Texas Business Community on Edge Over Senate Bill 3

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Texas Hemp Farm

News Summary

The Texas hemp industry faces uncertainty as Senate Bill 3, which could ban all THC products, awaits action from Governor Abbott. The bill has sparked significant concern among local businesses, as THC products account for a substantial portion of their sales. A grassroots movement has emerged, with over 100,000 signers opposing the bill, urging for regulations instead of an outright ban. The outcome of this legislative decision could have far-reaching effects on the $8 billion hemp industry and the livelihoods of many Texans.

Texas is at a critical juncture as Governor Greg Abbott considers Senate Bill 3, which could implement a sweeping ban on all THC products within the state. The bill, which is currently on his desk, outlines new regulations for consumable hemp products, effectively prohibiting most THC products, while exempting non-intoxicating CBD and CBG. Governor Abbott has until June 22 to make a decision, and the bill could become law if he does not sign or veto it by then.

Lieutenant Governor Dan Patrick has been a major advocate for Senate Bill 3, raising concerns about the health risks associated with unregulated THC products. Patrick describes the proposed ban as a necessary protective measure for public health, aimed particularly at safeguarding children and adults alike. During a recent press conference, he emphasized the dangers posed by THC products that are not subject to strict regulatory oversight.

As the timeline for the governor’s decision approaches, businesses in Texas’s vibrant hemp sector are bracing for potential fallout from SB 3. Store managers have indicated that THC products constitute around 70% of their sales, describing the situation as “scary.” Many business owners, especially those catering to veterans who use THC for medical relief, face dire consequences if the bill passes. Concerns have intensified, with some fearing financial ruin as their customer base heavily relies on THC products for therapeutic benefits.

In opposition to SB 3, over 100,000 Texans have signed petitions urging the governor to veto the bill. Critics argue that existing regulations are adequate for ensuring product safety without resorting to an outright ban. Patrick has accused the hemp industry of targeting children with intoxicating products and has highlighted that other states have opted for more measured, regulated approaches instead of blanket prohibitions.

The economic implications of SB 3 are significant, as Texas’s hemp industry is estimated to be worth approximately $8 billion and supports about 50,000 jobs. The potential ban raises fears of substantial job losses and deprives consumers of access to safe, regulated products. Industry leaders have warned that if THC products are banned, unregulated and potentially unsafe alternatives could flood the market, further complicating the landscape for consumers.

In contrast to SB 3, Governor Abbott is also considering House Bill 46, which proposes to expand the state’s medical marijuana program. This legislation aims to broaden eligibility for the Texas Compassionate Use Program, allowing more medical conditions to qualify for treatment with low-THC cannabis. Furthermore, HB 46 would enable a greater number of dispensary licenses, enhancing access to medical cannabis throughout the state.

With the two bills creating a divide among the public and lawmakers, Texas has witnessed dueling press conferences at the Capitol, highlighting the contrasting views on SB 3. Advocates for regulation instead of prohibition have voiced their concerns regarding public safety. Despite Patrick expressing confidence in the governor’s intent to sign the THC ban into law, Abbott’s position remains non-committal, adding further uncertainty to the situation.

If signed into law, SB 3 would take effect on September 1, 2025, marking a pivotal change in the legislative landscape for THC products in Texas. As the deadline for the governor’s decision looms, the tension between public health concerns and economic ramifications continues to grow, leaving both consumers and industry leaders anxiously awaiting the outcome.

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