Austin, Texas, January 14, 2026
Texas hemp businesses are expressing concerns over proposed regulations by the Department of State Health Services that could drastically increase compliance costs. Experts suggest that the changes, including a redefinition of THC measurement and a staggering rise in licensing fees, could threaten small businesses and lead to significant job losses across the state. The Texas Hemp Business Council estimates a potential $7.5 billion loss to the industry and over 40,000 jobs at risk, igniting debate over economic impacts versus consumer safety.
Texas Hemp Businesses Rally Against Proposed THC Regulations
Industry leaders warn that new compliance costs could threaten small businesses across the state.
Austin, Texas – As the Texas Department of State Health Services (DSHS) introduces proposed regulations to redefine THC measurement and dramatically increase compliance costs, the state’s hemp businesses are voicing significant concerns. Industry leaders are warning that these changes could lead to widespread shop closures across Texas, particularly affecting small businesses that drive local economies.
The new regulations suggest sweeping changes including a redefinition of how THC is measured in consumable hemp products. Alongside this, the proposed structure significantly raises licensing and registration fees for retailers and manufacturers—from just $150 to $20,000 for retail stores and from $250 to $25,000 for manufacturers. Such staggering increases, amounting to over 13,000%, are seen as prohibitive, especially for small enterprises that struggle to absorb such costs.
Impact on Texas Hemp Industry
Industry representatives express grave concerns that the combination of higher fees and stringent testing requirements could eliminate a considerable percentage of the hemp-derived products currently sold, particularly those made from natural hemp flower. The Texas Hemp Business Council estimates the hemp industry contributes approximately $5.5 billion in annual sales, along with an estimated $268 million in tax revenue. However, these proposed regulations could lead to an estimated loss of $7.5 billion and the potential elimination of over 40,000 jobs statewide.
Government Response
In September 2025, amidst concerns over regulatory impacts, Governor Greg Abbott took action by issuing an executive order. This directive tasked three state agencies to create and enforce policies to further regulate the multibillion-dollar hemp market, particularly targeting products containing THC and other intoxicating cannabinoids. This move followed the Texas Legislature’s inability to legislate on consumable hemp products, highlighting a growing divide between the government and the industry.
The Broader Debate
The proposed regulations have ignited an essential debate among state lawmakers, the hemp industry, and the wider public. Some legislators argue that increased regulation is necessary for consumer safety, particularly to protect minors from access to THC products. Conversely, others prioritize the economic ramifications and argue that such stringent measures could stifle innovation and entrepreneurship, decimating the livelihoods of many Texans already invested in this growing sector.
Future of the Texas Hemp Market
As this developing situation unfolds, it is crucial for stakeholders, including entrepreneurs, consumers, and lawmakers, to engage actively. The implications of these regulations on economic vitality, job creation, and the entrepreneurial landscape in Texas will be profound. Navigating this complex dialogue will be essential to finding a balance that promotes both public safety and economic growth.
Engagement and Advocacy
For those concerned about the proposed regulations, participating in public discussions and voicing opinions to local state legislators can play a crucial role in influencing the outcome. Involvement in advocacy efforts could help ensure that regulatory approaches align more closely with the state’s entrepreneurial spirit and economic interests, fostering a more favorable environment for small businesses across Texas.
Frequently Asked Questions (FAQ)
What are the proposed changes to THC regulations in Texas?
The Texas Department of State Health Services has proposed redefining how THC is measured in consumable hemp products and significantly increasing licensing and registration fees for retailers and manufacturers. Under the new structure, annual registration fees for retail stores would escalate from $150 to $20,000, while manufacturer licenses would rise from $250 to $25,000 per facility. These changes represent fee hikes of over 13,000%.
How might these proposed regulations affect the hemp industry in Texas?
Industry representatives argue that the combination of new testing requirements and elevated fees could eliminate a significant portion of hemp-derived products currently available, particularly those made from hemp flower. This shift may leave smaller businesses unable to compete or survive. The Texas Hemp Business Council estimates that the proposed regulations could cost the industry $7.5 billion and result in the loss of over 40,000 jobs.
What actions has Governor Greg Abbott taken in response to these developments?
In September 2025, Governor Greg Abbott issued an executive order directing three state agencies to implement policies to further regulate the state’s multibillion-dollar market for hemp products containing THC and other intoxicating cannabinoids. This action followed the Texas Legislature’s failure to pass legislation addressing consumable hemp products.
What is the current status of the proposed regulations?
The proposed regulations are still under consideration, and stakeholders continue to monitor the situation. The outcome of this ongoing discussion will significantly influence the future of the hemp industry in Texas.
How can individuals and businesses express their concerns about the proposed regulations?
Individuals and businesses can contact their local state legislators to voice their concerns about the proposed regulations. Engaging with policymakers and participating in public hearings are effective ways to influence the decision-making process.
Key Features of the Proposed THC Regulations in Texas
| Feature | Current Status | Proposed Change | Impact |
|---|---|---|---|
| THC Measurement Standards | Existing regulations | Redefinition of THC measurement in consumable hemp products | Potential elimination of certain hemp-derived products, especially those made from hemp flower |
| Licensing Fees for Retailers | $150 per year | $20,000 per year | Over 13,000% increase; potential closure of small businesses |
| Licensing Fees for Manufacturers | $250 per year | $25,000 per year | Over 13,000% increase; potential consolidation of the industry |
| Industry Economic Impact | $5.5 billion in annual sales | Potential loss of $7.5 billion due to proposed regulations | Significant economic downturn and job losses |
| Governor’s Response | No executive action | Executive order directing state agencies to regulate hemp THC products | Initiation of regulatory measures to address the issue |
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