Final Vote Sends THC Crackdown to Governor as Lawsuit Looms from Hemp Industry

On Thursday, the Texas House granted final approval to a comprehensive ban on all products containing THC, a move that is poised to bring an end to the state's flourishing hemp industry. 

The legislation, now awaiting the signature of Governor Greg Abbott, restricts the sale of legal hemp to non-intoxicating cannabinoids, including CBD and CBG.

A new piece of legislation has been introduced to reverse a 2019 law that inadvertently led to a surge in the availability of hemp-derived THC products, including delta-8 and delta-10 edibles and vapes, which are currently sold at more than 8,000 retail locations across the state. The original law, designed to support Texas agriculture, inadvertently established a gray area that producers swiftly exploited by introducing psychoactive alternatives to marijuana.

Concerns have been raised regarding the hemp industry, with Lt. Gov. Dan Patrick at the forefront of criticism, highlighting issues related to the exploitation of minors and the absence of safety regulations. Patrick, the driving force behind the Senate's earlier iteration of the legislation, pledged to ensure that a THC ban is established before departing from Austin. In a video released this week, he expressed, “I’ve never been more passionate about anything.”

A recent House vote concluded with a tally of 86 to 53, featuring bipartisan support as several Democrats aligned with Republicans. This coalition backed an amendment proposed by Rep. Tom Oliverson (R-Cypress) to reinstate the Senate's more stringent version.

The recent approval of the ban represents a significant setback for an industry projected to sustain 50,000 jobs and contribute $8 billion each year in tax revenue. Lukas Gilkey, the CEO of Hometown Hero, a prominent hemp company, has announced that the Texas Hemp Business Council is gearing up to contest the ban through legal action.

Advocates within the industry contend that the proposed legislation overlooks demands for increased regulation and licensing, opting instead for a prohibition stance. Concerns have been raised that the ban may negatively impact veterans, small business owners, and consumers who depend on hemp-derived products for their health and wellness needs.

If enacted by the governor, the legislation would impose immediate restrictions on the sale of THC products across the state, accompanied by criminal penalties for any violations.

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