Texas will ban smokable hemp products starting March 31. Local shops say the changes could hurt business and limit options for people who depend on them.
CORPUS CHRISTI, Texas — New rules from the Texas Department of State Health Services will eliminate natural smokable hemp products and significantly increase licensing fees, leaving local businesses bracing for financial losses.
The ban is set to take effect March 31 and will require shops and manufacturers to remove certain products from their shelves to remain in compliance.
Local business owners say the changes could have a major impact on the industry, both financially and operationally.
“This here, from all the way down to here, and all of this product as well will just be gone to waste,” said Kyle Beck, general manager at Mr. Smoke Shop, as he pointed to several shelves of inventory.
Beck said the products being removed represent a significant portion of sales. His employer, Marco Nateil, estimated the loss could total between $30,000 and $40,000 in inventory.
“We work in a gray area the whole time, even though I work legit, you know, everything is legal,” Nateil said. “We removed all that because that was, you know, in September. Now we replace it with a new product. That is not made in China. Okay, now we’re with this section again, and that’s within a six month period, you know.”
The Texas Legislature approved the ban amid concerns that hemp products were increasingly getting into the hands of children.
Local business owners in said they already take steps to prevent underage sales, including having compliant packaging, posting signs and limiting purchases to customers 21 and older.
“For the customers this is something they’ve been coming in here for years looking for, and now they’re not going to be able to find it,” said Leroy Mitchan, who owns 16 Mr. Nice Guys locations across Corpus Christi and San Antonio.
Mitchan said businesses will also be hit by a sharp increase in licensing fees, which are rising from $155 to $5,000.
“Taking away the item that we were selling and then charging us $5000 is kind of an insult to injury right there. Like not only will you take what their number one seller is, but then you’re gonna charge them $5000. Nobody can stay in business,” Mitchan said.
Manufacturers are also concerned about the broader impact on Texas-based operations.
“The growers in the state, it’s going to shut the majority of them down. A lot of the manufacturing kitchens will not be able to, you know, stay in compliance,” said Jake Garry of Fresh Grown Texas.
Garry said his company has been working to adjust to the new rules by producing items that meet state requirements.
“We’ve worked the last two months to be able to navigate this so that we are going to provide everything that the state is requiring, which is products that are all gonna be under 0.3%,” he said.
It remains unclear whether natural smokable hemp products could return to shelves in the future.
In the meantime, business owners say they are shifting to compliant products in an effort to stay open under the new regulations.
