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Proposed Texas Hemp License Fee Hike Will Force Businesses To Close, Advocates Say

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4 months ago

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“Many small businesses cannot absorb this level of cost and will be forced to close rather than innovate.”

By Stephen Simpson, The Texas Tribune

Texas state health officials have proposed raising licensing fees for some hemp businesses by 13,000 percent, among changes that many industry members and advocates say will shut down small operations in favor of larger out-of-state companies.

Proponents of this change say it is necessary to strengthen oversight of an industry that has grown out of control.

At the end of last monthThe Texas Department of State Health Services published a set has proposed rules to tighten regulations on consumable hemp productsThis includes establishing a minimum purchase age of 21, along with age verification requirements and mandatory product recalls, all of which are measures supported by the hemp industry.

However, the two proposed rules that have caused the most heartburn among advocates and businesses are new testing requirements and increases in licensing fees. Manufacturer licenses would increase from $250 to $25,000 per facility per year and retail registrations from $150 to $20,000 per location per year, an increase of more than 13,000 percent.

Industry members say the new requirements to test THC levels in consumable hemp products would eliminate the use of hemp flower to manufacture products such as edibles and combustibles because hemp flowers contain THC levels higher than the new limit. They say eliminating the use of hemp flowers would allow more synthetically derived THC, such as delta-9, to flourish.

“The proposed rules eliminate about 80 percent of what every store sells, including ours, which is natural hemp flower, and it would certainly eliminate the entire THC rule,” Kemah-based owner Scott Stubb. Sublingwell Cannabinoids and Euphoricshe said in a public health agency of the state hearing in the rules on Friday. “Then you add in the fees it’s $20,000 per store, I don’t know, honestly, how we would stay open.”

Hemp distributors say the new license fee is a fundamental restructuring of their ability to operate legally in Texas.

“DSHS’ fiscal analysis assumes that nearly all currently registered retailers will pay the proposed $20,000 fee, generating more than $200 million in annual revenue. This assumption is unrealistic. Many small businesses cannot absorb this level of cost and will be forced to close rather than innovate,” said Heather Fazio, director of the Cannabis Policy Center of Texas. has been submitted for public comment.

Fazio said licensing and registration fees should be structured to recover the reasonable costs of effective regulation, not to function as a revenue mechanism that drives companies out of the regulated market.

“The department’s own calculations show that the increased costs of administering these rules are minimal. In that context, it is not clear why the dramatic fee increases are necessary or justified,” he said.

Supporters of the license fee increase said this is a necessary step to protect children from cannabis products and want more enforcement of penalties for cannabis shops operating without a license.

“Cannabis advocates say it’s a billion-dollar industry. It’s only fair and appropriate to create fees that help cover the cost of regulating the product and the burden on society for people who profit from the sale of billions of dollars in intoxicating products,” said Betsy Jones, director of policy and strategy for Texans for Safe and Drug-Free Youth.

Aubree Adams, director of Citizens for a Safe and Healthy Texas, called for more regulations on the industry, including raising the minimum purchase age to 25 and requiring hemp companies to also help pay for public education, data collection, processing, infrastructure and more.

“This problem facing the state is the normalization and promotion of retail groups driven by chemical manipulations and misleading information,” he said.

Multiple veterans also opposed the elimination of products derived from hemp flowers, which many rely on to help them sleep or deal with issues like PTSD and anxiety.

“I spent 16 months overseas and used many different pharmaceuticals that were dangerous and caused me seizures and physical damage. These health products have given me my life back and allowed me to go back to work,” said San Antonio combat veteran Adam Peterson. “A total ban on THC will basically take away access to good medicine that helps me.”

Fazio said removing regulated access to hemp flower won’t take away consumer demand. It will push people into the unregulated market.

“The result goes against the public health goals these rules are intended to advance,” he said.

The Texas Alcoholic Beverage Commission and the Texas Department of State Health Services have proposed new rules aimed at regulating the edible hemp market to comply with Governor Greg Abbott’s (R) executive order.

The two agencies are working together, as neither has jurisdiction over the entire landscape of retailers selling hemp consumables.

For example, the TABC rules would not apply to licensed hemp sellers under the state Department of Health Services, including online stores, gas stations, and online retailers that do not sell liquor and are presumed not to have a liquor license. The same can be said for the 60,000 TABC licensees, such as restaurants and liquor stores. The TABC has yet to propose any changes to licensing fees for businesses selling hemp consumables.

The executive order came after the Texas Legislature spent most of last year debating whether to ban consumer hemp products or impose stricter regulations on the industry. Abbott vetoed the outright ban passed by the House and Senate last summer. The governor then put THC regulations on the agenda for two consecutive special sessions, but lawmakers did unable to find a compromise before the end of the second session.

Instead of calling a third special session, Abbott issued his own executive order, bypassing the Legislature. The decision pits Abbott against Gov. Dan Patrick (R), who has been a staunch supporter of banning consumer hemp products.

