Texas Is About to “Regulate” Hemp Into the Ground — and North Texas Shops Are Sounding the Alarm

Texas is moving fast toward a hemp/THC overhaul that could change what adults can legally buy, who can afford to sell it, and how aggressively the state enforces the rules. And in places like North Texas—where CBD and vape shops are on every other corner—this isn’t some abstract Austin policy debate. It’s payroll. It’s rent. It’s whether the shop that’s been helping your neighbors sleep, manage pain, or wind down after work is still open next month.

Here’s what’s making people sound the alarm: the Texas Department of State Health Services (DSHS) has proposed rule changes for the state’s Consumable Hemp Program that would raise annual fees to levels most small businesses cannot absorb, while also tightening how THC is calculated and restricting products that are currently some of the most popular in the legal hemp market.

Supporters of the crackdown say the state waited too long, the market got too potent and too accessible, and Texas needs stricter rules—especially to protect teens and young adults. Critics say Texas is dressing up a shutdown as “regulation,” and that pushing legal products out of the regulated market doesn’t eliminate demand—it just drives people toward untested alternatives.

Let’s break it down cleanly: what’s in the proposal, why it’s happening now, who gets hit the hardest, and the mental health side of this that almost nobody is discussing with the seriousness it deserves.

What’s happening in Texas right now

DSHS has proposed major changes to the rules governing the manufacture, distribution, and retail sale of consumable hemp products in Texas. The fee increases are the headline because they’re so extreme that they change the economics of the entire industry.

Under the proposed rules:

• Retail hemp registrations would jump from roughly $150 per store per year to $20,000 per store per year.

• Consumable hemp manufacturer licenses would jump from roughly $250 per facility per year to $25,000 per facility per year.

Not “$20,000 total.” Not “$20,000 for big chains.” Per location. Per year. That’s why single-location shops are saying it’s game over.

DSHS’s filing in the Texas Register also states the earliest possible adoption date is January 25, 2026, meaning these changes could move from proposal to enforceable reality quickly. Public comments are tied to the Texas Register publication timeline (more on that below).

Beyond fees, the proposal adds enforcement and oversight muscle, including a requirement that manufacturers and retailers provide written consent allowing the Texas Alcoholic Beverage Commission (TABC) to enter for physical inspections.

Why now? Abbott’s directive and the state’s push to clamp down

This proposal didn’t pop up randomly. It follows Gov. Greg Abbott’s Executive Order GA-56 (issued September 10, 2025), which directed state agencies to strengthen regulation around hemp and hemp-derived products.

At the same time, Texas has already been moving toward tighter access rules. DSHS adopted emergency rules on October 2, 2025 prohibiting licensed businesses from selling consumable hemp products to customers under age 21, requiring valid government-issued ID before purchase, and allowing penalties up to permit revocation.

So the state’s posture is increasingly clear: treat intoxicating hemp-derived THC more like a controlled adult product—closer to alcohol than wellness supplements—and enforce it accordingly.

What the proposed rules could change for products adults buy today

This is where things get messy fast, because the proposal isn’t just about fees—it also changes technical definitions that can effectively eliminate major product categories.

The “total THC” change and why THCA matters

One of the most controversial parts of the proposal is how it defines and measures THC in certain products. In practical terms, critics argue that changes to the way “total THC” and “total Delta-9 THC” are calculated would push many currently legal products over the limit.

That matters because THCA flower, pre-rolls, and various smokable products have become a huge part of the Texas hemp economy. People buy them because they’re widely available, familiar, and—depending on the person—sometimes preferred over edibles or tinctures.

Potential outcome: smokables and hemp flower getting squeezed out

Multiple reports and summaries of the proposal describe rules that would effectively ban or severely restrict smokable hemp products, including hemp flower, by tightening limits and testing definitions.

Whether you call that “closing a loophole” or “banning legal products” depends on your viewpoint. But either way, the market impact is the same: a whole category of products could disappear from regulated shelves.

What North Texas shop owners are saying

North Texas shop owners aren’t speaking with one voice on everything—but there’s a consistent theme in media coverage:

• Many support guardrails like age restrictions, accurate labeling, and stopping shady products.

• Many argue the proposed fee structure is so extreme it functions like a shutdown.

• Many fear the rules will wipe out local shops and leave only big operators who can afford compliance at scale.

This isn’t just shop owners protecting profit. It’s small-business reality. A single storefront doesn’t have a spare $20,000 sitting around every year for the privilege of staying legal—especially if product options are simultaneously reduced.

Who gets hit the hardest

Small shops and single-location businesses

Big chains and well-capitalized companies can spread compliance costs across many locations, investors, and product lines. A single-location shop can’t.

When a fee jumps from about $150 to $20,000, that is not a “cost of doing business.” That’s a structural barrier. That’s what consolidates markets—meaning fewer independent businesses, fewer local brands, and fewer choices for consumers.

Consumers who rely on hemp products for daily functioning

Consumers are also caught in the middle. Many Texans use hemp-derived products for sleep disruption, stress, chronic pain, and anxiety symptoms. Even if not every claim is medically proven, the reality is that people are using these products as part of their coping toolkit.

