A new bill that could devastate Texas’ thriving hemp-derived THC market passed the state House, setting the stage for a near-total ban on intoxicating products. With significant backing from political leaders, the future of the $5.5 billion industry now hangs in the balance.
Texas lawmakers took a significant step toward banning hemp-derived THC products on Wednesday night, as the state House approved the bill by a vote of 86-53. This sweeping measure, already passed by the state Senate in March, is on track to receive final approval by Thursday, making it one step away from becoming law. Governor Greg Abbott is expected to sign Senate Bill 3 into law shortly thereafter, according to sources from the Houston Chronicle.
Lawmakers and Advocates Clash Over the Bill
At the heart of the bill’s passage is a push from Lt. Gov. Dan Patrick and other Texas political figures to ban all products containing intoxicating hemp-derived THC. Republican state Rep. Tom Oliverson, who has championed the bill, made his stance clear, stating, “We are banning high,” referring to the intoxicating effects of THC. The legislation aims to remove all products from the market that contain delta-8, delta-9, and other THC compounds derived from hemp.
The Texas Hemp Business Council has criticized the bill, saying it will essentially dismantle the state’s legal hemp industry. In a statement, the council argued that the ban would be a blow to small businesses, farmers, veterans, and consumers who rely on hemp-derived products for their livelihood and well-being. The organization expressed concern that the legislation could hurt thousands of Texans who depend on the burgeoning hemp market, which has flourished since the 2018 federal legalization of hemp.
The Growing Popularity of Hemp-Derived THC
Hemp-derived THC products, including edibles, vapes, and tinctures, have seen a surge in popularity in Texas in recent years. Unlike marijuana-derived THC, hemp-derived THC is federally legal under the 2018 Farm Bill, which allowed hemp cultivation and the production of hemp-based products with less than 0.3% THC. As a result, many companies in Texas have capitalized on the growing demand for these products, leading to the establishment of a robust market worth an estimated $5.5 billion.
However, this market growth has not come without controversy. While proponents of hemp-derived THC argue that it offers a safer, legal alternative to marijuana, opponents, including many Republican lawmakers, view it as a potential public health threat. They argue that the proliferation of these products—often sold without strict regulation—could lead to increased recreational use and a rise in accidents or misuse.
The State’s Legal Hemp Industry in Peril
The potential effects of this bill on the Texas hemp industry are far-reaching. Farmers and manufacturers have expressed concern that a ban would strip away much-needed income and create significant economic fallout, particularly for small businesses that have grown within this sector.
Some industry insiders are calling the ban a knee-jerk reaction, claiming that it’s an overreach that could stifle growth in an emerging market. For example, Jeff L. Davis, a hemp farmer in the state, argued that the move would be devastating for local economies. “This is an industry that we’ve worked years to build. With this law, it will all be gone overnight,” Davis said in an interview.
Political Pushback and Divisions
Despite the widespread opposition from within the hemp industry, the ban has strong support from many Republican lawmakers. Lt. Gov. Dan Patrick, who has led efforts to ban hemp-derived THC, believes the measure will help protect Texans from the perceived dangers of THC-laced products. For Patrick and others, the ban is seen as a necessary step in ensuring public safety and upholding the law.
However, the bill has also faced significant pushback from advocates who argue that it’s a poorly conceived piece of legislation that disregards the needs and rights of Texans who benefit from the legal hemp industry. Veterans, in particular, have spoken out, highlighting how certain hemp-derived products have been crucial in managing conditions like PTSD, anxiety, and chronic pain.
What’s Next for Texas’ Hemp Industry?
As the final vote on Senate Bill 3 looms, the future of Texas’ hemp-derived THC industry seems uncertain. While the bill’s passage in the House is a clear indicator of the growing political support for the ban, the full impact on the state’s market will likely unfold over the coming months. Should the bill become law, it’s expected to put significant strain on the hemp businesses that have flourished in Texas since the market’s rapid growth.
Though the exact timeline for enforcement remains unclear, the hemp industry in Texas is bracing for potential regulatory changes that could force many businesses to shut their doors or pivot to other products. The fallout from this bill, if enacted, could ripple through Texas’ agricultural and economic landscape for years to come.