Haynes Boone Partner David Bell spoke with The Texas Lawbook as thousands of Texas hemp retailers and their employees face looming legal and financial uncertainty after lawmakers approved a sweeping ban on psychoactive THC products, including popular delta-8 and delta-9 edibles, vapes and beverages.
“There are tens of thousands of employees who are directly or indirectly affected, possibly losing their jobs altogether if this is not vetoed," Bell told The Texas Lawbook.
With the potential ban, retailers have become concerned about the leases they signed, with business owners betting on long-term viability.
“If the lease is signed, there may not be an out, unless the landlord is cooperative and agrees to amend the lease,” Bell said. “Some businesses not only have retail locations but also have a warehouse that could be much larger than a small vape shop.”
If the legislation becomes law, some retailers could decide to focus on selling CBD and other hemp products that don’t contain psychoactive THC.
“I think some businesses will shift and survive with CBD products only,” Bell said. “But unsure of the majority of businesses.”
“One [retailer] is maybe considering moving out of state,” Bell added. “I’ve talked to a different retailer who is considering changing their store to a completely different business while continuing the lease.”
To read the full article from The Texas Lawbook, click here.
