NASHVILLE, Tenn. (WKRN) — The Tennessee Alcoholic Beverage Commission will take over regulatory oversight on hemp-derived cannabinoids. This week, they released initial guidance on their rules.

Previously, the Tennessee Department of Agriculture was the regulatory body over these products; on May 21, Gov. Bill Lee signed a bill codifying the switch, which goes into effect January 1, 2026.

"The TABC intends to promulgate rules that substantially align with the Department of Agriculture’s existing safety standards related to product testing and labeling," the TABC said in a press release on the change. "This will help ensure continuity in compliance and safety standards during the transition period."

One of the biggest changes brought about by the law is that anything with a THCA concentration of 0.3% or higher by dry weight is banned. Lawmakers argue the compound THCA turns into THC when burned, which is the same chemical in marijuana that gets the user high. Any product containing THCp in any amount will be illegal under the new law.

The new change also means that separate licensing will be required for suppliers, wholesalers and retailers of hemp-derived cannabinoids. The TABC said that the agency would begin processing new applications this December, but no license will be valid until after January 1, 2026. All new applications will be charged a one-time $500 application fee.

Suppliers will have a yearly license fee of $2,500; wholesalers will have a yearly license fee of $5,000 and retailers will have a $1,000 yearly license fee. Each licensee will receive an inspection both at initial issuance and each year when renewed. Businesses can hold multiple licenses across different tiers.

Any license issued by the Tennessee Department of Agriculture will remain in effect until they expire even if they expire after January 1, 2026. Once that license expires, businesses will be required to file a new application with the TABC.

Authority over hemp cultivation will remain with the state agriculture department beyond January 1, 2026. Additionally, hemp farmers in the state will not be required to get a license with the TABC unless they manufacture, distribute or sell hemp-derived products directly to consumers.

News Source : https://www.wkrn.com/news/tennessee-news/new-guidance-on-hemp-derived-cannabinoid-products-what-will-change-on-jan-1-2026/