Texas Health Agency Bans Sale of Smokable Hemp Products

AUSTIN, TX — Texas health officials have adopted new rules effectively banning the sale of smokable hemp products, a move that could force some retailers out of business amid sharply higher licensing fees. 

The regulations, finalized last week by the Texas Department of State Health Services, take effect March 31. They change how the agency measures Delta-9 THC, the primary psychoactive ingredient in cannabis, by adopting a "total THC" standard that includes THCA, a compound that converts to Delta-9 when heated or smoked. 

Under the state's 2019 hemp law, cannabis products with no more than 0.3% Delta-9 THC by dry weight are considered legal hemp. The new rule makes many smokable products, including THCA flower, illegal by counting THCA in the Delta-9 calculation. 

Virtually all edible hemp products remain allowed but with stricter packaging, testing and recall standards. The rules do not affect laws allowing possession of hemp products. 

The changes stem from an executive order issued by Gov. Greg Abbott in December after the Texas Legislature failed to agree on stricter regulations or an outright ban on THCA products. 

Hundreds of people opposed counting THCA as Delta-9 during a public comment period, noting it is not explicitly banned under state or federal law. DSHS said the policy follows existing regulations, including a 2020 rule from the Texas Agriculture Commission and a similar federal standard adopted in 2021 by the U.S. Department of Agriculture. 

The regulations also raise annual fees for retailers and manufacturers of consumable hemp products. Retail locations now face a $5,000 fee per site — 33 times higher than before — while manufacturing facilities must pay $10,000 annually, a 40-fold increase. 

More than 9,100 retail locations are registered to sell such products, according to state health records. 

The fees are lower than initially proposed, which included a 10,000% increase.