![\"A](\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/03\/1773292161_421_.webp\")
A jar of THCA flower at locally owned hemp shop ATX Organics. Such products would no longer be permitted for sale or manufacture under state rules taking effect March 31. (Michael Minasi | KUT News)<\/p>\n\t\t\t\t\tA jar of THCA flower at locally owned hemp shop ATX Organics. Such products would no longer be permitted for sale or manufacture under state rules taking effect March 31. (Michael Minasi | KUT News)<\/p>\n
Smokable cannabis products must be removed from Texas stores by the end of the month under new rules adopted<\/a> by the state\u2019s health department.<\/p>\n Virtually all edible hemp products will still be allowed with stricter packaging and testing requirements. But sharply higher fees on retailers and manufacturers, while lower than initially proposed, could lead to more expensive products or force some companies out of business.<\/p>\n The sweeping regulations for the state\u2019s hemp industry were first recommended in December<\/a>. They were created based on an executive order<\/a> issued by Gov. Greg Abbott after the Texas Legislature couldn\u2019t agree<\/a> whether to regulate THC products more strictly or ban them entirely.<\/p>\n Last week, the Texas Department of State Health Services adopted its final version of the rules and said they would take effect March 31.<\/p>\n The new regulations effectively ban the sale of smokable hemp and extracts by changing how DSHS measures Delta-9 THC, the primary psychoactive ingredient in cannabis.<\/p>\n Under the state\u2019s 2019 hemp law<\/a>, cannabis with no more than 0.3% Delta-9 by dry weight is considered legal hemp.<\/p>\n The adopted DSHS regulation includes a new \u201ctotal THC\u201d rule<\/a>, which counts a cannabis compound known as THCA in the Delta-9 calculation. THCA converts to Delta-9 when heated or smoked, which is why a product known as THCA flower<\/a> has become widely popular in Texas.<\/p>\n During the public comment period, hundreds of people told DSHS they oppose counting THCA as Delta-9. THCA is not explicitly banned by state or federal law.<\/p>\n In its response,<\/a> DSHS said the \u201ctotal THC\u201d policy follows existing state and federal regulations, which are the rules written by government employees tasked with interpreting law.<\/p>\n The Texas Agriculture Commission adopted regulations in 2020<\/a> requiring that tests account for the potential conversion of THCA to Delta-9. The U.S. Department of Agriculture proposed a similar rule<\/a> on the last day of President Donald Trump\u2019s first term. The rule was adopted two months later by the Biden administration.<\/p>\n The state\u2019s new hemp regulations slash a proposed 10,000% increase in the annual fees charged to retailers and manufacturers of what Texas calls \u201cconsumable hemp products.\u201d But the adopted fees \u2014 $5,000 per year for each retail location and $10,000 per year for each manufacturing facility \u2014 are still 33 and 40 times higher, respectively, than existing levies.<\/p>\n More than 9,100 retail locations in Texas are registered to sell consumable hemp products, according to state health records.<\/p>\n Some retailers say the fees are still crippling, especially coupled with the new prohibition on smokable products.<\/p>\n \u201cIt\u2019s a high rate, but it would still be feasible, but then we come into the [THCA] regulations,\u201d said Estella Castro, owner of the hemp store Austin Cannabis Co. \u201cIf you don\u2019t have the flower, and the flower is going off completely, I don\u2019t think you\u2019re going to have the $5,000.\u201d<\/p>\n Castro said smokable products account for about 40% of her sales.<\/p>\n Cannabis advocates say they are glad to see new product recall standards and a process to track consumer complaints, but they believe high licensing fees and a ban on flowers and extracts will power up the unregulated market.<\/p>\n \u201cWe know that consumers will be able to still acquire these products either from out of state operators who are not restricted by DSHS regulations or from the illicit market, which causes the most concern for us,\u201d said Heather Fazio, who leads the Texas Cannabis Policy Center. \u201cThe illicit market doesn\u2019t have age restrictions. It doesn\u2019t have safety mechanisms and consumer protection.\u201d<\/p>\n The new DSHS rules only affect the manufacture, distribution and sale of hemp products. They don\u2019t affect state law allowing for possession of them.<\/p>\n![\"Live](\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/03\/1773292161_274_.webp\")
Live resins and rosins extracted from cannabis, such as these sold at Austin\u2019s ATX Organics, have become popular in part because they\u2019re faster acting and easier to dose than edible hemp products. (Michael Minasi | KUT News)<\/p>\n![\"Smoke](\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/03\/1773292162_979_.webp\")
Smoke ATX off of West Slaughter Lane is among 9,100 locations registered with the state to sell hemp products. The annual fee for hemp retailers will increase from $150 per location to $5,000 under the new rules adopted by DSHS. (Michael Minasi | KUT News)<\/p>\n