After months of uncertainty over whether the Legislature would consider a full ban, THC industry representatives celebrated Abbott’s order at the time, saying it would allow THC to further establish itself as a legal industry in the state.

However, the rules proposed by some industry members are very similar to the ban.

“When the governor vetoed that bill, our voice was being amplified and taking the fee structure in the same bill undermines that outcome,” said Hayden Meek, owner of Denton-based Delta Denton. “A $20,000 fee falls on a multi-state corporation fee; for a single-location store like mine, 20,000 is death by cutbacks.”

This the article appeared for the first time Texas Tribune.

Max Jackson’s photo.

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NC lawmakers revisit marijuana policy following reclassification

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14 hours ago

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April 28, 2026

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North Carolina lawmakers say they’re fueling debate over the state’s marijuana laws — a move by the Trump administration to reclassify it as a less dangerous drug.

Across the country, a set of laws and enforcements regulate marijuana. The drug is illegal under federal law, but dozens of US states have legalized it. And almost all states have legalized medical marijuana prescriptions for certain ailments. North Carolina is among the remaining states to resist any form of legalization. Republican politicians in North Carolina have resisted passing any bills to legalize or decriminalize marijuana, despite public opinion polls showing broad public support for such changes.

Senate President Phil Berger said he expects his chamber to revisit efforts to legalize medical marijuana this week. “We will have a conversation within our caucus if they are interested in whether we do something,” Berger told reporters Tuesday.

The recent actions of Republican President Donald Trump may add a new dimension to these conversations. Trump’s acting attorney general on Thursday signed the drug classification as a less dangerous and less strictly regulated drug than marijuana. Federal law does not legalize marijuana for medical or recreational use.

Read more at WRAL News










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Indiana GOP Governor Directs State Agencies To Meet With Medical Marijuana Advocates As Federal Rescheduling Takes Effect

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14 hours ago

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April 28, 2026

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Indiana state officials are holding a series of meetings with medical marijuana advocates at the behest of the Republican governor.

After a day The Trump administration announced that federal cannabis regulation is moving forwardOfficials from the Indiana Department of Veterans Affairs, Department of Health and other state agencies spoke with Hoosier Veterans for Medical Cannabis and Indiana NORML to discuss next steps at the state level.

The meetings, activists said, were at the request of Gov. Mike Braun (R).

“The governor has reached out to us to meet with other heads of his department to get their input on this move,” military veteran Jeff Staker, one of the advocates, told Fox 59. “Our next step, hopefully, will be in the governor’s office.”




Lucy Luman, who is also a veteran and serves as president of Indiana NORML, he said That federal reform “addresses major challenges our lawmakers have raised before.”

Advocates previously met with Indiana Secretary of Business Affairs Mike Speedy, they told WHTR-TV.

“It tells you that the governor has considered it well, and I hope that our organization and others will come into the governor’s office and discuss with him and brainstorm more,” Staker. he said. “You have to realize that a lot of our state legislators have been waiting for that to happen.”

“The feds have made their move, and now it’s time for Indiana to make ours,” he said. “And of course we want to do well.”




State Rep. Jim Lucas (R) said federal marijuana rescheduling “takes away the arguments that the opposition had in our state.”

State Sen. Rodney Pol (D) agreed, saying the Trump administration’s action has “helped get the ball rolling.”

last month, The governor said the “crescendo will rise” in the call to legalize marijuanaregional dynamics as well as law enforcement by opting for reform. But for now, he said, the GOP legislative leadership is “not interested in doing anything anytime soon,” even though “half of Hoosiers probably smoke illegally.”

Braun said he thinks lawmakers should take an “extra look” at medical cannabis and, while he’s personally “agnostic” about legalization, the reality is Indiana is “now surrounded by four states” that allow medicinal or adult use of cannabis.

“Probably half of Hoosiers smoke illegally,” he said, noting that suburban Kentucky allows patients to access medical cannabis, while Illinois, Michigan and Ohio have recreational marijuana laws.

“I’m going to listen to law enforcement. They’ve even changed their minds about legalizing and regulating,” Braun said, adding that he compared cannabis to gambling. The state was late to pass laws allowing adults to gamble, he said, but now ranks among the top three states nationally in terms of per capita revenue from vice.

“Some people won’t want to, just on principle. A lot of police and sheriffs in our state are willing to cross the border (to buy cannabis). It’s going to be a growing problem, so far, the way our state legislature has opposed it,” he said. “I’ve been more agnostic about it. I can see the points of view, and I’ve seen law enforcement move somewhat.”

“So that will give you the best description of where the dynamic is in our state,” the governor told WOWO. “I think the leader of the Senate and the Speaker of the House in particular are cool — and they control the legislative agenda — they’re not interested in doing anything anytime soon. But I think the crescendo will rise, and that pretty much describes where we are.”

Braun also addressed the issue in another recent interview, saying the state will “probably have to address” the issue and pairing cannabis reform with sports betting.

