Smokeable cannabis products sold legally across Texas could disappear by the end of the month under proposed state rules that would redefine how THC is measured and dramatically raise costs for hemp businesses.

The Texas Department of State Health Services has drafted sweeping new regulations for the hemp industry, including child-resistant packaging, stronger warning labels, expanded testing, recall procedures and fee increases of roughly 10,000% for manufacturers and retailers.

Under the proposal, posted online for public comment the day after Christmas, annual fees for hemp manufacturers would jump from $250 to $25,000 per facility. Retailers would be required to pay $20,000 per location each year, up from the current $150 registration fee.

The proposed rules would still allow for edible hemp products, like gummies and drinks containing Delta-9, Delta-8 and potent cannabinoids such as THCP.

Those products would be required to carry warning labels, clear dosing instructions and web links to independent lab tests showing the concentration of active ingredients and the presence of any heavy metals, pesticides or microbial contamination.

More than 9,100 retail locations in Texas are registered to sell consumable hemp products, according to state health records. An emergency rule adopted in September prohibited sales of hemp products to people under 21, even though many, if not most, stores already carded customers.

Michael Minasi

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KUT News

State health officials drafted the new regulations in response to an executive order issued by Gov. Greg Abbott on Sept. 10 directing state agencies to develop new rules governing what Texas calls “consumable hemp products.”

The order followed a stalemate in the Legislature, where lawmakers failed to agree on whether to regulate mind-altering hemp compounds or attempt another outright ban. In June, Abbott vetoed an initial bill prohibiting THC products that had been championed by Lt. Gov. Dan Patrick.

Under Texas law, hemp is defined as cannabis containing no more than 0.3% Delta-9 THC, the primary psychoactive compound in marijuana. That definition was adopted by state lawmakers in 2019 and closely mirrored federal legislation passed the year before.

Neither state nor federal law explicitly banned THCA, a naturally occurring cannabis compound that converts into Delta-9 THC when heated or smoked. Even in states where marijuana is legal, most of the Delta-9 THC in smokable cannabis starts as THCA.

The proposed rules would include THCA amounts in the calculation of Delta-9 THC levels, a change that would effectively outlaw most smokable hemp products.

Nathan Bernier

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KUT News

During a public hearing Friday morning, DSHS commissioners heard from dozens of small hemp business owners and cannabis users. Many said they supported stricter packaging rules and age limits, but objected to the effective ban on smokable products and the sharp increase in licensing and registration fees.

“These proposed fees don’t regulate small businesses, they eliminate them,” Estella Castro, owner of Austinite Cannabis Co., told commissioners. “This proposal would force me to close, despite doing everything right.”

Several speakers accused the health department of exceeding its authority by attempting to redefine THCA as Delta-9.

“Changing Delta-9 to total THC is a legislative function, not administrative,” said Jesse Mason, owner of the San Antonio hemp store Reggie & Dro. “By counting THCA prior to heat, you are banning products the legislature legalized.”

A handful of speakers testified in full support of the regulations and called on the state health department to go even further.

“Thank you for increasing license fees. The more difficult it is for the industry to addict users, the better. Age limits should be higher than 25,” said Christine Scruggs, an anti-THC activist who said her son had developed psychosis from cannabis use and required medical treatment to recover.

Dr. Lindy McGee, a Houston pediatrician who spoke to commissioners on behalf of the Texas Medical Association and the Texas Pediatric Society, called for stricter labeling requirements, including statements that THC can be habit forming and take more than two hours to kick in.

“[Label warnings] should be easily recognizable and large enough for a grandparent who is babysitting to be able to tell that the gummies are edibles and not something they should be giving their grandkids,” she said. “That’s another thing we see in the emergency department.”

State health officials can still revise the rules based on public feedback. The regulations could take effect as soon as Jan. 25, or the department could delay or phase in enforcement.

The drafted rules would not affect the state’s medical marijuana program, which was expanded in 2025 to allow for 15 dispensaries statewide, up from three.