At MC Nutraceuticals, we remain committed to keeping our partners informed on the rapidly changing hemp regulatory landscape. Several states are currently debating — or have already enacted — legislation that could significantly impact the hemp-derived cannabinoid industry. Here’s the latest you need to know:
Tennessee: The Volunteer State Needs Your Help!
Tennessee House Bill 1376 (HB 1376) promises the “Regulation of Hemp-Derived Cannabinoid Products”, but some Volunteer State hemp industry members just had their business model regulated out of existence.
That’s not to say that HB 1376 is all bad. There are many sensible regulations contained in HB 1376 (e.g., licensing requirements, sales restrictions, testing standardization, and packaging requirements), and the broader hemp industry advocates and supports regulations such as these regularly. But the support ends there as many members of Tennessee’s thriving hemp industry have been stripped of their ability to sell one of their most sought-after products, hemp flower.
Under HB 1376:
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Products exceeding 0.3% total THC are prohibited.
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Any product containing more than 0.1% THCa is banned.
This drastic restriction on THCa threatens to shut down a major segment of Tennessee’s hemp industry, particularly businesses built around compliant hemp flower sales. Many retailers who have operated legally under the 2018 Farm Bill now face the prospect of closing their doors or relocating out of state.
Adding to the burden, HB 1376 introduces:
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A $0.01/mg wholesale tax on hemp-derived cannabinoids.
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A 6% retail tax on hemp-derived consumable products.
Despite these taxes, Tennessee risks losing a thriving industry that supports nearly 6,500 jobs statewide.
At this point in time, it is critical to note that many provisions of HB 1376 do not go into effect until January 1, 2026. Rulemaking must take place prior to the enactment of many of HB 1376’s provisions, but that does not mean the time to fight is over.
Members of the Tennessee Healthy Alternatives Association are considering a lawsuit to challenge the validity of HB 1376 under state and federal law. Reach out to the Tennessee Healthy Alternatives Association today to find out how you can help fight for the right to sell hemp flower in Tennessee again!
Alabama: Stalled… But Not Over
In Alabama, House Bill 445 (HB 445) threatens the future of hemp products with strict regulations, including:
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Business licensing mandates.
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Excise taxes.
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Severe limits on product potency (e.g., 5mg total THC limit per beverage or edible).
These requirements are not set to go into effect until January 1, 2026. As of April 17, 2025, HB 445 remains stalled in the Senate Committee for Fiscal Responsibility and Economic Development.
The legislative session adjourns on May 15, 2025, and there is good reason to hope the bill will remain stalled until the clock runs out. At this point in time, and to stop any additional movement on this bill, it is critical to let legislators know about the devastating impact that HB 445 would have on Alabama’s hemp industry.
Our friends at the US Hemp Round Table can help you contact your legislators today.
Arizona: The Fight Continues!
The Hemp Industry Trade Association of Arizona (HITA) is actively challenging the state’s recent crackdown on hemp-derived THC products. For context, last month, Mayes issued a warning to businesses saying: “If you’re selling THC edibles or beverages and you’re not a licensed dispensary, you’re violating Arizona law.” Mayes’ statement said it was giving businesses time to comply, and that law enforcement should not begin enforcing these prohibitions until April 24th. At the conclusion of the hearing on April 24th the parties agreed to take up the matter again on May 9th, when it will discuss HITA’s motion for preliminary injunction.
Contact HITA today to see how you can help fight to keep hemp-derived products alive in Arizona.
Florida: Tick Tock, Tick Tock…
Florida’s House Bill 7027 (HB 7027) — which seeks to regulate “hemp consumable THC products” — remains temporarily postponed.
Recent updates:
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HB 7027 was delayed for a second reading on April 25th.
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With all House business canceled as of today, the earliest the bill can be heard again is Tuesday, April 29th.
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Florida’s legislative session adjourns on May 2nd.
Time is running short, and many in the hemp industry are watching the Sunshine State hoping the clock expires before HB 7027 can pass. If enacted, the bill’s severe product restrictions would have a wide-reaching impact on the Florida hemp industry.
Stay tuned for further updates as Florida’s legislative session comes to a close.
Stay Informed, Stay Active
The hemp industry faces growing regulatory challenges across the country. At MC Nutraceuticals, we believe education, advocacy, and action are critical to protecting innovation and economic opportunity in the hemp sector.
If you operate in Tennessee, Alabama, Arizona, or Florida — or if you do business nationally — now is the time to get involved.
We’ll continue monitoring developments closely and sharing critical updates.
Have questions about regulatory updates in the hemp industry?
Contact us today: 1.800.685-8084 or sales@mcnutraceuticals.com
