As advocates, our work in Texas doesn’t stop when the legislative session ends. While major statutory shifts happen at the Capitol, the crucial work of implementation happens during the rulemaking process of our state agencies. It is here, in the rules and regulations proposed by the Department of Public Safety (DPS), the Department of State Health Services (DSHS), and the Texas Alcoholic Beverage Commission (TABC), where reality for consumers and businesses is actually defined.
Here’s an important update that highlights exactly why your voice and our continued vigilance are essential—where we are seeing progress and where unintended consequences threaten public safety.
Consumable Hemp: A Mixed Bag of Regulations
The landscape for consumable hemp presents a complex picture of “two steps forward, one step back.” When DSHS initially proposed new hemp rules in January, we expressed a range of concerns regarding astronomical fees and restrictive testing (which you can read here).
Following a wave of public comments from advocates like you, DSHS listened. In their newly announced revisions, they drastically reduced licensing and registration fees. Manufacturer fees dropped from $25,000 to $10,000, and retailer fees dropped from $20,000 to $5,000. While these are still far more expensive than comparable alcohol licenses—a lingering point of unfairness—this reduction is a direct result of advocacy. Without an active, engaged network of supporters, the outrageous initial fees would have become final.
However, the news isn’t all positive. DSHS chose not to revise its rule on “total THC” testing. This decision remains our most significant concern, and the consequences will be immediate and severe. By implementing this rule, the department is effectively banning hemp flower, most natural for of hemp. With this change, we estimate that nearly 50% of the currently legal, regulated marketplace for hemp will be effectively handed over to illicit operators. Pushing consumers away from regulated businesses means the state loses its ability to ensure product safety, consumer protection, and youth access restrictions. Our state is less safe with this policy in place. (You can see my full perspective on these specific concerns here).
The new rules were adopted on March 2, will appear in the Texas Register on March 20, and go into effect on March 31. Of course, this could be stalled if legal action is taken to prevent the department from implementing the newly adopted rules.
An important but less consequential issue: the Texas Alcoholic Beverage Commission (TABC) is preparing to propose a new rule that would prohibit the on-site consumption of hemp products at any location where on-site alcohol consumption is already prohibited. During a recent stakeholder meeting—the first opportunity for public input—many raised concerns that the proposed rule lacks an exception for product sampling, a courtesy that is currently extended to the alcohol industry. TABC plans to move forward with the formal adoption of this rule soon, but there will first be another opportunity for public input.
TCUP: Improving Access for Texas Patients
While the hemp industry faces these regulatory hurdles, we are seeing steady progress within the Texas Compassionate Use Program (TCUP). Following last year’s hard-won legislative improvements, we are finally seeing tangible progress on patient access.
The Department of Public Safety (DPS) is moving to meet the legislative requirement to increase the number of dispensing organization licenses to 15. Nine new licenses were issued late last year, and we are expecting three additional licenses to be granted by April 1.
Crucially, this expansion is being strategically distributed across the state’s public health regions to ensure reasonable statewide access. At least two existing license holders have already opened satellite locations. This is a massive step forward for patients and will hopefully bring down the cost of their medicine.
Advocacy Works. Don’t Stop Now.
This update is a testament to the reality of advocacy. Because of you, patients are getting better access and small businesses aren’t being crushed by arbitrary fees. We have proven that when we show up and speak up, the outcome changes.
While we prepare for the 2027 legislative session to address the issues that agencies cannot fix on their own, we must remain vigilant. Thank you for your continued support—let’s keep up the momentum!