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Proposed Texas Hemp License Fee Hike Will Force Businesses To Close, Advocates Say

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“Many small businesses cannot absorb this level of cost and will be forced to close rather than innovate.”

By Stephen Simpson, The Texas Tribune

Texas state health officials have proposed raising licensing fees for some hemp businesses by 13,000 percent, among changes that many industry members and advocates say will shut down small operations in favor of larger out-of-state companies.

Proponents of this change say it is necessary to strengthen oversight of an industry that has grown out of control.

At the end of last monthThe Texas Department of State Health Services published a set has proposed rules to tighten regulations on consumable hemp productsThis includes establishing a minimum purchase age of 21, along with age verification requirements and mandatory product recalls, all of which are measures supported by the hemp industry.

However, the two proposed rules that have caused the most heartburn among advocates and businesses are new testing requirements and increases in licensing fees. Manufacturer licenses would increase from $250 to $25,000 per facility per year and retail registrations from $150 to $20,000 per location per year, an increase of more than 13,000 percent.

Industry members say the new requirements to test THC levels in consumable hemp products would eliminate the use of hemp flower to manufacture products such as edibles and combustibles because hemp flowers contain THC levels higher than the new limit. They say eliminating the use of hemp flowers would allow more synthetically derived THC, such as delta-9, to flourish.

“The proposed rules eliminate about 80 percent of what every store sells, including ours, which is natural hemp flower, and it would certainly eliminate the entire THC rule,” Kemah-based owner Scott Stubb. Sublingwell Cannabinoids and Euphoricshe said in a public health agency of the state hearing in the rules on Friday. “Then you add in the fees it’s $20,000 per store, I don’t know, honestly, how we would stay open.”

Hemp distributors say the new license fee is a fundamental restructuring of their ability to operate legally in Texas.

“DSHS’ fiscal analysis assumes that nearly all currently registered retailers will pay the proposed $20,000 fee, generating more than $200 million in annual revenue. This assumption is unrealistic. Many small businesses cannot absorb this level of cost and will be forced to close rather than innovate,” said Heather Fazio, director of the Cannabis Policy Center of Texas. has been submitted for public comment.

Fazio said licensing and registration fees should be structured to recover the reasonable costs of effective regulation, not to function as a revenue mechanism that drives companies out of the regulated market.

“The department’s own calculations show that the increased costs of administering these rules are minimal. In that context, it is not clear why the dramatic fee increases are necessary or justified,” he said.

Supporters of the license fee increase said this is a necessary step to protect children from cannabis products and want more enforcement of penalties for cannabis shops operating without a license.

“Cannabis advocates say it’s a billion-dollar industry. It’s only fair and appropriate to create fees that help cover the cost of regulating the product and the burden on society for people who profit from the sale of billions of dollars in intoxicating products,” said Betsy Jones, director of policy and strategy for Texans for Safe and Drug-Free Youth.

Aubree Adams, director of Citizens for a Safe and Healthy Texas, called for more regulations on the industry, including raising the minimum purchase age to 25 and requiring hemp companies to also help pay for public education, data collection, processing, infrastructure and more.

“This problem facing the state is the normalization and promotion of retail groups driven by chemical manipulations and misleading information,” he said.

Multiple veterans also opposed the elimination of products derived from hemp flowers, which many rely on to help them sleep or deal with issues like PTSD and anxiety.

“I spent 16 months overseas and used many different pharmaceuticals that were dangerous and caused me seizures and physical damage. These health products have given me my life back and allowed me to go back to work,” said San Antonio combat veteran Adam Peterson. “A total ban on THC will basically take away access to good medicine that helps me.”

Fazio said removing regulated access to hemp flower won’t take away consumer demand. It will push people into the unregulated market.

“The result goes against the public health goals these rules are intended to advance,” he said.

The Texas Alcoholic Beverage Commission and the Texas Department of State Health Services have proposed new rules aimed at regulating the edible hemp market to comply with Governor Greg Abbott’s (R) executive order.

The two agencies are working together, as neither has jurisdiction over the entire landscape of retailers selling hemp consumables.

