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Texas health officials adopted rules banning smokable hemp from stores by the end of the month and significantly increasing licensing and registration fees for manufacturers and retailers. Critics argue these regulations will drive consumers to the illicit market and force businesses to close, prompting plans for a lawsuit.

Texas Ban on Smokable Hemp Products Takes Effect March 31 

Mar 12, 2026

Source:

TG Branfalt

Ganjapreneur

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Smokeable hemp products must be removed from Texas stores by the end of the
month under new rules adopted by the state health department, KUT News reports.
The new regime also includes stricter packaging and testing requirements
for edible hemp products and higher fees for retailers and manufacturers of
hemp products.

Health officials in the state were directed to amend the state’s rules
around hemp products by an executive order from Republican Gov. Greg Abbott
in September 2025.

The adopted rules increase the initial and annual renewal licensing fees
for consumable hemp manufacturers to $10,000 per facility, and the annual
registration fees for retailers to $5,000 per
location. The initial regulations called for a 10,000% increase in annual
fees.

Heather Fazio, of the Texas Cannabis Policy Center, told KUT News that
“consumers will be able to still acquire” smokable hemp products “either
from out of state operators … or from the illicit market.”

“The illicit market doesn’t have age restrictions. It doesn’t have safety
mechanisms and consumer protection.” — Fazio to KUT News

In an interview with KUT News, Mark Bordas, head of the Texas Hemp Business
Council, described the new rules as “so draconian” they will force
companies out of business and said the organization is planning a lawsuit
to challenge the regulations.

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