A battle for the future of the hemp industry in Texas, set to have a significant impact on hemp regulation across the US, is brewing as lawmakers return for a special legislative session marked by sharp divisions between Governor Greg Abbott and Republican leaders in the Senate.
At the heart of the debate is Senate Bill 5 (SB 5), which would impose a sweeping ban on hemp-derived products containing any detectable amount of THC.
Anthony Coniglio, co-founder and CEO of NewLake Capital Partners, and one of the industry’s leading voices on cannabis capital markets and regulatory strategy, told Business of Cannabis: “We’re on the eve of hemp being outlawed in Texas, which is one of the largest hemp markets in the country.
“That’s going to be a major issue for the hemp industry and, by extension, for the broader state-legal cannabis sector. What happens in Texas could set a precedent for other states considering similar bans.”
The bill closely mirrors an earlier proposal Abbott vetoed in June, marking a ‘surprising’ turnaround in momentum.
“It’s surprising because the industry successfully lobbied the Governor to veto the original bill,” Coniglio continued.
“They got him to reject it, and yet now, here we are. HB 5 appears to be very similar to that original legislation. So the question becomes: what was the point of the veto, and how did we end up back here with a bill that achieves essentially the same outcome?
“If HB 5 passes the way most people expect, it could mark a turning point. Despite the strength of the lobbying effort, the industry may not be able to prevent prohibition this time. That’s significant.”
SB 5 was unanimously approved by the Senate State Affairs Committee last week and is now awaiting a full Senate vote.
Companion legislation, House Bill 5 (HB 5), was introduced Monday by Rep. Gary VanDeaver, chair of the House Public Health Committee. Both proposals permit only two cannabinoids—CBD and CBG—and make possession of banned hemp products punishable by up to 180 days in jail and a $2,000 fine.
But Governor Abbott, while calling for tougher regulation of intoxicating hemp products, remains opposed to an outright ban.
In his special session proclamation, Abbott urged lawmakers to adopt a regulatory framework that includes:
Despite the governor’s stance, key Senate Republicans, including Lt. Governor Dan Patrick and Senator Charles Perry, the architect of SB 5, are pushing forward with a full prohibition.
“It’s frustrating to see the Senate ignoring the Governor’s guidance and pushing a bill that would hurt consumers, shutter small businesses, and punish Texans instead of protecting them. Thankfully, leaders in the Texas House — including conservatives who once supported a ban — now recognise that smart regulation is the right path forward,” said Heather Fazio, director of the Texas Cannabis Policy Center.
Supporters of the ban include major law enforcement groups such as the Texas Police Chiefs Association and the Sheriff’s Association of Texas, both of which testified that a complete ban is the only viable way to protect communities from what they described as a flood of unregulated intoxicants masquerading as hemp.
Hemp businesses and reform groups also say the proposed ban goes far beyond the governor’s vision and would devastate an industry that employs an estimated 50,000 workers across 8,000 retailers.
Katharine Neill Harris, PhD, a drug policy expert with Rice University’s Baker Institute for Public Policy, said: “Some officials have supported fully banning consumable hemp products containing THC, as SB 3 would have done. But an outright ban would simply divert these products to the illegal marketplace, exempting them from the very regulations needed to ensure their safety.”
SB 5 was listed on the Senate calendar earlier this week but the chamber adjourned without taking action.
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At the heart of the debate is Senate Bill 5 (SB 5), which would impose a sweeping ban on hemp-derived products containing any detectable amount of THC.
Anthony Coniglio, co-founder and CEO of NewLake Capital Partners, and one of the industry’s leading voices on cannabis capital markets and regulatory strategy, told Business of Cannabis: “We’re on the eve of hemp being outlawed in Texas, which is one of the largest hemp markets in the country.
“That’s going to be a major issue for the hemp industry and, by extension, for the broader state-legal cannabis sector. What happens in Texas could set a precedent for other states considering similar bans.”
The bill closely mirrors an earlier proposal Abbott vetoed in June, marking a ‘surprising’ turnaround in momentum.
“It’s surprising because the industry successfully lobbied the Governor to veto the original bill,” Coniglio continued.
“They got him to reject it, and yet now, here we are. HB 5 appears to be very similar to that original legislation. So the question becomes: what was the point of the veto, and how did we end up back here with a bill that achieves essentially the same outcome?
“If HB 5 passes the way most people expect, it could mark a turning point. Despite the strength of the lobbying effort, the industry may not be able to prevent prohibition this time. That’s significant.”
SB 5 was unanimously approved by the Senate State Affairs Committee last week and is now awaiting a full Senate vote.
Companion legislation, House Bill 5 (HB 5), was introduced Monday by Rep. Gary VanDeaver, chair of the House Public Health Committee. Both proposals permit only two cannabinoids—CBD and CBG—and make possession of banned hemp products punishable by up to 180 days in jail and a $2,000 fine.
But Governor Abbott, while calling for tougher regulation of intoxicating hemp products, remains opposed to an outright ban.
In his special session proclamation, Abbott urged lawmakers to adopt a regulatory framework that includes:
- Banning access to cannabinoid hemp products for those under 21;
- Outlawing synthetic cannabinoids such as delta-8 THC;
- And limiting THC potency to either 0.3% or 3 milligrams per serving—a distinction that has sparked confusion among lawmakers and regulators alike.
Despite the governor’s stance, key Senate Republicans, including Lt. Governor Dan Patrick and Senator Charles Perry, the architect of SB 5, are pushing forward with a full prohibition.
“It’s frustrating to see the Senate ignoring the Governor’s guidance and pushing a bill that would hurt consumers, shutter small businesses, and punish Texans instead of protecting them. Thankfully, leaders in the Texas House — including conservatives who once supported a ban — now recognise that smart regulation is the right path forward,” said Heather Fazio, director of the Texas Cannabis Policy Center.
Supporters of the ban include major law enforcement groups such as the Texas Police Chiefs Association and the Sheriff’s Association of Texas, both of which testified that a complete ban is the only viable way to protect communities from what they described as a flood of unregulated intoxicants masquerading as hemp.
Hemp businesses and reform groups also say the proposed ban goes far beyond the governor’s vision and would devastate an industry that employs an estimated 50,000 workers across 8,000 retailers.
Katharine Neill Harris, PhD, a drug policy expert with Rice University’s Baker Institute for Public Policy, said: “Some officials have supported fully banning consumable hemp products containing THC, as SB 3 would have done. But an outright ban would simply divert these products to the illegal marketplace, exempting them from the very regulations needed to ensure their safety.”
SB 5 was listed on the Senate calendar earlier this week but the chamber adjourned without taking action.
The post Texas Edges Closer to Total THC Ban, Raising Alarms Across US Hemp Sector appeared first on Business of Cannabis.
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