Texas hemp law, set out in House Bill 1325 and codified as Chapter 122 of the Texas Agriculture Code, legalized the commercial cultivation, manufacture, and retail sale of hemp containing no more than 0.3 percent delta-9 THC on a dry weight basis. Governor Greg Abbott signed the bill on June 10, 2019. Cultivation is licensed by the Texas Department of Agriculture (TDA), and consumable hemp products sold at retail are registered with the Texas Department of State Health Services (DSHS). Anything above the 0.3 percent line is still marijuana under Texas law and carries the same criminal penalties as before.
How Texas Defines Hemp
Chapter 122 defines hemp as Cannabis sativa L. and any part of the plant, including seeds, extracts, and cannabinoids, with a delta-9 THC concentration of no more than 0.3 percent on a dry weight basis.1State of Texas. Texas Agriculture Code Chapter 122 – Cultivation of Hemp That figure matches the federal 2018 Farm Bill definition.
The number that actually decides whether a crop passes is total THC, not delta-9 alone. Federal regulations require labs to account for THCA, the non-psychoactive precursor that converts to THC when heated, using the formula Total THC = delta-9 THC + (0.877 × THCA).2eCFR. 7 CFR Part 990 – Domestic Hemp Production Program A plant that looks compliant raw can fail once THCA is factored in. High-CBD cultivars are especially exposed, because CBD-rich genetics tend to produce more THCA.
Delta-8 Is Not Legal Just Because Hemp Is
HB 1325 focused on CBD and fiber crops, but the delta-8 THC market grew quickly afterward. Delta-8 is a psychoactive cannabinoid that can be synthesized from hemp-derived CBD, and it began appearing in gas stations and smoke shops. DSHS posted a notice in 2021 treating any amount of delta-8 THC as a Schedule I controlled substance.
In May 2026, the Texas Supreme Court held that HB 1325 did not legalize delta-8 beyond the trace amounts naturally present in hemp, clearing the way for DSHS to enforce its classification. DSHS’s authority under the Texas Controlled Substances Act is civil rather than criminal, but manufacturing or selling concentrated delta-8 in Texas carries real regulatory risk even though the underlying hemp plant is legal.
Who Can Get a Cultivation License
TDA requires the applicant and every “key participant” with executive control or a proprietary interest in the business to submit an FBI criminal history report dated within 60 days of the application. Anyone convicted of a state or federal controlled substance felony is ineligible for 10 years from the date of conviction.3Texas Department of Agriculture. TDA State Hemp Plan A narrow exception applies to people who were lawfully growing hemp under the 2014 Farm Bill pilot program before December 20, 2018, and whose conviction predates that same cutoff.
The 10-year bar covers any controlled substance felony, not only cannabis, and it applies to every person with a meaningful stake. One partner in a five-person LLC with a qualifying conviction from eight years ago can sink the whole application.
Applying and Paying for a License
Applications go through TDA’s online portal. Applicants provide GPS coordinates and a detailed digital map of every location where hemp will be grown, designate each facility type (indoor greenhouse, outdoor field, and so on), and name a designated agent as the primary contact with regulators. Having all of this ready before starting the application avoids delays.
Fees are set under Agriculture Code Section 122.052 and are modest compared with many states:
- Initial application fee: up to $100
- License renewal fee: up to $100
- Participation fee: up to $100 per growing location
- Site modification fee: up to $500 for each change to a registered location
- Collection and testing fee: up to $300 per pre-harvest or post-harvest test performed by TDA
A grower with one outdoor field pays roughly $200 at initial application (the application fee plus one location fee), with testing fees added when sampling occurs.4State of Texas. Texas Agriculture Code 122.052 – Fees The statute lets the comptroller authorize higher fees to cover administrative costs, but the published caps give applicants a reliable budget number.
Testing, Harvest Windows, and Failed Crops
Every hemp lot in Texas must be sampled and tested before harvest. Under TDA’s procedure, an authorized person collects representative samples within 15 days of the anticipated harvest date, and the samples go to a state-approved lab for the total THC calculation.5Texas Department of Agriculture. TDA Hemp Sampling and Collection Procedure
Once sampled, the producer must complete the harvest within 30 days under federal rules.6eCFR. 7 CFR Part 990 Subpart C – USDA Hemp Production Plan Miss that window and a second sample must be collected and tested before harvest can proceed. THC concentrations rise as the plant matures, so a crop that passed in week one may not pass in week five.
A result above 0.3 percent means the crop is legally marijuana and cannot be sold or processed. Under Texas administrative rules, the license holder has five days after receiving a disposal notice from TDA to contact a DEA-registered reverse distributor or other authorized entity to arrange destruction.7Cornell Law Institute. 4 Texas Administrative Code 24.31 – Non-Compliant Cannabis Plants The grower pays disposal costs and receives no compensation.
