Texas Will Ban Smokeable Hemp Cannabis on March 31. Here’s What You Need to Know.

by Stephen Simpson, The Texas Tribune

New state rules that eliminate natural smokeable hemp products and increase licensing fees will go into effect at the end of the month. Hemp industry leaders say these new regulations will eliminate a majority of their inventory and force those who don’t have extra income to meet these new fees to close stores.

Earlier this month, the Texas Department of State Health Services released regulations on consumable hemp-derived THC products that will go into effect on March 31. These new regulations include child-resistant packaging, a significant increase in licensing fees, new labeling, testing, and bookkeeping requirements. The rules also codify the legal purchasing age to 21, which went into effect last year as an emergency directive.

However, hemp retailers say the regulation that decreases the amount of total THC in products they sell to 0.3% will eliminate popular smokeable hemp products, such as rolled joints and smokeable flower buds, which make up more than 50% of some stores’ inventories.

The Texas Legislature voted to ban the products out of fear that these intoxicating products were consistently getting into the hands of children. But, Gov. Greg Abbott vetoed the decision last summer, before asking the Texas Alcoholic Beverage Commission and DSHS to increase regulations on the industry instead.

The rules also increase licensing fees for manufacturers of hemp-derived THC from $258 to $10,000 per facility and retail registrations from $155 to $5,000, which industry leaders say will fulfill the ban by forcing businesses to close.

“They did a ban with their own regulatory scheme,” Lukas Gilkey, chief executive of Hometown Hero, a manufacturer of hemp-derived products, said. “The way they wrote the rules, it’s going to eliminate a lot of products that are fully legal and fully fine and not harmed anyone.”

What will Texans no longer be able to buy?

Under the new rules and regulations, Texans will no longer be able to purchase intoxicating smokeable hemp products, including hemp flower or pre-rolled joints. Consumers can still purchase edibles and beverages because they have lower THC concentrations or because they are under the purview of the TABC, which has not banned these beverages.

“We estimate this will hand 50% of the legal market to illicit operators, making our state less safe,” Heather Fazio, director of Texas Cannabis Policy Center, said.

Even though Texas law bans marijuana, lawmakers legalized hemp in 2019. State law defines hemp as containing less than 0.3% levels of intoxicating Delta-9 THC.

To get around the law’s Delta-9 THC restrictions, manufacturers started cultivating hemp plants with another type of THC, called THCA, that, when ignited in a joint or smokeable product, can produce a high. Many lawmakers have said this legal loophole has allowed a recreational THC market to appear overnight without direct approval from the state.

Under the new rules, laboratories tests will now measure the total amount of any THC in a product. If the THC levels exceed the 0.3% threshold even if it’s only activated upon being smoked, the product will be noncompliant under state regulations. As a result, some of the most popular hemp products, like THCA flower and pre-rolled joints, will be banned.

Hemp businesses caught selling noncompliant products will face a range of penalties and fines, including license revocation and up to $10,000 in violation fees for each day these products were sold in stores.

“Many hemp businesses that have operated legitimately for years will have to make a hard decision about whether or not they can keep their doors open,” said Fazio.

People in Texas will not be committing a crime if they are in possession of smokeable THC products after March 31.

For more information, visit http://www.texastribune.org.