Texas hemp shop owners brace for midnight deadline as new state regulations take effect

HOUSTON — Texas hemp shop owners are watching a clock count down to midnight, when new state regulations on smokeable hemp products take effect, threatening to wipe out large portions of their inventory and dramatically increase their operating costs.

At Wild, a coffee bar dispensary in the Houston Heights, what looked like an ordinary business day Monday was actually the last chance for customers to buy products that will soon be illegal. Owner Adyson Howard says the new rules will hit his business hard.

“It means that a large portion of our sales including THC-A flower and THC-A pre-rolls will be banned along with a massive increase in licensing fees for our locations,” Howard said.

Howard says about 40% of his inventory becomes illegal at midnight. But the product ban is only part of the problem. His license to manufacture hemp-derived THC previously cost $258 a year. Under the new rules, that fee jumps to $10,000 per location.

“It’s gonna be a massive hurdle for us to cross,” Howard said.

The ripple effects could spread far beyond his shop. When asked whether some stores around the state might shut down, Howard didn’t hesitate.

“I would believe that you’re gonna see a large amount of stores in this industry shut down,” he said.

Howard’s concerns go beyond his bottom line. He’s also worried about where his customers will turn for these products, and whether he’ll be forced to lay off employees.

The new hemp regulations are designed to keep these products away from kids, but Howard says lawmakers went too far. He’s expecting legal battles ahead. In the meantime, his shop still has edibles and other products that remain legal under the new rules.

For now, customers are stocking up on what’s left while they still can, before the clock strikes midnight.

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