Texas hemp industry faces ‘oblivion’ as THC ban lands on Gov Abbott’s desk

Senate Bill 3 (SB 3), a bill that would effectively ban all products containing tetrahydrocannabinol (THC) in Texas, has been sent to Governor Greg Abbott’s desk. The bill’s approval represents a major shift for the state’s growing hemp industry, which could now face collapse.

As reported by The Texas Tribune, the Texas Senate passed the House version of SB 3 late on Sunday following a 25-6 vote. If signed into law, the ban, scheduled to begin in September, would wipe out the state’s $8 billion hemp industry and an estimated 50,000 jobs. Per Fox, only products containing non-intoxicating cannabinoids such as CBD and CBG would stay legal for sale and use.

This development is in sharp contrast to 2019. That year, a law meant to boost Texas agriculture unintentionally allowed the hemp industry to expand by legalizing the sale of consumable hemp. While the 2019 law limited the amount of delta-9 THC allowed in products, it did not set the same restrictions for other hemp derivatives. Critics argue this oversight led to the rapid spread of over 8,000 stores selling THC-infused edibles, drinks, vapes, and flower buds across Texas.

The THC industry may collapse overnight in Texas

Lieutenant Governor Dan Patrick has been a major supporter of the ban, calling the removal of the THC-based hemp industry one of his top goals for nearly six months. He claims the thousands of businesses involved are harmful to the state. On the other hand, small business owners and their employees in the industry are worried about the severe economic consequences, including lost revenue and tax money.

After the House approved the THC ban, hemp industry leaders and advocates started a campaign asking Governor Abbott to reject SB 3. While the Governor’s office said he would “carefully consider any legislation sent to his desk,” he has not publicly stated whether he plans to sign or veto the bill.

We’ve seen plenty of big bills go through Texas, like the ban on some games and anime and banning furries from litterboxes. Supporters of SB 3 in the House tied the THC ban to an expansion of the Texas Compassionate Use Program (TCUP), which permits the use of medical marijuana for a small number of conditions.

The original proposal included adding chronic pain as a qualifying condition, but this was later removed from a Senate version of the bill. This led to a public disagreement between Representative Tom Oliverson, a key supporter of the THC ban, and Lieutenant Governor Patrick.

However, a compromise was reached just before the Senate’s final vote, agreeing to include chronic pain, terminal illness, and hospice patients as qualifying conditions for TCUP. The deal also involves increasing the number of licensed medical marijuana dispensers by four times and allowing satellite storage facilities to make it easier for patients to access their medications.

The approval of SB 3 poses a serious threat to a large part of Texas’s economy. The final decision now depends on whether Governor Abbott signs or vetoes the bill. While the compromise to expand TCUP could lessen the impact for some, the future of the state’s hemp industry remains unclear.