Texas lawmakers signal shift from hemp THC ban to regulation in 2027

Texas state lawmakers are learning toward regulating hemp-derived THC rather than banning the popular products — and estimated $5.5 billion market.

Last year’s failed attempt to ban hemp THC products highlighted their strong public support, Democratic state Sen. Nathan Johnson and Republican state Rep. Drew Darby said Friday at the Texas Cannabis Policy Conference in Austin.

Attempt to ban Texas hemp THC showed market’s strength and popularity

“I don’t know of any area that is so in flux than this issue right now,” Darby said during a panel discussion. “We almost have to take it on.”

The lawmakers said some attempt to regulate the industry is likely when the state Legislature meets again in 2027.

Texas, which until only recently did not allow substantial levels of THC in legal medical cannabis, quickly became the country’s biggest market for hemp-derived THC.

That drew unwanted attention from Republican Lt. Gov. Dan Patrick, who campaigned hard for a blanket ban on the products. But Republican Gov. Greg Abbott surprised some when he vetoed a ban on all THC products passed by the Legislature last June.

Patrick is likely to try again to ban hemp THC in Texas. But Johnson believes the moment has passed.

“I believe he will try, but I don’t think the House is going go with it again,” Johnson said, according to the Texas Tribune.

Existing Texas hemp THC regulations not quite good enough for industry

In September, Abbott issued an executive order that delegated authority over hemp-derived THC to state agencies, but some operators are playing by different rules.

While some proposed rules, like banning sales to people younger than 21, have received industry support, others have drawn criticism for potentially harming small businesses with stringent requirements and high licensing fees.

Operators say subsequent regulations imposed by the Texas Alcoholic Beverage Commission (TABC) and the Department of State Health Services (DSHS), such as a proposed ban on hemp flower that can be smoked, are too strict.

And the TABC rules don’t cover the thousands of hemp retailers, such as smoke shops and online stores, that fall under DSHS jurisdiction.

Business owners like Todd Harris of The Happy Cactus Apothecary in Austin said the industry needs clear rules, especially regarding marketing to prevent access by minors.

“No one wants that – I don’t want kids to have it,” Harris said, according to The Tribune. “We want to be regulated.”

How will federal THC ban affect Texas hemp THC – and Texas medical marijuana?

It’s also unclear how Texas lawmakers might approach hemp-derived THC if a federal ban on most hemp products goes into effect as scheduled in November.

And Texas’ recently expanded medical cannabis program is also set to offer products higher in THC than ever before – and to make them more widely available. 

For now, hemp industry advocates are hopeful that lawmakers will create a more business-friendly system.

“Texas is on a trajectory for providing safe and legal access for responsible adult use,” said Heather Fazio, director of the nonprofit organization Texas Cannabis Policy Center, according to The Tribune.