AUSTIN — Smokable cannabis products will be removed from Texas stores by March 31 under new rules adopted by the Texas Department of State Health Services (DSHS), while most edible hemp products will remain legal under stricter packaging and testing requirements.
The rules, created following an executive order by Gov. Greg Abbott, implement a “total THC” standard that counts THCA—a cannabis compound that converts to Delta-9 THC when heated or smoked—toward the legal THC limit. This effectively bans THCA flower and other smokable products, which have grown in popularity in Texas.
Under the state’s 2019 hemp law, cannabis with no more than 0.3% Delta-9 THC by dry weight is considered legal. The new “total THC” rule aligns with prior Texas Agriculture Commission regulations and federal guidance requiring tests to account for THCA’s conversion to Delta-9.
The rules also impose significantly higher annual fees on hemp retailers and manufacturers. Retail locations will now pay $5,000 per year—up from $150—while manufacturing facilities will pay $10,000 annually. With over 9,100 registered retail locations in Texas, the increase has raised concerns about affordability and business viability.
“It’s a high rate, but it would still be feasible, but then we come into the [THCA] regulations,” said Estella Castro, owner of Austin Cannabis Co., noting that smokable products make up about 40% of her sales.
Advocates warn that the combination of higher fees and product bans could push consumers toward unregulated markets. “The illicit market doesn’t have age restrictions. It doesn’t have safety mechanisms and consumer protection,” said Heather Fazio of the Texas Cannabis Policy Center.
The DSHS rules affect only the manufacture, distribution, and sale of hemp products—they do not change state law on possession. Industry groups have suggested legal challenges may follow, arguing the measures could drive businesses out of the market and limit consumer access.
Mark Bordas of the Texas Hemp Business Council compared the fees to other regulated industries, noting the costs could be unsustainable for small operations. “Some of these measures are so draconian that you are going to drive people out of the business… that’s taxpayer money, and it’s a waste,” Bordas said.