hale
Republican • House
T.J. Hardaway
Democrat • House
David B. Hawk
Republican • House
Dan Howell
Republican • House
Tom Leatherwood
Republican • House
Bo Mitchell
Democrat • House
Powers
Affiliation unavailable
Paul Sherrell
Republican • House
William Slater
Republican • House
Chris Todd
Republican • House
White
Affiliation unavailable
Roll Call Votes
Senate vote • 4/17/2025
FLOOR VOTE: Third Consideration 4/17/2025
Yes: 23 • No: 9
House vote • 4/10/2025
FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/10/2025
Yes: 69 • No: 21
House vote • 4/10/2025
HOUSE CALENDAR & RULES COMMITTEE
Yes: 0 • No: 0
House vote • 4/10/2025
FLOOR VOTE: REGULAR CALENDAR MOTION TO ADOPT AMENDMENT # 10 BY MARSH PASSAGE ON THIRD CONSIDERATION 4/10/2025
Yes: 87 • No: 0
House vote • 4/10/2025
FLOOR VOTE: REGULAR CALENDAR MOTION TO ADOPT AMENDMENT # 12 BY WILLIAMS PASSAGE ON THIRD CONSIDERATION 4/10/2025
Yes: 89 • No: 0
House vote • 4/10/2025
FLOOR VOTE: REGULAR CALENDAR MOTION TO ADOPT AMENDMENT # 11 BY COCHRAN PASSAGE ON THIRD CONSIDERATION 4/10/2025
Yes: 56 • No: 38
House vote • 4/1/2025
HOUSE FINANCE, WAYS, AND MEANS COMMITTEE
Yes: 27 • No: 0
House vote • 3/26/2025
HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE
Yes: 11 • No: 0
House vote • 3/17/2025
HOUSE GOVERNMENT OPERATIONS COMMITTEE
Yes: 13 • No: 1
House vote • 3/12/2025
HOUSE COMMERCE COMMITTEE
Yes: 18 • No: 2
House vote • 3/5/2025
HOUSE JUDICIARY COMMITTEE
Yes: 16 • No: 4
House vote • 2/26/2025
HOUSE CRIMINAL JUSTICE SUBCOMMITTEE
Yes: 8 • No: 0
Bill Text
HA0358
4/10/2025
HA0359
4/10/2025
HA0360 (Substitute)
4/10/2025
Enrolled / Public Chapter
Fiscal Note
HA0044
HA0095
HA0096
HA0097
HA0243
HA0244
HA0245
HA0319
HA0344
Introduced
SA0013
SA0296
SA0436
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