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Hemp industry reaches deal with Tennessee to keep selling THCa at some stores

Chattanooga businessman Dwayne Madden, who owns several regional stores selling hemp products, has expressed concern about a law restricting hemp products. Industry leaders made a deal with the state to allow some retailers to continue selling THCa prodcuts. (John Partipilo/Tennessee Lookout) Chattanooga businessman Dwayne Madden, who owns several regional stores selling hemp products, has expressed concern about a law restricting hemp products. Industry leaders made a deal with the state to allow some retailers to continue selling THCa prodcuts. (John Partipilo/Tennessee Lookout)

By Sam Stockard / Tennessee Lookout November 25, 2025 2 min read

Tennessee’s hemp industry has reached an agreement with state agencies, dismissing a lawsuit and enabling some businesses to keep selling Hemp-derived products such as THCa for a short time after new restrictions take effect.

The Tennessee Healthy Alternatives Association announced it entered an order with the state Agriculture and Revenue Departments allowing businesses with licenses issued before Dec. 31 to continue using a 2023 regulatory framework until their licenses expire June 30, 2026. Such a move allows stores to keep selling many products that will be banned after a new law takes effect Jan. 1.

Because of the agreement, a pending declaratory judgment against the agriculture and revenue departments has been dismissed, the association said in a statement.

Part of the new law adopted by the legislature this year transfers regulatory authority over hemp products and beverages from the state Agriculture Department to the Tennessee Alcoholic Beverage Commission.