New ban threat for Texas hemp THC market as medical marijuana access expands

Republican state Sen. Charles Perry announced that he will re-file a total ban bill in the next legislative session, which begins in January.
Published: July 9, 2026

A Texas lawmaker plans to try again to ban hemp-derived THC products, setting up another fight that could reshape the state’s $5.5 billion hemp market in 2027.

During a Texas Senate Health and Human Services Committee hearing Tuesday, Republican state Sen. Charles Perry announced that he will re-file a bill that would ban hemp THC products outright in the next legislative session, which begins in January, according to The Texan.

“The taxpayer is going to stop funding at a minimum next session,” Perry said at the hearing, according to The Texan.

Is hemp THC still legal in Texas?

Cannabis operators are flocking to Texas, where several marijuana multistate operators are building out new locations under expanded medical cannabis laws.

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But in the meantime, hemp-derived THC is still an estimated $5.5 billion market despite new laws that some operators say are restricting businesses.

At the hearing in the Capitol on Tuesday, much of the testimony centered on rising THC-related incidents among children.

Dr. Manda Hall, deputy commissioner of Community Health Improvement, said the Texas Poison Center Network logged 10,515 THC exposure-related calls, with the largest group involving children 5 years old and younger, according to The Texan.

Dr. Dominic Lucia of the Baylor Scott & White Health system testified that cannabis overdose visits at his pediatric hospital more than quadrupled, climbing from 348 in 2021 to more than 900 last year.

University of North Texas professor Dr. Matthew Rossheim cited a national study showing pediatric THC poisonings among children 11 and younger rose more than 400% between 2018 and 2023.

What could a ban mean for business owners?

Perry’s renewed push follows a familiar path.

In 2025, Senate Bill 3 would have banned the manufacture, sale and possession of hemp-derived THC products while allowing CBD and CBG sales to adults 21 and older. The bill passed both chambers, but Gov. Greg Abbott vetoed it just before the session ended, The Texan reported.

For business owners, the stakes are high.

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Estella Castro, owner of Austinite Cannabis Co., said about 60% of her revenue comes from THC products.

“Banning it is just hurting the consumer,” Castro told KEYE-TV.

She said a total ban would push customers to illicit sources and urged lawmakers to find “some middle ground” rather than prohibition.

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