Burr & Forman Partner Tucker Herndon was recently featured in the Memphis Business Journal discussing Tennessee’s newly enacted legislation regulating hemp-derived cannabinoid (HDC) products. The law, introduced as HB 1376 and signed in May, establishes a licensing framework for wholesalers, suppliers, and retailers, imposes new taxes, and transfers regulatory oversight from the Tennessee Department of Agriculture to the Tennessee Alcoholic Beverage Commission (ABC).

In the interview, Tucker explained that this shift marks the state’s response to the rapid and largely unregulated growth of the HDC market since the passage of the 2018 Farm Bill. “It has been the Wild West since the Farm Bill in 2018,” he said. “The products that have hit the market have significantly more effects than what anybody originally intended.”

While the ABC did not initially seek regulatory authority over HDC products, the agency will now receive funding through license fees and taxes to help support enforcement. Tucker noted that meaningful oversight is long overdue, particularly given the increasing potency of certain products. “When you start drinking more than 30 milligrams of HDC, it’ll get you, and it’ll get you quick,” he said, referencing newly established limits on product dosage.

The law also introduces stricter penalties for violations, including selling to minors, a point Tucker emphasized as critical for businesses to understand. “The sale to a minor has a real consequence now. They're not kidding around with that.”

While the legislation introduces additional compliance burdens, Tucker remains confident that the market will continue to thrive. He acknowledged that standalone retailers will likely adapt, but believes the added oversight is a necessary evolution as the industry matures.

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