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Gov. Greg Abbott cleared the way for the hemp industry in 2019. Now businesses are being pushed out

Go Easy in Oak Cliff put lots of various products on sale before the closure of their Texas shop
KERA
/
Rebekah Morr
Go Easy in Oak Cliff has put many of its products on sale before the closure of the Texas shop.

When Molly Mathias first opened her cannabis shop in Dallas' Bishop Arts, she hoped to create space in the industry that she hadn't found elsewhere.

In a departure from the intimidating, confusing and sometimes unfriendly tone of the shops she was used to, she built Go Easy to be welcoming, women-led and self-care focused.

But after six years navigating the industry's erratic legal landscape, Mathias, who grew up in Grand Prairie, is tired of her own state working against her.

Go Easy will permanently close its doors after July 31 — when Texas will ban smokeable hemp products and other items containing delta-8, delta-10, and several other cannabinoids.

For the over 9,000 businesses that are licensed to sell hemp products in Texas, the move is just the latest blow after years of uncertainty and legal back-and-forth as state lawmakers attempt to squander the industry.

Gov. Greg Abbott cleared the path in 2019, when he signed House Bill 1325 legalizing the sale and production of products containing less than 0.3% delta-9 THC.

"That's kind of like just a little bit of a glimpse of what this business is like, especially in Texas," Mathias said. "One week you're doing good, you're successful, the next week, your business could completely get shut down and go bankrupt. The back and forth for small businesses is just so intense and crazy for us."

Mathias said smokeable products made up about 50% of the shop's sales. Without them, it would be too difficult for the small business to compete with larger corporations that sell non-smokeable hemp products, like Target and Total Wine, she said.

While Go Easy would still be able to sell edibles, gummies and beverages made with delta-9, Mathias said rhetoric from politicians who seek to shut down the industry entirely, like Lt. Gov. Dan Patrick, contributed to her decision to close her Dallas shop.

"To me, as a small business, I have to kind of like look ahead and protect myself and my business," she said. "It just was clear to me Texas is not a friendly state to try and operate the small business."

Also impacted by the ban is Wild Revival, a Denton-based cannabis-infused cocktail business.

While the products made by Wild Revival are not immediately under legal scrutiny, cofounder Mike Williams told KERA's NTX Now that they've still lost customers.

"It doesn't directly affect the product that we sell, but it absolutely does affect us," Williams said. "We've already lost seven customers, shops that were serving the community, allowing for a safe third space, a non-alcoholic third space where people could go to and work or be with friends and be able to enjoy themselves and have a way to relax, those are gone now. "

As the manager of government relations and compliance for MNG Brands, which operates 55 cannabis across five states, Craig Katz is no stranger to the industry's ever-changing legal climate.

His job is to keep up with local, state and federal cannabis laws, draft legislation, manage groups of lobbyists and ensure their stores are compliant with current regulations — including for the 12 CBD Kratom locations the company operates in Texas, eight in North Texas.

The process for removing products from their shelves to comply with Friday's ban is familiar for the company, who have been through similar processes more than once, Katz said.

"It's become almost second nature," Katz said. "We need to be able to respond to these things really rather quickly, but we also need to anticipate what the possibilities are."

Products that fall under the state's new regulations made up at least 50% of sales in Texas shops, he said.

As the legal environment surrounding hemp continues to evolve both nationwide and in Texas, Katz said it's important for people to understand that the industry as a whole is in favor of regulation — just not prohibition. He said bans are more likely to create dangerous black markets, where products may not be tested for safety.

"We're not against regulation. We're absolutely for regulation. We've been asking for regulation for years," Katz said. "From a governmental standpoint it's much easier to control what is getting to consumers if you're regulating than if you're prohibiting."

After closing its doors Friday, Go Easy will still operate online — but Mathias has made the move to New York, where she's currently seeking a license to sell cannabis. Soon, some of her employees will join her. Still, she said it feels like local politicians are trying to drive her and others in the industry away from their home state.

"We grew up in Texas. We care about Texas. We want to pay taxes in Texas," she said. "It just feels like you're back in time a little bit, you know? They want you to leave the state."

Got a tip? Email Emily DeMotte at edemotte@kera.org.

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