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09/25/2026

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09/25/2026
LAWIN.news

Austin hemp industry braces for potential smokable THC ban

by LAWIN.news March 23, 2026
written by LAWIN.news March 23, 2026
A jar of ATX Organics THCA hemp flower is pictured on Wednesday, Aug. 27, 2025, at ATX Organics in Austin. Michael Minasi / KUT News
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AUSTIN, Texas — New hemp regulations set to take effect March 31 could remove many popular THC products from store shelves across the state.

Under new rules from the Texas Department of State Health Services, smokable hemp products — including those containing THCA — will effectively become illegal to sell. The updated policy now counts THCA when measuring THC levels, meaning most smokable products will no longer meet legal limits.

Since hemp products were legalized in 2018, the industry has grown rapidly in Texas. But business owners say the changes will have a major impact. Oz Millman, owner of Green Herbal Care, said THCA flower makes up about half of his sales and worries customers may turn to the black market for stronger products.

As the deadline approaches, some shops are seeing a surge in demand, with customers stockpiling before the ban takes effect.

The new rules also raise licensing fees significantly. Retailers will now pay $5,000 per location each year, up from $150, while manufacturers will pay $10,000 annually, compared to $250 before.

The stricter regulations follow efforts by the Texas Legislature to tighten THC laws. A proposed full ban in 2025 was vetoed by Governor Greg Abbott, who instead directed regulators to impose tighter controls on hemp products.

While some businesses expect to adapt, others may struggle to survive under the new rules.

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