Texas Bans Smokable Hemp, Hikes Licensing Fees for Local Smoke Shops

New state rules force businesses to remove products, brace for major financial losses

Mar. 30, 2026 at 11:07pm

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A high-end, photorealistic studio still-life photograph featuring a stack of hemp flower buds, a glass jar of hemp extract, and a small pile of hemp seeds arranged elegantly on a clean, monochromatic background, conceptually representing the abstract corporate strategy and regulatory changes impacting the hemp industry.As Texas bans smokable hemp products and hikes licensing fees, local smoke shops brace for major financial losses and disruption to their businesses.Corpus Christi Today

Starting March 31, Texas will ban the sale of smokable hemp products, forcing local smoke shops to remove a significant portion of their inventory. The state is also dramatically increasing licensing fees from $155 to $5,000, leaving business owners concerned they may not be able to stay in operation.

Why it matters

The new regulations aim to limit access to hemp products, especially among youth, but local shop owners say the changes will severely impact their businesses and leave many customers without access to products they have relied on for years.

The details

The Texas Department of State Health Services is implementing the new rules, which will require smoke shops and manufacturers to remove natural smokable hemp products from their shelves. Businesses estimate the lost inventory could cost them between $30,000 to $40,000. Shop owners say they already take steps to prevent underage sales, but the state is concerned about hemp products getting into the hands of children. In addition to the product ban, the state is also raising licensing fees from $155 to $5,000, which shop owners say will make it nearly impossible for many to stay in business.

  • The ban on smokable hemp products will take effect on March 31, 2026.
  • Licensing fees will increase from $155 to $5,000 starting March 31, 2026.

The players

Kyle Beck

General manager at Mr. Smoke Shop.

Marco Nateil

Owner of Mr. Smoke Shop.

Leroy Mitchan

Owner of 16 Mr. Nice Guys locations across Corpus Christi and San Antonio.

Jake Garry

Representative of Fresh Grown Texas, a hemp manufacturer.

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What they’re saying

“This here, from all the way down to here, and all of this product as well will just be gone to waste.”

— Kyle Beck, General manager at Mr. Smoke Shop

“We work in a gray area the whole time, even though I work legit, you know, everything is legal. We removed all that because that was, you know, in September. Now we replace it with a new product. That is not made in China. Okay, now we're with this section again, and that's within a six month period, you know.”

— Marco Nateil, Owner of Mr. Smoke Shop

“For the customers this is something they've been coming in here for years looking for, and now they're not going to be able to find it.”

— Leroy Mitchan, Owner of 16 Mr. Nice Guys locations

“Taking away the item that we were selling and then charging us $5000 is kind of an insult to injury right there. Like not only will you take what their number one seller is, but then you're gonna charge them $5000. Nobody can stay in business.”

— Leroy Mitchan, Owner of 16 Mr. Nice Guys locations

“The growers in the state, it's going to shut the majority of them down. A lot of the manufacturing kitchens will not be able to, you know, stay in compliance.”

— Jake Garry, Representative of Fresh Grown Texas

What’s next

It remains unclear whether natural smokable hemp products could return to shelves in the future.

The takeaway

The new regulations in Texas highlight the ongoing tensions between public health concerns, consumer demand, and the economic viability of small businesses in the emerging hemp industry. The changes could significantly disrupt the local smoke shop market and leave many customers without access to products they have relied on.