Texas is cracking down on smokable hemp by the end of March, forcing retailers to discard THC‑rich products and slashing the market overnight.
Texas Health Department Sets March 31 Deadline for Smokable Hemp Ban
The Texas Department of State Health Services (DSHS) finalized regulations that prohibit the sale of smokable hemp and extracts, effective March 31, after changing how it measures Delta‑9 THC.
Under the new “total THC” rule, DSHS adds THCA — a non‑psychoactive precursor that converts to Delta‑9 when heated — to the THC calculation, effectively banning products such as THCA flower.
DSHS said the policy aligns with existing state and federal regulations written by government officials interpreting the law, despite hundreds of public comments opposing the inclusion of THCA.
The state’s 2019 hemp law defines legal hemp as containing no more than 0.3% Delta‑9 THC by dry weight, and the 2020 Agriculture Commission rule required testing to account for THCA conversion, a requirement later echoed in a USDA proposal during the Trump administration and adopted under Biden.
Annual fees for consumable hemp retailers rise from $150 to $5,000, and for manufacturing facilities from $100 to $10,000, representing 33‑ and 40‑fold increases, respectively.
More than 9,100 retail locations are registered to sell hemp products in Texas, according to state health records.
Estella Castro, owner of Austin Cannabis Co., warned that the fee hike combined with the smokable ban could make her business unviable. She noted smokable items comprise about 40% of her sales.
Advocates acknowledge new recall standards and complaint‑tracking processes but fear the high fees and product ban will push consumers to an unregulated illicit market.
Heather Fazio of the Texas Cannabis Policy Center said, “Consumers will still obtain these products from out‑of‑state operators or the illicit market, which lacks age restrictions and safety protections.”
Mark Bordas, head of the Texas Hemp Business Council, compared the $10,000 annual fee to the Texas Alcoholic Beverage Commission’s $3,000 fee for distillers paid every two years, calling the measure “draconian” and warning it could force businesses out of the market, prompting a lawsuit that would waste taxpayer money.
