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Tennessee HB 1376 Explained: New Hemp-Derived Cannabinoid Laws, THCa Ban, and What Changes in 2026

 

Tennessee HB 1376 ushers in a new regulatory era for hemp-derived cannabinoids, banning THCa products and placing intoxicating hemp under alcohol-style oversight in 2026.

Introduction to HB 1376

Tennessee House Bill 1376 (HB 1376), also known as Senate Bill 1413, is a comprehensive piece of legislation enacted during the 114th General Assembly to overhaul the regulation of hemp-derived cannabinoid products (HDCPs) in the state. Signed into law by Governor Bill Lee on May 21, 2025, the bill addresses growing concerns over the unregulated sale of intoxicating hemp products, particularly those containing delta-8 THC, delta-10 THC, and similar compounds.

The law shifts oversight from the Tennessee Department of Agriculture (TDA) to the Alcoholic Beverage Commission (ABC) and the Department of Revenue, imposing strict licensing, taxation, and sales restrictions. The majority of provisions took effect on January 1, 2026, with some administrative elements effective immediately upon signing.

The bill emerged amid debates over public health, youth access to intoxicating substances, and the economic viability of Tennessee's hemp industry, which has boomed since the 2018 federal Farm Bill legalized hemp with ≤0.3% delta-9 THC. Critics argue it effectively bans popular products like THCa flower and creates barriers for small businesses, while supporters view it as necessary to close loopholes allowing unregulated “legal highs.” As of January 14, 2026, the law is fully in force, leading to immediate industry disruptions.

Background and Legislative History

HB 1376 was introduced in early 2025 as part of a broader push to regulate HDCPs, which had previously fallen under lighter TDA oversight since 2023. The bill passed the House on April 10, 2025 (69–21 vote) after adopting several amendments, and the Senate approved it on April 17, 2025 (23–9 vote).

It amends multiple titles of the Tennessee Code Annotated (T.C.A.), including Titles 39 (Criminal Offenses), 40 (Criminal Procedure), 43 (Agriculture), 53 (Food, Drugs, and Cosmetics), 57 (Intoxicating Liquors), and 67 (Taxes and Licenses).

Key drivers included reports of youth access to intoxicating products, inconsistent testing, and health risks from synthetic or high-potency cannabinoids. The fiscal note projected increased state revenue from taxes and fees, offset by enforcement costs, with an estimated $750,000 in annual wholesaler financial requirements acting as a barrier to entry. Pre-existing TDA licenses remain valid until expiration but must transition to ABC rules.

Key Provisions

HB 1376 establishes a new regulatory framework under T.C.A. Title 57, Chapter 7, repealing prior hemp rules under Title 43, Chapter 27, Part 2.

Definitions (T.C.A. § 57-7-102)

  • Hemp-Derived Cannabinoid (HDC): Any cannabinoid (other than delta-9 THC) derived from hemp at >0.1% concentration, or products with delta-9 THC ≤0.3% dry weight (≤13% moisture).
  • Included Compounds: Delta-8 THC, delta-10 THC, HHC, THCp, THCv.
  • Exclusions: CBD, CBG, CBN; hemp-derived fiber, grain, feed, topicals; THCa (definition excluded but later prohibited); synthetic cannabinoids; Schedule I substances post-July 1, 2023.
  • HDCP: Products containing HDCs intended for ingestion, inhalation, or topical use.
  • Total THC: Delta-9 THC + (THCa × 0.877), capped at ≤0.3% dry weight.

Regulatory Changes & Allowed Activities

  • Oversight: ABC regulates licensing and enforcement; Department of Revenue handles taxation and brand registration.
  • Sales: Face-to-face only in licensed brick-and-mortar locations. No online sales, shipping, or delivery.
  • Age Restriction: 21+ with mandatory ID verification.
  • Allowed Locations: Liquor stores, vape shops, and ABC-licensed venues only.
  • Packaging: Child-resistant; no youth-appealing designs; warning labels; QR-linked lab results.
  • Serving Limits: ≤25 mg per ingestible serving; ≤250 mg per beverage container.
  • Transportation: Requires proof of legal origin and bills of lading.

Prohibitions (T.C.A. § 57-7-114)

  • Bans products with THCa >0.3% dry weight.
  • Bans synthetic cannabinoids and THCp derivatives.
  • Bans unlicensed manufacturing or sales.
  • No sales to minors or youth-targeted advertising.
  • No workplace accommodations or drug policy exemptions.

Licensing Requirements

  • Supplier: $2,500 per location
  • Wholesaler: $5,000 per warehouse (minimum 1,000 sq ft)
  • Retailer: $1,000 per location
  • Application Fee: $500
  • Financial Proof: $750,000 minimum for wholesalers
  • Brand Registration: $300 per brand annually

Taxes

  • Wholesale Tax: $0.02 per mg of HDC
  • Retail Tax: 6% of sales price
  • Revenue Allocation: 50% local roads, 50% ABC enforcement

Penalties & Enforcement

  • Class A misdemeanors for unlicensed activity or sales to minors
  • Fines up to $2,500 and jail time up to 11 months
  • Civil fines escalating to license revocation
  • Seizure and forfeiture of non-compliant products

Impacts on Stakeholders

Small hemp businesses face closures as THCa products accounted for an estimated 70–80% of market share. Consumers face reduced access and higher prices, while wholesalers benefit from the three-tier system. Government agencies gain new tax revenue and enforcement authority, though rural enforcement remains challenging.

Pros and Cons

Supporters argue the law improves public safety, prevents youth access, and closes federal loopholes.

Opponents counter that it devastates small businesses, limits medical alternatives, and consolidates power among alcohol distributors.

Conclusion

HB 1376 marks a hard regulatory turn in Tennessee hemp policy, prioritizing control and safety over market flexibility. While it reduces exposure to intoxicating hemp products, it has sparked significant backlash for its economic impact and restriction of consumer choice. As enforcement continues into 2026, businesses must rapidly adapt to avoid penalties, and consumers may increasingly look beyond state borders.

Related Article 🔎

• Where Tennessee Stands on Cannabis in 2026: A Complete Guide to New Hemp Laws and Regulations

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