FOR IMMEDIATE RELEASE
October 23, 2025

Contact: info@tnhaa.org
Phone: 615-812-5272

Tennessee Healthy Alternatives Association and Alcoholic Beverage Commission Reach Agreement on Hemp Product Regulatory Transition

Agreed Order Provides Clarity for Legacy Licensees During Transition

NASHVILLE, TN – The Tennessee Healthy Alternatives Association (TNHAA) and the Tennessee Alcoholic Beverage Commission announced today that they have entered into an agreed declaratory order that clarifies the regulatory framework for existing hemp-derived cannabinoid product (HDCP) businesses during the transition to new state regulations.

The agreement, signed October 23, 2025, confirms that suppliers and retailers who were issued licenses by the Tennessee Department of Agriculture on or before December 31, 2025 ("Legacy Licensees") will continue to operate under the 2023 regulatory framework until their existing licenses expire, rather than immediately transitioning to the new 2025 law when it takes effect on January 1, 2026.

"This agreement provides critical clarity and stability for Tennessee's hemp industry during this regulatory transition," said Sam Oechslin, President of TNHAA. "Our members can continue operating under the existing regulatory framework they know and have invested in. We consider this outcome a significant win. TNHAA is effectively advocating for our industry, and we hope all those in the industry will consider joining."

Background

In 2023, the Tennessee General Assembly enacted legislation to regulate and tax the HDCP industry, with the Tennessee Department of Agriculture responsible for issuing licenses, regulating manufacture and distribution, and conducting inspections. The 2025 legislature passed House Bill 1376, which transfers regulatory authority from the Department of Agriculture to the Alcoholic Beverage Commission and establishes a new regulatory framework effective January 1, 2026.

The agreed order resolves questions about how the transition applies to businesses that hold licenses issued by the Department of Agriculture. Under Section 10 of HB 1376, these Legacy Licensees will remain subject to the 2023 law (Title 43, Chapter 27, Part 2 of the Tennessee Code Annotated) until their current licenses expire, rather than being immediately subject to the new 2025 law (Title 57, Chapter 7).

Key Provisions of the Agreement

• Legacy Licensees will continue operating under the 2023 regulatory framework until their Department of Agriculture-issued licenses expire

• The Tennessee Alcoholic Beverage Commission will begin processing applications under the new law on January 1, 2026

• Legacy Licensees may apply for new licenses from the Commission before their current licenses expire, with the new licenses becoming effective upon expiration or closure of the Legacy Licenses
  
  

The agreement was reached after TNHAA filed a petition for a declaratory order on July 15, 2025, seeking clarity on the application of HB 1376 to existing licensees. The parties agreed to this order rather than proceeding with a contested case hearing scheduled for October 23, 2025.

About TNHAA

The Tennessee Healthy Alternatives Association is a Tennessee nonprofit mutual benefit corporation that advocates for businesses in Tennessee's hemp industry and protects its members’ rights to conduct their businesses lawfully. TNHAA's members include companies that manufacture, distribute, and sell hemp-derived cannabinoid products, including Legacy Licensees operating under licenses issued by the Tennessee Department of Agriculture.

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