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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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EU regulators say Charlotte’s Web hemp CBD safety “cannot be established”

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14 hours ago

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May 12, 2026

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The growing tension between international scientific findings and US health policy has raised questions about whether Medicare beneficiaries are being exposed to cannabinoid products whose safety profiles have not been fully established.

In March 2026, the European Food Safety Authority (EFSA) carried out a formal scientific evaluation of a shipment of Charlotte’s Web hemp product, concluding that the safety of a carbon dioxide extract derived from Cannabis sativa L. “cannot be established”. The agency identified several gaps in the available data, including significant portions of the product remaining uncharacterized, a lack of reliable toxicological studies on the actual material, a lack of human clinical data, and an unknown allergenicity and long-term safety profile.

At the same time, the Centers for Medicare and Medicaid Services (CMS) launched the Substance Access Beneficiary Engagement Incentive (BEI) program. The initiative allows participating healthcare providers to discuss and supply certain hemp and marijuana-derived cannabinoid products to Medicare beneficiaries under the authority of the Center for Innovation, and does not require approval from the US Food and Drug Administration. That distinction is at issue in a pending federal case: Smart Approaches to Marijuana (SAM), et al. Robert F. Kennedy Jr. et al., Case 1:26-cv-01081 (U.S. District Court for the District of Columbia).

Under the FDA’s standard framework, products intended for therapeutic use typically undergo controlled clinical trials, dose standardization, safety and toxicology evaluation, and manufacturing and stability validation. The BEI program operates outside of this structure. Some observers point out that this could introduce products into federally funded care settings before those benchmarks are met, while proponents of the program characterize it as a legitimate model of innovation.

Medicare beneficiaries represent a medically complex population, with many patients managing multiple medications, chronic conditions, and increased susceptibility to drug interactions. Cannabinoid compounds, including THC, interact with metabolic pathways such as CYP450 enzymes, which process many common medications. The safety profile of these products in this population has not been fully characterized through controlled studies.

Following the launch of the program, several companies publicly announced their positioning within the emerging healthcare supply chain. Charlotte’s Web highlighted alignment with CMS drivers and Cornbread Hemp announced institutional distribution through a national group buying organization, reflecting broader commercialization activity in the category.

SAM v. In Kennedy, the court is evaluating whether CMS overstepped its statutory authority by introducing avenues for the supply of cannabinoids without formal regulations, public notice and comment, or FDA validation standards. A resolution will determine whether the program is scaled back, modified, or stopped pending further review as implemented.

The EFSA’s conclusion does not ban the marketing of CBD products, but indicates that the scientific evidence necessary to fully establish their safety remains incomplete. The political debate reflects a broader question in health care regulation: how to balance the pace of innovation for therapeutic products with the standards of evidence typically required in federally funded systems of care.

Source: MMJ International Holdings

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Trump’s Medical Marijuana Move Focused On Helping Ailing Seniors, But Lack Of Coordination Could Cause Backlash (Op-Ed)

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14 hours ago

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May 12, 2026

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“The rush to provide medical marijuana to the elderly will require substantial legal, scientific, and commercial infrastructure, which in an ideal world would avoid repeating historical mistakes with clarity and coordination.”

By Emily Dufton

Everyone knows that the last month was historic for cannabis. There are big changes coming with the rescheduling of medical marijuana and federal Medicare coverage of hemp.

But what many have misunderstood is why.

For the first time in 56 years, a type of marijuana has finally escaped Schedule I of the Controlled Substances Act (CSA). Cannabis was placed there in 1970, and despite previous attempts at legalization – including 40 states that legalized medical access and 24 states that legalized recreational use – for more than half a century, cannabis continued to be defined as a substance with no approved medical use and a high potential for abuse.

Until last month, acting Attorney General Todd Blanche moved medical marijuana to Schedule III, a drug category with some medical uses approved and “moderate-low” addiction potential.

This review includes four cannabis products approved by the Food and Drug Administration (FDA) in all 40 states and Washington DC. These products are now Schedule III, which means that dispensary owners don’t have a heavy tax burden like 280E.

Medical marijuana became a much more legitimate industry.

But what makes this change even more historic is who it is intended to benefit: the elderly.

Previous legalization movements all focused on young adults. The decriminalization movement of the 1970s painted cannabis as an “adult right” for a mature baby boomer. Activists in the 1980s and 90s argued that medical marijuana was needed for young people struggling with HIV/AIDS. And in the 2010s and 2020s, social justice movements promoted legalization as a means to end the mass incarceration of Black youth.

