Archive · 2026-07-13

It is unwise to ignore the goings-on in the American South’s cannabis market. Although the progress towards legalization has been slower, changes are happening here as in other parts of the country. Read the updated information here regarding Tennessee, Alabama and Mississippi cannabis business licensing and industry news.

Tennessee Cannabis Business License Laws and Regulations

In effect as of June 30, 2026, the state of Tennessee has enacted a ban on hemp-derived THC products. Lawmakers passed the ban last year, and the policy was originally planned to take effect on January 1; however, the Tennessee Healthy Alternatives Association, a hemp industry trade group, negotiated to let licensed hemp product retailers continue selling certain products until the end of June. The new Tennessee cannabis business licensing updates are:
  • THCA Flower, Vapes & Inhalables are banned:  As the new law reclassified THCA as a precursor to THC.
  • Synthetic Cannabinoids are banned: Compounds such as THCp, even under 0.3% THC, are not considered legal hemp-derived cannabinoids
  • High-Concentration Hemp Products are banned: Any hemp products exceeding 0.3% dry-weight total THC, either consumable, absorbable or inhalable, are completely banned.
  • Gas stations are no longer eligible for HDCP retail licenses.
  • All HDCP retail licenses will be managed by the TABC.
  • For businesses that hold an active HDC license, all products must be under 0.3% THC and are only to be sold to consumers 21+ with a valid ID, in person. Online sales are strictly prohibited.
Since Tennessee has no recreational or medical legalized programs, Tennessee cannabis business license openings are essentially non-existent. That said, you can still apply for an HDCP Retail license here. There are three license types: supplier, wholesaler and retailer. To obtain a license, you must hold a TABC liquor-by-the-drink license, a TABC retail package store license, manufacture HDCPs and sell your own product at a licensed manufacturing location, or your entire business premise must be restricted to individuals age 21 and over. For those looking to manufacture hemp in Tennessee, you can read more about the licensing process here. The good news for those seeking an eventual TN cannabis business license is that the ban has reignited a drive to legalize marijuana, through a specific bill known as the “Pot for Potholes Act,” sponsored by Sen. Heidi Campbell and Rep. Aftyn Behn. The bill aims to legalize cannabis, set regulations, and use the revenue created for road and bridge maintenance. “Republicans didn’t make cannabis go away - they just made it unsafe and untaxed,” Campbell said. “People will still find it, whether that means driving to Illinois or buying from someone with no license and no lab test.”

Alabama Cannabis Business Licensing Laws

Alabama launched its medical cannabis program recently at Callie’s Apothecary in Montgomery. Opened as of early June, this is the only dispensary in the state where patients can legally purchase medical cannabis for now. Once the program is fully operational, however, 12 dispensaries operated by four companies are expected to open across the state. Three of those companies have already received Alabama cannabis business licensing. Over 300 patients are on the medical registry, and 52 certified physicians are authorized to recommend cannabis to patients. In the first week of being open, more than 100 qualifying patients purchased medical cannabis, the Alabama Medical Cannabis Commission noted. Justin Aday, general counsel for the commission, said those transactions generated about $14,600 in pre-tax sales, with the average transaction being $131.56. The Alabama Medical Cannabis Commission is accepting applications in the STATE TESTING LABORATORY license category until December 31, 2026. This license has an annual fee of $30,000 and authorizes the licensee to possess and test cannabis and medical cannabis products cultivated or processed at licensed facilities. More AL cannabis business license info is available here.

Mississippi Cannabis Business Licensing Laws

It is unclear whether MS cannabis business license applications are open; interested parties are encouraged to register with the Mississippi Medical Cannabis Program for information and updates. The state’s governor, meanwhile, has been vetoing cannabis legislation, most recently bills which would have allowed ‘right-to-try’ provisions for patients, eliminated THC caps on some products, and loosened rules for doctor visits. Gov. Reeves justified the vetoes by saying the legislation “seeks to erode three important safeguards” in the state’s law and “meant to minimize the potential diversion” of medical cannabis “for recreational purposes.” The Mississippi Poison Control Center (MPCC) has launched a dedicated Medical Cannabis Hotline to provide real-time guidance for patients and providers. This free, confidential hotline number is 601-984-1170 and is available daily from 7:00 a.m. to 10:00 p.m. and connects callers with trained specialists who can help assess symptoms, answer questions and guide next steps. "We want people to know they can call us for anything," Mallory Pullman, managing director of the MPCC said. "Not only are our specialists available to reassure callers after a dosing error or unexpected side effects, but they are also able to answer general questions and provide information to support safe use." Dr. Michael Marlin, medical director of the MPCC, said the hotline helps bridge gaps in provider availability and support safer decision-making for patients. "While information about medical cannabis is widely available online, knowing the right questions to ask or how to articulate a concern is not always easy," Marlin said. Be aware that the hotline also collects and analyzes data on exposures and side effects, as it is part of the state health department. This is to help identify patterns and improve public safety endeavors.

New to Cannabis Business Licensing?

Don’t traverse the cannabis industry alone. CannaCon is the nation’s leading business-to-business cannabis conference. Their goal is to grow the cannabis industry by educating cannabis business owners on all things related to cannabis and CBD. Their trade shows feature a large exhibition hall with exhibitors from around the country as well as seminars delivered by industry experts. Keep informed by following CannaCon on social media! This post was originally published on July 16, 2019. It was updated on Nov. 7, 2023, and again on Jul. 13, 2026.