Big changes to the hemp industry are coming this week and it’s expected to impact countless small businesses in North Texas and across the state.
Effective Tuesday, March 31, hemp cannabis that’s smoked will be banned in the state.
The ban comes after the Texas Department of State Health Services (DSHS) released new regulations earlier this month.
New regulation by the Texas Department of State Health Services will ban hemp that is smoked in the state. (KXAS photos/KXAS photos).
CBD Farmhouse in Dallas shared an emotional post on social media, announcing the changes will force it to close.
And countless businesses in the hemp industry are worried about whether they’ll be able to keep their doors open.
Customers coming into the Dallas Hemp Company on Sunday had concerns about how the changes will impact its neighborhood shop.
“Well, the first thing [they’ve been asking is,] are we still going to be around?,” Guyton Sanders, a Dallas Hemp Company employee said. “There’s a lot of customers that are concerned about this.”
There have also been concerns regarding underage kids are getting their hands on Hemp products. According to the Texas Poison Center, poison calls related to cannabis spike in 2019, one year after the federal government legalized THC, which comes from hemp.
Governor Greg Abbott decided not to make an outright ban, law, last legislative session when he vetoed Senate Bill 3. Instead he asked DSHS to implement more regulations.
“We didn’t really have time to react,” CEO of Dallas Hemp Company, Shan Claudio said.
Claudio said new regulations will impact about 30 percent of their business.
“We built this with our families, with, everybody that works here,” Claudio said holding back tears. “Sorry, I get emotional.”
The new regulations also include higher license fees. Instead of just over $250, it’ll now cost hemp manufactures $10,000 per license and renewal.
Retail registrations that were $155, will now be $5,000.
“Yeah, it’s tough,” Claudio said.
With other non plant products they sell, Claudio says they do plan to stay open.
“We’ve been through several different bans, and we beat them every time,” Claudio said.
Still the feeling of how long that will last, lingers.
“It’s not something that we like to think about,” Sanders said.” But we have to.”
Businesses who are caught in violation of the ban can be fined $10,000 dollars per day, the products were sold in stores.
There are expected to be lawsuits fighting new regulations, according to Claudio.
“This is about the rights,” Claudio said.