The owner of Mary Jane’s CBD says the new rules could affect 60 to 70 percent of their overall sales.
SAN ANTONIO — New state rules restricting the sale of smokeable hemp products and drastically raising licensing fees are set to go into effect next Tuesday, prompting business owners across Texas to prepare for major financial Hemp Shops Brace for Losses as Texas Enforces New THC Limitschanges that could reshape the industry.
At Mellow Monkey in San Antonio, pre-rolled joints and hemp flower have been flying off the shelves in recent days as customers rush to buy products that will soon disappear.
“I don’t even know if I’m going to even have anything left over on Monday,” said owner Jackie Walji. “Or if I do, it’ll be a very small selection.”
The surge in sales comes ahead of a regulatory shift tied to the federal framework established by the 2018 Farm Bill, which legalized hemp containing no more than 0.3% Delta-9 THC by dry weight.
Under Texas’ updated rules, however, regulators will now apply a stricter “total THC” standard, combining both Delta-9 THC and THCA when determining whether a product is legal.
THCA, a compound commonly found in raw cannabis, converts into THC when heated, such as when smoked. Because of this, many smokable hemp products that previously qualified as legal will now exceed the 0.3% threshold.
As a result, the sale of smokable hemp products, including flower and pre-rolls, will no longer be allowed in Texas stores beginning March 31.
“Now that this is going away, everybody’s going to still be able to have gummies and drinks,” Walji said.
While edibles and beverages will remain legal under stricter testing and labeling requirements, business owners say the loss of smokable products could have a significant financial impact.
“It’s scary because we’re struggling,” Walji said. “We have no idea how to kind of gauge what’s going to happen to us right now.”
She added that some shop owners are already planning to close.
“I’ve already talked to a few different stores and they’ve already let me know, last day’s on the 27th, last day’s on the 30th, we’re already closed,” Walji said.
At Mary Jane’s CBD Dispensary, employees share similar concerns. A sign inside the store now lists products that will soon no longer be available.
“Pretty stressed about it because this is where we make our sales,” said employee Steven Sequeira, who typically sees around 20 customers per shift. “So without sales to be made, I’m out of a job.”
The owner of Mary Jane’s says the changes could affect 60 to 70 percent of their overall sales. However, the company operates stores in other states and plans to stay afloat despite the new restrictions.