Texas Senate Bill 3 (SB3)

Texas is on the cusp of enacting one of the nation's most stringent bans on hemp-derived THC products. Senate Bill 3 (SB 3), which has passed both legislative chambers and awaits Governor Greg Abbott's decision, seeks to prohibit the sale and possession of consumable hemp products containing any form of THC, including popular cannabinoids like delta-8, delta-9, and THCA. If signed into law, the ban would take effect on September 1, 2025, with additional licensing requirements for CBD and CBG products commencing on January 1, 2026

Understanding Senate Bill 3

SB 3 aims to close what lawmakers perceive as a loophole in the 2019 Texas hemp law, which allowed the sale of hemp-derived products containing less than 0.3% delta-9 THC. This loophole led to the proliferation of products containing alternative cannabinoids like delta-8 and THCA, which can produce psychoactive effects. The bill would restrict consumable hemp products to only non-intoxicating cannabinoids, specifically CBD and CBG.

The legislation also introduces stringent penalties for violations. Possession of banned hemp products would be classified as a Class A misdemeanor, while manufacturing or selling such products could result in third-degree felony charges, carrying potential prison sentences of 2 to 10 years and fines up to $10,000.

Economic and Industry Impacts

The proposed ban has sparked significant concern among industry stakeholders. Texas' hemp industry, valued at approximately $8 billion, supports around 50,000 jobs across more than 8,000 businesses. Retailers warn that the ban could lead to widespread business closures and job losses. For instance, Tessa Matthews, a store manager in College Station, stated that her store would likely have to shut down if the ban is implemented, as most of their sales come from THCA products.

Advocates also argue that the ban could push consumers toward the unregulated black market, increasing the risk of unsafe products. They contend that a regulatory approach, rather than an outright ban, would better protect consumers while preserving the industry's economic contributions.

Medical and Consumer Concerns

Beyond economic implications, the ban raises concerns about patient access to alternative treatments. Many Texans, including veterans and individuals with chronic conditions, rely on hemp-derived THC products for symptom relief. Critics argue that the ban would limit these options, potentially forcing patients to resort to more addictive substances like opioids

While SB 3 includes provisions to expand the state's medical marijuana program to cover conditions like chronic pain, opponents argue that the program remains too restrictive and inaccessible for many patients .

The Road Ahead

Governor Abbott has until June 22 to veto SB 3; otherwise, it will automatically become law on June 23. Advocacy groups, including the Texas Cannabis Collective and the Texas Hemp Business Council, have mobilized to urge a veto, delivering over 100,000 letters to the governor's office.

If enacted, the ban will mark a significant shift in Texas's approach to hemp-derived products, with far-reaching consequences for businesses, consumers, and patients alike. Stakeholders are closely monitoring the situation, with some preparing legal challenges to contest the legislation.

As the state awaits Governor Abbott's decision, the future of Texas' hemp industry hangs in the balance, highlighting the ongoing debate over cannabis regulation and consumer access to alternative therapies.