- Welcome and opening remarks
Call to order and Roll call; Explanation of proceedings using Microsoft Teams meeting;
Executive commissioner’s welcome and remarks. The meeting was convened by Stephanie Muth, Executive Commissioner.
- Rule proposals* (Agency Rulemaking can be found at https://www.hhs.texas.gov/regulations/policies-rules/health-human-services-rulemaking/comment-proposed-draft-rules )
Administrative Procedure Act (APA) public comment period has closed†
None
Submitted to the Texas Register – APA public comment period has not closed‡
26R008 Texas Health and Human Services Commission, on behalf of the Texas Department of State Health Services (DSHS), proposes amendments and new rules in Texas Administrative Code (TAC), Title 25, Part 1, Chapter 300, concerning Manufacture, Distribution, and Retail Sale of Consumable Hemp Products. https://www.sos.texas.gov/texreg/archive/December262025/Proposed%20Rules/25.HEALTH%20SERVICES.html#52
Background and Purpose. House Bill 1325 (86th Legislature, Regular Session) established Texas Health and Safety Code (HSC) Chapter 443 for the Manufacture, Distribution, and Sale of Consumable Hemp Products (CHPs). The rules in Title 25 Texas Administrative Code Chapter 300 implement HSC 443 and became effective on August 2, 2020.
On September 10, 2025, Governor Greg Abbott issued Executive Order GA-56 which directed the department to amend the rules to prohibit the sale of CHPs to minors by retail hemp registrants and manufacturers; to add age verification requirements; to update testing requirements; and to update record keeping requirements.
The proposal increases the initial and renewal licensing fees for consumable hemp manufacturers to $25,000 annually and increases the registration fees to $20,000 annually per location. The proposal adds a written consent requirement for Texas Alcoholic Beverage Commission (TABC) to enter the premises to conduct a physical inspection for both manufacturers and retail hemp registrants.
Fiscal and Public Impact. The Department of State Health Services has determined that for each year of the first five years the rules will be in effect, there will be an estimated increase in revenue to state government as a result of enforcing and administering the rules as proposed. Enforcing or administering the rules does not have foreseeable implications relating to costs or revenues of local government.
The effect on state government for each year of the first five years the proposed rules are in effect is an estimated increase in revenue of $202,050,000 in fiscal year (FY) 2026; $202,050,000 in FY 2027; $202,050,000 in FY 2028; $202,050,000 in FY 2029; and $202,050,000 in FY 2030; and an estimated increase in costs of $69,315.00 in FY 2026; $5,648.00 in FY 2027; $5,648.00 in FY 2028; $5,648.00 in FY 2029; and $5,648.00 in FY 2030.
For each year of the first five years the rules are in effect, the public benefit will be increased public health requirements for the manufacturers, distributors, and retailers of CHPs along with prohibited availability and access of CHPs to minors.
DSHS has also determined that for the first five years the rules are in effect, persons who are required to comply with the proposed rules may incur economic costs because of higher licensing and registration fees. Some retailers and manufacturers may incur costs associated with compliance with age verification requirements, depending on the methodology and equipment used to verify identification and to ensure minors are not sold consumable hemp products.
There will be an adverse economic effect on small businesses or micro-businesses, or rural communities due to the higher licensing and registration fees and higher costs to comply with the proposed rule updates.
DSHS estimates the number of small businesses, micro-businesses, and rural communities subject to the proposed rules is approximately 9,900. The projected, total economic impact for small businesses, micro-businesses, and rural communities across the state is $202,050,000 for each of the first five years the rules will be in effect.
DSHS determined that alternative methods to achieve the purpose of the proposed rules for small businesses, micro-businesses, or rural communities would not be consistent with ensuring the health and safety of adults and minors who have been targeted consumers of CHPs.
Earliest possible date of adoption: January 25, 2026
Public Comment.
Forrest Dean, Willie’s Remedy https://williesremedy.com/ described their business founded by Willie Nelson. Prohibitions on celebrity branding are punitive and not a protection standing. This is an afront to local branding. It is a violation of free speech. The fees will destabilize the hemp market. They requested a revisit of the rules and rate structure.
26R035 Texas Health and Human Services Commission proposes to repeal the staffing table located in TAC, Title 26, Part 1, Chapter 507, End Stage Renal Disease Facilities, Subchapter Z, Physical Plant and Construction Requirements, §507.516, Tables. https://www.sos.texas.gov/texreg/archive/January22026/Proposed%20Rules/26.HEALTH%20AND%20HUMAN%20SERVICES.html#34
Background and Purpose. The purpose of this proposal is to repeal the staffing table located in Texas Administrative Code (TAC) Title 26, Chapter 507, End Stage Renal Disease Facilities, Subchapter Z, Physical Plant and Construction Requirements, §507.516, Tables. A new staffing table was adopted in 26 TAC §507.60 and was effective on December 23, 2025.
Fiscal and Program Impact. HHSC has determined that for each year of the first five years that the repeal is in effect, enforcing or administering the repeal does not have foreseeable implications relating to costs or revenues of state or local governments.
HHSC has determined that for each year of the first five years the repeal is in effect, the public benefit will be improved clarity and accuracy for staffing levels of patient care staff and ensure stakeholders can easily find relevant, up-to-date regulations. HHSC has also determined that for the first five years the repeal is in effect, there are no anticipated economic costs to persons who are required to comply with the proposed repeal because the proposed repeal is only removing outdated information that has already been updated and adopted in §507.60 of the same chapter.
Earliest possible date of adoption: February 1, 2026
Public Comment. There was no public comment
Not yet submitted to the Texas Register for APA public comment
None
- Recent Rule Adoptions – Information item not for discussion
Adoptions submitted to the Texas Register that are not yet effective
None
Adoptions that are effective
25R042 Approved Personal Flotation Devices in School-Age and Before or After-School Programs, Published 12/12/25, Effective 12/21/25
https://www.sos.texas.gov/texreg/archive/December122025/Adopted%20Rules/26.HEALTH%20AND%20HUMAN%20SERVICES.html#83
23R077 End Stage Renal Disease Facility Chapter Update, Published 12/19/25, Effective 12/23/25
https://www.sos.texas.gov/texreg/archive/December192025/Adopted%20Rules/25.HEALTH%20SERVICES.html#76
https://www.sos.texas.gov/texreg/archive/December192025/Adopted%20Rules/26.HEALTH%20AND%20HUMAN%20SERVICES.html#84
25R017 Physical Therapy Services Benefits and Limitations, Published 12/26/25, Effective 01/04/26
https://www.sos.texas.gov/texreg/archive/December262025/Adopted%20Rules/1.ADMINISTRATION.html#108
25R022 Licensing of Device Distributors and Manufacturers, Published 01/02/26, Effective01/05/26
https://www.sos.texas.gov/texreg/archive/January22026/Adopted%20Rules/25.HEALTH%20SERVICES.html#118
25R053 Interested Parties Advisory Group (IPAG), Published 01/02/26, Effective 01/06/26
https://www.sos.texas.gov/texreg/archive/January22026/Adopted%20Rules/1.ADMINISTRATION.html#61
Adjourn. There being no further business, the meeting was adjourned.
***
The information contained in this publication is the property of Texas Insight and is considered confidential and may contain proprietary information. It is meant solely for the intended recipient. Access to this published information by anyone else is unauthorized unless Texas Insight grants permission. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted in reliance on this is prohibited. The views expressed in this publication are, unless otherwise stated, those of the author and not those of Texas Insight or its management.