Background
On March 31, 2026, amendments to Texas Administrative Code, Title 25, Chapter 300 took effect. The amended rules were published for adoption in the Texas Register and primarily codified under Chapter 300 on March 31, 2026. While the most immediate and severe impact is the de facto prohibition on smokable hemp products, the amendments also affect all other consumable hemp products via the updated Total Delta-9 THC limit, drastically increase consumable hemp product license and registration fees, and impose significantly stricter recordkeeping, traceability, testing, and operational requirements on all manufacturers and processors of consumable hemp products.
Notably, on April 7, 2026, Plaintiffs Texas Hemp Business Council, Hemp Industry & Farmers of America, and several Texas-based hemp manufacturers and retailers brought suit against the Texas Department of State Health Services (“DSHS”) and the Texas Health and Human Services Commission (“HHSC”) to challenge the amended regulations. The lawsuit claims that the agencies have overstepped their constitutional authority, focusing on key issues, such as (1) the amended definition of hemp includes an overly restrictive “Total Delta-9 THC” limit; and (2) the increase in consumable hemp product manufacturer license fees ($258 to $10,000 per facility) and retail hemp registration fees ($155 to $5,000 per location) functions as an unauthorized tax.
On April 10, 2026, the Court granted a 14-day Temporary Restraining Order (“TRO”) in favor of Plaintiffs, blocking enforcement of the amended regulations pertaining to the new “Total Delta-9 THC limit,” effectively pausing the de facto ban on smokable hemp products and allowing businesses to continue operating under the prior legal framework (at least temporarily). Further, the Court deferred the topic of increased license and registration fees to the hearing on Plaintiffs’ request for a temporary injunction that is scheduled for April 23, 2026.
Total Delta-9 THC
Pursuant to the amended, rules, “Acceptable hemp THC level” is now defined as follows: “A total delta-9 [THC] content concentration level on a dry weight basis, that when reported with the accredited laboratory’s measurement of uncertainty, produces a distribution or range that includes a result of 0.3% or less.” Title 25 TAC §300.101(1) (emphasis added).
Notably, the DSHS amendments adopted a Total delta-9 THC metric: Total THC = (0.877 × THCA + delta-9 THC). See id. at §300.101(45). Consumable hemp products exceeding the Acceptable hemp THC level are non-compliant and cannot lawfully be manufactured, distributed, or sold as legal hemp in Texas. See id. at §§300.303(a), §300.602. This effectively bans most natural smokable hemp products from the market, as they exceed the threshold when decarboxylation (conversion of THCA to psychoactive delta-9 THC upon heating/smoking) is accounted for.
Additional Labeling and Packaging Requirements
In addition to the original label requirements, labels of each consumable hemp product intended for retail sale are now required to include a) recommended serving size in milligrams and services per container, and b) specific warnings, including i) Keep out of reach of children; ii) Product may contain tetrahydrocannabinol (THC) and can cause a user to fail a drug test; iii) All THCs have psychoactive properties; iv) Pregnant or nursing women should consult a healthcare provider before use; and v) This product has not been evaluated by the FDA. See id. at §300.402.
Consumable hemp products sold in Texas must now also be prepackaged or, at the time of sale, placed in packaging or a container that is tamper-evident, child resistant, and resealable. See id. at §300.405.
Additional Testing Required
DSHS now requires that a representative sample of hemp to be used in the manufacture of a consumable hemp product be tested to determine all of the following: (1) the concentration and identity of all cannabinoids, including all acids in the plant; (2) the presence and quantity of heavy metals, microbial contamination, and pesticides; (3) the presence and concentration of delta-9 THC, Total delta-9 THC, and total THC; and (4) a Total delta-9 THC concentration of 0.3% or less on a dry weight basis. See id. at §300.301(a).
Additionally, each Certificate of Analysis must now contain the following information: (1) laboratory name, address, and contact information; (2) names of the hemp cultivator, processor, or manufacturer; (3) sampler identification; (4) sample identifying information, including matrix type; (5) batch/lot identification number of sample; (6) date sample was received and dates of sample analyses and corresponding test results; (7) units of measure; (8) analytical methods, analytical instrumentation used, and corresponding limits of detection and limits of quantitation; (9) expiration date; (10) QR code verifying the lab testing/results; (11) measurement of uncertainty analysis parameters; and (12) percentages of delta-9 THC, Total delta-9 THC, and total THC per container. See id. at §300.301(d).
Increased Consumable Hemp Product License and Registration Fees
The amended rules drastically increased licensing and registration fees for consumable hemp product manufacturers and retailers. Consumable hemp product manufacturer license fees increased from $258 to $10,000 per facility and must be renewed annually. See id. at §300.202. Retail hemp registration fees increased from $155 to $5,000 per location and must be renewed annually. See id. at §300.502.
Stricter Recordkeeping, Traceability, and Documentation
The amended rules also essentially require manufacturers, processors, and distributors of consumable hemp products to create and maintain detailed standard operating procedures (SOPs) pertaining to recordkeeping, traceability, master production and batch production documentation, recall measures, and complaint handling protocols. See id. at §§300.203-300.208.
Inspections
Pursuant to the amended rules, the Texas Alcoholic Beverage Commission (“TABC”) may, after showing proper credentials to the owner, operator, or person in charge (1) enter the facility at reasonable times to collect samples, conduct inspections, and take photographs to ensure compliance with Title 25 TAC Chapter 300 and Chapter 431 of the Texas Health and Safety Code pertaining to Texas’s Food, Drug, and Cosmetic Act; (2) enter any vehicle being used to hold or transport consumable hemp products in commerce; or (3) within reasonable times and limits, inspect the facility or vehicle and all equipment, finished and unfinished materials, containers, and product labeling and obtain any necessary samples. See id. at §300.103.
Restriction on Sale to Minors
DSHS now prohibits any deliveries or sales of consumable hemp products to minors – persons that are under 21 years of age. See id. at §300.701. DSHS may revoke a consumable hemp license or retail hemp registration if it determines the license holder or registration holder delivered or sold a consumable hemp product to a minor. See id. at §300.702. Further penalties may imposed pursuant to Texas Health and Safety Code Chapters 431 and 443. See id.
Conclusion
The amended consumable hemp product regulations that took effect on March 31, 2026, effectively ban smokable hemp products, lower total THC limits on all consumable hemp products, drastically raise consumable hemp product license and registration fees, and significantly increase recordkeeping, documentation, traceability, and testing requirements. As of April 10, 2026, the Court in Travis County granted the TRO in favor of Plaintiffs against DSHS and HHSC, blocking enforcement of the amended regulations pertaining to the new “Total Delta-9 THC limit,” effectively pausing the de facto ban on smokable hemp products. The Court deferred the topic of increased license and registration fees to the hearing on Plaintiffs’ request for a temporary injunction that is scheduled for April 23, 2026.
Paul Stevenson is a senior associate attorney with Ritter Spencer Cheng PLLC who practices business, trademark, and cannabis and hemp law and represents clients in various industries.
Blog Disclaimer: This blog is for informational purposes only, and we are not providing legal guidance, so please consult with an attorney for specific legal advice.
