New rules, regulations for THC in Texas take effect March 31

AUSTIN, Texas - New rules and regulations for THC in Texas take effect on Tuesday, March 31, following a ban on THC vapes that went into effect in September. 

Under the new rules, hemp-infused edibles, gummies, and beverages will remain legal, but will face stricter testing and packaging requirements.

The backstory:

On March 31, the Texas Department of State Health Services' new rules went into effect for the sale of consumable hemp products.

"The biggest change is that they are interpreting the definition of hemp differently, which will then affect the sale of THCA flour, which a lot of retailers rely on for most of their revenue," said Cynthia Cabrera, president of the Texas Hemp Business Council.

One Austin-area business owner said roughly 45% of his inventory will become illegal on Tuesday. Like most smoke shops, they have been holding daily sales to get rid of products. More customers are coming in to stock up, but the company is not profiting from the sales, only recouping costs.

"Every day, we've been increasing 10% off, but as of right now, we're just trying to get our costs back," said Travis Tyler, owner of Smoking Burnouts.

Another substantial change comes in the form of increased licensing fees. For retailers, the annual cost goes from $155 to $5,000 per store.

"We have six locations though. So for me, it's about $30,000 per year in permits that I have to pay," Tyler said.

For manufacturers, the annual fee is even higher, increasing from $258 to $10,000.

"Right off the bat, you got a 30x increase that is not justified with any additional enforcement or additional infrastructure that's being provided to the industry, and it will hurt those small businesses the most," Cabrera said.

The guidelines also add new labeling and testing requirements, enforce an age requirement of 21 and up to purchase, and mandate child-resistant packaging.

What they're saying:

Given these new protections, some Texans hope the rules will keep THC out of the hands of children.

"I would love Texas to come up with a widespread public information campaign to teach people, especially our youth, about the dangers of THC. Not gloss it over and say everybody does it, and it's no problem," said Christine Scruggs, who supports the new THC rules.

"It's going to get rid of the bad guys or the not-so-good players. But the negative part, again, is that people are losing their livelihoods. People are losing their income," Tyler said.

Reflecting on the pace of these changes, many industry workers say they wish they had been given more time to comply.

"While industry is happy to provide what the state wants and support consumer safety, it really has to be done in a way that doesn't put people out of business," Cabrera said.

What's next:

The new "total THC" standard and the increased licensing registration fee will be fully enforceable by state law on April 1.

A lawsuit was filed on March 17 in Travis County by Boomtown Vapor LLC targeting the Texas Department of State Health Services and its commissioner. The suit alleges the agency is overstepping its authority by unilaterally redefining the legal standard for hemp.