AUSTIN, Texas — Texas health officials have proposed sweeping regulatory changes to the state’s consumable hemp market, including licensing fee increases of up to 13,000 percent, prompting warnings from industry members that the rules could force small businesses to close while favoring large, out-of-state operators.
The Texas Department of State Health Services released the proposed rules late last month as part of an effort to tighten oversight of hemp-derived products. Measures such as raising the minimum purchase age to 21, requiring age verification, and mandating product recalls have received broad industry support. However, two provisions have drawn intense opposition: sharply higher licensing fees and new THC testing limits.
Under the proposal, annual manufacturer licenses would rise from $250 to $25,000 per facility, while retail registrations would jump from $150 to $20,000 per location. Small business owners say those costs are unsustainable. Industry advocates also argue that new testing standards would effectively eliminate natural hemp flower products, pushing the market toward synthetic THC alternatives.
Supporters of the fee increases say the changes are necessary to rein in an industry they argue has grown too large and insufficiently regulated. Public health advocates contend higher fees are appropriate given the size of the market and the need to protect children and fund enforcement.
The proposals stem from an executive order issued by Gov. Greg Abbott after lawmakers failed to reach a compromise on hemp regulation during multiple legislative sessions. While the order initially reassured many in the industry, some business owners now say the rules resemble a de facto ban that undermines that outcome.
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