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TennesseeHB 1376114th General Assembly (2025-2026)HouseWALLET

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: William Lamberth (Republican)

Became Law

Alcoholic Beverage Commission

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 0 benefits, 6 costs, 3 mixed.

Licenses and high fees for hemp businesses

Beginning January 1, 2026, you must hold a state license to make, wholesale, or sell hemp cannabinoid products in Tennessee. The application fee is $500, not refundable. Annual fees are $1,000 per retail location and $2,500 per supplier location. You must pass background checks, allow inspections, keep a Tennessee warehouse of at least 1,000 sq. ft., and show access to at least $750,000 in capital. Unlicensed activity is a Class A misdemeanor and illegal products can be seized.

No direct shipping; transport paperwork required

Beginning January 1, 2026, businesses cannot ship hemp cannabinoid products directly to Tennessee consumers or arrange delivery to them. Civil penalties are $1,000 for the first offense, $5,000 for the second, and $10,000 for later offenses. Shipping to other states is allowed if it is legal there. Anyone transporting HDCPs in Tennessee must carry proof of lawful production and a bill of lading listing owner, origin, destination, kind, quantity, and date. This does not apply to people carrying products bought from a licensed retailer.

Retailers face stricter in-store rules

Beginning January 1, 2026, HDCP sales are limited to allowed locations, such as 21+ establishments and certain licensed premises. Stores must post warning signs and keep HDCPs behind a barrier. No self‑checkout. Vending machine sales are banned. Sellers must check a valid ID showing age 21+ and may not sell to, buy for, or help anyone under 21. Some exceptions apply for certain 12‑ounce hemp beverages and licensed 21+ venues. Violations can be Class A misdemeanors.

Stricter testing, labels, and THC limits

Starting January 1, 2026, suppliers must use certified third‑party labs, test each batch, and keep certificates of analysis. Retail packages must be child‑resistant and usually hold no more than 300 mg total or 20 servings, with at most 15 mg per ingestible serving. Labels must show ingredients, mg per serving and total, warnings in at least 11‑point font, a QR code to test results, and an expiration date. Products cannot exceed 0.3% total THC by dry weight, and synthetic cannabinoids or THCp are banned. Violations can be crimes.

New wholesale tax on hemp products

From January 1, 2026, wholesalers pay a monthly HDCP tax. The rate is $0.02 per milligram of hemp‑derived cannabinoid, or $50 per ounce for plant parts/flower, or $4.40 per gallon for liquid products, based on lab results. File and pay by the 20th for the prior month. 80% of receipts go to the state general fund, 10% to the commission’s account, and 10% to the Department of Revenue’s account.

Old hemp rules repealed; transition period

On January 1, 2026, the state repeals the old hemp cannabinoid statutes and deletes related code sections. During the transition, the Department of Agriculture keeps issuing and renewing supplier and retail licenses until January 1, 2026 or until the new commission is ready, whichever is later. Licenses issued then last at least 12 months and stay under the old rules until they expire.

Stronger state oversight and enforcement

Starting January 1, 2026, the Alcoholic Beverage Commission licenses, inspects, and enforces rules for hemp cannabinoid products, and the Department of Revenue also conducts compliance checks and can seize unlawful products. The commission can investigate crimes on licensed premises, make arrests on probable cause, and issue subpoenas. Agencies can make rules. The chapter’s defined terms and testing methods control and override conflicting state rules. Agencies must post an annual compliance report, first due by July 1, 2027.

Brand registration and public listing

Effective January 1, 2026, suppliers must register each brand with the Department of Revenue before wholesalers can receive it. The fee is $300 per brand each year. Wholesalers and retailers cannot accept unregistered brands. The state will publish a public list of wholesalers and suppliers with addresses, brands, and territories.

Limits on using hemp at work and in public

From January 1, 2026, you cannot do safety‑sensitive tasks or drive while under the influence of hemp cannabinoids. Employers and property owners do not have to allow use and may refuse entry to visibly impaired people. Smoking and vaping laws now include hemp and vaporized hemp cannabinoids, so those use rules apply. Employers can keep drug‑free policies and testing.

Sponsors & Cosponsors

Sponsor

  • William Lamberth

    Republican • House

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

  • G.A. Hardaway

    Democrat • House

  • David B. Hawk

    Republican • House

  • Dan Howell

    Republican • House

  • Tom Leatherwood

    Republican • House

  • Bo Mitchell

    Democrat • House

  • Bill Powers

    Republican • Senate

  • Paul Sherrell

    Republican • House

  • William Slater

    Republican • House

  • Chris Todd

    Republican • House

  • Dawn White

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 417 • No: 75

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

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 • 4/10/2025

HOUSE CALENDAR & RULES COMMITTEE

Yes: 0 • No: 0

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

Actions Timeline

  1. Pub. Ch. 526

    5/27/2025

  2. Effective date(s) 05/21/2025, 01/01/2026

    5/27/2025

  3. Signed by Governor.

    5/21/2025

  4. Transmitted to Governor for his action.

    5/9/2025House

  5. Signed by Senate Speaker

    5/8/2025Senate

  6. Signed by H. Speaker

    4/30/2025House

  7. Enrolled; ready for sig. of H. Speaker.

    4/23/2025House

  8. Senate substituted House Bill for companion Senate Bill.

    4/17/2025Senate

  9. Amendment withdrawn. (Amendment 1 - SA0013)

    4/17/2025Senate

  10. Amendment withdrawn. (Amendment 2 - SA0296)

    4/17/2025Senate

  11. Amendment withdrawn. (Amendment 3 - SA0436)

    4/17/2025Senate

  12. Passed Senate, Ayes 23, Nays 9

    4/17/2025Senate

  13. Received from House, Passed on First Consideration

    4/14/2025Senate

  14. Am. withdrawn. (Amendment 1 - HA0044)

    4/10/2025House

  15. Am. withdrawn. (Amendment 5 - HA0243)

    4/10/2025House

  16. Am. withdrawn. (Amendment 6 - HA0244)

    4/10/2025House

  17. Am. withdrawn. (Amendment 7 - HA0245)

    4/10/2025House

  18. Am. withdrawn. (Amendment 8 - HA0319)

    4/10/2025House

  19. Am. withdrawn. (Amendment 9 - HA0344)

    4/10/2025House

  20. H. adopted am. (Amendment 12 - HA0360)

    4/10/2025House

  21. Am. withdrawn. (Amendment 2 - HA0095)

    4/10/2025House

  22. Am. withdrawn. (Amendment 3 - HA0096)

    4/10/2025House

  23. Am. withdrawn. (Amendment 4 - HA0097)

    4/10/2025House

  24. H. adopted am. (Amendment 10 - HA0358)

    4/10/2025House

  25. H. adopted am. (Amendment 11 - HA0359)

    4/10/2025House

Bill Text

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