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HB1243 • 2026

Licenses

AN ACT to amend Tennessee Code Annotated, Section 1-3-113; Title 39, Chapter 17, Part 15; Title 43, Chapter 27; Section 53-11-451 and Title 67, relative to hemp.

Agriculture Education Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Hurt, Walley
Last action
2025-02-18
Official status
Assigned to s/c Criminal Justice Subcommittee
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details about the enforcement mechanisms or penalties for violations, leaving these aspects unclear.

Tennessee Hemp and Smoking Hemp Licensing Act

This bill requires people who sell smoking hemp or products made from hemp to get a license from the state agriculture department before selling these items.

What This Bill Does

  • Requires suppliers and retailers of smoking hemp or hemp-derived cannabinoid products to obtain licenses from the Tennessee Department of Agriculture before selling these items.
  • Sets fees for supplier ($500) and retailer ($250 per location) licenses, and requires background checks and inspections by state officials.
  • Defines 'smoking hemp' as hemp intended for smoking that does not meet other definitions like vapor products or cannabinoid products.
  • Limits the sale of smoking hemp near schools to 500 feet unless an exception is provided based on existing sales before a specific date.
  • Adds a six percent tax on selling smoking hemp and hemp-derived cannabinoid products.

Who It Names or Affects

  • People who sell or manufacture smoking hemp or hemp-derived cannabinoid products in Tennessee.

Terms To Know

Smoking Hemp
Hemp intended for smoking that does not meet the definition of a vapor product or a hemp-derived cannabinoid.
Retailer
A person who sells smoking hemp or products containing a hemp-derived cannabinoid to consumers, not for resale.

Limits and Unknowns

  • The bill does not specify what happens if someone violates the licensing requirements.
  • It is unclear how enforcement of these rules will be carried out in practice.
  • The exact penalties for selling without a license are not detailed in this summary.

Bill History

  1. 2025-12-01 Tennessee General Assembly

    Withdrawn.

  2. 2025-02-18 Tennessee General Assembly

    Assigned to s/c Criminal Justice Subcommittee

  3. 2025-02-12 Tennessee General Assembly

    P2C, ref. to Judiciary Committee - Commerce Committee

  4. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Judiciary Committee

  5. 2025-02-10 Tennessee General Assembly

    Intro., P1C.

  6. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  7. 2025-02-06 Tennessee General Assembly

    Filed for introduction

  8. 2025-02-05 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Under present law, a
person or entity that is in the business of manufacturing or selling
hemp-derived cannabinoid products ("HDCP")
in this state, including as a supplier or retailer, must obtain a license from the department of agriculture.

In order to obtain and maintain a supplier or retailer license, a person must:

(
1
) Submit to the department of agriculture information prescribed by rules;

(
2
) Pay a fee of $500 for supplier or $250 per retailer per location;

(
3
) Consent to reasonable inspection and sampling by the department of agriculture, or the department of revenue as applicable, of the person's inventory of products containing a hemp-derived cannabinoid; and

(
4
) Submit to a criminal history background check that includes fingerprint checks against state and federal criminal records.

This bill makes the licensure and regulatory requirements for HDCPs applicable to smoking hemp. This bill defines "smoking hemp" to mean
hemp that is offered for sale to the public with the intention that it is consumed by smoking and that does not meet the definition of a hemp-derived cannabinoid or a vapor product
. The regulatory requirements that will apply to smoking hemp include seizure of product that is offered for sale by an unlicensed person, inspections, packaging and labeling requirements, pro
per storage of unused portions of product,

For purposes of this bill, a person is deemed a manufacturer of smoking hemp if the person
package
s
, repackage
s
, label
s
,
or
relabel
s
smoking hemp
.

Under present law, a
retail location that is within 1,000
feet
of a private school, public school, or charter school that serves any grades from kindergarten through 12
is prohibited from
sell
ing HDCP,
unless the applicant provides the department with documentation that establishes that
HDCPs
were being offered for sale at retail at such location on December 31, 2023.
This bill makes the setback also apply to retail locations that sell smoking hemp and changes the setback distance to 500 feet
, unless
an
a
pplicant
for licensure
provides the department with documentation that establishes that
HDCP
were being offered for sale at retail at such location on
July 1, 2025
.

This bill extends the six percent privilege tax on
engaging in the business of selling
HDCP to the privilege of selling smoking hemp.

Current Bill Text

Read the full stored bill text 
SENATE BILL 1007
By Walley

HOUSE BILL 1243
By Hurt

HB1243
003073
- 1 -

AN ACT to amend Tennessee Code Annotated, Section 1-
3-113; Title 39, Chapter 17, Part 15; Title 43,
Chapter 27; Section 53-11-451 and Title 67,
relative to hemp.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 43-27-201, is amended by deleting
the section and substituting:
The purpose of this part is to regulate the sale and distribution of smoking hemp
and products containing a hemp-derived cannabinoid.
SECTION 2. Tennessee Code Annotated, Section 43-27-202, is amended by deleting
subdivisions (3), (5), and (7) and substituting:
(3) "Manufacture":
(A) When referring to products containing a hemp-derived cannabinoid,
means to compound, blend, extract, infuse, cook, or otherwise make or prepare
products containing a hemp-derived cannabinoid, including the processes of
extraction, infusion, packaging, repackaging, labeling, and relabeling of products
containing a hemp-derived cannabinoid; and
(B) When referring to smoking hemp, means to package, repackage,
label, and relabel smoking hemp;
(5) "Retailer" means a person or entity that sells smoking hemp or products
containing a hemp-derived cannabinoid for consumption and not for resale;

