May 17, 2020

DSHS Texas draft hemp retailer rules

On May 8, 2020, the Texas Department of Health and Human Services released their draft rules for hemp CBD manufacturing and retailing. These rules are available for review at this link.

There is currently a 30 day window for public comments on the rules. We highly encourage anyone in the Texas hemp industry or hemp enthusiasts to comment on these rules.

Although the smokable ban came as no surprise to those who had read the original draft in January, it certainly caused a stir. One industry group [Texas Hemp Growers] has stated they will contest the smokable ban with legal action based on overturns in other states including Indiana.

Dallas based hemp specialist attorneys Ritter Spencer released a comprehensive review of the manufacturing portion of the rules on their blog this week. I highly encourage taking to a look to better understand testing requirements. Beyond the smokable ban, they noted a requirement that labs be independent of the manufacturer. This affects a few of the labs in Texas that have been manufacturing for various brands as well as providing testing.

Under the DSHS Proposed Rules, consumable hemp products license holders must use independent testing accredited laboratories where they hold no ownership interest in the accredited laboratory or, if the accredited laboratory is a publicly-traded company, where they hold less than a ten percent interest in the accredited laboratory. See id. at § 300.303(d). License holders must pay all costs of raw and finished hemp product testing as determined by the accredited laboratory they select. See id. at § 300.303(e).

We will have further updates on the rules moving forward. Additionally, we provided a detailed review of the drafts and copies of our comments to our Verified Brand partners through the Higher Ed Hemp Tours Partner Portal.

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