When Texas regulators changed a definition, they sent cannabis retailers’ plans up in smoke.
Texas effectively banned smokable cannabis on March 31, after the Department of State Health Services adopted a new rule determining acceptable THC levels. Now, dispensaries are racing to keep up.
The DSHS announced the new rule in early March. While the rules allow edible THC products, they spike fees for retailers, charging up to $10,000 per facility for licensing, and up to $5,000 per location for registration, as The Dallas Express previously reported.
“They did a ban with their own regulatory scheme,” said Lukas Gilkey, chief executive of hemp manufacturer Hometown Hero, to KERA News. “The way they wrote the rules, it’s going to eliminate a lot of products that are fully legal and fully fine and not harmed anyone.”
Businesses caught selling smokable THC will face penalties up to license revocation and up to $10,000 in fees per day of violations.
DSHS’ new regulations on smokable cannabis include new standards for child-resistant packaging, labeling, testing, and bookkeeping. They also codified the legal purchasing age to 21, which took effect in an emergency order in October 2025.
Hemp includes products with less than 0.3% THC, a standard set by the federal Farm Bill in 2018. Anything above that level is considered marijuana – a federal controlled substance, and illegal in Texas.
The new rules require lab testing to determine total THC levels, according to KERA. If they exceed the threshold – even if the THC is only “activated” when smoked – they will be considered marijuana, and noncompliant with state law.
Many cannabis retailers say these new regulations will eliminate “popular” smokable hemp products like joints and “flower buds,” which can make up the majority of some stores’ inventories.
If customers order smokable cannabis from out of state, it must still comply with the new regulations, said DSHS Representative Lara Anton to KUT News. “There is no carve out for mail order,” Anton reportedly said.
Meanwhile, cannabis attorney Susan Hays told the outlet she doubts officials would prosecute anyone for buying products from out of state.
“Whether anyone can be criminally prosecuted for buying products from out of state is still going be [sic] doubtful and difficult,” Hays said. “Most prosecutors, many cops, certainly the majority of the people living in Texas are over this idea of criminalizing a plant.”
The Political Backstory
Republican state legislators passed S.B. 3 in 2025, aiming to ban all consumable THC products in Texas, as The Dallas Express reported. Lt. Governor Dan Patrick backed the bill, claiming cannabis retailers were targeting minors with appealing products.
“We cannot in good conscience leave Austin without banning THC, which is harming our children, and destroying Texans’ lives and families,” Patrick said at the time.
Gov. Greg Abbott vetoed S.B. 3 in June 2025, but called for regulation. In September, he signed an executive order telling DSHS and the Texas Alcohol and Beverage Commission to regulate hemp in order to protect children.
While TABC has issued age limits for THC drinks, it has not banned these products, according to KERA.
While Texas moves aggressively to restrict smokable hemp-derived cannabis through new total-THC rules and higher fees, many wonder why the state treats this plant so harshly when alcohol — which remains fully legal and widely available — continues to cause far more impaired-driving deaths and related harms each year. The deal appears rooted in political priorities, even as critics point to data showing cannabis alone does not significantly increase traffic fatalities the way alcohol does.
