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City staff briefs council on proliferation of CBD/THC retailers and limits of local authority
Summary
City staff explained how federal and state definitions and enforcement gaps have allowed a rapid rise in CBD and THC-A retailers in Universal City, and said state legislative change would be required for the city to use zoning to limit locations.
At a council meeting in February (date not specified), Universal City staff presented a detailed primer on the recent proliferation of CBD and THC-A retailers in the city and the limits on local regulation.
Staff traced the issue to changes at the federal level — the 2018 Farm Bill’s definition of hemp — and to subsequent state actions that created a regulatory environment permitting many 0.3 percent or lower THC products to be sold. Staff described a chemistry-based workaround (products containing THC-A at or below the 0.3 percent threshold) that has allowed retail outlets to sell products resembling traditional marijuana-derived products while remaining technically within current federal and state definitions.
“That's why you're seeing this plethora of ‘we sell weed’ stores,” staff told council, noting the city once had three such stores and now had 15 (and counting). Staff said most of the retail concentration is along the city’s Pat Booker Road corridor in the Aviation District.
Staff told council the city lacks an effective local enforcement mechanism for product testing, noting testing costs and lab backlogs: “It costs about $300 per product to have it tested” and state/DPS labs are backlogged, staff said. The city’s police and code-enforcement teams have limited ability to act where lab confirmation is necessary and prosecutions are affected by local prosecutorial decisions.
Universal City staff said the primary avenue for change—zoning or other limits on retailer location and clustering—now requires action by the Texas Legislature. Staff said the city plans to prepare a white paper and to work with regional partners and state legislators, and to provide residents with information about which state committees and officials to contact when bills are filed.
Council discussed options including working through the northeast regional mayoral partnership and encouraging residents to contact state legislators. Staff said the city will produce information on relevant legislative committees and recommended residents call or email state representatives and senators. Staff also said the Texas Department of Agriculture and other state entities have limited testing capacity and the number of inspectors is small relative to the number of stores.
Council members and staff agreed to continue tracking proposed state legislation and to advocate for local authority to use zoning and distance rules to prevent clustering or proximity to schools and churches, noting that any state law would need to address protections against municipal liability for zoning changes affecting existing businesses.