For example, the TABC rules would not apply to licensed hemp sellers under the state Department of Health Services, including online stores, gas stations, and online retailers that do not sell liquor and are presumed not to have a liquor license. The same can be said for the 60,000 TABC licensees, such as restaurants and liquor stores. The TABC has yet to propose any changes to licensing fees for businesses selling hemp consumables.

The executive order came after the Texas Legislature spent most of last year debating whether to ban consumer hemp products or impose stricter regulations on the industry. Abbott vetoed the outright ban passed by the House and Senate last summer. The governor then put THC regulations on the agenda for two consecutive special sessions, but lawmakers did unable to find a compromise before the end of the second session.

Instead of calling a third special session, Abbott issued his own executive order, bypassing the Legislature. The decision pits Abbott against Gov. Dan Patrick (R), who has been a staunch supporter of banning consumer hemp products.

After months of uncertainty over whether the Legislature would consider a full ban, THC industry representatives celebrated Abbott’s order at the time, saying it would allow THC to further establish itself as a legal industry in the state.

However, the rules proposed by some industry members are very similar to the ban.

“When the governor vetoed that bill, our voice was being amplified and taking the fee structure in the same bill undermines that outcome,” said Hayden Meek, owner of Denton-based Delta Denton. “A $20,000 fee falls on a multi-state corporation fee; for a single-location store like mine, 20,000 is death by cutbacks.”

This the article appeared for the first time Texas Tribune.

Max Jackson’s photo.

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Time to show us more

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On its 125th anniversary, the Dutch company Albers Alligator has joined AVAG, the Dutch association of greenhouse technology suppliers. The decision reflects the intention of owners Michael van der Windt and Lennard Blijdorp to raise the company’s reputation in the market. The two friends took up residence in Wageningen two years ago. The company specializes in manure storage and covering for the agricultural sector, and is known in the horticulture industry for its water storage and water covering products.

Like many Dutch horticultural suppliers, Albers Alligator operates internationally. Van der Windt and Blijdorp saw a strong future in the business and acquired the shares of the previous owner Ronald Edel in 2024. “Global food production is increasing. Fresh water is a challenge in every country. It is an increasingly serious international problem. Producers around the world are increasingly recognizing the importance of good water management,” says Michael van der Windt.

The history of Albers Alligator dates back to 1901. The former family business began as a leather and tannery business. “The best leather at the time came from alligators,” explains Van der Windt, referring to the company’s distinctive name. “We have updated the brand over the years, but the name and the crocodile in the logo had to remain.” Innovation has been constant throughout the company’s history. “We experiment a lot and we’re not afraid of a challenge, how can you make something even better? That’s in the DNA of this company.”

© AVAG

Prefab at home
Recent product developments include SiloDome, a dome structure that completely covers water silos, if available, and Multi-F Solar, a floating photovoltaic installation that simultaneously covers water basins. Albers Alligator also handles basin installation. All components are prefabricated in house, and one or two supervisors travel with international projects.

International growth
Historically, the Albers Alligator was the strongest in the Netherlands and neighboring countries. Under the new management, the number of international projects will grow rapidly. “We are very ambitious. We have completed many projects in the United States, and we are active in Scandinavia, Japan and Canada, where we completed our largest project to date: a basin measuring 500 meters long and 150 meters wide. Projects in the Netherlands continue to be challenging and equally rewarding.”

‘Time to show more of ourselves’
As part of the partnership, Lennard Blijdorp focuses on internal operations, while Michael van der Windt takes on an externally-facing role. Increased visibility is a key reason for introducing AVAG. “In the Netherlands, many projects are entered through dealers and ground contractors; internationally, we work with large greenhouse builders and installers. Many of our dealers are already members of AVAG. That’s where your industry members are. We have a well-known name, they know Albers Alligator in the Netherlands and abroad. But we think it’s time to make ours even more visible.”

For more information:
ONE

(email protected)
www.avag.nl

Albers Alligator
(email protected)
https://albersalligator.com/

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Pennsylvania Governor Says Legalizing Marijuana Will Raise Revenue To Support Kids And Public Safety Programs

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Pennsylvania’s governor is stepping up pressure on lawmakers to send a bill to legalize marijuana in the state, saying doing so would generate new revenue that could be invested in key programs.

