AUSTIN, Texas — As the new year begins, the Texas Department of State Health Services (DSHS) unveiled proposed rules aimed at tightening oversight of the state’s hemp industry, covering production, retail sales, and consumable hemp products.
The measures, announced last week, include mandatory product recalls, complaint tracking systems, expanded laboratory testing, and age verification protocols to prevent sales to those under 21. The proposals follow an executive order signed by Gov. Greg Abbott in September 2025, which seeks to limit minors’ access to hemp-derived THC products and strengthen regulatory enforcement statewide.
Some industry stakeholders say the rules provide clearer guidance and improved consumer protections, but they are concerned about potentially steep new licensing fees. Austin-based Restart CBD co-owner Shayda Torabi warned that the new fees could create a heavy financial burden, particularly for small, family-run businesses.
“Currently, retailers pay a few hundred dollars annually for licensing through DSHS,” Torabi said. “Under the proposed rules, that fee could jump to $20,000 per location, and manufacturers could face $25,000 annually.”
DSHS projects that the regulations could generate about $202 million in revenue annually over the first five years, while nearly 10,000 small businesses across Texas could be affected.
Torabi encouraged community members and industry participants to submit public comments ahead of the upcoming hearing.
DSHS will hold a public hearing on the proposed rules on Friday, Jan. 9, and is accepting public comments through Jan. 7. If approved, the new regulations could take effect as early as Jan. 25.
“Your voice needs to be heard to help protect and shape the next chapter for the hemp industry here in Texas,” Torabi said.