USDA guidelines offer more room to remediate. A grower can separate and destroy flowers while keeping stalks and seeds, or shred the entire plant into a uniform biomass and retest it.8U.S. Department of Agriculture. Hemp Remediation and Disposal Guidelines If the shredded biomass still fails, it must be destroyed. Both TDA and USDA must be notified of the decision to remediate or dispose, and records must be kept available for inspection.
A single failed test doesn’t end a career. Federal rules and the TDA hemp plan treat a first offense as a negligent violation, generally triggering a corrective action plan rather than revocation. Repeated negligent violations within a defined period, or any intentional violation, can cost the license and lead to referral for criminal investigation.
Transporting Hemp on Texas Roads
Anyone transporting hemp plant material in Texas must carry documentation, and the rules are stricter than many growers expect. For hemp grown in Texas, the transporter must have a shipping certificate or cargo manifest issued under Section 122.055.9Texas Attorney General. Hemp Plant Material in State For hemp from another state, the paperwork must show the cultivation site’s name and address and confirm the hemp was produced under an approved federal, state, or tribal plan.
Two details catch drivers out. The documentation has to be handed over to any TDA representative or peace officer who asks. And a vehicle hauling hemp cannot carry non-hemp cargo at the same time.9Texas Attorney General. Hemp Plant Material in State That mixed-load prohibition rules out tossing a few pallets of hemp into a truck already carrying feed or equipment. A stop without proper paperwork can end with the shipment seized while officers work out whether they’re looking at hemp or marijuana.
Selling Consumable Hemp Products at Retail
Retailers and distributors of consumable hemp products register with DSHS rather than TDA. Health and Safety Code Section 443.2025 requires anyone selling consumable hemp products containing CBD to register each retail location, though a single registration can cover multiple locations under the same ownership.10State of Texas. Texas Health and Safety Code 443.2025 – Registration Required for Retailers of Certain Products
Registration costs $155 per location, including the Texas Online processing fee, and lasts one year.11Texas Department of State Health Services. Consumable Hemp Program Employees of a registered business and independent contractors selling a registrant’s products don’t need separate registrations.10State of Texas. Texas Health and Safety Code 443.2025 – Registration Required for Retailers of Certain Products Consumable hemp product license applicants also submit an FBI fingerprint criminal history check, which is separate from the cultivation background check.12Texas Department of State Health Services. Consumable Hemp Product License Checklist
Labeling Requirements
Every consumable hemp product sold at retail must carry specific label information before it can be distributed or shelved:
- Batch or lot identification number and date
- Product name
- A URL linking to a certificate of analysis for the product or each hemp-derived ingredient
- Manufacturer name, phone number, and email address
- A THC certification statement confirming the delta-9 THC concentration is no more than 0.3 percent
The URL is mandatory and cannot be replaced by a QR code alone. A QR code can be added for convenience, but the printed URL still has to appear.13Texas Department of State Health Services. Consumable Hemp Program – Labeling The certificate of analysis behind the link should verify the batch number, confirm THC content, and show the product tested clean for harmful contaminants. DSHS inspectors pull products from shelves for labeling violations, so getting this right before the first shipment reaches a store matters.
Where Federal Law Still Complicates Things
Texas legalized consumable hemp products, but the FDA has not fully followed. The FDA considers THC and CBD excluded from the definition of a dietary supplement because both are active ingredients in approved drugs, and adding CBD or THC to food for interstate commerce is a prohibited act under federal law.14U.S. Food and Drug Administration. FDA Regulation of Cannabis and Cannabis-Derived Products, Including Cannabidiol (CBD) Hulled hemp seed, hemp seed protein powder, and hemp seed oil are generally recognized as safe food ingredients, but that approval does not extend to CBD. What DSHS permits under Texas law, the FDA may still consider illegal at the federal level.
Federal crop insurance is available to licensed Texas hemp producers. A multi-peril pilot covers hemp grown for fiber, grain, or CBD oil in select counties, whole-farm revenue protection is offered nationwide, and the noninsured crop disaster assistance program covers producers in areas without permanent federal crop insurance.15Farmers.gov. Hemp and Farm Programs Producers report planted acreage to their local Farm Service Agency office, providing the license number, identifying each field or greenhouse, and specifying the intended use.
Banking used to be one of the biggest headaches, with many banks refusing hemp accounts over money laundering concerns. FinCEN guidance clarified that banks are not required to file a suspicious activity report on a customer solely because that customer grows hemp in compliance with applicable law.16Financial Crimes Enforcement Network. Providing Financial Services to Customers Engaged in Hemp-Related Businesses Standard customer identification, due diligence, and suspicious activity procedures still apply. Finding a bank willing to work with hemp businesses in Texas has gotten easier, but some institutions remain cautious, and walking in with your TDA license, lab results, and compliance records already organized makes the conversation shorter.