The sale of intoxicating hemp flower products and vaporizers is now banned in Texas under new rules that went into effect on March 31. yardstick reports.

Department of State Health Services (DSHS) approved rule changes in early March, when officials approved the agency’s final hemp product regulations.

The state now limits THCA content in hemp products, which previously did not count toward the federal limit of 0.3% delta-9 THC. While THCA itself is not intoxicating, it is converted to delta-9 THC during the decarboxylation process, which occurs when the cannabinoid is heated, smoked, or vaporized. The change only affects sales of hemp products, not possession, but it targets nearly all hemp-derived flower, pre-roll and vapor products previously available in the state.

Other changes under the new regime include significantly higher licensing fees for sellers and manufacturers of hemp products. Licensing costs for hemp producers have increased from about $250 to $10,000 for both initial and annual renewal fees, while licensing and renewal fees for retailers of hemp products have increased from $155 to $5,000.

The rules also tighten packaging and testing requirements for THC hemp products that remain available, including infused foods and beverages.

New York Gov. Kathy Hochul (D) said last week that after five years of adult sales, the state’s licensed cannabis sellers have generated more than $3.3 billion in sales.

The governor’s office also noted that there are currently 2,161 cannabis licensees in the state, including 610 active dispensaries. Additionally, 56% of the state’s adult cannabis licenses were granted to Social and Economic Equity (SEE) applicants, including 57% of licenses for women-owned businesses and 51% for minority-owned businesses.

“Five years ago, New York committed to building a cannabis market rooted in equality, safety and opportunity, and today, that commitment is delivering real results. We’re forging new pathways for small businesses while aggressively closing down illegal shops that threaten public safety and undermine our legal marketplace. Our focus is clear: protect consumers, support legal businesses and ensure the industry’s proper growth.” – Hochul, in one STATEMENT

State officials noted that they have moved beyond a focus on equity licensing purposes defined in state law.

The program has also generated $10 million for the Community Grants Reinvestment Fund, including $5 million in grants given last year to support youth development, workforce training and other community reinvestment programs. The fund will award another $5 million in grants later this year.

New York Assembly Majority Leader Crystal Peoples-Stokes (D) said the state’s adult-use cannabis program was “focused on equity, economic opportunity and restorative justice” and that the market is “setting the standard for the rest of the country to follow.”