Texas Senate Bill 3 Threatens the Hemp Industry

Texas lawmakers have moved forward with legislation that could dramatically reshape the state’s hemp industry. Texas Senate Bill 3 (SB 3), which bans all consumable hemp products containing THC, is now headed to Governor Greg Abbott’s desk for approval. If signed into law, the bill would prohibit the sale of popular products such as flower, gummies, and beverages infused with THC, leaving only CBD and CBG products available in stores.

The passage of SB 3 could jeopardize an estimated $8 billion industry in Texas, threatening approximately 50,000 jobs directly linked to the hemp sector. Business owners are voicing serious concerns about the implications of this ban, predicting significant reductions in their product offerings and potential closures of local businesses.

Business owners like Ivan Tibbits, who runs Dama Botanicals in Austin, have labeled the bill as an overreach of government authority. Tibbits, who has been involved in the cannabis industry for over two decades, noted that the bill threatens not only the livelihood of local retailers but also consumer access to safe cannabinoid products. He testified before the Texas House Committee on State Affairs earlier this month, advocating for sensible regulations instead of outright bans and recommending mandatory state training for sellers.

The initial version of the bill had allowed for the continued sale of beverages with THC dosages up to 10 milligrams, regulated by the Texas Alcoholic Beverage Commission. However, a subsequent amendment introduced by state Representative Tom Oliverson removed this provision, resulting in a comprehensive ban on THC products.

Following the ban’s progression, inventory assessments at Dama Botanicals revealed a dramatic decline in available products, dropping from hundreds of items to just four. Concerns have also emerged regarding the potential for consumers to turn to the black market for THC products if legal avenues are restricted.

Expansion of Medical Marijuana Access

In conjunction with SB 3, Lieutenant Governor Dan Patrick and Representative Oliverson are working on plans to expand the Texas Compassionate Use Program (TCUP). The proposed expansion aims to include more qualifying conditions for medical marijuana, such as chronic pain, terminal illnesses, and hospice care. Lawmakers are also pursuing House Bill 46, which seeks to broaden eligibility for the program.

Additionally, Patrick has expressed intentions to increase the number of dispensary licenses issued from the current three to twelve, aiming for enhanced access through the establishment of satellite locations across public health regions.

Public Sentiment and Economic Concerns

Despite the impending ban on THC products, there remains significant public support for the legalization of marijuana in Texas, with recent polls indicating that over 60% of Texans favor such legislation. Economically, the hemp industry in Texas generates approximately $10.2 billion, and experts predict that the ban will lead to considerable negative repercussions, including job losses and decreased tax revenue.

Critics of the ban, including local business owners and industry advocates, argue that it represents a disproportionate response to concerns over product safety and quality. They assert that such a measure disregards consumer interests and will adversely affect thousands of families who depend on the industry for their incomes.

If Governor Abbott signs SB 3 into law, the regulations will take effect on September 1, 2024, allowing stores until January 2026 to comply with the new restrictions. As Texas takes this significant step toward reshaping its cannabis policies, the potential fallout from the decision remains a point of contention among citizens, business owners, and lawmakers alike.