Tennessee Lawmakers Push New Vape & Hemp Regulations: What’s Changing?

5 March 2025

Tennessee lawmakers are advancing bills that could drastically change the vape and hemp industries. House Bill 968 and Senate Bill 763 introduce stricter age verification and new vapor product taxes, while House Bill 1376 and Senate Bill 1413 shift hemp oversight to the Alcoholic Beverage Commission, ban THCA and THCP, and limit retail sales to vape and liquor stores. Industry representatives warn these regulations could force widespread closures, impact medical cannabis patients, and trigger legal challenges.

If enacted, these bills could have broad implications for businesses and consumers. The vaping industry faces potential product shortages and price increases, while thousands of adult consumers may lose access to alternatives to traditional tobacco products. The tax revenue from vapor products, estimated at $16 million annually, would be directed to the state's general fund. However, industry experts argue that taxation and registration requirements may not effectively reduce youth vaping, as suggested by a state commission report.

For the hemp industry, shifting regulatory oversight to the Alcoholic Beverage Commission could introduce unfamiliar compliance burdens. The ban on THCA and THCP may also impact medical cannabis patients who rely on these products as non-psychoactive alternatives before heating. If Tennessee enforces these restrictions, businesses may challenge the law in court, citing conflicts with federal hemp regulations under the Farm Bill.

Given the precedent set by legal challenges to similar restrictions in 2023, another lawsuit is likely if these bills pass. The regulatory shift may create uncertainty for retailers and manufacturers, with potential supply chain disruptions and licensing challenges affecting Tennessee's legal cannabis market.

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