Adam JacksonTexas Lieutenant Governor Dan Patrick officially announced legislation this week that would prohibit the sale of all consumable tetrahydrocannabinol (THC) products in the state, according to a statement from his office.
Senate Bill 3, to be sponsored by Senator Charles Perry (R-Lubbock), aims to close what Patrick described as a loophole in previous legislation that allowed retailers to “exploit” agricultural laws to sell unregulated THC products. The bill would effectively shut down thousands of retailers selling hemp-derived products.
The measure threatens to upend a market that has attracted significant investment over half a decade now. A Whitney Economics report last year estimated manufacturers and extractors have already invested more than $1 billion in infrastructure throughout Texas.
“Over 50,000 people employed in the industry… businesses will close their doors, they’ll default on retail spaces,” Cynthia Cabrera, president of the Texas Hemp Business Council, told KHOU 11.
The measure follows House Bill 1325, which, since its passing in 2019, has essentially allowed for hemp products containing trace amounts of delta-9 THC to commercially flourish beyond what lawmakers may or may not have intended. Patrick claimed in the statement some retailers now sell products with “three to four times the THC content which might be found in marijuana purchased from a drug dealer.”
The anticipated proposal likewise puts pressure on Texas hemp businesses already catching heat from federal authorities as they compete with the state’s restricted medical cannabis program, which allows physicians to prescribe low-THC products for certain conditions.
“There’s only three (medical marijuana) license holders in Texas, and one of them has 70% of the market,” Cabrera previously told Green Market Report. There are currently 27 dispensaries in existence statewide among the three operators.
“I don’t know why anybody would subscribe to the Texas medical marijuana program as it is, because it is so restrictive. It’s hard to make money with 12,000 patients that cycle out on annual basis because they discovered that hemp products are available to them.”
The Texas hemp industry is also on its heels for a state Supreme Court ruling on a 2021 lawsuit challenging the state’s earlier attempted ban on delta-8 THC products. That case, led by Cabrera’s Hometown Hero, has allowed hemp businesses to continue operating under an injunction. While the state lists more than 8,000 registered hemp sellers, that figure drops by half when controlling for mainstream retailers selling only non-psychoactive CBD products, according to Cabrera.
Patrick’s office wrote on X, formerly Twitter, that the bill wouldn’t affect the state’s current medical marijuana program.
“In fact, SB 3 will ensure Texans needing to utilize the compassionate use program will have access to safe, doctor-prescribed medication,” according to the post.
The Texas legislature reconvenes January 14.
Texas joins several other states grappling with hemp regulation. California implemented emergency rules effectively banning many hemp-based products in September, while Georgia enacted THC caps and flower bans in October. Federal lawmakers are also considering he Cannabinoid Safety and Regulation Act, which would create a regulatory framework for hemp-derived products under FDA oversight.
