Texas Officials Unveil Amended Hemp Rules With Strict ‘Total THC’ Limits But Lower Licensing Fee Than Previously Floated

Marijuana Moment

Texas officials have adopted a series of new rules for the state’s hemp market—with certain revisions that advocates and stakeholders call a “direct victory,” including changes to make participation in the industry more affordable, and other regulations that threaten to severely restrict product availability.

The Department of State Health Services (DSHS) unveiled the amended hemp rules on Friday, about two months after publishing proposed regulations with licensing fees and other changes that led organizations such as the Texas Cannabis Policy Center (TCPC) to sound the alarm.

In response, the department received more than 1,400 comments urging revisions.

“Revised rules have slashed manufacturer fees from $25,000 to $10,000 and retailer fees from $20,000 to $5,000. This is a direct victory for advocacy,” Heather Fazio, director of TCPC, said in an email to supporters on Monday. “However, significant challenges remain.”

Specifically, the agency decided to maintain language requiring hemp products to be tested for “total THC” content, including THCA, which means most cannabis flower would be considered non-compliant with limitations imposed under state law.

“We estimate this will hand 50 percent of the legal market to illicit operators, making our state less safe,” Fazio said.

TCPC and other groups such as the Texas Hemp Business Council (THBC) have also pointed out that there would be additional requirements imposed on hemp businesses with respect to product testing, labeling and record-keeping.

Separately, under a proposed rule from the Texas Alcoholic Beverage Commission (TABC) there would also be a “less consequential, but important” update to the hemp program, Fazio said, with the agency seeking to prohibit the on-site consumption of hemp at businesses where alcohol isn’t allowed. There would be no “sampling” exceptions in place, either.

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