A sweeping change to Texas’s hemp market is set to take effect tomorrow, March 31, bringing an end to the legal sale and manufacture of smokable hemp products across the state.
The new rules, adopted by the Texas Department of State Health Services, are scheduled to take effect at the start of the day on March 31—meaning they become enforceable at 12:00 a.m. (midnight) tonight as the calendar turns from March 30.
The updated regulations prohibit the sale and production of smokable hemp items, including hemp flower and certain inhalable products that had become widely available under the state’s existing hemp law. This marks one of the most significant regulatory shifts for Texas’s hemp industry since legalization, and is expected to immediately impact retailers, manufacturers and distributors statewide.
Central to the change is the state’s move to a “total THC” standard. Under this approach, regulators will include THCA when calculating delta-9 THC levels. While THCA itself is non-intoxicating in raw form, it converts into delta-9 THC when exposed to heat. As a result, products that previously qualified as legal hemp—particularly THCA flower—will no longer meet the legal threshold, effectively removing them from the market.
In addition to the product restrictions, the new framework significantly raises licensing costs. Retailers will now pay $5,000 annually per location, up from $150, while manufacturers will face a $10,000 yearly fee per facility, compared to $250 under the prior system. Although lower than some earlier proposals, the increases represent a substantial financial burden that many operators say could force closures or consolidation.
Importantly, the changes apply specifically to the sale, manufacture and distribution of hemp products, and do not alter Texas law regarding personal possession.
With the rules taking effect at midnight tonight, businesses will be required to comply immediately as March 31 begins, ushering in a new regulatory landscape for hemp in Texas.
