Hemp-derived products have operated under relatively light governmental oversight in Texas. But on September 10th, 2025, Governor Greg Abbott signed Executive Order GA-56 – and it’s ushering in a whole new era of compliance that retailers need to prepare for. The governor’s order enacts stricter rules on licensing, age verification, testing, labeling, and record-keeping; read on to see exactly what changed, how to get licensed, and how the right technology can simplify your compliance needs.
What Changed in CBD & Texas Hemp Law in 2025?
Executive Order GA-56 triggered several regulatory updates including:
- Ban on sales to minors: The executive order directs the Texas Department of State Health Services (DSHS), Texas Alcoholic Beverage Commission (TABC), and Texas Department of Public Safety (DPS) to ban the sale of consumable hemp products to individuals under the age of 21 and to require government-issued ID verification at the point of sale.
- Testing enhancements: Products must now be tested for total delta-9 THC plus THCA to prevent illegal potency.
- Higher fees & stronger oversight: DSHS has been instructed to raise Texas hemp license application, renewal, and registration fees to fund enforcement and compliance work.
- Expanded labeling requirements: Labeling must now clearly show cannabinoid concentration, serving size, health warnings, and satisfy stricter consumer-protection standards.
- Enhanced record-keeping & inspections: Retailers must maintain comprehensive inventories, test-result logs, and transaction records as inspections and enforcement actions increase.
How to Get a Hemp & CBD License in Texas (2025)
If you sell hemp-derived consumables or CBD products, you’ll need to follow these steps:
- Determine your license type:
- Retail Hemp Registration if you sell packaged consumable hemp products only
- Consumable Hemp Product License if you manufacture, re-label, re-package, or white-label hemp products
- Apply online: Use the DSHS Business & Professional Licenses portal
- Gather required documentation: This includes a property-owner letter, GIS coordinates, business entity registration, and criminal-history disclosure (no recent controlled-substance felonies)
- Pay the fee: Current retail registration is $155 per location; manufacturing license is $258
- Fingerprinting & background check: Required for certain license types
- Annual renewal & commitments: Agree to inspections, testing, and recordkeeping obligations
Who Needs to Apply?
Any business selling hemp-derived consumables in Texas must now obtain the appropriate license or registration, depending on their role in the supply chain.
- Retailers that sell finished, pre-packaged hemp consumables including tinctures, gummies, beverages, topicals, or vapes, must apply for a Retail Hemp Registration from the Texas Department of State Health Services (DSHS). This applies whether the products are sold in-store or online to Texas consumers.
- If you manufacture, process, re-label, or re-package hemp consumables, such as adding branding to white-labeled products or altering packaging, you are required to obtain a Consumable Hemp Product License. This higher-tier license includes more stringent oversight and, in some cases, additional background screening or facility documentation.
It’s important to note that each physical location typically requires its own license or registration. Businesses operating multiple stores must apply separately for each one. Finally, if your business only handles non-consumable hemp products like seeds, textiles, or building materials, these rules do not apply; however, we recommend verifying with DSHS to ensure your operations remain compliant with state law.
Compliance Checklist for Texas Hemp & CBD Retailers
Implement ID Verification at Checkout
Under Executive Order GA-56, consumable hemp products cannot be sold to anyone under the age of 21. Retailers must implement a system for verifying government-issued IDs at the point of sale. For example, Cova POS features built-in ID scanning hardware and software that integrates seamlessly with the checkout process. When scanned, the system verifies the customer’s age in real time and automatically blocks the transaction if the ID is invalid or the buyer is underage. These kinds of tools are strongly recommended to avoid human error and a compliance infraction.
Review Your Inventory
Retailers should immediately audit their product offerings. Any SKUs containing high-THCA flower, synthetic cannabinoids, or untested cannabinoid blends may no longer be legal for sale. Products combining hemp with tobacco or alcohol are also increasingly restricted and may be subject to removal. With Cova’s centralized inventory management system, you can quickly audit products by category, cannabinoid profile, and source. You can tag or flag restricted items, remove them from active inventory, and generate reports that help you prove compliance during inspections.
