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Texas Proposes Sweeping Hemp Rules With $20,000 Retail Fees and Tighter THC Testing

A decision could come as soon as Jan. 25 following a monthlong public comment period.

Overview

  • State health agencies formally filed the overhaul in the Texas Register on Dec. 26, raising retailer registrations to $20,000 per location annually and manufacturer licenses to $25,000.
  • Officials say the fee increases would fund enforcement, with the health department estimating roughly $202 million in annual revenue.
  • The draft tightens definitions and lab methods for total THC and delta‑9 THC, which industry groups warn would effectively bar hemp flower and many smokable products.
  • Provisions include an age‑21 sales minimum with ID verification, child‑resistant packaging, stronger warning labels, and mandatory recall procedures.
  • Retailers and manufacturers would have to provide written consent for Texas Alcoholic Beverage Commission inspections, while small businesses warn the combined changes could trigger widespread closures.