1. (1) Transitional Denial Authority for Prior Title 43 Violations

   1. (a) For a period of one (1) year from the date of a violation, the Commission may deny a license application submitted by any person or entity that was previously licensed under Tennessee Code Annotated, Title 43 by the Department of Agriculture, if the applicant has committed a violation of Title 43 for selling hemp-derived cannabinoid products without the proper license, or selling products that fail to meet the requirements of 43- 27-209(a), or selling any controlled substance as defined by Title 39.

   2. (b) For purposes of this section, a “violation” means either: CANNABINOID PRODUCTS

      1. 1. A finding of violation contained in a final order issued by the Department of Agriculture or another state agency under Title 43 or court under Title 39; or
      2. 2. Conduct for which no adjudication has occurred, but which the Commission, after providing written notice of intent to deny and an opportunity for an evidentiary hearing, determines by a preponderance of the evidence to have constituted a violation of the above.

   3. (c) The Commission’s authority under this section is discretionary. In determining whether to deny a license under this rule, the Commission may consider mitigating or aggravating circumstances, including, without limitation:

      1. 1. The nature and seriousness of the violation;
      2. 2. The applicant’s history of compliance with state law;
      3. 3. Any corrective actions taken by the applicant; and
      4. 4. The time elapsed since the violation occurred.
   4. (d) Nothing in this section precludes an applicant from submitting a license application during the one-year period following a violation; however, the Commission may rely on such violation(s) as a basis for denial within that period.
2. (2) An HDCP supplier license is required per person per location for any person that manufactures or distributes HDC product in commerce.

3. (3) An HDC supplier license application must be submitted in a manner specified by the Commission. In addition to submitting to a physical inspection of the address seeking licensure, if located in Tennessee, applicants must provide the Commission with the following:

   1. (a) Legal name and D/B/A for the business seeking licensure;
   2. (b) Physical and mailing address for the business seeking licensure;
   3. (c) Name, biographic information, and contact information of any person in a business seeking licensure;
   4. (d) Valid government issued photo identification for any person in an applicant;
   5. (e) Tennessee Bureau of Investigation or Federal Bureau of Investigation criminal background check that includes fingerprint checks for any person legally responsible for the management of applicant’s operations;
   6. (f) Proof of registration in its state of incorporation for any applicant that is a formalized business entity;
   7. (g) Sufficient information to establish that applicant is registered with the Tennessee Department of Revenue to pay applicable taxes;
   8. (h) Architectural diagram of the physical space, which includes square footage and dimensions;
   9. (i) Verification that the applicant has a legal right to the premises seeking licensure; CANNABINOID PRODUCTS
   10. (j) Business hours of applicant;
   11. (k) Acknowledgement that business will operate in accordance with state law;
   12. (l) Compliance with the Eligibility Verification for Entitlements Act as codified in T.C.A. §§ 4-58-101, et seq; and
   13. (m) Any other information, required by the Commission, to determine an applicant’s eligibility for the licensure sought.
4. (4) An HDC wholesaler license is required per person per location for any person who distributes HDCPs into retail commerce.

5. (5) HDC wholesaler license applications must be submitted in a manner specified by the Commission. In addition to submitting to a physical inspection of the address seeking licensure, applicants must provide the Commission with the following:

   1. (a) Legal name and D/B/A for the business seeking licensure;
   2. (b) Physical and mailing address for the business seeking licensure;
   3. (c) Name, biographic information, and contact information of any person in a business seeking licensure;
   4. (d) Tennessee Bureau of Investigation or Federal Bureau of Investigation criminal background check that includes fingerprint checks for any person legally responsible for the management of applicant’s operations;
   5. (e) Valid government issued photo identification for any person in a business seeking licensure;
   6. (f) Proof of registration in its state of incorporation for any applicant that is a formalized business entity;
   7. (g) Sufficient information to establish that applicant is registered with the Tennessee Department of Revenue to pay applicable taxes;
   8. (h) Security plan;
   9. (i) Architectural diagram of the physical space, which includes square footage, dimensions, and a description of how product will be received, inventoried, stored, and packaged;
   10. (j) Owner affidavit confirming warehouse space meets the requirements set forth in T.C.A. § 57-7-106(f)(1)(E)(i);
   11. (k) Verification that the applicant has a legal right to the premises seeking licensure;
   12. (l) Business hours of applicant;
   13. (m) Records storage and records security policy;
   14. (n) Certificate of Occupancy;
   15. (o) Detailed business plan; CANNABINOID PRODUCTS
   16. (p) Proof of financial eligibility as set forth in T.C.A. § 57-7-106(f)(1)(E)(iv); and,
   17. (q) Any other information, required by the Commission, to determine an applicant’s eligibility for the licensure sought.
6. (6) Licensees must notify the Commission in a manner approved by the Commission, of any changes to the contents of their approved application within thirty (30) days of the change, including any change in contact information.
7. (7) Payment of an annual HDC supplier and wholesaler license fee is due upon approval of an application and must be paid in full prior to a license being issued. The license fee may be prorated in the initial year of licensure or following the business obtaining additional licenses, provided the total prorated fee does not exceed the annual license fee.
8. (8) HDC supplier and wholesaler licenses expire one (1) year from the date of issuance, unless the licensee holds more than one (1) TABC issued license, and the Commission prorated the license fee to permit the business to align license expiration dates.
9. (9) It is the responsibility of the licensee to submit to an annual inspection, if applicable, provide a complete renewal application in a manner specified by the Commission, provide an updated criminal background check for each applicable individual, and remit payment of the annual license fee prior to the expiration of the license. The expiration date printed on the license serves as notice of the need to renew the license by the expiration date, and no additional notice is required. HDC licenses will be closed on the business day after expiration if both a renewal application and a license fee have not been received. If the Commission receives an application and license fee prior to the license expiration date, the Commission will toll closing the license, and the license will remain valid until the Commission reviews the application. The applicant shall resolve any outstanding issues and submit any additional documentation to the Commission no later than 30 days after the license expiration date for renewal application processing. Licenses that the Commission does not renew within thirty (30) days of the license expiration date will be closed. The renewal process is complete when the Commission issues an updated license.
10. (10) The Commission may deny any application for licensure that it deems incomplete because it lacks required documents or information or that is not completed in conformance with this rule.

Authority: T.C.A. §§ 57-7-106 and 57-7-116. Administrative History: Emergency rules filed December 26, 2025; effective through June 24, 2026. New rules filed March 11, 2026; effective June 9, 2026.