Update Labels for Compliance
Labels on all hemp-derived products must now clearly state the cannabinoid content per package and per serving, list the serving size, and include specific health warnings. Labels should also reflect any updated test results, especially those that factor in THCA-to-THC conversion to ensure legal limits are not exceeded. Cova connects product batch data and lab test results directly to each SKU, allowing for automated label generation with compliant cannabinoid profiles and serving details. This helps ensure labeling accuracy and consumer transparency while reducing human error and regulatory risk.
Keep Detailed Records
Retailers must maintain a complete and up-to-date compliance file, including lab test results for each batch or SKU, supplier invoices, shipping records, and transaction logs. This documentation should be readily accessible in case of a surprise inspection from DSHS, TABC, or DPS. By using a purpose-built cannabis POS like Cova, you’ll have compliance-ready reports that track product origin, batch number, lab certifications, and sales history. These records are exportable on demand and formatted to align with state requirements, making it easy to respond to audits or requests from regulators.
Know Local Restrictions
While state law governs overall compliance, municipalities can impose additional restrictions. These often include zoning ordinances that prohibit retail hemp sales within a certain distance of schools, shelters, or places of worship. Retailers should double-check local ordinances and update dispensary SOPs accordingly. Cova can assist in site-specific compliance planning through custom location tags and regional inventory tracking; this is especially useful if you’re managing multiple locations with different municipal restrictions.
Train Staff & Prepare for Inspections
Your front-line staff should be well-versed in compliance protocols – from checking ID and explaining product labels to responding to inspectors. Conduct internal audits regularly and maintain a compliance manual or checklist onsite to demonstrate preparedness during regulatory visits.
FAQs
Q: Is hemp banned in Texas?
A: No. GA-56 preserves legal adult access to hemp-derived products but imposes stricter rules (age-gating, testing, labeling) rather than an outright ban.
Q: How much is a hemp or CBD license in Texas?
A: Current fees: Retail Hemp Registration is $155 per location; Consumable Hemp Product License is $258.
Q: Do I need a license if I only sell pre-packaged hemp or CBD products?
A: Yes – if they are consumable hemp products you sell to consumers, you need at least a Retail Hemp Registration.
Q: Does each store location need its own registration or license?
A: Yes – licensing is location-specific in many cases.
Q: Can Texas hemp retailers sell CBD products online across state lines?
A: Selling online may trigger interstate shipping compliance issues and out-of-state regulatory obligations. Ensure your ERP/POS tracks shipping, age verification, and state-specific compliance.
How Retailers Can Use POS Tools to Meet Texas Hemp Rules
The right technology can help streamline Texas hemp retailers’ growing list of compliance obligations. Here’s how Cova’s purpose-built hemp and CBD point-of-sale platform can serve as your first line of defense.
ID Scanning & Age Verification
Cova POS supports age-restricted workflows that enforce ID verification at checkout. It can scan government-issued IDs and automatically flag attempts by underage customers, ensuring your staff doesn’t accidentally complete an illegal transaction.
Inventory & Compliance Recordkeeping
From purchase orders to sales receipts, Cova logs every transaction with date, time, product details, and customer metadata where applicable. This ensures a digital paper trail that’s invaluable during audits. It also tracks batch numbers and lab test links for each SKU, which can be used to show regulators that your products meet Texas requirements.
Labeling & Product Data Management
Cova allows businesses to manage product-level data like cannabinoid content, service size, and warnings – essential elements now mandated by the new Texas rules. These fields can be linked to SKUs and reflected in customer-facing printouts or compliance reports.
Simplified Compliance Reports
When DSHS or TABC come calling, you won’t need to scramble through spreadsheets or paper files. With Cova, you can generate exportable reports that showcase ID logs, age-restricted sales activity, product test documentation, and more – all formatted for regulator review.
Next Steps for Retailers
The Texas hemp retail landscape may be changing, but you don’t have to navigate it alone. Leveraging retail technology like Cova POS can automate a lot of your compliance burden – from real-time ID checks to inventory audits and batch tracking, we do the heavy lifting so you can focus on your customers.
Contact us today to book a free demo and see how much simpler Cova can make things.