On Wednesday, March 19, the Texas Senate passed Senate Bill 3 (SB 3), a state ban on all forms of THC in an attempt to crack down on the state’s consumable hemp market. The ban would outlaw products with any amount of THC, which are sold at more than 8,300 locations across the state, including over 7,000 licensed dispensaries.  

SB 3 was championed by Texas Lieutenant Governor, Dan Patrick, who has told retailers that they should voluntarily close their doors in anticipation of passage of SB 3. 

SB 3 would ban the retail sale of any cannabinoid in Texas, except for CBD and CBG.

SB 3 would continue to allow CBD and CBG products, but would place firmer restrictions on those products, including banning the sale to those under 21. Lt. Gov. Patrick emphasized that SB 3 would not impact Texas’ Compassionate Use Program, which allows certain people to be prescribed low-THC cannabis products for certain medical conditions. 

The Texas hemp industry has lobbied fiercely against the total prohibition of THC, citing the loss of roughly 50,000 jobs and billions of tax revenue that would happen if the hemp market was completely quashed. 

Mark Bordas, the executive director of the Texas Hemp Business Council, believes cooler heads will prevail in the House. Following its passage in the Senate, SB 3 now moves over to the Texas House for consideration, where it faces a more difficult road to passage.

The Texas House has yet to consider its hemp proposal, House Bill 28 (HB 28), which would impose stricter oversight and licensing requirements for the hemp industry rather than ban THC altogether. If the House passes its proposal, the two legislative chambers would have to reconcile their differences before any legislation could become law. 

The current version of SB 3 passed by the Senate appears unlikely to be passed by the House in its current form, particularly given that HB 28 does not call for a total ban of THC. 

It would be surprising if a complete ban on THC also passed the House and was signed into law by the Governor. However, the Texas hemp industry should anticipate a change in the regulatory environment. 

It appears almost certain that increased regulatory oversight is coming in the state of Texas in the form of stricter oversight and licensing requirements such as those called for by HB 28. Ultimately, at this time, it appears unlikely that a total ban on THC will occur, but it is not impossible, and regardless, it is almost certain there will be increased regulatory oversight signed into law.  

Stay tuned as we continue to update you on the ongoing debates concerning hemp-derived cannabinoids taking place in legislatures across the country. 

This article was co-authored by Daniel P. McGee, counsel, Buchanan, and Jackson E. Brown, associate, Buchanan.