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(7) "Supplier" means a person or entity that manufactures smoking hemp or
hemp-derived cannabinoids or sells smoking hemp or products containing hemp-derived
cannabinoids to retailers.
SECTION 3. Tennessee Code Annotated, Section 43-27-202, is amended by adding
the following as a new subdivision:
( ) "Smoking hemp" means hemp that is offered for sale to the public with the
intention that it is consumed by smoking and that does not meet the definition of a hemp-
derived cannabinoid or a vapor product, as defined in § 39-17-1503;
SECTION 4. Tennessee Code Annotated, Section 43-27-203(a), is amended by
deleting the subsection and substituting:
(a)
(1) It is an offense for a person or entity to engage in the business of
manufacturing, producing, or selling smoking hemp or products containing a
hemp-derived cannabinoid in this state without a valid license required by this
part.
(2) A product containing a hemp-derived cannabinoid or smoking hemp
that is sold or offered for sale in violation of subdivision (a)(1) is subject to
seizure and forfeiture pursuant to § 53-11-451.
SECTION 5. Tennessee Code Annotated, Section 43-27-205, is amended by deleting
the language "hemp-derived cannabinoid products" in subdivision (a)(2) and substituting
"smoking hemp and hemp-derived cannabinoid products"; and by deleting subdivision (a)(3)
and substituting:
(3) Conducting random, unannounced inspections at locations where smoking
hemp, hemp-derived cannabinoids, and products containing hemp-derived cannabinoids
are manufactured, distributed, or sold to ensure compliance with this part.

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SECTION 6. Tennessee Code Annotated, Section 43-27-206(a), is amended by
designating the existing language as subdivision (a)(1) and adding the following as a new
subdivision:
(2) A person or entity that is in the business of manufacturing or selling smoking
hemp in this state, including as a supplier or retailer, and who is not licensed pursuant
subdivision (a)(1), must obtain a license from the department authorizing the person or
entity to engage in that business prior to the commencement of business or by July 1,
2025, whichever is later.
SECTION 7. Tennessee Code Annotated, Section 43-27-206(b)(1)(C), is amended by
deleting the language "inventory of products" and substituting "inventory of smoking hemp and
products".
SECTION 8. Tennessee Code Annotated, Section 43-27-206(b)(3)(A), is amended by
deleting the subdivision and substituting:
(A) A retail location that is within five hundred feet (500') of a private school,
public school, or charter school that serves any grades from kindergarten through grade
twelve (K-12) shall not sell smoking hemp or products containing a hemp-derived
cannabinoid, unless the applicant provides the department with documentation that
establishes that products containing a hemp-derived cannabinoid were being offered for
sale at retail at such location on the effective date of this act.
SECTION 9. Tennessee Code Annotated, Section 43-27-206(b)(3)(B), is amended by
deleting the language "and video recordings" and substituting "video recordings, affidavits, and
any other reliable record, as determined by the department,".
SECTION 10. Tennessee Code Annotated, Section 43-27-206(d)(1), is amended by
deleting the language "sale of products" and substituting "sale of smoking hemp and products".

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SECTION 11. Tennessee Code Annotated, Section 43-27-209, is amended by
designating the existing language as subdivision (a)(1) and adding the following as a new
subdivision:
(2) Smoking hemp that is sold at retail must:
(A) Satisfy the child-resistant effectiveness standards under 16 CFR
1700.15(b)(1) when tested in accordance with the requirements of 16 CFR
1700.20; and
(B) Be labeled with:
(i) A warning statement concerning the risk of impairment from
consumption of the product, keeping the product out of the reach of
children, and other warning information as required by rule promulgated
by the department;
(ii) The net weight of the smoking hemp;
(iii) A quick response (QR) code that can be scanned to access a
website providing the results of the potency testing on the smoking hemp;
and
(iv) An expiration date that is not later than one (1) year after the
date of the potency test results made available at the QR code as
required by subdivision (a)(2)(B)(iii).
SECTION 12. Tennessee Code Annotated, Section 43-27-209, is amended by deleting
the language "obtains a product" in subsection (b) and substituting "obtains smoking hemp or a
product"; by deleting "a product containing a hemp-derived cannabinoid shall not advertise,
market, or offer for sale" in subsection (c) and substituting "smoking hemp or a product
containing a hemp-derived cannabinoid shall not advertise, market, or offer for sale smoking

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hemp or"; and by deleting "products" in subsection (e) and substituting "smoking hemp and
products".
SECTION 13. Tennessee Code Annotated, Section 43-27-210, is amended by adding
the language "smoking hemp or" immediately preceding the language "a hemp-derived
cannabinoid" wherever it appears in subsections (a)-(c); adding the word "product" immediately
preceding the period in subdivision (b)(3); and adding the word "product" immediately following
the language "hemp-derived cannabinoid" in subsection (c).
SECTION 14. Tennessee Code Annotated, Section 67-6-232(a), is amended by
deleting the subsection and substituting instead:
(a) For the exercise of the privilege of engaging in the business of selling
smoking hemp and products containing a hemp-derived cannabinoid in this state
pursuant to title 43, chapter 27, part 2, there is levied an additional tax at the rate of six
percent (6%) of the sales price of smoking hemp and products containing a hemp-
derived cannabinoid when sold at retail in this state.
SECTION 15. Tennessee Code Annotated, Section 67-6-232(c), is amended by
deleting "products containing a hemp-derived cannabinoid" and substituting "smoking hemp and
products containing a hemp-derived cannabinoid".
SECTION 16. For the purpose of promulgating rules, this act takes effect upon
becoming a law, the public welfare requiring it. For all other purposes, this act takes effect July
1, 2025, the public welfare requiring it.