TENNESSEE (WGNS) - Tennessee’s hemp industry is about to feel the ground shift. Beginning July 1, 2026, the state will officially ban the sale of THCA — the hemp‑derived compound that turns into Delta‑9 THC when heated. Lawmakers say the change closes a loophole that allowed THCA products to deliver a marijuana‑like high while still testing under the state’s THC limit.

For retailers, the impact is enormous. Industry estimates suggest THCA makes up roughly three‑quarters of all hemp sales in Tennessee. That means most smokable products and a large share of edibles currently on store shelves will no longer be legal to sell.

The new law sets a firm threshold: any hemp‑derived product containing 0.3% or more THC by dry weight — including THCA — is banned. Only low‑THC items such as certain lotions or compliant gummies will remain legal.

Another major shift arrives in how these products can be sold. All legal hemp‑derived cannabinoids must now be purchased in person, and only by customers 21 and older with valid ID. Shipping, delivery, and online ordering into Tennessee are off the table.

Oversight of the entire industry has also moved. As of January 1, regulation transferred from the Tennessee Department of Agriculture to the Tennessee Alcoholic Beverage Commission. TABC takes full enforcement control July 1, once all remaining legacy licenses expire.

And July 1 brings even more changes. Kratom becomes fully illegal statewide. A new vape cartridge tax kicks in. Restrictions tighten on nitrous oxide. And a new “federal rescheduling guardrail” ensures Tennessee’s cannabis laws won’t automatically change even if the federal government reclassifies marijuana.

Some cannabinoids — including Delta‑8, Delta‑10, HHC, and THCV — will remain legal, but only if they stay under the 0.3% THC limit and follow the new licensing and age‑verification rules. TABC has also restricted where these products can be sold, limiting them to 21‑and‑up businesses such as vape shops and liquor stores, and banning packaging that appeals to minors.

Several CBD retailers have already warned they may not survive the transition. A few have announced plans to close on June 30 and relocate to states with looser regulations. WGNS reached out to local shops for comment, but none were ready to publicly share their plans.