The Texas hemp industry is at the forefront of a heated legislative battle with far-reaching consequences. Senate Bill 3 (SB 3), proposed by State Sen. Charles Perry and championed by Lt. Gov. Dan Patrick, seeks to ban nearly all forms of THC, the psychoactive compound in cannabis, except for CBD and cannabigerol (CBG). While touted as a way to protect public health, many argue the ban would crush small businesses, eliminate thousands of jobs, and deny patients access to critical medicine.
What Is Senate Bill 3, and What Does It Propose?
Senate Bill 3 is designed to ban consumable hemp products in Texas that contain any amount of THC, including products with Delta-8 or trace levels of Delta-9 THC. If passed, penalties for possessing or manufacturing these products would steeply increase. It would effectively make consumable hemp and THC-infused products illegal outside the state’s limited medical marijuana framework under the Compassionate Use Program.
This proposal directly targets the hemp industry that was legalized in 2019 under House Bill 1325. HB 1325 allowed for the production, sale, and regulation of industrial hemp and consumable hemp products, provided they contained no more than 0.3% Delta-9 THC. SB 3 aims to roll back this progress, marking a stark reversal for an industry valued at over $8 billion annually in Texas.
How Would SB 3 Damage Texas Businesses?
Small Businesses Would Be Shut Down
Texas’ hemp industry supports more than 8,000 businesses, most of which are small, family-owned operations. These businesses have invested their savings into cultivating, manufacturing, and selling hemp-derived products. Now, they may face financial ruin if SB 3 passes. Retailers would be forced to pull their products from shelves, leaving thousands of employees jobless.
Even Texas Agriculture Commissioner Sid Miller, who initially supported the state’s hemp laws, expressed concern, according to the Austin American-Statesman, stating, “You’ve got 8,000 businesses, mostly mom and pops, that have put their life savings into opening these new businesses. And we might put them out of business.”
With an estimated economic impact of $8 billion annually, Texas’ hemp industry generates significant tax revenue and provides income for roughly 50,000 people statewide. SB 3 could wipe out this revenue stream overnight, destabilizing communities and leaving a void in local economies that rely on hemp businesses.
By replacing regulation with prohibition, Texas risks pushing the market underground. This would not only diminish tax collection but also increase the costs of law enforcement and incarceration.
SB 3 Will Also Hurt Texans’ Access to Medicine
For thousands of Texans, hemp-derived THC products aren’t recreational but medicinal. Under the Compassionate Use Program, medical marijuana is restricted to qualifying conditions like epilepsy, autism, and PTSD. However, the program’s barriers—strict eligibility requirements, limited availability, and high prices—make it inaccessible to many patients.
Hemp-derived THC products provide an affordable and effective alternative without the need for strict medical qualifications. Veterans with PTSD, cancer patients undergoing chemotherapy, and individuals managing chronic pain frequently turn to these products for relief. As one industry advocate put it, “Hemp is the light beer of cannabis offerings.” Outright prohibition would remove this option, forcing patients to either resort to the black market or go without effective treatment altogether.
A restrictive ban would also limit diversity in medicinal options, as CBD-only products lack the therapeutic benefits many patients find in full-spectrum hemp.
Public Safety Concerns Do Not Justify This Ban
Supporters of SB 3 claim that banning THC products is necessary to protect youth and prevent overconsumption. However, anecdotal evidence of high-THC products reaching minors or exceeding legal thresholds should not condemn an entire industry. Instead, targeted regulations—such as stricter packaging, clearer labeling, age restrictions, and standardized testing—can address these issues without a blanket ban.
Retired police lieutenant Diane Goldstein stated in her opinion piece for the Austin American-Statesman: “Such bans typically fail because they do nothing to stem demand. Instead, they push consumers into an unregulated black market, creating greater harm due to nonexistent product standards and criminal involvement.”
Prohibition isn’t the answer. Sensible regulation is.
A Balanced Solution Exists
Instead of implementing an outright ban, many are advocating for commonsense reforms to responsibly regulate the hemp industry. One proposed measure is introducing a mandatory age limit of 21 for purchasing hemp-derived THC products. This would help ensure that these products are only accessible to adults.
Another key reform involves stricter testing standards. By funding more rigorous and independent lab testing, regulators can ensure that hemp products remain within legal THC thresholds, safeguarding consumers from unintended exposure to higher levels of THC.
Education and public awareness are also critical components of these reforms. Informing consumers about the safe use of hemp-derived THC and highlighting potential risks would promote responsible use and reduce harm.
These measures aim to protect public health and safety while also preserving the livelihoods of thousands of small business owners and workers who depend on the hemp industry across the state.
What’s Next for SB 3?
While SB 3 has strong backing in the Texas Senate, its fate in the House remains uncertain. The Texas Hemp Business Council has expressed optimism, hoping lawmakers will opt for tighter regulations over an outright ban. House Speaker Dustin Burrows has not weighed in yet, and lawmakers have not proposed comparable legislation in the House this session.
Public resistance is mounting. Hemp industry leaders, law enforcement professionals, medical patients, and advocacy groups are uniting to challenge SB 3. Their message is clear: killing this industry will create more harm than good.
Senate Bill 3 would ultimately be a devastating blow to Texas’ economy, the medical hemp movement, and individual freedoms. By turning back the clock on the progress made since 2019, the bill jeopardizes an $8 billion industry and denies countless Texans access to life-enhancing treatments. The solution to any issues within the Texas hemp industry isn’t prohibition—it’s thoughtful regulation that ensures safety while allowing this booming industry to thrive.
