New Texas smokable hemp rules take effect March 31. Here's which THC products will be banned.
New Texas state regulations around smokable cannabis products will take effect on March 31.
The rules significantly curtail a large part of what has become a booming hemp industry across the state, by both banning some products that are currently legal and sharply increasing the costs for hemp businesses to operate.
The regulations kick in less than a year after the topic was a big issue in the Texas Legislature. A complete ban on all THC passed both houses but Gov. Greg Abbott vetoed it at the 11th hour.
It caused a very public rift between two of the state's most powerful politicians: Abbott and Lt. Gov. Dan Patrick.
New Texas regulations on smokable hemp
The new regulations, issued by the Texas Department of State Health Services, cap the amount of total THC in any smokable products at 0.3%. THC is the psychoactive ingredient in marijuana.
While the form of THC found in marijuana, known as delta-9, was already outlawed, the ban did not not cover forms of THC that were derived from the hemp plant. That created a loophole that critics said amounted to legalized marijuana in the state without legislative approval. The industry that sprung up around the loophole supports tens of thousands of jobs in the state and drives $4.3 billion in annual revenue.
The 0.3% cap will pull some of the most popular smokable products from store shelves like rolled joints and smokeable flower buds, which make up more than 50% of some stores' inventories, according to the Texas Tribune. The THC cap does not apply to consumable products like gummies and beverages, as they are regulated by the Texas Alcoholic Beverage Commission, which has yet to issue new regulations.
The new regulations also impose significant new costs and fees upon businesses.
The fees to license a business that manufacturers hemp-derived THC will go from $258 to $10,000 per facility. Registrations for retail stores that sell it will go from $155 to $5,000, according to the Tribune. In addition, the businesses will be responsible for implementing new labeling, testing, and bookkeeping requirements.
Abbott, Patrick brawl over complete ban
The debate over a complete ban on THC was one of the most high-profile issues in the Texas Legislature's regular session last year.
The issue was one of the highest priorities for Patrick, who is also president of the state Senate.
After the bill passed both chambers of the Legislature, opponents waged an intense push for Abbott to issue a veto. They argued that if the bill became law, it would force thousands of people out of their jobs and cause billions of dollars in economic losses for the state. They also argued it would harm veterans and others who use THC instead of opioids to treat chronic pain, forcing them to buy from drug dealers to get the same relief.
Abbott, who did not publicly take a position on the legislation during the session, issued a veto just before the deadline. He said would call a special session and push lawmakers to pass a bill that would ban the sale of THC to people under 21 and impose more regulations on the industry.
Two special sessions failed to produce a new bill that could pass and receive Abott's support. In September, Abbott issues an executive order on THC that spurred the new regulations about to take effect.
