Texas regulators have ignited a fresh round of controversy with a proposal that would dramatically increase licensing fees for hemp businesses, a move advocates warn could shutter small operators across the state.
Under the plan put forward by the Texas Department of State Health Services, annual license fees for hemp manufacturers would jump from a few hundred dollars to as much as $25,000 per facility. Retailers would face a similar shock, with registration fees potentially rising from $150 to $20,000 per location. The scale of the increase—measured in the thousands of percent—has left many business owners stunned.
State officials say the proposed fee hike is part of a broader effort to strengthen oversight of consumable hemp products, which have rapidly expanded in popularity and availability. Alongside higher fees, the draft rules include tougher testing standards, mandatory product recalls, enhanced enforcement authority, and age restrictions that would limit sales to consumers 21 and older. Supporters argue these measures are necessary to ensure public safety and bring order to an industry that has grown faster than its regulatory framework.
Industry advocates, however, see a different outcome. They argue that while large, well-financed companies may be able to absorb the new costs, small and locally owned businesses will not. For many mom-and-pop shops, the proposed fees would exceed annual profits, effectively forcing closures rather than compliance. Critics say the changes risk consolidating the market and eliminating competition under the guise of regulation.
There is also concern about how new testing standards could affect commonly sold hemp products. Proposed changes to how THC levels are calculated may make it nearly impossible for certain natural hemp products to remain legal, potentially removing some of the most popular items from store shelves altogether.
Supporters of the proposal counter that the hemp industry is no longer niche and should be prepared to shoulder the costs of meaningful oversight. They argue that stronger regulation will help curb bad actors, protect consumers, and bring long-term legitimacy to the market—even if it causes short-term pain.
The debate comes amid ongoing tension in Texas over how to handle hemp-derived THC products. With outright bans previously rejected, regulators are now attempting to tighten the rules instead. Whether this approach strikes a fair balance or goes too far remains the central question.
As public feedback continues and policymakers weigh next steps, the future of Texas’ hemp industry hangs in the balance—caught between a push for stricter control and fears that the cure may be worse than the disease.
Dabbin-Dad Newsroom
