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

   1. (a) For a period of two (2) years 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 relating to the cultivation, manufacture, distribution, or retail sale of hemp or hemp-derived cannabinoid products.

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

      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
      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 Title 43 or rules promulgated thereunder.

   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 two-year period following a violation; however, the Commission may rely on such violation(s) as a basis for denial within that period.
   5. (e) This section applies during the transitional period following the transfer of regulatory authority HDCPs from the Department of Agriculture to the Commission and remains in effect unless and until superseded by permanent Commission rules governing applicant eligibility.
2. (2) An HDCP retail license is required per person per location for any person that sells or offers for sale an HDCP at retail. Licensed locations must be fixed address facilities, but may include temporary locations such as fairs, flea markets, and farmers markets, provided that license fees for temporary locations cannot be prorated on the basis of temporary use.

3. (3) HDCP retail 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 license;
   4. (d) Valid government issued photo identification for any person in a business seeking licensure;
   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) Identification of nearest school serving any grades K–12 and the distance from that school to the location to be licensed, in feet measured as a straight line along the shortest route;
   9. (i) Architectural diagram of the physical space, which includes square footage and dimensions;
   10. (j) Certificate of Occupancy permitting commercial activity;
   11. (k) Verification that the applicant has a legal right to the premises seeking licensure;
   12. (l) Business hours of applicant;
   13. (m) Compliance with the Eligibility Verification for Entitlements Act as codified in T.C.A. §§ 4-58-101, et seq; and
   14. (n) Any other information, required by the Commission to determine an applicant’s eligibility for the licensure sought.
4. (4) 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.
5. (5) Payment of an annual HDCP retail 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.
6. (6) HDCP retail licenses expire one (1) year from the date of issuance, unless the HDCP retail licensee holds more than one (1) TABC issued retail license and the Commission prorated the license fee to permit the businesses to align license expiration dates.
7. (7) It is the responsibility of HDCP retail licensees to submit to an annual inspection, provide a complete renewal application in a manner specified by the Commission, provide an updated criminal background check for each applicable individual at the time of application, and remit payment of the annual license fee prior to the expiration of the license. The expiration date printed on the permit serves as notice of the need to seek the renewal of the permit by the expiration date, and no additional notice is required. HDCP retail licenses will be closed on the business day after expiration if both an application and a license fee have not been received. If the Commission receives an application and license fee prior to the expiration date, closing of the permit will be tolled and the permit 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 expiration date. Licenses that the Commission does not renew, will be closed 45 days after the license expiration date. The renewal process is complete when the Commission issues an updated license.
8. (8) 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 section.

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.