FOR IMMEDIATE RELEASE
November 21, 2025

Contact:
Email: info@tnhaa.org
Ph: 615-812-5272

Tennessee Healthy Alternatives Association reaches agreement on Hemp Product Regulatory Transition with TN Departments of Agriculture, Revenue

Agreed Order Provides Clarity for Legacy Licensees During Transition

NASHVILLE, TN – The Tennessee Healthy Alternatives Association (TNHAA) announced today that it has entered into an agreed order with the Tennessee Departments of Agriculture and Revenue voluntarily dismissing a TNHAA lawsuit and clarifying the regulatory framework for existing hemp-derived cannabinoid product (HDCP) businesses during the transition to new state regulations.

Like TNHAA’s prior agreement with the Tennessee Alcoholic Beverage Commission, the agreement with the Tennessee Departments of Agriculture and Revenue confirms that suppliers and retailers who were issued licenses by the 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.

With this agreement in place, all three state agencies with regulatory authority over HDCPs have agreed that Legacy Licensees will not be subject to the new 2025 law until their existing licenses expire.

As a result of this agreement, the pending declaratory judgment action against the Tennessee Departments of Agriculture and Revenue has been dismissed. This represents yet another major win for the industry secured by TNHAA that ensures the continued ability of HDCP businesses to operate under the 2023 regulatory framework until their existing licenses expire.

"This agreement, as with the existing agreement with TABC, provides critical clarity and stability for Tennessee's hemp industry during this regulatory transition," said Sam Oechslin, President of TNHAA. "Our members that are legacy license holders can continue operating under the existing regulatory framework they know and have invested in. We appreciate the work involved by all parties to reach this agreement. 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 orders resolve 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).

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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