Texas hemp retailers are racing to clear shelves and rethink their businesses ahead of a July 31 state rule change that will classify products containing delta-8 THC, delta-10 THC, THCP and other intoxicating hemp-derived cannabinoids as Schedule I controlled substances.
The change effectively removes these products from the state’s legal hemp market.
Mike Brown, owner of ENDO Dispensary in Rowlett, says 90% of the products on his shelves will have to go.
He agrees the industry needed more oversight, but says the new law goes too far.
“Regulation is not what we’re getting. We are getting absolutely slaughtered by big interests and it’s not right,” Brown said.
Customers flowed into Brown’s story Wednesday to stock up on Delta-8 products which are discounted to sell.
Seven-six year old Rama Hewgley says she’s been using the product for years to treat her insomnia.
“I’m a senior and I take the Delta-8 to help me sleep. My doctor doesn’t recommend sleeping pills for me,” said Hewgley.
Hewgley bought several more bottles of Delta-8 on Wednesday.
Brown says he plans to shift his business plan to wellness services.
For Kyle Struebing, owner of six DFW-area stores, the change means roughly $100,000 worth of inventory could become unsellable within days.
“It’s affected our business big time,” Struebing said. “We’re talking tens of thousands of dollars a month across the entire brand. Now we’re in the business of liquidating everything.”
Across Struebing’s stores, products are on clearance ahead of the deadline, with some inventory expected to be discarded if it can no longer be sold legally.
Struebing said he’s equally concerned about customers who have come to rely on products sold through the legal hemp market.
“We’re talking about, you know, people who couldn’t sleep before and now they’re able to sleep,” he said, “it’s gonna be devastating.”
The most recent change adopting the 2021 definitions is just the latest in years of shifting policy on THC.
The July 31 changes coincide with updated state laboratory testing standards that measure total THC rather than only delta-9 THC. Under the new methodology, products that exceed the legal THC threshold after THCA converts to delta-9 during testing will no longer comply with Texas law.
The hemp industry has argued licensed sellers know how to distribute products responsibly.
“Not one child has come in here and purchased one of these products; everybody’s IDed. Everybody’s waivered,” Struebing said.
In a statement to NBC5, the Texas Hemp Business Council responded to the change taking effect on July 31, saying:
“DSHS also risks driving consumers toward unregulated markets while harming Texas businesses that have invested in testing, transparency and responsible operations. These changes create significant uncertainty for licensed operators and threaten a $10 billion industry that provides Texans with access to compliant, regulated hemp products. While our legal challenge remains ongoing, THBC will continue advocating for science-based policies that protect consumers, support compliant businesses and preserve a lawful hemp marketplace in Texas.”
Rather than continue relying on THC sales, Struebing said he’s also shifting toward wellness services.
“We decided to go full-on wellness,” he said. “We started and got our very first float tank, which is a sensory deprivation float chamber, and then we added sauna, cold plunge, and all these other things to really just help people with those big three: pain, inflammation, anxiety.”
Although the July 31 changes take effect this week, the legal and political fight over hemp-derived THC products in Texas appears far from settled. Lawmakers have already signaled they’ll revisit the issue during the next legislative session after broader restrictions stalled earlier this year despite Gov. Greg Abbott’s support for tighter regulation.
Earlier this month, a state Senate committee heard testimony from parents, law enforcement members and health care companies about the risks of THC.
“Daily, officers around the state of Texas are dealing with significant issues because juveniles have become addicted to these highly potent products, which are devastating many families,” said Allen Police Chief Steve Dye.
