Texas mandates $5,000 hemp processing license fee and testing regulations

On March 14, 2025, Texas lawmakers introduced House Bill 28, a significant piece of legislation aimed at regulating the processing and manufacturing of consumable hemp products within the state. The bill seeks to establish a comprehensive framework for licensing, testing, and selling hemp products, addressing growing concerns over product safety and industry standards.

One of the key provisions of House Bill 28 is the introduction of an initial licensing fee of $5,000 for each location where hemp processing or manufacturing occurs, with a subsequent renewal fee of $2,500. This financial structure is designed to ensure that only compliant businesses operate within the industry, thereby enhancing accountability and oversight.

The bill also stipulates that consumable hemp products must not contain synthesized cannabinoids, emphasizing the need for products to be manufactured using current good manufacturing practices. Additionally, it mandates rigorous testing protocols for both hemp plants and finished products to detect cannabinoid concentrations and harmful substances such as heavy metals and pesticides. These measures aim to protect consumers and ensure that products meet safety standards before reaching the market.

Debate surrounding House Bill 28 has highlighted concerns from various stakeholders. Proponents argue that the bill is essential for consumer safety and industry integrity, while opponents express worries about the financial burden on small businesses and the potential for overregulation. Amendments to the bill have been proposed to address these concerns, but discussions remain ongoing.

The implications of House Bill 28 extend beyond regulatory compliance; they touch on economic and social aspects as well. By establishing a clear regulatory framework, the bill could foster growth in the hemp industry, potentially creating jobs and generating tax revenue. However, if perceived as overly restrictive, it may deter new entrants into the market, particularly small-scale producers.

As the legislative process continues, the future of House Bill 28 remains uncertain. Stakeholders are closely monitoring developments, as the bill's passage could significantly reshape the landscape of the hemp industry in Texas, balancing the need for safety with the desire for economic opportunity.