Design Highlights
- Texas is increasing retail registration fees from $150 to $20,000, significantly impacting small hemp THC shops’ viability.
- Manufacturer licenses will rise from $250 to $25,000, further straining small businesses financially.
- 80% of small retailers’ sales come from natural hemp flower, which may be eliminated under new regulations.
- Critics argue the fee increases favor large out-of-state companies, threatening the survival of local shops.
- The Texas Department of State Health Services anticipates $202 million in revenue, despite concerns over unrealistic assumptions and potential business closures.
As Texas gears up to hike fees for hemp THC shops, the news isn’t just a gentle nudge—it’s a full-on shove. The state plans to slap an outrageous fee increase on these businesses. Retail registration fees? They’re going from a mere $150 to a whopping $20,000 annually per location. Manufacturers are feeling the pinch too, with their licenses skyrocketing from $250 to $25,000. Ownership changes? That’ll cost you $25,000, please. And if you’re late on renewing your license? Get ready for a penalty hike from $100 to $1,000. That’s an eye-watering increase—over 13,000% for some.
Now, Texas isn’t doing this just for kicks. The Texas Department of State Health Services is expecting to rake in about $202 million in new state revenue. They assume that nearly all 8,000 registered retailers will cough up that $20,000 fee. In fact, the fee hikes represent an over 13,000% increase in costs for these businesses.
But here’s the kicker: the state’s costs will only increase by $69,000 in the first year. So, what’s all this cash going toward? Supposedly, it’ll help enforce regulations and keep children safe from THC products. Because nothing says “protecting kids” quite like crushing local businesses.
Proposed changes don’t stop at wallet-draining fees. The state aims to set the minimum age for purchasing hemp-derived THC products at 21, enforce age verification at the point of sale, and tighten testing and labeling. They even plan to eliminate smokable hemp flower altogether. Public hearings have revealed that small retailers are understandably freaking out. Many claim the proposed changes could wipe them out. A staggering 80% of their sales come from natural hemp flower, which will soon be history. This isn’t just a bump in the road; it’s a bulldozer.
Critics, including Heather Fazio from the Texas Cannabis Policy Center, think the state’s assumptions are more fantasy than reality. Business owners are questioning how they’ll survive with fees that high. With policy limits and deductibles applying to standard business insurance claims, shop owners face additional financial strain beyond the regulatory burden.
The response from small business advocates has been loud and clear: this structure is unsustainable. They argue it’s a blatant push to favor big out-of-state companies while local operations face extinction.
As the Texas Department of State Health Services rolls out its proposed rules, the timeline for implementation remains murky. Will these rules kick in immediately or be phased in slowly? Only time will tell. But one thing is crystal clear: the future of local hemp THC shops in Texas hangs by a thread.
