Texas hemp regulations to ban smokeable products and sharply raise licensing fees

Texas hemp regulations finalized by the Texas Department of State Health Services will take effect on March 31, 2026, the agency announced as of March 24, 2026. The rules target consumable hemp-derived THC products and set new limits and compliance requirements that industry leaders say will sharply reshape retail inventories and operating costs across the state.

The package requires child-resistant packaging, new labeling and testing standards, detailed bookkeeping, and codifies a minimum purchasing age of 21. Laboratories will be required to report the total amount of any THC in products; the threshold remains 0.3%, a change that officials say will render smokeable hemp products such as pre-rolled joints and THCA flower noncompliant. The regulations also increase manufacturer facility fees from about $258 to $10,000 and raise retail registration fees from roughly $155 to $5,000. Penalties for selling noncompliant items include license revocation and violation fees up to $10,000 per day, while possession after March 31 will not be criminalized.

The rules follow legislative efforts last year to ban intoxicating hemp products and a gubernatorial request for tighter oversight rather than an outright prohibition. Supporters point to rising poison-center calls tied to THC since 2019—reported at 923 in 2019, peaking at 2,592 in 2024, then falling to 1,485 the following year—to justify stricter controls. Hemp businesses and advocates say the combination of product limits, higher fees and new recordkeeping obligations will force many smaller retailers to close and have announced plans to challenge the rules in court.