As of May 27, the Texas Legislature sent Senate Bill 3, a Bill proposing to ban all products containing THC, to Texas Governor Greg Abbott for approval. Then on June 1, House Bill 46, a bill to expand the state’s medical cannabis program, was also sent to Abbott for approval.
The first bill, is a ban that seeks to close a loophole created by the 2018 Farm Bill, signed by Gov. Abbott in 2019, which inadvertently allowed for consumable hemp products containing synthetic cannabinoids with THC levels up to 0.3% to be legal. Specifically, Delta-8, which has low concentrations of THC caused a proliferation of hemp derived THC products such as vapes, drinks, gummies, lotions, and food, to flood the market which has sustained till the proposed 2025 bill.
Proposed consequences of the ban include fines up to $500 for possession of hemp derived THC products, with repeat offenders facing up to a $2,500 fine and jail time. Class A misdemeanors will include the selling, mailing, and delivering of consumable products or creating attractive or misleading marketing to those under twenty-one. Class B misdemeanors will include manufacturing or distributing smokeable hemp products and selling said products within 1,000 feet of a school.
According to the ban, non-psychoactive derivatives such as CBD and CBG would remain legal, but manufacturers and retailers would be required to register with the state by January 1st, 2026. Concerns about the difficulty and impossibility of isolating CBD without even slight traces of THC have been dismissed thus far.
Senator Charles Perry and LT Governor Dan Patrick, proponents of the bill cite concerns over public health, increasing harm to children, and difficulty of regulation as the basis for the ban.
Texans with conditions not approved for medical marijuana use will be impacted by the bill and have argued for greater access based on chronic pain and other medical conditions. The Texas legislature responded with House Bill 46, which aims to expand the Texas Compassionate Use Program (TCUP) and is awaiting Gov. Abbott’s approval. The final version of the bill expands qualifying medical conditions. Under the final bill, registration through TCUP would be valid for one year with up to four refills of 90-day prescriptions. Though the proposed bill calls for the number of licensed cannabis providers in the TCUP to increase from three to fifteen, the counter argument is that accessibility and cost concerns may encourage the purchase of marijuana from the growing illicit market.
Prior to the announcement of the ban, hemp manufacturers and retailers advocated and expressed a willingness to adopt stricter oversight and licensing requirements, but negotiations for a program regulating the hemp market in Texas did not continue.
We continue to monitor these cannabis developments. Please contact your Michael Best attorney to discuss how this change in regulation may impact your business.
* This article also includes contributions by Raabia Sheikh, Summer Associate (a Michael Best professional not admitted to practice law).