Texas is set to implement a major change to its hemp market at the end of the month, with new state rules prohibiting the sale and manufacture of smokable hemp products beginning March 31.

The regulations, finalized by the Texas Department of State Health Services, also revise how THC content is calculated and dramatically increase annual licensing costs for hemp businesses. Together, the changes are expected to reshape the state’s legal hemp industry, which has expanded rapidly in recent years.

A key part of the new rule is the adoption of a “total THC” standard. That means the state will now factor THCA into its delta-9 THC calculation. Although THCA itself is non-intoxicating in its raw form, it converts into delta-9 THC when heated. Because of that, products such as THCA flower that had been widely sold under Texas’s hemp law will no longer qualify for legal sale under the updated standard. The change effectively removes smokable hemp flower and certain extracts from store shelves, while most edible hemp products will remain legal so long as they comply with tighter packaging, testing and labeling rules.

The new framework also comes with a steep jump in fees. Retailers will now be charged $5,000 per year for each location, up from $150. Manufacturers will pay $10,000 annually for each facility, compared to the previous $250. While those figures are lower than what regulators had first floated, they still represent a major increase that many in the industry say will be difficult to absorb.

Notably, the new regulations deal with the sale, manufacture and distribution of hemp products, but they do not change Texas law regarding possession.