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Alcoholic Beverage Commission outlines hemp licensing, vape enforcement and early revenue

House Finance, Ways, and Means Committee · February 10, 2026
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Summary

TABC Director Russell Thomas told lawmakers the agency seeks $18.4 million for FY2027, assumed new hemp and vape duties, reported roughly 193 recent applications yielding about $96,000, and detailed compliance checks that found about 231 failures from 1,295 checks in 2025.

Russell Thomas, director of the Tennessee Alcoholic Beverage Commission, told the committee that the agency’s expanded duties following last year’s legislation include concurrent jurisdiction on youth access enforcement and authority over hemp licensing. "We're seeking a budget request of $18,411,900 for the upcoming fiscal year," Thomas said, noting revenue sources are primarily license and permit fees.

Thomas reported early activity in the licensing transition: about 193 applications showing approximately $96,000.20 in payments as of Jan 2026 with three retailer licenses issued. On enforcement, Aaron Ramage said in 2025 TABC conducted about 1,295 unannounced vape compliance checks and found 231 noncompliant retailers overall (131 fuel/convenience failures out of 916 checks; 118 tobacco specialty failures out of 471 checks). Thomas noted TABC can issue criminal citations for sales to minors but currently lacks statutory authority to assess civil penalties against businesses for such sales.