Texas House Moves to Ban THC Products, Putting Hemp Industry in Jeopardy

The Texas Legislature is poised to implement a ban on all products containing THC, the psychoactive component found in cannabis, following the House's final approval of Senate Bill 3 on Thursday. The legislation is set to return to the Senate for the approval of minor amendments before reaching Governor Greg Abbott's desk.

A proposed measure aims to ban the sale of THC-infused products, encompassing edibles, beverages, vapes, and smokable flower. This legislation could effectively dismantle an industry that has developed since Texas legalized consumable hemp in 2019. Retailers will face restrictions, allowing them to sell only non-intoxicating cannabinoids such as CBD and CBG.

Rep. Tom Oliverson, R-Cypress, stated, “This bill closes the loophole that has allowed the sale of intoxicating products never intended under the original 2019 law.” Oliverson, who authored a floor amendment, noted that the amendment aligned the House bill with the Senate version passed in March.

In a significant legislative move, the House approved SB 3 with a vote tally of 95-44, showcasing bipartisan support. This decision follows months of intense debate among proponents of stricter regulations and those calling for an outright ban. Oliverson contended that the existing market resembles “a cottage industry of unregulated THC sellers,” which presents significant public safety concerns.

Lt. Gov. Dan Patrick, a key figure in the Senate's advocacy for the ban, warned lawmakers, indicating that he would extend the session until the bill received approval. “I’ve never been more passionate about anything,” Patrick stated earlier this week.

The anticipated ban is projected to result in considerable economic repercussions. According to industry advocates, Texas's hemp industry is a significant economic force, supporting approximately 50,000 jobs and generating an impressive $8 billion in annual revenue.

The Texas Hemp Business Council has revealed intentions to initiate a legal challenge against recent legislation, describing it as a “devastating blow” to small businesses, farmers, and veterans dependent on THC for medical purposes.

The proposed law will take effect on September 1, pending the governor's signature. Abbott remains silent on his decision regarding whether to sign or veto the bill.