TABC finalizes new rules for Texas hemp industry

AUSTIN, Texas - New rules for the hemp industry have been finalized by the Texas Alcohol and Beer Commission, replacing emergency rules that went into place last September. 

The new permanent rules are similar to the temporary ones they replace, adding an age limit in Texas for buying and selling hemp consumables and strengthening identification procedures.

New TABC hemp rules

What's new:

The rules adopted by the TABC on Jan. 20 restrict buying and selling hemp products to people who are over the age of 21, and mandate age verification of customers by the seller. 

A change from the temporary rules instated in 2025 is a less strict enforcement of the law, removing a provision that would allow the TABC to revoke licenses from businesses found to have sold hemp consumables to a minor. Instead, the permanent rules give a bit of leeway to businesses, allowing for temporary suspensions of licenses instead of immediate cancellations. 

When the TABC began working on rules to comply with an order from Gov. Greg Abbott, they said they aimed to prevent minors from accessing and using the products, which they say have negative impacts on young brains and to prevent overall negative impacts on "general welfare and public safety."

Proposed hemp fee hikes

Texas health officials are moving to drastically increase the cost of doing business for the state's hemp industry, proposing new rules that would see registration and licensing fees skyrocket by as much as 10,000% for some businesses.

By the numbers:

Under the proposed rules, the financial burden for retailers and manufacturers of hemp products, which include items containing THC and CBD, would increase significantly:

• Retailers: The registration fee for retail hemp sellers would jump to $20,000 annually per location.
• Manufacturers: Initial and renewal licensing fees for consumable hemp manufacturers would climb to $25,000 annually.
• License Amendments: Fees for amending a license due to a change in ownership would also rise to $25,000.
• Delinquency: Filing a renewal application after the expiration date would trigger a $1,000 penalty, up from the previous $100.

Currently, the Texas Register indicates previous fees were as low as $250 for certain licenses, marking a massive shift in the state's regulatory approach. 

What are hemp and THC?

Dig deeper:

THC is an acronym for tetrahydrocannabinol, which is the active chemical compound in cannabis.

The compound produces a "high" when smoked, ingested, or otherwise consumed. Cannabis itself contains delta-9 THC in a high enough concentration to produce these effects, but hemp, which was legalized in the 2018 U.S. Farm Bill, does not. 

Hemp does, however, contain a wide range of CBD (a non-psychoactive compound commonly used for mild therapeutic benefits) and psychoactive THC derivatives in negligible amounts. The THC derivatives, like delta-8 and THC-A, can be extracted from legal hemp and concentrated into effective volumes. 

These compounds, which are not technically "true" THC and therefore skirt the "below 0.3 percent" rule, have created a booming industry of legal products that allow residents in Texas and other states with marijuana bans to get the desired effects of cannabis without risking criminal charges. 

Critics of THC derivatives regard the industry as a dangerous, unregulated result of a carelessly created legal loophole; proponents of the products point to veterans and others who suffer from PTSD and comparable afflictions who use the products for their medical benefits.