Tennessee Bans THC-A and Online Hemp Sales in 2026 Overhaul

21 May 2025

In a sweeping shift for the state’s hemp industry, Tennessee Governor Bill Lee has signed legislation that bans the sale of THCA and synthetic cannabinoids, prohibits all online and delivery sales of hemp-derived products, and transfers regulatory oversight to the state’s Alcoholic Beverage Commission. The new law, known as House Bill 1376, passed the legislature earlier this spring and will take full effect on January 1, 2026.

The law fundamentally reshapes how hemp-derived cannabinoid products—often used by patients, consumers, and businesses in the absence of a regulated cannabis program—are made, sold, and consumed across Tennessee. It introduces strict age restrictions, licensing requirements, and testing protocols, effectively outlawing a wide range of popular products and business models that have flourished since federal hemp legalization in 2018.

What’s Changing: A Breakdown For TN Residents

Under HB1376, Tennessee:

• Bans the sale of THC-A (a non-intoxicating cannabinoid that converts to THC when heated) and all synthetic cannabinoids, including delta-8 THC and THC-O.

• Ends all online and delivery sales, requiring face-to-face purchases at licensed brick-and-mortar retailers.

• Transfers regulatory control from the Department of Agriculture to the Alcoholic Beverage Commission (ABC), which will now treat hemp products similarly to alcohol.

• Imposes new licensing requirements on suppliers, wholesalers, and retailers—including annual fees of up to $5,000 and required background checks.

• Mandates testing, packaging, and labeling standards for all products.

• Introduces new taxes: a 6% retail sales tax and a separate wholesale tax based on milligrams of cannabinoid content or weight of hemp flower.

Retailers must restrict entry to customers aged 21 and older and display products behind barriers, while vending machines and self-checkout options are explicitly prohibited. Violators face fines, product seizures, and potentially the loss of their licenses.

Why It Matters: Impacts on Patients, Consumers, and Businesses

For medical cannabis patients, who currently lack access to a legal program in Tennessee, the law removes many of the over-the-counter cannabinoid alternatives they have relied on. THCA flower, which is non-psychoactive in its raw form but can provide relief for some when heated, will be illegal to sell—even though it technically falls within federal definitions of hemp.

For casual consumers or those exploring cannabis alternatives, the law cuts off a rapidly growing supply chain. Without delivery or online options, access may be particularly difficult in rural areas or for consumers with disabilities.

For hemp farmers, especially small operations in rural Tennessee, the ban on THCA could wipe out a large portion of income. Industry groups estimate that THCA products make up as much as 60% of revenue for some hemp businesses.

For TN cannabis business owners, the law introduces layers of compliance, fees, and enforcement. To continue operating legally, manufacturers and retailers must invest in licenses, product testing, and secure retail setups. Brands will also need to update labeling, restrict product design to avoid appeal to minors, and forego any health-related marketing claims.

Preparing for 2026: What Tennessee Cannabis Businesses Must Do Now

The countdown to January 1, 2026, has begun—and businesses across Tennessee's hemp supply chain must start preparing now to meet the state’s new regulatory demands.

This means:

• Applying for the proper ABC-issued licenses as a supplier, wholesaler, or retailer.

• Ensuring that business compliance, product packaging, testing, and labeling meet the new safety and transparency requirements.

• Verifying that retail setups comply with age-verification, restricted display, and signage rules.

Marketing and branding are now also subject to stricter scrutiny. Promotions that include health claims or appeal to minors through colorful packaging or cartoon imagery are strictly prohibited. Product websites, social media, and even in-store displays will need to align with the new law—or risk penalties, including license revocation.

A Bitter Pill for the Hemp Industry

Supporters of the legislation, including bill sponsors Sen. Richard Briggs (R-Knoxville) and Rep. William Lamberth (R-Portland), argue that the law is necessary to protect public health and bring order to what they described as an unregulated “wild west” of intoxicating hemp products.

But the hemp industry and advocacy groups have pushed back. The Tennessee Growers Coalition condemned the move as a rollback of previous legislative commitments to farmers and small businesses. The U.S. Hemp Roundtable labeled the measure “hemp-killing” and accused lawmakers of handing regulatory power—and a potential monopoly—to the alcohol industry.

Adding fuel to the fire, the federal legal status of THCA remains under debate. While the DEA and USDA recently stated that THCA must be considered in THC total concentration, some legal experts argue that the 2018 Farm Bill allows its sale as long as the plant meets pre-harvest testing rules.

Still, the state has opted to go further than federal guidance—asserting its regulatory sovereignty by setting more restrictive limits and enforcement mechanisms.

What’s Next for Tennessee?

The new law is already triggering compliance planning, business restructuring, and legal analysis across the state. Licenses for suppliers, wholesalers, and retailers will be processed by the ABC starting in 2026, and new rules around product manufacturing, retail displays, and testing will come into force.

For businesses, the next several months are critical: preparing for regulatory transition, seeking licensure, reformulating products, and updating public-facing materials.

For consumers and patients, January 2026 will mean fewer choices on the shelves—and in many cases, none of the familiar products that helped fill the gap left by Tennessee’s continued ban on medical cannabis.