Texas regulators have proposed changes that, if finalized, would redefine how THC is measured, significantly increase licensing fees, and expand compliance and enforcement requirements across the hemp industry. For those asking, “is Texas banning hemp,” the answer is no, there is no outright ban being proposed, but the impact on hemp merchant approvals, underwriting decisions, and portfolio risk could still be substantial.
Some requirements are already active, while others remain proposed. Below is a breakdown of what’s being proposed, what’s already in effect, and why it matters.
One of the most impactful changes proposed involves THC measurement.
Under the proposal, Texas would calculate the 0.3% THC limit by including THCA, using a 0.877 conversion factor. Because THCA converts into Delta-9 THC when heated, this change would make smokeable hemp products non-compliant.
Merchants with smokeable hemp sales could face heightened scrutiny, conditional approvals, or pressure to adjust their product mix.
Edible hemp products, such as gummies and beverages, would remain legal, but would face stricter compliance expectations, increasing documentation and review requirements during onboarding and account reviews.
If finalized, this shift alone could reshape product eligibility across the Texas hemp market.
The proposal introduces substantial increases in costs that affect merchant stability and risk profiles:
Higher required licensing costs and potential administrative penalties may strain smaller or multi-location businesses and impact underwriting.
The proposal tightens who may sell hemp products and how they move through the supply chain:
License and supplier verification is now critical for compliance.
If finalized, hemp products would face expanded safety and documentation requirements, including:
Gaps in this documentation could delay account approvals or trigger additional requirements.
The proposal introduces strict marketing standards:
These restrictions are especially relevant for online merchants, where marketing language and imagery are closely reviewed.
The proposal expands oversight authority by requiring:
Importantly, these proposed hemp changes do not apply to Texas’ licensed medical marijuana program, which remains governed under a separate regulatory framework.
While not all changes are final, the direction is clear:
Texas hemp businesses face higher compliance expectations and increased scrutiny.
Agents who understand these proposed changes early can help merchants:
Hemp isn’t being banned, but if finalized, these proposals would affect which hemp products can be sold and which businesses can be approved.
While these proposals are not yet final, they could materially impact product eligibility, operating costs, and how hemp businesses function across Texas.
If you care about the future of your business and the broader hemp industry, now is the time to stay engaged. Policymakers benefit from hearing how proposed changes may affect real businesses, employees, and communities.
Ways to take action:
Engagement matters, especially before proposals are finalized.
The information provided here is for informational purposes only and focuses solely on payment processing in the cannabis industry. We do not endorse explicit or illegal content and encourage compliance with applicable laws and regulations. Readers should seek professional advice and use legitimate payment solutions while operating in this sector. We disclaim liability for any consequences resulting from the use of this information.
Brittany Hernandez, Marketing Coordinator at Elite Pay With a strong background in marketing and payment processing, I’m dedicated to helping agents better serve their merchants in today’s evolving payments landscape.
