Texas Faces Challenges in Regulating Hemp-Derived Products Amid Push for THC Ban
Texas is grappling with challenges in regulating consumable hemp-derived products, prompting concerns from state officials and a push for stricter laws.
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Agriculture Commissioner Sid Miller, a former hemp farmer, and Lt. Gov. Dan Patrick have voiced their frustrations over what they describe as a loosely controlled THC market.
Expanding Market and Regulatory Gaps
Cannabis lounges, dispensaries, and cafes continue to proliferate across Texas, including in cities like San Antonio. According to the Texas Department of State Health Services, the state has nearly 8,000 registered hemp retailers, with approximately 800 licensed businesses in San Antonio alone. Among them is Lazydaze, a coffee lounge offering legal, hemp-derived THC products.
This growing market has exposed gaps in oversight due to loopholes in legislation, particularly in House Bill 1325 and the Texas Compassionate Use Act. The former legalized the sale of hemp products containing less than 0.3% delta-9 THC by dry weight, while the latter permits low-THC cannabis prescriptions for specific medical conditions.
Loopholes in the Law
Critics argue that the 'dry weight' standard creates loopholes that allow high doses of THC in consumable products. For example, a 30-gram edible or a 12-ounce beverage can legally contain significant amounts of THC while remaining compliant with Texas law. Chemical engineer Nicholas Mortillaro highlighted how this standard permits potent THC doses without requiring chemical alterations.
Legislative Response
Lt. Gov. Dan Patrick has proposed Senate Bill 3 to ban all consumable forms of THC, citing public safety concerns. Patrick warned that unregulated THC products pose risks, particularly to children, and criticized retailers for exploiting legal gaps to distribute potentially hazardous items.
Calls for Oversight
Experts emphasize that the danger lies in the lack of testing, labeling, and regulatory standards rather than in cannabis itself. Ty Schepis, a substance-use expert at Texas State University, pointed out that Texas lags behind other states in ensuring product safety.
Commissioner Miller echoed these concerns, acknowledging that his department lacks funding for inspections and enforcement. "We can issue licenses, but we don’t have inspectors to monitor compliance," he said. This absence of oversight leaves room for unregulated sales and potential abuses.
Industry Perspective
Retailers like Lazydaze insist they follow the law and welcome regulations to ensure safety and compliance. Store manager Thomas Petrini emphasized the importance of certificates of analysis and product testing to verify THC concentrations. However, Petrini argued that an outright ban, as proposed by Patrick, would drive sales underground, increasing risks for consumers.
Cost and Licensing Issues
The current licensing process is relatively inexpensive, costing $155 per retail location and $258 for manufacturing or distributing consumable hemp. Unlike other states, Texas does not require FBI background checks for applicants. By comparison, states like Colorado impose higher fees and stricter licensing standards, including background checks and labor compliance.
Looking Ahead
Advocates suggest that instead of banning THC products, Texas should adopt stricter oversight, labeling, and testing requirements to ensure consumer safety. Schepis noted that legalizing and regulating cannabis could help shift sales from the black market to a transparent, taxable system.
With Senate Bill 3 looming, stakeholders remain divided on the best path forward. While some push for comprehensive regulation, others warn that an outright ban may exacerbate existing problems rather than solve them
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