Retailers brace as hemp-derived THC products ban nears law in Texas
Thousands of hemp stores across Texas are nervously watching the state Legislature to see whether they may soon be forced to shut down.
At any moment, a ban on THC in hemp products could receive final approval from lawmakers and head to the governor, who has not yet said whether he will sign it into law.
The bill, which has sparked heated debate, would outlaw the sale, possession, and manufacture of any consumable product containing THC — the psychoactive compound found in cannabis — even in trace amounts.
Retailers warn of business losses
Retailers across the state, including Oak Cliff Cultivators in Dallas, are bracing for the fallout.
Just about everything you see inside this Oak Cliff hemp store, outside of the clothing, would be illegal to sell if the statewide ban goes into effect.
Eddie Velez, owner of Oak Cliff Cultivators, expressed frustration over the legislation.
"It's a tough pill to swallow," Velez said. "We've been in the industry trying to do everything right. We followed the rules. We maintained our permits, and yet we are having the rug pulled out from under our feet."
Critics say loophole fueled growth
The bill, which passed the House in a 95-44 vote, would effectively dismantle a multibillion-dollar industry that has flourished since hemp was legalized in Texas in 2019. That law allowed for the sale of hemp products with low levels of delta-9 THC, but did not regulate other intoxicating cannabinoids like delta-8, which critics say created a loophole.
Lawmakers cite youth access concerns
Supporters of SB 3 argue that the hemp industry has failed to adequately regulate THC content and prevent access by minors.
"Let's be clear, no social good comes from the legalization of intoxicants," said Rep. Tom Oliverson, R-Cypress, who authored the amendment that restored the bill to a full ban. "We are not banning hemp — we are banning high. If it gets you high, it is not legal anymore."
The legislation includes exceptions for the state's low-THC medical cannabis program, but would impose criminal penalties of up to a year in jail for possession and up to 10 years for manufacturing or selling banned products
Police raids uncover illegal THC
Police raids on nine smoke shops and hemp retailers in Allen last year uncovered products with THC levels well above the legal limit of 0.3%, according to authorities.
Community concerns spark investigation
Allen Police Chief Steve Dye said the investigation began after community members raised concerns about young people frequenting the shops.
"So about a year and a half ago, when I became the chief of police in Allen, I had a lot of community members expressing concerns about these smoke shops and children, young people going into these locations," Dye said. "So, you know, we started to investigate."
Chief warns of widespread issue
Dye said the industry is targeting youth and described the situation as widespread.
"It is a plague because it's in every city and town across the state," he said. "The concentration of THC is almost always well over 0.3%, which makes it addictive and harmful."
Immediate enforcement if ban passes
If a proposed statewide ban on certain THC products is enacted, Dye said the city will act swiftly.
"Each business will receive a letter from me notifying them of the new law, and we expect compliance immediately," he said. "If we find that there's not compliance, then we will certainly investigate. And if we find additional criminal offenses, we will file those charges."
Hemp retailers warn of closures
Meanwhile, retailers like Velez, who supported age restrictions and bans on synthetic cannabinoids, say the total prohibition goes too far.
"We were willing to work with lawmakers on reasonable regulations," he said. "But this is a death sentence for our business."
The bill's passage marks a dramatic reversal for Texas, which only six years ago legalized hemp to support agriculture. Now, with thousands of businesses and tens of thousands of jobs on the line, the industry faces an uncertain future.
