Will Texas kill a multibillion-dollar industry?

OG Article

Mona Zhang

04/14/2025

Texas lawmakers are considering proposals to kill a multibillion-dollar industry as shockwaves roil the economy.

The nationwide proliferation of intoxicating hemp products has spurred a booming industry in the state, but also sparked public health concerns and drawn the ire of Republican Lt. Gov. Dan Patrick.

“We have to ban THC and shut all of these stores down,” Patrick said during a recent press conference. “This is a poison in our public.”

The state Senate overwhelmingly passed legislation last month that would ban practically all hemp products. But the outcome in the House is far from settled, with the industry mounting a lobbying blitz to derail the most punitive proposals.

The fight isn’t just confined to Texas. Intoxicating hemp products have spread across the country after the 2018 farm bill legalized cannabis with less than a 0.3 percent Delta-9 THC. While hemp flower with that little THC would not be intoxicating to consume, producers can easily make consumable products like edibles and beverages that will get users high but still meet the legal threshold.

The market for intoxicating products has particularly taken hold in states without legal, recreational marijuana. Lawmakers from Hawaii to Florida are considering proposals aimed at cracking down on the industry. Even legal-weed states like California and Illinois have waded into the hazy politics of hemp crackdowns as marijuana businesses lobby lawmakers to protect their regulated markets.

In Texas, business owners warned lawmakers during a 17-hour House committee hearing Monday that passing either hemp bill lawmakers were considering would destroy small businesses in Texas. The industry saw $4 billion in sales last year, according to an analysis by Delta Emerald Ventures, and there are more than 8,000 hemp retailers registered with the state. Banning hemp products could result in tens of thousands of lost jobs and push Texas businesses out of state, entrepreneurs argued. Meanwhile, consumers would be able to continue buying intoxicating hemp products over the internet, they warned.

Pro-hemp commenters made points designed to find a receptive audience with Texas’ overwhelmingly Republican Legislature, highlighting the state’s business-friendly reputation and invoking God when talking about the cannabis plant. Many told stories with MAHA themes, criticizing “Big Pharma” and touting natural remedies.

“I’m a God-fearing proud Texan,” said Austin-based hemp entrepreneur Jeana Aliani during the hearing. “This proposed hemp ban strikes at the very heart of what Texas was built on: liberty, independence and the right to live free from government overreach.”

Texas-sized mess

The Texas debate over intoxicating hemp products underlines how messy the issue has become for policymakers.

The House committee considered two bills Monday. The Senate-passed bill — introduced by GOP state Sen. Charles Perry, who has characterized the hemp industry as “evil” and “diabolical” — would ban all intoxicating hemp cannabinoids, while allowing hemp products that contain CBD and CBG.

The other bill, sponsored by Republican state Rep. Ken King, would also ban intoxicating hemp cannabinoid products, with one exception: an allowance for hemp beverages with Delta-9 THC. Hemp beverages would be capped at 10 mg THC per serving and regulated similarly to alcohol. His bill drew near-universal opposition — from industry foes for not going far enough, and from hemp entrepreneurs for going too far.

In a testament to the importance of the market, representatives of hemp companies from across the country traveled to Austin this week to push back on those proposals.

King’s bill is a “de facto ban,” said Cynthia Cabrera, chief strategy officer at Texas hemp company Hometown Hero.

“It hands over a narrow sliver of the hemp-derived market to the established and politically well-connected alcohol industry,” she said. “It takes [hemp] away from all the people who have built the industry.”

Family members of young adults who were diagnosed with cannabis-induced psychosis pushed for an outright ban, arguing that any legal, consumer access to THC presents dire public health risks. They questioned the usefulness of age restrictions, since their loved ones were over 21 years old when they purchased the hemp THC products.

During the hearing, lawmakers struggled to understand the complexities of cannabis products, as the proposed legislation would ban even non-intoxicating, CBD-rich extracts. They heard confusing testimony from public commenters on the distinctions between natural, semi-synthetic and synthetic compounds, and how to classify intoxicating cannabinoids like Delta-8 THC and HHC. They sought suggestions for how to restrict THC dosages, as their effects can vary widely for different people.

Susan Hays, a cannabis attorney who was neutral on King’s bill, told the story of a 13-year-old girl with such severe Tourette syndrome that she couldn’t leave her home for two years. Her parents gave her illegal cannabis oil — it took 25 mg THC a day to effectively treat her condition.

“That dose did not make her high,” Hays explained, but “25 milligrams would put me in bed for a week.”

Many in the industry support putting guardrails around the freewheeling market, which currently has no age restrictions on purchases or testing requirements. They’re pushing for legislation that would require customers to be 21-and-over, mandate third-party lab testing, and impose packaging and labeling requirements. They also highlighted enforcement issues, with many store owners testifying that they had never been inspected by state regulators, while one retailer testified that his store had been inspected four times.

“The biggest frustration that we have had is the lack of regulation,” said Rebecca O’Neill, a nurse and owner of Hummingbird Hemp in Early, Texas. "[The Department of State Health Services] has never come out to do an on-site regulation visit.”

Republican state Rep. Briscoe Cain introduced two bills that include much of what hemp industry advocates are asking for on age restrictions, lab testing requirements and other regulations designed to protect public health. Neither bill has been scheduled for a hearing, but industry advocates hope to incorporate some of their ideas into King’s bill.

Bills face uncertain fate

Lawmakers across the country have been struggling to address the public health risks of the burgeoning market for intoxicating hemp products without crushing entrepreneurs who thought they were acting legally. Illinois, Missouri, Florida and Georgia have all considered bills this year to clamp down on intoxicating hemp. But many efforts have been derailed by bipartisan opposition — a bill in Missouri similar to King’s was stalled this week after a seven-hour filibuster.

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It’s far from clear where the debate will end up in Texas. Patrick isn’t backing down, casting doubt on the legitimacy of his critics.

“These are not small business people,” Patrick said on the Senate floor. “Suddenly in two years, 8,000 people decided to open a smoke shop? This is all connected.”

The lieutenant governor even threatened a special session if the House doesn’t pass a bill to ban intoxicating hemp. But it’s unclear whether Gov. Greg Abbott has the appetite to crush the burgeoning industry. Only Abbott has the power to call a special session, but Patrick could block other legislation in the Senate to force an overtime session — a tactic he used in 2017.

Abbott’s office did not respond to requests for comment. In a recent interview with Fox affiliate KRIV, the governor didn’t directly weigh in on the proposed ban.

“That very question is being debated in both chambers as we speak,” Abbott said. “There is a difference between the House and Senate that I think will get worked about before the end of the session.”

Meanwhile, the House State Affairs committee is scheduled to hear a bill Monday to expand the state’s medical cannabis program, which could impact behind-the-scenes negotiations over hemp regulations.

Democratic state Sen. Sarah Eckhardt, who introduced an amendment to Perry’s bill on the Senate floor, warned that banning intoxicating cannabinoids “will kill the industry.”

Her amendment would have gotten rid of the ban but kept portions of the bill relating to increased hemp regulations. It was voted down 24-4.

“The Republican majority in the Senate is going to stay very hysterical on this point,” she said. “I think the two chambers will lock up — probably nothing will pass.”