LUBBOCK, Texas (KCBD) – New regulations released by the Texas Department of State Health Services are threatening area businesses.
Governor Abbott tasked the agency with creating regulations for hemp and THC products last year after vetoing an outright ban passed by the state legislature.
Jennifer Garza, the owner of CBD American Shaman in Lubbock, says she advocated for regulations in her industry, but not these.
“We are all for regulation, but the state is the one that dropped the ball. Now that it’s a billion-dollar industry they want to get involved,” Garza said.
A study published by Whitney Economics last year reports the hemp industry has contributed more than $10 billion since its legalization in 2019.
That same study predicted restrictive laws would lead to more than 6,000 business closures and 40,000 jobless workers.
Among the list of regulations released by DSHS, a more than 3,000% increase in annual fees for hemp manufacturers and retailers.
The licensing fee for manufacturers was increased from $258 to $10,000 per facility. The fee for retailers was increased from $155 to $5,150.
“It’s hard. Especially in the economy we’re living in now, to throw that at people and just expect them to adjust and move on… their ultimate goal is to get us to close our doors,” Garza said.
Lawmakers say they’re concerned about children and teenagers getting their hands on THC products after a reported increase in cannabis-related poisoning calls in 2019, a year after it was legalized by the federal government.
The new regulations call for child-proof packaging and new labels, and codified the purchasing age of 21.
Garza says that’s something her business already did.
“I’m a mom, I have four children, so I totally understand and don’t want my kids getting ahold of these products either,” Garza said. “This is not something new. We’ve always had child safety on our bags.”
One of the most impactful regulations is a decrease in the allowed THC content which would effectively eliminate smokeable products.
For some retailers, that could be more than half of their inventory.
“The plant hasn’t changed, their math changed,” Garza said. “They just pulled a very popular product that customers relied on and now they’re going to turn to the black market or other states and buy products that just aren’t safe for them.”
Stores who fail to remove flower and pre-rolled joints from their shelves will face various fines and penalties.
Garza says the pushback on her industry is largely due to a lack of understanding and misconceptions about who her clients actually are.
“You never hear about people on our products going out and causing wrecks that kill people. People don’t go out and cause issues with the law,” Garza said. “They go home and take them for sleep, for stress. They want to get off pharmaceuticals and are looking for an alternate route to help themselves.”
Leaders in the hemp industry are reportedly uniting various business owners across the state to file a lawsuit against the regulations.
Regardless of the outcome, Lieutenant Governor Dan Patrick has already announced he plans to make banning THC and hemp a top priority of the Texas Senate next session.
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