Texas Opens for Hemp Businesses

The department’s intent through the program implementation process has been to provide clarity for future license and registration holders, as well as adequate safeguards for consumers of Consumable Hemp Products. With significant public input, DSHS has developed rules to implement H.B. 1325. More than 1700 comments were received during the formal rule comment period. DSHS filed the rules in the Texas Register for adoption on July 13, 2020, which allows DSHS to begin fully implementing the program. Both the industry and consumers will be served through Good Manufacturing Processes (GMP’s). Consumers will be served through industry compliance with testing, labeling, recordkeeping and other applicable requirements. This includes products for human consumption that may contain cannabidiol, also known as CBD, as well as certain other parts of the hemp plant.

Section 11 of HB 1325 allows for existing retailers to possess, transport or sell consumable hemp products that become part of the retailers' inventory prior to the effective date of DSHS rules resulting from HB 1325. The retailer must be licensed as currently required by law. Retailers selling consumable hemp products must ensure the product is safe for consumption by being free of heavy metals, pesticides, harmful microorganisms, and residual solvents. Additionally, consumable hemp products sold must not contain more than 0.3 percent THC. Products that are being manufactured or handled in a manner that creates a health hazard for people who may use it may also be detained.  

During routine inspection or complaint investigations, DSHS, within its statutory authority, may detain products, including dietary supplements, that are labeled as or contain hemp, including CBD, and that make unproven health claims, such as preventing, diagnosing, treating and/or curing a health or medical condition. DSHS will be using an online process for both licensing of consumable hemp manufacturers and distributors and registration of retail sellers of consumable hemp products containing CBD. 

If you would like to consider filing an application to grow or manufacture hemp in Texas, please contact us. We have won over 250 cannabis licenses for our clients and have helped nearly 600 cannabis companies worldwide. 3C works with both licensed cannabis operators and those wanting to enter the cannabis industry.