A ban on Tennessee’s most popular hemp products will be delayed at least six months, through the end of June, a state board decided Thursday.
That’s to let current hemp licenses expire before a new regulatory body steps in to oversee Tennessee’s industry, officials said.
“It’s a huge win,” Kelley Hess, executive director of the Tennessee Growers Coalition, said by phone after the ruling. “It only gives everybody six more months, but any time is a win. Any extension is a win. So we are happy.”
Tennessee alcohol regulators now oversee the state’s hemp industry, thanks to a law passed earlier this year. That law also changed how hemp products are tested, effectively outlawing smokeable hemp and vapes with THCa, which produce a high similar to marijuana.
(READ MORE: Chattanooga area has most hemp shops per capita in Tennessee)
That law said their enforcement powers would start on Jan. 1, causing concern for many hemp growers and retailers who say the soon-to-be-banned products make up the majority of their revenue.
Active hemp licenses issued before Dec. 31, 2025, previously overseen by the state’s agriculture department, will be in effect until the end of June. Any hemp licenses issued after that will be under the alcohol regulators’ rules.
On Thursday, the Tennessee Alcoholic Beverage Commission agreed to delay some of its enforcement, including the ban on THCa products, at least until those licenses are up.
“They will be under the old regulation until their license expires,” Aaron Rummage, spokesperson for the commission, said by phone.
Hess said the delay also gives advocates, like the Growers Coalition, another shot at getting hemp-friendly laws passed during next year’s state legislative session.
Most advocates have given up on getting THCa back on lawmakers’ good sides, Hess said. But there are other items on the industry’s wish list that could get another look when legislators return in January — including adjusting a new tax structure some businesses have called too burdensome and addressing issues with direct-to-consumer sales.
“That was a huge part of the market,” Hess said. “There’s a lot of people who want to see that change.”
(READ MORE: Why a Kentucky company is suing over Tennessee’s hemp rules)
The coalition, along with the Tennessee Healthy Alternatives Association, filed a request for the delay in July, according to the association. The commission agreed and signed the declaratory order Thursday.
“This agreement provides critical clarity and stability for Tennessee’s hemp industry during this regulatory transition,” association President Sam Oechslin said in a statement. “Our members can continue operating under the existing regulatory framework they know and have invested in. We consider this outcome a significant win.”
The alcohol commission will still start some regulatory duties in January, Hess said, including overseeing age limits and non-compliant products for retail.
“They are finding a lot of stuff that’s highly non-compliant, and people are selling to under 21,” Hess said. “So they’re really going to be cracking down.”
Alcohol regulators are preparing for enforcement by hiring 20 new agents across the state and five administrators, Rummage said.
Commission director Russell Thomas said at Thursday’s meeting he’s reminding businesses agents are checking for compliance with current requirements for proper testing and labeling.
“We’ve been out in the field, and we’ve been disappointed in what we’ve seen out there recently,” Thomas said.
Contact growth reporter Ellen Gerst at egerst@timesfreepress.com or 423-757-6319.