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flag Tennessee’s 2026 hemp law mandates in-state wholesalers, favoring local firms, sparking legal challenges over interstate commerce concerns.

flag A Tennessee law set for January 2026 will impose an alcohol-style three-tier system on legal hemp, requiring out-of-state suppliers to use in-state wholesalers—many of whom are already major alcohol distributors—while allowing in-state producers to sell directly. flag The move, shifting oversight to the Alcoholic Beverage Commission, faces legal challenges over potential violations of the Dormant Commerce Clause, as it favors local businesses and may set a precedent for other states to consolidate control through entrenched distribution networks.

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