Texas Implements New Regulations on Hemp Products with THC

Texas implemented new state regulations on July 31, 2026, that classify hemp products containing more than trace amounts of THC—other than Delta-9 THC—as controlled substances. According to reporting from KLTV, these rules tighten the legal definition of hemp and increase fees for operators in the state’s hemp industry.

The regulations target synthetic cannabinoids and hemp derivatives that have historically occupied a legal gray area in Texas. Under the new rules, products that exceed the trace threshold for THC variants are now subject to the same legal restrictions as other controlled substances, according to KLTV.

New THC Classification and Legal Thresholds

The primary shift in the regulatory framework involves how the state identifies hemp. Previously, many retailers sold products containing Delta-8 THC and other isomers, arguing they were derived from hemp and therefore legal under the 2018 Farm Bill. The July 31, 2026, regulations effectively close this loophole by limiting legal hemp to products containing only trace amounts of THC, with the exception of Delta-9 THC within the federally mandated limits, according to KLTV.

Products that fall outside these narrow definitions are no longer classified as hemp under Texas law. This reclassification means that the sale, possession, and distribution of these products can now be treated as violations of controlled substance laws, according to KLTV reporting.

Increased Fees for Hemp Operators

Beyond the classification of THC variants, the state is raising the cost of doing business for licensed hemp growers and processors. KLTV reports that the new regulations include an increase in fees associated with state licensing and oversight.

These fee hikes are part of a broader effort to tighten the state’s grip on the hemp supply chain. By increasing the financial requirements for licensure, the state aims to ensure more rigorous compliance with the new THC thresholds, according to KLTV.

Impact on Texas Hemp Retailers

The timing of the July 31, 2026, effective date leaves retailers with a limited window to clear inventory of non-compliant products. Store owners who continue to sell hemp derivatives that exceed the trace THC limits now face potential legal action under the state’s controlled substance statutes, according to KLTV.

Industry participants must now verify that their products align with the strict “trace amount” definition to avoid criminal or civil penalties. This represents a significant departure from the previous market environment where various THC isomers were widely available in smoke shops and specialty stores across the state, according to KLTV.