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Disturbing news from the Lone Star state that could have harmful repercussions for the legal cannabis and hemp industry. Last night, the Texas House of Representatives passed a bill that would effectively ban federally protected hemp-derived products with THC. The legislation, known as Senate Bill 3 (SB3), would derail the state’s market, threatening more than 6,300 small businesses, 40,000 jobs, and over $4 billion in retail sales.
The bill, which is expected to be signed by Governor Greg Abbott, stipulates that adults who are caught possessing hemp products with any amount of THC, could face up to a year in jail.
It’s a reversal from six years ago when the Texas legislature triggered a boom in hemp-based products after greenlighting the sale of consumable hemp. Once Gov. Abbott signs off on this bill, THC products will be taken off the shelves at convenience stores, gas stations and a multitude of retailers across Texas.
Lt. Governor Dan Patrick, who oversees the Texas Senate, has led the campaign to stamp out the industry, “which he accuses of preying on susceptible minors by setting up stores near schools and marketing products to children,” said The Texas Tribune.
The move is sending shock waves throughout the cannabis and hemp community. Thomas Winstanley, executive vice president ofEdibles.com, a hemp ecommerce platform that operates under the Edible Brands family, warns that the bill will not enhance consumer safety, but instead fuel an unregulated illicit market, undercutting legitimate operators and hurting the very Texans lawmakers claim to protect.
“Senate Bill 3 may aim to address a real consumer health issue in Texas, but the solution it proposes is not only misguided—it’s a cure worse than the disease,” he said in a statement. “Instead of improving safety and sustainability, this bill threatens to devastate an emerging industry, hurting consumers, businesses, and the economy alike. History shows prohibition doesn’t erase demand—it just removes accountability and transparency.”
Shawn Hauser, a partner at top cannabis law firm Vicente LLP, concurred. “Unlike many other states, Texas has neglected to create a comprehensive cannabis framework, including robust testing, labeling, marketing and quality control standards,” said Hauser. “This legislative action, instead of addressing the root cause through responsible regulation, will exacerbate the problem by driving these products into a a dangerous black market. Texas is directly responsible for endangering its consumers by choosing prohibition over the proven benefits of a regulated cannabis marketplace.”
Jason Vedadi, CEO of dispensary chain Story Cannabis and a native Texan, noted that having been in the industry as long as he had, nothing surprises him. “The lieutenant governor really had an agenda, and it seemed like he wasn’t going to take no for an answer,” he said.
However, yesterday in a counterintuitive move, the Texas Senate passed a bill, HB 3717, which will devote $50 million to conducting psychedelic research that might lead to treating veterans battling PTSD, addiction, and other service-related conditions. The capital infusion will fund FDA clinical trials for ibogaine, a psychedelic plant medicine.
Amber Capone, CEO and co-founder of Veterans Exploring Treatment Solutions, a nonprofit focused on working to end the veteran suicide epidemic, applauded the legislation, calling it a milestone for psychedelic medicine and veteran care in the U.S.
“With millions dedicated to ibogaine research, Texas is leading the nation in advancing innovative, evidence-based mental health solutions,” said Capone in a statement… “Veterans have waited too long for better solutions. HB 3717 brings us closer to a future where healing is available here at home—not just overseas.
Adam Marr, a combat veteran and director of operations of Veteran Mental Health Leadership Coalition, an organization focused on advocating for increased access to psychedelic therapies for veterans, echoed Capone’s jubilation.
“Texas makes history again,” he said in a statement. “This moment didn’t happen overnight—it was the result of years of unrelenting advocacy, scientific leadership, and bold vision from a coalition of changemakers who refused to give up on a better path forward. Many people just threw out reasons why it couldn’t happen, some states just weren’t ready to be a leader for its people – but Texas is a different story y’all.”
This bill is also waiting to be signed by Gov. Abbott.
“}]] Yesterday the Texas House passed two bills—one will ban hemp-derived products with THC—while the other will fund clinical psychedelic drug trials to treat veterans. Read More