Tennessee’s hemp ban is on track for a $110M tax shortfall; DEA’s corrected rescheduling transcript is due Wednesday; Canada’s retaliatory tariffs begin Sept. 8.

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Daily Compliance Brief

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Vol. 1 • Edition 10 • Monday, August 24, 2026 • Alcohol & Hemp/THC Regulation • Federal + All 50 States

Good morning — here’s the regulatory picture for alcohol and hemp/THC beverages, readable in about three minutes. Every headline links to the original source. A quiet weekend on the alcohol side, so today’s edition runs a bit shorter and hemp-heavy.

Top Story

Tennessee’s hemp product ban puts the state on track for a $110 million tax shortfall

TENNESSEE • Marijuana Moment • Aug 22

Tennessee’s ban on THCA and other unregulated hemp products, in effect since July, has cut the state’s hemp tax collections by more than 90 percent: July receipts came in at roughly $425,000 against a projected $9.4 million. At that pace the state would fall about $110 million short of the roughly $130 million in hemp tax revenue that the Department of Finance and Administration and the governor’s office had projected for fiscal 2026–27. Industry groups say the ban has shut down most of what they describe as a $250 million market.

Why it matters: Tennessee is the first hard revenue data point on what a restrictive hemp regime does to a taxed retail category — useful context for distributors and retail partners carrying hemp beverages in states weighing similar limits, and a preview of the market math ahead of the November 12 federal THC caps.

Federal

DEA judge orders corrections to rescheduling hearing transcript; final version due Wednesday

FEDERAL • Marijuana Moment • Aug 21

DEA Chief Administrative Law Judge Derek Julius ordered dozens of corrections to the 2,470-page transcript of the marijuana rescheduling hearing, with the corrected version to be posted publicly on the agency’s website by August 26. Judge Julius will then weigh the final briefs and testimony to issue a scheduling recommendation; the DEA administrator makes the final decision.

South Dakota regulator: states getting little federal guidance on Schedule III implementation

FEDERAL / SOUTH DAKOTA • Marijuana Moment • Aug 22

Whitney Brunner, administrator of South Dakota’s medical cannabis program, told the legislature’s Medical Marijuana Oversight Committee that federal officials have shared minimal information about implementing April’s reclassification of state-licensed medical cannabis to Schedule III: “At the state level, we probably have more questions than answers.”

Why it matters: Compliance mechanics tied to rescheduling — DEA registration, banking access, and tax treatment — remain unsettled, which keeps planning uncertain for any business adjacent to cannabis-derived categories.

Around the States

Connecticut Supreme Court backs processing operations at Suffield hemp facility

CONNECTICUT • Marijuana Moment • Aug 24

Connecticut’s Supreme Court ruled that local officials cannot block a hemp processor’s operations based solely on state marijuana rules, clearing the way for cannabis processing at a former tobacco site in Suffield — a data point for hemp operators facing local zoning pushback.

Missouri draws nearly 900 applications for final 77 marijuana microbusiness licenses

MISSOURI • Marijuana Moment • Aug 23

Missouri’s Division of Cannabis Regulation received almost 900 applications for the third and final round of 77 microbusiness licenses (at least 29 wholesale and 34 dispensary), with winners to be drawn by lottery on September 9.

On the Radar

Sept. 8 — Canada’s retaliatory tariffs begin. After trade talks collapsed on August 21, 50% U.S. tariffs on $20 billion of Canadian goods — including alcoholic beverages — took effect August 22; Prime Minister Mark Carney said Canada will “match those tariffs dollar for dollar” starting September 8, targeting steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics (NPR).

Aug. 26 — The corrected DEA rescheduling hearing transcript is due on the agency’s website, after which the administrative law judge moves to a recommendation on marijuana’s scheduling status.

Nov. 12 — Federal hemp THC limits take effect. Section 781 of the 2026 Appropriations Act caps finished consumable hemp products at 0.4 mg total THC per container; law firm Vicente LLP estimates the standard would bar roughly 95% of current hemp-derived products, including most THC beverages (Vicente LLP).

Jeremy Barnes | Chief Financial Officer, New Realm Brewing Co.

Prepared for New Realm’s leadership team and valued partners. This brief is for general informational purposes only and is not legal advice; it is compiled with AI assistance from the linked sources — please confirm details at the link before acting on them.

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