Tennessee and Texas have moved to ban a wide range of intoxicating cannabinoids derived from hemp, citing serious public health concerns, especially the growing availability of products containing the substances that are marketed to children. The new laws target products such as THCA flower and synthetic compounds like delta-8 THC, which have proliferated under a lack of federal oversight.
Tennessee Gov. Bill Lee signed House Bill 1376 into law last week, ushering in sweeping restrictions that take effect in 2026. The legislation bans sales of products containing THCA and synthetic cannabinoids, prohibits direct-to-consumer sales, and transfers regulatory oversight from the state Department of Agriculture to the Tennessee Alcoholic Beverage Commission (ABC).
‘Unregulated marijuana’
“We have a situation here in Tennessee where we essentially are dealing with unregulated recreational marijuana with no regulation,” said Sen. Richard Briggs, R-Knoxville, who sponsored the bill. “It’s the wild west out there.”
Briggs said lawmakers have requested clarification from the U.S. Department of Justice on how THCA fits into the federal Controlled Substances Act (CSA). In a May 2024 letter, Dr. Terrence L. Boos, chief of the Drug and Chemical Evaluation Section at the Drug Enforcement Administration, responded that THCA must be considered equivalent to THC when determining a product’s legality.
“The ‘decarboxylation’ process converts delta-9 THCA to delta-9-THC,” Boos wrote. “Accordingly, cannabis-derived THCA does not meet the definition of hemp under the (CSA), because upon conversion for identification purposes as required by Congress, it is equivalent to delta-9 THC.”
Texas targets all THC
The Texas Legislature passed Senate Bill 3 last week by a vote of 95-44. If signed by Gov. Greg Abbott, the law would ban all consumable hemp products that contain THC—including delta-8 and delta-9—regardless of concentration. The only exceptions would be for non-intoxicating cannabinoids such as CBD and CBG.
Violations could carry criminal penalties of up to one year in jail for possession and up to 10 years in prison for manufacturing or selling banned substances.
Lt. Gov. Dan Patrick, who led the push for the ban, said lawmakers had a moral responsibility to act. “We cannot in good conscience leave Austin without banning THC, which is harming our children and destroying Texans’ lives and families,” Patrick said in a statement.
SB 3’s sponsor, Sen. Charles Perry, R-Lubbock, said the measure was intended to close loopholes left open by the state’s 2019 hemp legalization bill, which he also carried. What was originally pitched as a path to agricultural growth, Perry said, has since evolved into an uncontrolled retail market for recreational drugs.
CBD oils remain legal
Despite the new laws’ aggressive stance on intoxicating hemp derivatives, CBD oils, topicals, and cosmetics that do not contain THC remain legal in both Texas and Tennessee—with some caveats.
In Texas, Senate Bill 3 explicitly exempts CBD and CBG products, meaning non-intoxicating CBD oils, skincare items, lotions, capsules, and cosmetics can continue to be sold, so long as they contain zero THC. Retailers and manufacturers will need to ensure rigorous third-party testing and clear labeling to avoid violations, as the law applies a zero-tolerance standard for THC in all consumable goods.
In Tennessee, CBD products will also remain legal if they are non-intoxicating. However, starting in 2026, all hemp-derived cannabinoid products for human use, even those without THC, will fall under the jurisdiction of the Alcoholic Beverage Commission. That means CBD oils, tinctures, and beverages may require ABC licensing and compliance, depending on how they’re classified. Topical products like creams and cosmetics may avoid the strictest scrutiny, but the regulatory shift adds complexity and uncertainty for retailers.
In both states, CBD products sold in edible or drinkable form—such as gummies or beverages—are more likely to be scrutinized than cosmetic or topical products.
Unregulated, dangerous
Health officials have raised repeated alarms about hemp-derived intoxicants being sold with little oversight. Products such as gummies, vape pens, beverages, and hemp flower—often containing high levels of synthetic or convertible cannabinoids—are widely available in gas stations and convenience stores, sometimes in packaging designed to appeal to children.
In 2021 and 2022, more than 2,300 exposure incidents involving delta-8 THC were reported to U.S. poison control centers, according to the Food and Drug Administration. Roughly 40% of those involved children, with 8% resulting in hospitalization.
Federal regulators have warned that such products are often mislabeled, adulterated, or contaminated. Reported adverse effects have included anxiety, rapid heartbeat, vomiting, dizziness, hallucinations, severe paranoia, and even loss of consciousness.
The Centers for Disease Control and Prevention has also noted rising ER visits from accidental ingestion of hemp-derived THC, often involving children who mistake the products for snacks or candy.
About the compounds
Most intoxicating hemp compounds on the market today are not naturally occurring but are instead synthesized in laboratories from CBD extracted from hemp flower. This chemical conversion process has raised serious concerns among health officials, who warn that such products often lack quality control and pose safety risks to consumers.
While the 2018 Farm Bill legalized hemp and its derivatives containing no more than 0.3% delta-9 THC, it did not foresee the rise of lab-altered cannabinoids such as delta-8 THC, THCA, and THC-O. Manufacturers have exploited this oversight, creating a gray market for euphoric hemp products that are now the subject of growing state-level crackdowns.
The delayed 2023 Farm Bill offers a chance to close these loopholes. Among the proposals under consideration is the Miller Amendment, which would redefine hemp to exclude intoxicating substances altogether. If enacted, such federal reforms could bring clarity to the marketplace, protect consumers, and reduce the need for patchwork bans at the state level.
Economic impacts
Texas’ retail hemp market is estimated to generate $8 billion annually and support over 53,000 jobs, according to industry-backed studies cited in legislative testimony. Tennessee’s sector is valued at $280 million to $560 million per year. Both states’ bans are expected to trigger significant disruption, including business closures and potential litigation.
Though legal challenges are expected, federal courts have issued mixed rulings on the DEA’s authority over hemp products. The Ninth and Fourth Circuits have rejected DEA interpretations in past decisions, leaving regulatory clarity in flux.
Still, lawmakers in both states said they could not wait for federal action.
“This is an issue of state sovereignty, and we can set it anywhere we want,” said Tennessee’s Briggs.
Despite the new laws’ aggressive stance on intoxicating hemp derivatives, CBD oils, topicals, and cosmetics that do not contain THC remain legal in both Texas and Tennessee. Read More