State legislators already He stated that there is no legalization of marijuana in the 2026 sessionThis is another year where Indiana will be left out as one of the few states without effective medical or adult use cannabis laws.

The governor said this separately in January He “fits in” with the idea of ​​legalizing medical cannabis in the state. Instead, Indiana lawmakers this session have focused on efforts to ban THC hemp products, though The fight for 2026 appears to be over after a last-minute push failed late last month.

Braun has previously said that federal marijuana reorganization He could add “some fire” to the local push to legalize cannabis in his state.

Among Indiana residents, a survey released in January found that nearly three in five supported the legalization of medical and recreational cannabis.

Specifically, Ball State University’s (BSU) Bowen Center’s annual Hoosier Poll found that 59 percent of residents support the legalization of cannabis for medical and recreational purposes. An additional 25 percent return allowing patients to access medical marijuana, bringing total support for that reform to 84 percent.

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Braun, for his part, He previously said it is “probably time” to introduce therapeutic cannabis among state patients. The comments came alongside a separate poll showing that nearly 9 in 10 Indiana adults (87 percent) support the legalization of marijuana.

The main Republicans in the Legislature, however, They have openly opposed marijuana reform.

“It’s no secret that I’m not,” Senate President Pro Tem Rodric Bray (R) said at the end of 2024. “I don’t have people coming to me with really compelling medical cases to find out why it’s so beneficial. And any situation I’ve seen, it’s passing medical marijuana, it’s basically passing recreational marijuana.”

House Speaker Todd Huston (R) questioned any medical benefits associated with marijuana, calling the substance a “mental health deterrent.” He and others suggested that lawmakers in favor of reform simply want to increase state revenue.

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Oakland Launches Nation’s First Cannabis Equity Certification Mark

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2 days ago

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April 27, 2026

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In 2017, the city of Oakland made history by becoming the first city in the country to launch a Cannabis Equity Program, which helps those affected by the “War on Drugs” enter the cannabis industry and create thriving local businesses. The program changed policy conversations about cannabis equity in California and across the nation.

Now, in an effort to raise awareness about venture capital and help them survive and thrive, Oakland has launched the nation’s first initiative to promote city-certified venture capital businesses in the cannabis industry. The Oakland Legendary Cannabis Certified Equity Label lets buyers know they support businesses that invest in creating high-quality products by prioritizing equity. The label commemorates the city of Oakland as the birthplace of modern cannabis legalization and highlights its operators as legendary pioneers who define cannabis culture and set standards that are now accepted worldwide. Oakland currently has 50 licensed Equity cannabis businesses.

“Oakland continues to lead with courage and conviction. During my time in Congress, I chaired the Cannabis Caucus and called for cannabis equity programs to address the harm done to Black and Brown communities,” said Oakland Mayor Barbara Lee. “Today, the Oakland Legendary label puts power back where it belongs, helping consumers make informed choices and ensuring that those with the most influence lead and thrive in today’s economy. Oakland is proud to lead the way!”

“The City of Oakland is committed to fostering the economic success of local venture capital companies,” said Ashleigh Kanat, director of Oakland’s Department of Economic and Workforce Development. “The Oakland Legendary brand lets consumers know they’re supporting a certified Oakland stock business and getting a true Oakland experience: premium, authentic and locally produced with a story they won’t find anywhere else. This differentiation will increase the presence of cannabis products in the market.”

“The Oakland Legendary brand is the gold standard for quality,” says Dale Sky Jones, Executive Chancellor of Oakland University. “These are the ones who defined the culture and perfected the craft long before there was a legal market. When you buy Oakland Legendary, you’re not just supporting a local business; you’re getting the world’s most authentic, high-caliber cannabis. These brands are true trendsetters, and once you try them, you’ll understand why Oakland remains the epicenter of the world’s finest cannabis.”

“Root’d believes it is extremely important to highlight the brands of operators who were disproportionately impacted by the War on Drugs and educate the consumer on the importance of protecting the equity brands that have shaped the culture and community of cannabis. These core equity brands are the root ecosystem of our culture; the bigger and stronger the roots, the healthier Root’d’s culture McCullough” 510 has a long legacy in the cannabis industry and has been featured on the front page of the New York Times for being one of the first dispensaries in the nation. “It’s important to us that we direct consumers to amazing products and also shop with a purpose.”

Consumers can easily identify Oakland’s legendary certified equity operators through the Oakland Legendary certification mark on packaging, advertisements, and certified equity dealer windows. In a nod to the resilience of the community, the brand’s official positioning is slightly tilted, with the word “Legendary” rising, symbolizing the upward trajectory and sustained growth of Oakland’s capital operators.

The Oakland Legendary awareness campaign includes exclusive use of the certification mark on packaging and marketing materials and “I Hella ♡ Oakland Legendary Cannabis” swag. High-visibility billboards are located along Highway 880 to publicize the program. The public awareness campaign is supported by the National Equity Trade Network.

Source: Oakland

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