By Tabitha Evans Moore
Editor & Publisher
LYNCHBURG, Tenn. — Starting July 1, the Tennessee hemp industry will look fundamentally different. Most products that have been sold freely at convenience stores, smoke shops, and specialty retailers across the state — including THCA flower and other high-potency hemp-derived cannabinoid products — will become illegal to sell.
Regulatory oversight of hemp-derived cannabinoids will shift from the Tennessee Department of Agriculture to the Tennessee Alcoholic Beverage Commission, commonly known as the TABC or ABC. Under the new framework, hemp products may only be sold at establishments that are restricted to customers 21 and older — a category that includes retail package stores, bars, and restaurants holding TABC licenses. Grocery stores, convenience stores, gas stations, and general retailers will no longer be permitted to carry these products. Online sales, vending machine sales, and home delivery will also be prohibited.
The change is driven primarily by the effective ban on THCA, a naturally occurring compound in the cannabis plant that converts to THC — the psychoactive ingredient in marijuana — when heated. Because THCA-rich hemp products have long been sold legally while producing effects similar to marijuana, critics argued the state had been allowing de facto recreational cannabis without a formal vote to legalize it.
HOW TENNESSEE GOT HERE: A TIMELINE
The road to July 1 spans several years of shifting rules, court battles, and legislative action.
In 2018, the federal Farm Bill legalized hemp at the national level, defining it as cannabis containing no more than 0.3% THC by dry weight. That definition left a legal gray area: products rich in THCA could technically comply on paper while functioning much like marijuana once consumed. Tennessee, like many states, saw a rapid expansion of hemp shops and product lines that exploited this gap.
In 2023, Tennessee passed legislation establishing a licensing program for hemp-derived cannabinoid products, placing it under the Department of Agriculture. That framework allowed THCA sales to continue legally and put no age restrictions on point of sale. The 2022 state fiscal review committee had estimated hemp products carried an economic impact of roughly $180 million, which gave the industry significant leverage when early total-ban efforts were introduced in the General Assembly.
The Department of Agriculture attempted to close the THCA loophole through a 2024 rule change, but a legal challenge from the hemp industry succeeded: a judge enjoined the rule, finding it exceeded the scope of the enabling legislation. The TDA later moved to repeal those rules entirely, returning the market to the 2023 status quo while the legislature prepared a more comprehensive response.
That response came in May 2025, when the Tennessee General Assembly passed House Bill 1376, signed into law on May 21, 2025. The legislation transferred authority over hemp products to the TABC, imposed the THCA ban, created a three-tier licensing structure modeled on the alcohol industry, and set January 1, 2026, as the effective date — later pushed to July 1, 2026, in part because Congress was simultaneously moving to close the THCA loophole at the federal level, which it did in November 2025.
A last-minute agreement gave businesses holding Department of Agriculture licenses issued before the end of 2025 — known as “Legacy Licensees” — permission to continue selling existing products, including THCA, under the old rules until their licenses expired. That window closes June 30, 2026. After July 1, the new law takes full effect for everyone.
IMPACT ON BUSINESSES
The business impact is expected to be severe. Industry experts estimate that THCA products account for approximately 75% of all hemp sales statewide, and many in the industry expect the ban to be effectively a death blow to a significant portion of the market.
Retailers who have built their business models around hemp-derived products — particularly standalone smoke shops and hemp specialty stores — will face a stark choice: secure a TABC license, relocate to or acquire an age-21-or-older establishment, or close. Convenience stores and grocery chains, regardless of size, will be locked out of the category entirely.
During a May 2026 legislative hearing, Rep. John Crawford of Kingsport, a Republican, expressed frustration on the record. “I have a really hard time with that we gave them permission over the last year, and now we’re taking that back,” Crawford said, referencing a wholesaler in his district he believed would be forced out of business.
In Lynchburg, there are two retailers currently selling hemp-derived products: Lynchburg Discount Tobacco on the Fayetteville Highway and Jiffy Mart on the Lynchburg Highway.
We spoke to Moore County Sheriff Tyler Hatfield about the new change and the enforcement that will come along with it. He told us that he and his staff plan to visit both retailers prior to July 1 to make sure they fully understand the new law and know the change is coming.
IMPACT ON CUSTOMERS
For consumers, the most immediate change is access. Products that have been available at the corner store or online will either disappear or become significantly harder to find. Customers will need to be 21 or older and visit a TABC-licensed retailer — the same category of establishment that sells alcohol — to legally purchase hemp-derived cannabinoid products.
The range of available products will also narrow sharply. Items with very low THC concentrations — such as some topicals and lotions — will likely remain available. But the flower, edibles, and vape products that have dominated the hemp market are expected to largely disappear from Tennessee shelves, at least in their current high-potency form.
Customers who have used THCA or similar products for pain management, sleep, anxiety, or other personal reasons will need to look elsewhere, or cross into states with different laws. Tennessee remains one of only a handful of states with no medical marijuana program, meaning no legal alternative exists within state lines for those seeking cannabis-based relief.
HOW MOORE COUNTY’S LAWMAKERS VOTED
Both of Moore County’s representatives in the Tennessee General Assembly voted in favor of House Bill 1376.
Rep. Pat Marsh, a Republican who represents District 62 and serves as Speaker Pro Tempore of the House, voted yes on the bill’s final passage on April 10, 2025. Marsh was also active in shaping the legislation — Amendment No. 10 to HB 1376 carried his name and passed the House 87-0 on the same day. The final bill passed the House 69-21.
State Sen. Shane Reeves, a Republican pharmacist who represents District 14, which includes Moore County, voted yes when the Senate approved the bill on April 17, 2025. The Senate passed the legislation 23-9.
The bill was signed by Gov. Bill Lee on May 21, 2025. •
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