Alcoholic Beverage Commission outlines permanent rules for hemp-derived products

Russell Thomas, executive director of the Tennessee Alcoholic Beverage Commission, told the joint Government Operations committee the permanent rules implement Public Chapter 526 and set product-safety standards and licensing processes for hemp-derived cannabinoid products. "Throughout that process our focus was to faithfully implement the framework enacted by this general assembly while providing clarity and consistency to those regulated businesses," Thomas said.

Thomas said the commission has expanded the number of approved third-party laboratories, began accepting license applications in December 2025 and has averaged about 32 days from submission to approval. The rules require sampling and testing of every batch by an approved lab and permit QR-code access to lab results so consumers can verify contents and potency.

Committee members pressed on the statute's four retail-license categories and on whether some small health-food stores would be required to limit entry to people 21 and older. The commission emphasized the categories come from statute and said the 4th category — an adult-only retail model — requires premises entry limited to people 21 and older. Members also raised concerns about multistate wholesalers and the potential business impacts of imminent federal changes; the commission said interstate commerce and federal definitions could affect multistate operators and noted federal rules set to change could influence business models.

With questions addressed and no public testimony, the committee moved a positive recommendation; the Senate roll call and the House voice vote carried, and the rules advanced from committee.