If shops close and products vanish, consumers may face:

• higher prices where products remain available

• fewer legal options

• more travel to find compliant retailers

• increased temptation to buy unregulated products elsewhere

The mental health impact nobody is taking seriously enough

This isn’t just “weed politics.” It’s mental health policy by consequence—whether the state wants to call it that or not.

1) Youth mental health is a major reason these restrictions have support

Public health guidance has warned that cannabis use—especially earlier and more frequent use—is associated with increased risk of mental health problems in some people, including temporary psychosis-like experiences (paranoia, hallucinations) and a stronger association with long-lasting disorders like schizophrenia among those who start younger and use more often.

This is one reason parents have been pushing for tougher guardrails, and why state leaders are framing this as a youth-protection issue rather than a commerce issue.

2) Adult mental health can be affected when legal access suddenly disappears

On the adult side, abrupt restrictions can create their own mental health ripple effects—especially for people who have been using hemp products as a coping tool.

If someone uses hemp-derived THC for insomnia or anxiety symptoms, and their product disappears overnight, the fallout can look like:

• worse sleep (which can worsen anxiety and depression symptoms fast)

• stress spikes from losing a routine or coping mechanism

• financial strain if prices rise

• increased risk-taking if people seek out unregulated products out of desperation

3) “Driving it underground” isn’t a neutral outcome for mental health

When a regulated market shrinks but demand stays, people don’t magically stop. They pivot. And that matters because unregulated products can come with unpredictable potency and unknown contaminants.

For some people, “unexpected potency” doesn’t just mean a bad time—it can mean panic attacks, paranoia, dissociation, or a crisis-level anxiety episode.

4) If Texas truly wants to protect youth, education has to be part of the plan

If the state’s priority is teen safety, the most effective strategy is not just enforcement and fees. It’s also prevention and education:

• clear potency and warning labels

• packaging standards that don’t appeal to minors

• serious age-verification enforcement

• public education campaigns for parents and teens

• pathways for support when youth are already using

Because pretending the problem can be “regulated away” without addressing behavior and mental health is how you end up with a policy that looks tough on paper but messy in real life.

Mental health and substance-use resources (Texas + national)

If this issue is personal—your teen is experimenting, someone in your home is struggling, or THC is triggering panic/paranoia—real help exists:

• 988 Suicide & Crisis Lifeline (call/text/chat)

• SAMHSA National Helpline (1-800-662-HELP / 4357) for treatment referrals and support

• 2-1-1 Texas for local mental health and substance-use resources

• 
  

How Texans can respond right now

This is still in the rulemaking stage, and public comments matter.

Key timing points:

• The proposed rules were published in the Texas Register on December 26, 2025.

• The filing notes the earliest possible adoption date is January 25, 2026.

• Multiple summaries of the process describe written comments being accepted during the post-publication window, with deadlines landing in late January.

If you care—whether you’re a parent, shop owner, veteran, consumer, or someone who wants sane public policy—here’s a practical playbook:

1. Read the proposed rules via the Texas Register and the DSHS Consumable Hemp Program website.

2. Submit a written comment through the HHS Rules Coordination Office process listed for the proposal.

3. Contact your lawmakers and ask for a balanced approach: protect minors, require clean lab-tested products, enforce age limits, but avoid pricing small businesses out of existence.

A “smart regulation” approach is possible. But it won’t happen if the only voices that show up are the ones on the far ends of the argument.

Texas can absolutely tighten hemp rules and protect young people without nuking small businesses and shrinking adult access to the point that the unregulated market expands.

But the fee numbers on the table right now are not normal regulation. They are market-shaping. They decide who survives and who doesn’t.

If the state’s goal is safety, then the policy needs to keep products in a regulated, testable, enforceable lane—not push them out of it. And if the state’s goal is youth protection, mental health education and prevention can’t be an afterthought. It has to be core strategy, not PR.

North Texas shops are watching this proposal like a countdown clock. Consumers should be watching too.

Sources

Texas Register – Proposed Rules (Dec. 26, 2025): fee increases; inspection consent; “earliest possible date of adoption” Jan. 25, 2026. Texas DSHS – Consumable Hemp Program: emergency rules adopted Oct. 2, 2025; under-21 sales prohibition and ID requirements. The Texas Tribune (Jan. 9, 2026): overview of proposed fee hikes and industry impact. FOX 7 Austin (Jan. 2026): summary of proposed rules; references to smokable flower impact and timeline. Community Impact (Jan. 13, 2026): DSHS retailer count and fee hike summary. FOX 4 (Jan. 2026): coverage of proposed fee hikes and oversight rules. Houston Chronicle (Jan. 13, 2026): reporting on projected revenue for enforcement and scale of impact. Gov. Greg Abbott – Executive Order GA-56 (Sept. 10, 2025).

Mental health references:CDC – Cannabis and Teens (Feb. 15, 2024). CDC – Cannabis and Mental Health (Feb. 15, 2024). National Academies – Health Effects of Cannabis and Cannabinoids (2017), Chapter 12 conclusions. NIDA – Cannabis (Marijuana) overview (Sep. 24, 2024). 988 Suicide & Crisis Lifeline (official site).