What's Happening?
Starting January 1, 2026, Tennessee will transfer the regulation of its Hemp-Derived Cannabinoid (HDC) program from the Department of Agriculture to the Tennessee Alcoholic Beverage Commission. This regulatory
shift means that the Department of Agriculture will cease accepting new HDC license applications after December 22, 2025. Businesses involved in the sale of HDC products, which include CBD oils, tinctures, edibles, capsules, topicals, and vape products, will be impacted by this change. Those who have already applied to the Department of Agriculture must complete their submissions by December 29, 2025, to be eligible for a license. Licenses issued by the department will expire on June 30, 2026. This transition is part of broader statutory updates set to take effect in 2026.
Why It's Important?
The shift in regulatory oversight from the Department of Agriculture to the Alcoholic Beverage Commission represents a significant change for businesses dealing in hemp-derived products. This move could streamline or complicate the licensing process, depending on the new commission's approach to regulation. Businesses that fail to meet the current deadlines will need to navigate a new application process under the Alcoholic Beverage Commission, potentially affecting their operations and market strategies. The change reflects a broader trend of integrating hemp product regulation with other controlled substances, which could influence market dynamics and regulatory compliance costs.
What's Next?
Businesses must prepare for the transition by ensuring all necessary documentation and payments are submitted by the specified deadlines. Those who miss the deadlines will need to apply under the new rules set by the Alcoholic Beverage Commission. This may involve adapting to new regulatory requirements and possibly facing delays in obtaining licenses. Stakeholders, including business owners and industry groups, may seek to engage with the Alcoholic Beverage Commission to understand the new regulatory framework and advocate for favorable conditions.
