Tennessee ABC presents permanent hemp-product rules; lawmakers press on adult-only retail, testing and federal changes

NASHVILLE — The Tennessee Alcoholic Beverage Commission presented permanent rules on May 20 that formalize state standards for hemp-derived cannabinoid products, continuing the emergency regulations the committee approved earlier this year.

Russell Thomas, the commission's executive director, told the Joint Government Operations Committee the package implements Public Chapter 526 (May 21, 2025) and focuses on product safety standards, testing and licensing. "The statute directed us to establish product safety standards, including prohibitions related to things like pesticides and toxic heavy metals," Thomas said. He described an expanded network of state-approved third-party laboratories, and said the commission has been averaging about 32 days from application submission to approval since December 2025.

Lawmakers pressed the commission on an adult-only retail category that requires some retailers to limit entry to people 21 and older. Representative Bowling and others asked how the 21+ requirement will be applied to stores that carry a mix of products. The commission said the category was set by the General Assembly and that the statute created four distinct retail categories, with the fourth category allowing businesses to restrict entry to adults only. Representative Crawford said wholesalers in his district predicted the combined state and federal changes could "cost us 120 jobs and numerous of millions of dollars into our tax base," a claim agency officials linked primarily to federal changes affecting interstate commerce.

The commission also defended its enforcement and testing regime. Officials said suppliers must test each batch at approved third-party labs and provide a QR code on packaging so consumers can view lab results. "We want Tennessee consumers to be able to walk into a store ' know what they are, know if they're safe, know how much of those substances are in it," Thomas said.

Committee members asked about staffing and whether the commission has the personnel to enforce the new program; Thomas said the commission received supplemental revenue permission in statute to hire additional staff and will monitor tax collections in the first fiscal quarter to ensure positions are sustainable.

Members also discussed the interplay between state rules and federal developments. Commission officials noted recent federal changes, including adjustments in federal definitions and rescheduling activity, and cautioned that those moves could affect interstate shipments and the business models of firms that ship products to other states.

The committee advanced the permanent rules with a positive recommendation in both chambers.

Source: Joint Government Operations Committee hearing, May 20, 2026. Quotes attributed to Russell Thomas and other officials are taken from the committee proceedings.