Texas proposes massive fee hikes for hemp retailers, manufacturers as part of new rules

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FILE - Flowering field of industrial hemp. (John Greim/LightRocket via Getty Images)

AUSTIN - Texas health officials are moving to drastically increase the cost of doing business for the state's hemp industry, proposing new rules that would see registration and licensing fees skyrocket by as much as 10,000% for some businesses.

The proposal, published in the Dec. 26, 2025, issue of the Texas Register, outlines a sweeping overhaul of Title 25 of the Texas Administrative Code. The changes are driven by an executive order from Texas Gov. Greg Abbott aimed at tightening regulations on consumable hemp products (CHPs), specifically focusing on preventing sales to minors.

The cost of compliance

Big picture view:

Under the proposed rules, the financial burden for retailers and manufacturers of hemp products, which include items containing THC and CBD, would increase significantly:

• Retailers: The registration fee for retail hemp sellers would jump to $20,000 annually per location.
• Manufacturers: Initial and renewal licensing fees for consumable hemp manufacturers would climb to $25,000 annually.
• License Amendments: Fees for amending a license due to a change in ownership would also rise to $25,000.
• Delinquency: Filing a renewal application after the expiration date would trigger a $1,000 penalty, up from the previous $100.

Currently, the Texas Register indicates previous fees were as low as $250 for certain licenses, marking a massive shift in the state's regulatory approach. 

TABC hearing on hemp products with THC

A youth drug awareness group wants Texas to increase the age restriction to legally purchase hemp products that contain levels of THC.

New oversight rules

Dig deeper:

Beyond the fees, the Department of State Health Services (DSHS) is seeking expanded oversight. The proposal adds a requirement for both manufacturers and retailers to provide written consent allowing the Texas Alcoholic Beverage Commission (TABC) to enter their premises for physical inspections.

The rules also introduce stricter definitions for "total THC" and "total Delta-9 THC," requiring specific laboratory testing methodologies to ensure products do not exceed the legal limit of 0.3%. 

To protect minors, the state would also implement new age-verification requirements and prohibit anyone with a hemp-related license revocation in the last five years from reapplying. 

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What is the timeline for the new rules?

According to the filing, the "earliest possible date of adoption" for these rules is Jan. 25, 2026. If adopted, the rules would carry the force of law across the state.

What you can do:

The public has a window to weigh in on these changes. Written comments are being accepted for 31 days following the Dec. 26 publication. 

Written comments on the proposal, including information related to the cost, benefit, or effect of the proposed rule, as well as any applicable data, research, or analysis, may be submitted to:

• Rules Coordination OfficeP.O. Box 13247, Mail Code 4102Austin, Texas 78711-3247
• Or street address 4601 West Guadalupe Street, Austin, Texas 78751;
• Or emailed to HHSRulesCoordinationOffice@hhs.texas.gov.

To be considered, comments must be submitted no later than 31 days after the date of this issue of the Texas Register. Comments must be: 

1. Postmarked or shipped before the last day of the comment period;
2. Hand-delivered before 5:00 p.m. on the last working day of the comment period; or
3. Emailed before midnight on the last day of the comment period.

If the last day to submit comments falls on a holiday, comments must be postmarked, shipped, or emailed before midnight on the following business day to be accepted. When emailing comments, please indicate "Comments on Proposed Rule 26R008" in the subject line. 

This document is a formal notice of "Proposed Rules" from the Texas Health and Human Services Commission (HHSC) and DSHS. It originates from the Texas Register, the state’s official journal for agency rulemaking, which serves as the primary tool for transparency in how state laws are implemented.