Austin, Texas — Smokeable hemp-derived cannabis products legally sold across Texas may soon disappear under sweeping new regulations proposed by the Texas Department of State Health Services (DSHS), prompting concern from small business owners and cannabis consumers.
The proposed rules, released for public comment shortly after Christmas, would significantly change how tetrahydrocannabinol (THC) is measured and dramatically increase licensing and registration fees for hemp manufacturers and retailers. If adopted, the regulations could take effect as early as January 25.
Under the proposal, annual licensing fees for hemp manufacturers would increase from $250 to $25,000 per facility, while retailers would be required to pay $20,000 per location each year—up from the current $150 registration fee. The rules would also introduce child-resistant packaging, stricter warning labels, expanded laboratory testing requirements, product recall procedures, and enhanced reporting standards.
While edible hemp products such as gummies and beverages containing Delta-9, Delta-8, and other cannabinoids would remain legal, they would be subject to new labeling requirements. These include clear dosage instructions and QR codes or web links directing consumers to independent lab test results showing cannabinoid concentrations and screening for contaminants such as heavy metals, pesticides, and microbes.
Texas currently has more than 9,100 registered retail locations selling consumable hemp products, according to state health data. An emergency rule adopted in September already prohibited the sale of hemp products to individuals under 21 years old.
The most controversial element of the proposal involves redefining how THC content is calculated. Texas law defines hemp as cannabis containing no more than 0.3% Delta-9 THC. The new rules would count tetrahydrocannabinolic acid (THCA)—a non-intoxicating compound that converts into Delta-9 THC when heated—toward that limit. Critics say this change would effectively ban most smokable hemp products currently on the market.
State health officials drafted the rules in response to a Sept. 10 executive order from Gov. Greg Abbott directing agencies to strengthen oversight of consumable hemp products after lawmakers failed to reach consensus during the last legislative session. Abbott had previously vetoed a bill that would have banned THC products outright.
During a public hearing held Friday, dozens of hemp business owners, advocates, and medical professionals testified before the Texas Health and Human Services Commission Executive Council. Many expressed support for age restrictions and packaging safeguards but objected to the steep fee increases and the proposed treatment of THCA.
“These fees don’t regulate small businesses—they eliminate them,” said Estella Castro, owner of Austinite Cannabis Co., warning that the rules would force compliant operators to shut down.
Others argued that redefining THC content exceeds the health department’s authority and should be decided by lawmakers rather than regulators.
Some speakers, however, supported the proposed regulations and urged even stricter measures. Medical professionals called for more prominent warning labels, citing concerns about accidental ingestion by children and delayed onset of THC effects.
DSHS officials said the rules could still be revised based on public feedback before final adoption. The proposed regulations would not affect Texas’ medical marijuana program, which was expanded in 2025 to allow up to 15 licensed dispensaries statewide.