HOUSTON – Texas health regulators are considering sweeping changes that could dramatically reshape the hemp-derived THC industry, and many small business owners say the cost alone could put them out of business.
The proposal would raise licensing and registration fees for retailers and manufacturers. Under the plan, the annual registration fee for each retail store would jump from $150 to $20,000. Manufacturer licenses would rise from $250 to $25,000 per facility, increases as high as 13,000%.
State officials backing the proposal say the higher fees are needed to fund enforcement and bring tighter oversight to an industry they believe has expanded too quickly with limited regulation.
But for independent shop owners, the concern goes beyond the price tag. Many say the combination of new testing requirements and higher fees could wipe out a large portion of hemp-derived products currently on shelves, particularly those made from hemp flower, leaving smaller businesses unable to compete or survive.
The owner of one Heights-area shop told KPRC 2 reporter Haley Hernandez that while he supports reasonable regulation and safeguards, the financial burden could be overwhelming for smaller operators like his.
The proposed changes also come as state leaders continue debating broader restrictions on THC products.
Lieutenant Governor Dan Patrick has been a vocal supporter of a total THC ban, though that would require legislative action during a future special session.
In addition to licensing fees, the proposal includes several new consumer protections, such as a minimum purchasing age of 21, stronger age-verification requirements, and mandatory product recalls.
The public comment period on the proposed regulations remains open through Jan. 26, giving Texans a chance to weigh in before any final decisions are made.