We are hearing a popular question from restaurants, bars, hotels and venues these days. Does my liquor license or beer permit include the sale of THC infused beverages?
In a word, no.
Your business needs an HDC retail license from the Tennessee Department of Agriculture.
HDC is the acronym for hemp-derived cannabinoids, which is CBD and other hemp-derived THC products that can legally be sold in Tennessee. See our blog post here for information about applying for the HDC license.
A word to the wise: make sure you do not mix THC beverages with alcohol. The Tennessee ABC has informally indicated that it takes no issue with restaurants and bars selling properly licensed legal THC products; however, mixing an intoxicant such as THC with alcohol could result in a citation.
HDC license update.
October 1, 2024, was the deadline for the moratorium on enforcement of the new HDC law in Tennessee. Presumably, any business selling HDC needed a license on the wall by that date.
In reality, we have not seen a single license granted. We have filed dozens of applications and all are pending.
Agriculture is probably short-staffed and has not been able to process applications. We suspect that there was a veritable tsunami of applications filed and do not fault the agency.
That said, it is technically – which in this instance means legally – illegal to sell HDC products without a license after October 1.
We hear one of Jimmy Page’s most memorable guitar lines and Robert Plant’s pipes belting out Dazed and Confused:
Been dazed and confused for so long it's not true
Wanted a woman, never bargained for you
Lots of people talk and few of them know
Soul of a woman was created below
If your business has filed a completed HDC application and is waiting on Agriculture to process the application, there is nothing more your business can do. The safest course of action is to stop selling HDC products until your license is posted on the wall. That means losing money and potentially losing market share to competitors.
Seasoned Agriculture staff often say, “education before enforcement.”
We are optimistic that the same sentiment applies to businesses that have filed completed applications and are awaiting a license from Agriculture. Will Agriculture issue citations for not having a license, while applications are pending with Agriculture? We think not, but we are not in charge.
We encourage businesses to ensure they are complying with all of the HDC laws. Read more at our blog post.
When your application is approved, your business will owe the $250 annual license fee, prorated for the July 1 license year ($25 per month - yes, we know the math does not add up). Once you have your license, mark your calendar for the required July 1 renewal each year, which will require payment of the $250 annual license fee and an updated nationwide criminal background check for the responsible person identified in the original application.
HDC Rules Approved.
Agriculture promulgated rules for HDC, available here. According to Agriculture, the permanent rules become effective on December 26, 2024.