Hemp Law Updates – Big Changes in Texas, Minnesota, Tennessee, and Kentucky

Editor’s note – This article was written by Kight Law attorney Amber Lengacher. Hemp Law Changes and Upcoming Deadlines If you are new to cannabis or hemp, you may be overwhelmed by the headlines recently. But rest assured, those of us who have been around for a few years understand that change is inevitable in these industries and the ability to pivot is crucial to success. Perhaps more importantly though, the fight to end prohibition is far from over and we need each of you to remain diligent in order to truly right history. Many of you have read about the recent efforts in Texas to ban most hemp-derived products. As of this date, Texas Senate Bill 3, if signed by the Governor, would devastate Texas’ hemp industry and put Texans out of business and/or employment, while re-criminalizing cannabis and abruptly ending much needed access to this important plant. There is still a chance to urge the Governor’s office to veto this legislation, but if that effort is unsuccessful, the new law would become effective on September 1, 2025. While this is of course one of the most important markets to monitor, there are several other key changes occurring in various states sooner than you may think. It’s important to understand these changes and what they could mean for your business so we have detailed some upcoming deadlines below. Tennessee Tennessee’s House Bill 1376 was signed by the Governor on May 21, 2025 and assigned Public Chapter Number 526 by the Secretary of State. The new law re-defines “Hemp-derived cannabinoids” (which are permissible and regulated in the state of Tennessee) so that the term now specifically excludes THCa, effectively banning THCa-based products. The new law also lowers the allowable limit of hemp-derived cannabinoids, as defined, in products from 25mgs per serving to 15 mgs, in most cases. Other changes were made to testing requirements, licensing requirements, packaging and labeling requirements, and more. The new law also bans online, direct-to-consumer sales and delivery of hemp-derived cannabinoid products (HDCPs). All retail sales must occur face-to-face. Importantly, the new law transitions regulatory authority over HDCPs to the Alcoholic Beverage Commission under the Tennessee Department of Revenue, instead of the Tennessee Department of Agriculture which currently has oversight. This switch to alcohol regulators over agricultural or food regulators could result in increased enforcement over HDCPs in the state. Public Chapter Number 526 technically does not take effect until January 1, 2026. However, for purposes of promulgating rules and carrying out administrative duties necessary to effectuate the new law, the law became effective immediately upon passage. It remains unseen what “administrative duties” the ABC may feel it needs to prioritize and carry out under the new law in Tennessee, so it’s important to monitor the agency’s website and communications for further information as these changes are all relatively new. Minnesota Minnesota’s Office of Cannabis Management (OCM) oversees both regulated cannabis and hemp programs in the state after the series of a passage of laws from 2023 to 2025 and OCM rulemaking that took place over the last several months. As such, Minnesota is in the midst of implementing perhaps the most progressive adult-use cannabis and hemp regulatory program the country has ever seen and the transition for businesses is coming soon. Importantly, on May 27, 2025, the OCM issued two key pieces of guidance to help: the Hemp Registrant to License Holder Conversion Guide and theLower-Potency Hemp Edible (LPHE) License Guide. There is a lot to unpack here, but it is important to understand these new requirements sooner rather than later as the OCM recently announced they are reopening theHemp-Derived Cannabinoid Products Registration application on June 2, 2025. This is a somewhat unexpected move, since the OCM recently closed this application after the finalization of its new rules regarding hemp products. The OCM had originally planned to keep the Hemp-Derived Cannabinoid Products Registration application closed and later this fall, open the new Lower-Potency Hemp Edibles (LPHE) application processes. But according to the update from May 27th, reopening the registration application will allow “unregistered businesses to become eligible to sell hemp-derived cannabinoid products, including hemp-derived THC beverages, during the busy summer season.” Before this change, only those businesses that had registered prior to the closing of the application earlier this year would have been eligible to do so. The OCM also announced LPHE applications will open on October 1, 2025. Regardless of whether a hemp business was previously registered, it will still have to comply with new license application requirements for LPHE products in Minnesota, which will be limited to 5mgs of D9 per serving (think beverages and edibles). Licensed LPHE businesses will need to comply with requirements such as diversity reporting, worker training and safety, SOP requirements, mandatory recall processes, updated packaging, labeling, and testing requirements, and more upon licensure. In contrast, “hemp-derived consumer products” as defined will still be permissible after LPHE license applications open in some circumstances. These products can contain higher amounts of THC (think vapes and flower), but must be sold in cannabis dispensaries, tracked in the statewide monitoring system, and labeled similarly to cannabis. Licensed cannabis wholesalers may import hemp-derived consumer products from out of state with manufacturer information and full panel testing results. Cannabis licensing has been ongoing in Minnesota for nearly a year but zero cannabis wholesaler licenses have been issued as of the date of this writing, according to summary application data available on the OCM website. If you are doing business in Minnesota, it is highly advisable to analyze these upcoming application opportunities in June and October to determine if your business should apply and consult further with legal counsel on upcoming changes. Kentucky In the 2025 legislative session, Kentucky passed Senate Bill 202, which the Governor signed on March 25, 2025. The law was chaptered as Acts Chapter 82 and eventually transfers the regulation of “cannabis-infused beverages” from the Department of Public Health’s Cabinet for Health and Family Services (Cabinet) to the Department of Alcoholic Beverage Control (ABC). ABC must “adopt and exclusively enforce the administrative regulations of the Department of Public Health relating to the distribution and retail sale of cannabis-infused beverages until such time as the [ABC] promulgates its own administration regulations on the subject on or before July 1, 2026.” That said, an important change is coming sooner, according to the new law: “On the effective date of this Act [upon passage and approval by the Governor], any wholesaler, distributor, or retail licensee in possession of any of the following beverages may continue to sell any of those beverages until June 1, 2025:

• Intoxicating cannabinoid beverages that exceed the cannabinoid limits established for cannabis-infused beverages in Section 1 of this Act; and
• Intoxicating cannabinoid beverages of any concentration sold by the drink at retail.”

This important June 1^st cut-off means that any beverages that exceed five milligrams of “intoxicating cannabinoids” as defined per twelve (12) ounce serving will no longer be permitted in Kentucky after this date. “Intoxicating cannabinoids” are defined to include D9, D10, D8, THCa, THCV, HHC, THCP, and more. Additionally, all beverages containing intoxicating cannabinoids (including cannabis-infused beverages, as defined) may not be sold by the drink after this date, they must be sold by the package. Certain licensees may be permitted to sell and serve complimentary samples of cannabis-infused beverages at fairs, festivals, and other similar types of events in wet territory until January 1, 2026 under the following circumstances:

• Sales by the drink;
• Sales by the package shall not exceed nine liters per person, per day;
• Complimentary samples served by the drink shall not exceed one and three-fourths ounces per person, per day; and
• The cannabis-infused beverages shall have been lawfully produced or purchased by the license holder.

License revocation provisions also take effect on July 1, 2025.  You can and should apply for a business license in Kentucky’s hemp regulatory program in order to cause hemp-derived beverages to enter the stream of commerce in the Commonwealth. It’s unclear at this time how licenses issued by the Cabinet will transition to ABC’s new regulatory program, but it is clear that ABC will adopt the Cabinet’s regulations—at least for now. May 29, 2025 ATTORNEY AMBER LENGACHER IS EXPERIENCED IN REPRESENTING HEMP/CANNABIS BUSINESSES THROUGHOUT THE US. This article was written by Kight Law attorney Amber Lengacher. Kight Law represents hemp businesses in the US and throughout the world.