Texas to Prohibit Smokeable Cannabis Starting January 25

Texas is poised to enforce significant changes to its hemp regulations, with proposed rules set to severely limit smokeable cannabis products. The Texas Department of State Health Services (DSHS) has outlined new guidelines that include heightened fees and stricter packaging and labeling requirements. These rules are anticipated to come into effect by January 25, 2024.

New Regulations Impacting Smokeable Cannabis

The proposed rules would redefine the measurement of THC and potentially lead to the disappearance of smokeable hemp products across the state. Currently, Texas defines hemp as cannabis containing no more than 0.3% Delta-9 THC, the psychoactive component in marijuana, a standard set in 2019.

Fee Increases and Compliance Costs

Under the new regulations, the fees for hemp manufacturers will escalate dramatically. Annual fees are set to rise from $250 to $25,000 per facility. Retailers will also face a steep increase, with registration fees jumping from $150 to $20,000 per location.

• Manufacturers: Fee rise from $250 to $25,000
• Retailers: Fee increase from $150 to $20,000

This 10,000% increase poses a considerable challenge for many small businesses, with some owners expressing concerns that these fees could lead to their closure.

Public Reaction to Proposed Guidelines

During a public hearing, multiple stakeholders, including small business owners and cannabis users, voiced their concerns regarding the proposed regulations. While some supported stricter packaging rules and age limits, they opposed the effective ban on smokeable products and the substantial fee increases.

• Concerns voiced by business owners:
  • High fees could eliminate small businesses
  • Redefining THCA as Delta-9 is seen as overreach
• Support from some groups:
  • Stricter regulations seen as beneficial for public health
  • Calls for higher age limits on cannabis products

Critics argue that incorporating THCA into Delta-9 calculations would effectively ban most smokeable hemp, contradicting existing legalization efforts. The health department’s initiative is a response to Governor Greg Abbott’s executive order aimed at clarifying regulations following legislative deadlock.

Future of Texas Hemp Industry

As public comments are considered, the DSHS has the option to revise the proposed rules before they take effect. While these new regulations do not impact the state’s medical marijuana program, which has been expanding, they indicate a stringent approach towards consumable hemp products.

The regulations could not only reshape the Texas cannabis market but also set a precedent for how states might regulate hemp and cannabis products in the future. The final changes will be critical for both the businesses involved and the consumers affected by these developments.