Texas is one of the biggest prizes in the hemp beverage market, and one of the strictest states to enter legally. Before a can of hemp-derived seltzer or a THC beverage reaches a Texas shelf, a brand must clear a licensing process that entails per-facility fees, background checks, and inspection consent that goes well beyond what most states require.

To be specific, the rules live in Title 25, Chapter 300 of the Texas Administrative Code, administered by the Department of State Health Services (DSHS) under Texas Health and Safety Code Chapter 443.

Here’s what brands and co-packers need to know before they try to sell in Texas.

Three Tiers, Three Sets of Requirements

Texas divides the hemp supply chain into three roles, each with its own regulatory obligations.

Manufacturers and processors, meaning anyone extracting, mixing, or processing hemp into a finished consumable hemp product, need a consumable hemp products license issued by DSHS.

Distributors need a separate wholesaler license under Health and Safety Code Chapter 431.

Retailers don’t need a license at all; they register their location with the state as a condition of selling consumable hemp products to the public.

A brand that manufactures its own product, distributes it, and sells directly could theoretically need all three. Most brands working with a co-packer will only need to confirm the co-packer’s manufacturing license is current and separately handle their own distribution and retail registration.

The application: facility by facility

DSHS doesn’t license a company. It licenses locations. Every site where a company manufactures, processes, or stores consumable hemp products needs its own application, submitted electronically through Texas.gov, and its own set of GPS coordinates marking the perimeter of the site.

The application also requires written consent for DSHS, the Department of Public Safety, the Texas Alcoholic Beverage Commission, and local law enforcement to enter the premises for inspection at any time. And every applicant has to pay for an out-of-pocket fingerprint-based criminal background check.

That background check isn’t a formality. Anyone convicted of a controlled substance felony, under federal law or the law of any state, within the past 10 years is automatically disqualified. If DSHS later discovers a license holder has that kind of conviction, the license gets revoked, no hearing required.

The cost: $10,000 a door

Texas doesn’t scale its fees to company size. A license costs $10,000 per facility, and renewing it costs another $10,000 per facility every year. Multi-facility operators pay the fee at every single location; there’s no volume discount, and fees aren’t prorated if you’re only open part of the year.

Changing ownership of a licensed facility triggers a fresh $10,000 amendment fee, since DSHS treats a change of ownership as close to a new license. Smaller changes, like an address correction or a name change, cost $125. Miss a renewal deadline and the state tacks on a $1,000 delinquency fee on top of the $10,000 renewal.

For a brand weighing where to launch next, this is the number to run before anything else. A single-facility operator is looking at $10,000 to get in the door and $10,000 a year after that just to stay licensed, before a can of product ships.

Timeline: budget three to six months

DSHS works on a scheduled timeline once an application is received. The department has 45 days to determine whether the application is complete. If it’s missing something, DSHS has up to 60 days to notify you in writing and specify exactly what’s needed. A second 45-day window starts once the application is complete, ending in either a license or a written denial. If DSHS flags an incomplete application, the applicant then has 135 days to fix it before the state considers the application withdrawn.

Run the math, and an application can take anywhere from 45 days for a clean, complete filing to nearly seven months if there are back-and-forth corrections. Brands should build that range into launch planning rather than assuming a fast turnaround.

There’s a built-in check on the state, too. If DSHS blows through its own deadlines without good cause, the applicant can request a full refund of the license fee, and the department has to respond within 30 business days.

What the license obligates you to do

Getting the license is the entry point, not the finish line. License holders take on ongoing recordkeeping and quality obligations that DSHS can inspect at any time.

Every consumable hemp product needs a master production record, prepared by one person and independently checked and signed by a second, covering ingredient weights, complete manufacturing instructions, and specifications. Every batch needs its own batch production record tracking dates, equipment used, in-process results, lab results, labeling, and any rework or destruction of THC that happened along the way.

Records, including certificates of analysis, batch data, and consumer complaints, must be kept on site for at least 3 years and made available to DSHS or TABC upon request. Facilities also need a written recall plan covering how they’d notify consignees and the public, and a documented complaint-handling process for anything related to product safety.

One rule applies across the board regardless of license type: Texas prohibits manufacturing or processing any consumable hemp product intended for smoking. That’s a hard line, not a gray area open to interpretation.

The takeaway for brands eyeing Texas

Texas rewards brands that plan for the paperwork as seriously as they plan for shelf space. Before targeting the state, a brand should confirm which of the three license or registration types actually applies to its business model, budget for $10,000 per facility plus renewal, and build a multi-month runway into the launch timeline rather than assuming a quick approval.