New Texas THC proposal would drastically increase retailer fees
Texas proposes new THC regulations
Business that sell legal, consumable THC in Texas may have to foot the bill for higher registration feels. That hefty price tag, plus product bans, has some business owners worried.
DALLAS - Businesses that sell legal, consumable THC may be on the hook for registration fees as high as $20,000 per year.
It’s in response to an executive order directive by Gov. Greg Abbott to enforce stricter industry rules.
Texas THC Laws
FILE- THC products on a store shelf in Texas.
What we know:
Vape and CBD shop owners across the state have faced increased scrutiny from lawmakers over the past year.
In September, a new Texas law banned nicotine disposable vapes imported from China and THC-infused vapes.
North Texas business owners concerned by new vape regulation, looming THC bill
A new Texas law bans nicotine disposable vapes imported from China and THC-infused vapes. The law passed during the regular session and took effect on Monday.
Lt. Gov. Dan Patrick also backed legislation calling for a total THC ban. However, Abbott vetoed that ban amid pressure from veterans and other groups and instead called for stricter regulations.
Gov. Abbott calls for THC ban for those under 21, stiff regulations as special session gets underway
Gov. Greg Abbott is calling for a ban on THC products for anyone under the age of 21 and tougher regulations for the hemp industry in Texas as lawmakers return for a special session.
The new proposal would increase licensing fees for hemp manufacturers from $250 to $25,000 per facility. It would also increase the registration fee for retailers from $150 per year to $20,000.
Another part of it would eliminate hemp flower. That means all smokable THC products would also be banned in the state.
What they're saying:
The last time FOX 4 spoke to Carol Jones, she had just discovered she’d have to get rid of all vapes in her shop made in China.
The owner of CBD American Shaman in Frisco said the latest proposal could sink her business and many others.
"If I was able to continue to sell everything I could now, I would try because I love helping my customers. And I want to still be a service to my community. Bu given that we would lose a lot of the products we are currently carrying, I don’t think we would be able to stay open. I don’t think it’s going to work out," she said.
Other shop owners said they support higher age requirements and product labeling, but they think this new proposal goes a step too far.
What's next:
This month, the Texas Health and Human Services Commission heard public comments on the proposed regulations.
It’s unclear when a decision by the state will be made.
The Source: The information in this story comes from the Texas Health and Human Services Commission's meeting and an interview with smoke shop owner Carol Jones.