Recriminalization movements have been equally concerned with pot’s impact on children. Reagan’s zero-tolerance, “Just Say No” drug war of the 1980s was launched explicitly to save children. And the intoxicating hemp products accidentally legalized in the 2018 Farm Bill are slated to be made illegal again this November, after opponents warned they sent too many children to emergency rooms.

But the Trump administration’s support for medical marijuana reform is based on something new: the concern of 18 percent of Americans over 65 — nearly 1 in 6 — a number expected to rise to nearly a quarter of the population by 2050.

A new industry is emerging to service this demographic. Howard Kessler, of the Commonwealth Project, is one of the biggest proponents of medical marijuana use for seniors.

A Project video (reposted by Trump on Truth Social last September) he seemed to be addressing the president directly. “You can revolutionize healthcare for the elderly,” begins the narrator, before listing cannabis’ positive effects on pain, stress and sleep. The video ends with the promise: “You will deliver the most important senior health initiative of the century, strengthening your legacy and transforming aging care. Millions everywhere will thank you.”

As a drug historian, I did not see this coming. The historic overhaul of medical marijuana is being hailed as a victory for the elderly, a demographic that was almost never included in the conversation.

For years, prohibitionists argued that today’s cannabis products are too strong, a far cry from the tamer, weaker weed of yesteryear. But with these new products aimed at seniors, this really is your grandma’s marijuana. The baby boomers who fought for decriminalization in the 1970s are getting it, in 2026, with federal funding from Dr. Mehmet Oz’s Centers for Medicare and Medicaid Services.

Focusing on the health and well-being of the elderly, Kessler’s campaign successfully overturned decades of drug policy concerns about children, and this shift will have major implications for both legalization and recriminalization campaigns. The “save the kids” attitude that changed the law before may not work when marijuana users are older.

But a backlash could arise just as quickly if unregulated “medical” products start harming grandma.

Therefore, as a historian, I am concerned that this project has been rapidly expanded with vocal support but little coordination. There is a significant lack of clarity on how this transformation will work.

Given that Schedule I marijuana has been around for half a century, the science behind medical cannabis is still a work in progress. It’s also not entirely clear who is responsible, as multiple entities are involved in the change, including the Drug Enforcement Administration, the FDA, the Department of Justice, and the Internal Revenue Service, as well as legislative, regulatory, and law enforcement agencies at the state and local levels.

And so far no one has addressed the impact it has had on hemp/marijuana distribution. Lack of coordination doomed previous legalization campaigns, and could harm reprogramming if it unfolds in a chaotic fashion.

At the moment, the outlook does not look promising. Dr. Gillian Schauer, executive director of the Cannabis Regulatory Association, told NPR, “We’re implementing policy that’s far from where the science is… It’s like flying an airplane blind when we’re building it without parts.”

Last month’s rescheduling was historic, but it’s also incomplete. The rush to provide medical marijuana to the elderly will require extensive legal, scientific and commercial infrastructure, which in an ideal world would avoid repeating historical mistakes by providing clarity and coordination.

It may not happen yet, but it’s what grandma deserves.

Emily Dufton is the author of Grass Roots: The Rise and Fall and Rise of Marijuana in America and Addiction, Inc.: Medication-Assisted Treatment and America’s Forgotten War on Drugs.

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Kambis expands cultivation infrastructure as Thai medical cannabis facility eyes international markets

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2 days ago

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May 11, 2026

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A certified medical cannabis facility in Thailand is adding a specialized mother room and an advanced drying room as part of its capacity expansion aimed at international supply.

KAMBIS Community Enterprise Innovative Farming announced through construction LinkedIndescribing the two rooms as nearing completion and central to the roadmap for scaling up production. The company sees investment as a prerequisite for consistent production in export markets, not just for increased volume.

The expansion is accompanied by an ongoing fulfillment push. KAMBIS has been working to prepare GACP and EU GMP, a combination that reflects the standard required to supply the regulated medical markets in Europe and elsewhere. The company noted that medical expertise has been embedded in its leadership since the beginning, and it says it has kept clinical requirements at the center of cultivation decisions as the operation has grown.

The addition of the mother’s room is particularly notable in the context of the international offer. The mother-room infrastructure allows the facility to maintain genetic consistency across production cycles, which is a prerequisite for the kind of batch-to-batch reproducibility required by EU GMP frameworks. Drying room capacity, on the other hand, is often the bottleneck that limits how many post-harvest flowers a grow site can fill without compromising quality metrics.

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