“While some in Harrisburg say we can’t make bigger investments in our children, public safety and our economy, know this: If we were to legalize and regulate adult-use cannabis, we would generate $1.3 billion in revenue for our Commonwealth in the first five years,” Gov. Josh Shapiro (D) said in a social media post Tuesday.

“These are dollars that can be invested in our town and our communities,” he said. “Stop with the excuses. Let’s do this.”

At the beginning of this year, the governor once again included marijuana legalization in his budget request to lawmakersbut so far the parliament has not implemented the reform.

The House of Representatives approved last year a to legalize marijuana and put sales in state dispensariesbut the Republican majority of the Senate has criticized that plan, at the same time not advancing their own cannabis legalization model.

The Independent State Fiscal Office (IFO) announced this in February Legalizing cannabis in Pennsylvania would generate nearly half a billion dollars in annual revenue By 2028, compared to Shapiro’s office projections, revenue is significantly higher.

With a 20 percent excise tax on wholesale cannabis, a 6 percent state sales tax on retail and license fees, the IFO said the governor’s legalization plan would generate $140 million in tax revenue in 2027-2028 and rise to $432 million in 2030-2031.

That’s much higher than what the governor’s office presented in the last executive budget. According to his office’s analysis, legalization would generate about $36.9 billion in tax dollars in the first year from a 20 percent wholesale tax on marijuana, rising gradually to $223.8 million in 2030-2031.

Meanwhile, a recent Quinnipiac University survey found just that A majority of Pennsylvania voters say they are ready for the state to legalize marijuana for adults.

In February, a coalition of drug policy and civil liberties organizations called on Shapiro to play a leadership role bringing together legislative leaders to work on cannabis legalization this session.

Last month, the Senate Law and Justice Committee amended and passed a bill The Cannabis Control Board (CCB) oversees the state’s medical marijuana program and intoxicating hemp products which may eventually regulate adult consumption if legalized in the state.

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Speakeasy Dispensary announces opening of newest Kentucky location

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Speakeasy Dispensary will officially open its newest medical cannabis location in Kentucky at 108 E. Main St., Princeton, KY 42445, further expanding access to patients in Caldwell County and surrounding communities.

The dispensary will open at 11:00 a.m. on Friday, April 10 for registered medical cannabis patients.

Located in the heart of downtown Princeton, the space reflects Speakeasy’s vision to blend local character and a comfortable, patient-first experience. The carefully designed environment provides a welcoming entrance before patients enter the main sales floor, where trained team members provide personalized guidance and education tailored to the individual’s needs.

“Each new location is an opportunity to meet patients where they are,” said Casey Flippo, CEO of Gold Leaf Management. “Communities like Princeton are an important part of Kentucky’s medical cannabis program, and expanding access here means more patients can explore safe and regulated options closer to home. As the program continues to take shape, our focus remains on building something reliable, accessible and rooted in long-term care.”

Opening weekend will feature a low-cost patient drive, offering new and existing patients an affordable and streamlined way to obtain or renew their Kentucky cannabis license.

© Speakeasy Dispensary

In partnership with the Kentucky Cannabis Industry Association and LexMed & Wellness, patient tours will be held Friday, April 10th from 11:00am to 7:00pm and Saturday, April 11th from 11:00am to 5:00pm. Appointments will be made with a licensed provider in a mobile unit on site, so patients can complete the entire process, including assessment, notary and state filing, in one visit.

Patients can register for an appointment by clicking here. The appointment fee is $25, and an additional $25 state fee must be paid when submitting documents to the state portal. The $25 state fee is waived for anyone who received a valid medical card in 2025.

As Kentucky’s medical cannabis market continues to develop, product availability and selection will continue to grow along with additional growers and processors entering the space. In addition to flowers and gummies, Speakeasy Princeton plans to have an extensive menu soon after opening, which will include vapes and concentrates, along with a new variety of gummies. Speakeasy continues to focus on providing a consistent education-first experience supported by strong statewide partnerships.

For more information:
Speakeasy Dispensary
speakeasydispensaries.com/

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