Austin hemp sellers weigh in on looming ban of smokable THC

Texas ban on smokable THC goes into effect this month

New hemp regulations going into effect at the end of the month could mean that some of the most popular products will be taken off the shelves.

AUSTIN, Texas - New hemp regulations going into effect at the end of the month could mean that some of the most popular products will be taken off the shelves.

Texas ban on smokable THC

Beginning March 31st, smokable hemp products will essentially become illegal as the Texas Department of State Health Services is set to implement a new set of rules and policies.

Since 2018, the Texas hemp industry has boomed as state law has allowed the sale of hemp-derived products such as THCA, which converts into Delta-9 THC and gives users a high when heated. Under the new regulations, THCA will be factored in to calculate whether a hemp product meets acceptable THC levels. As a result, most smokable hemp products will no longer meet the requirements to be sold in the state of Texas.

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Texas ban on smokable THC products to take effect March 31

New rules were adopted recently by the Texas Department of State Health Services, which prohibit stores from selling any smokable form of THC, including hemp derivatives.

What they're saying:

"You can see sales are going up. People like the product, people use the product. Why go against the people?," says Oz Millman, the owner of Green Herbal Care, a THC vendor with multiple locations across Central Texas. 

Since 2018, they’ve been a supplier in the state’s multi-billion-dollar hemp industry, with THCA flower sales making up about 50% of their revenue. Millman says he’ll now have to replace the flower with inferior products and fears that buyers will resort back to the black market in order to get access to more potent products.

"They're going to go to places that they don't have lab reports. They have less knowledge of what they're buying, instead of, you know, this place, everything is tested, they know exactly what they get."

Spike in THC sales

As the countdown begins before the new regulations are enforced, Green Herbal Care has seen flower flying off the shelves, as buyers fear when they will be able to get their hands on the product again.

"In the last two weeks, sales for flower doubled because people are panic buying. And it just comes to show you that all those changes come against the will of the people," says Millman.

Hemp vendors and manufacturers are also set to see a drastic increase in what they’ll pay in licensing fees as well. Under the new regulations, vendors will pay $5,000 annually per location, up from the original fee of $150 per location. Manufacturers must also now pay $10,000 per year, when they were initially paying $250 per year.

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TABC finalizes new rules for Texas hemp industry

The new permanent rules are similar to the temporary ones they replace, adding an age limit in Texas for buying and selling hemp consumables and strengthening identification procedures.

For owner Oz Millman, Green Herbal Care will be able to survive the new changes, but he fears that other businesses might not be prepared to do the same.

"We got used to a lot of changes, so with the fees, we are going to be OK. We're going to survive it. I guess some of the competition will disappear, which is a shame. There is room for all of us."

The backstory:

The new rules came after a back and forth about the future of THC in the state of Texas. In the 2025 regular session, the Texas Legislature passed Senate bill 3, which would have led to a total ban on THC products. That bill was eventually vetoed by Governor Abbott, who instead ordered DSHS to implement stricter THC and hemp regulations.

In September 2025, House Bill 2024 went into place, which banned the selling of THC vapes as well as certain products originating from China.

What's next:

For now, edibles such as drinks and gummies are still legal to sell alongside certain hemp products such as CBD or CBG.