Texas hemp rules effectively bar most smokeable products, raise licensing fees

Texas health regulators changed hemp rules on March 31, 2026, in a move the article says effectively blocks most smokeable hemp products, including THCA flower, and raises licensing costs for some businesses.

The source says the new calculation pushes many raw hemp flower products above the 0.3% legal limit, while some other hemp-derived products remain legal if they stay within the Delta-9 THC cap by dry weight.

What changed

The Texas Department of State Health Services implemented a “Total THC” calculation, the article says. The formula is listed as Total THC = (0.877 × THCA) + Delta-9 THC. Under that method, the source says, most raw hemp flower becomes illegal because the calculation lifts it past the 0.3% threshold.

The article also says the annual licensing fee for a combined manufacturer and dispenser rose from under $500 to $15,000.

Background and business impact

The source identifies Ashley Benton as co-owner of CBD Farmhouse and says she described the effect of the changes on her business and the broader community as “mourning.” It also says Haley Neveret, who works at CBD Farmhouse, expressed concern about the political response and said, “I think this is a bad move on our politicians' part.”

The article says the hemp industry has launched legal challenges arguing that the Department of State Health Services overstepped its authority. It also says businesses are looking for possible relief from the courts or the upcoming mid-term elections.

The source text ends with an incomplete fragment about many small businesses, including CBD Farmhouse, closing. Because the text is truncated, that outcome is not treated as verified here.

What happens next

The article points to pending court fights as the main near-term path for business owners seeking to reverse or limit the rules.

Sources

• Audacy / KRLD

Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.