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Texas set to ban all THC products: What it means for the state’s $8 billion industry

ByMat Blake May 24, 2025May 26, 2025
Texas set to ban all THC products: What it means for the state’s $8 billion industry

A Sweeping Legislative Move

In a decision that has ignited fierce debate, the Texas House of Representatives has passed Senate Bill 3, effectively banning all THC products in the state.

The bill, which received final approval with an 87-54 vote, is now headed to Governor Greg Abbott’s desk for signature. If signed, the ban is expected to take effect on September 1, 2025.

The legislation marks a significant shift in Texas’ approach to cannabis, targeting an industry that has grown to an estimated $8 billion since 2019.

Critics argue the ban will devastate small businesses and push consumers toward illegal markets, while supporters say it’s necessary to protect public health and safety.

What Is Being Banned?

Senate Bill 3 prohibits the retail sale of any cannabinoid except CBD and CBG.

This includes Delta-8, Delta-9, and all other forms of intoxicating THC, such as beverages, gummies, edibles, lotions, and vapes.

The ban covers any consumable hemp product with any concentration of THC, closing what many lawmakers see as a loophole in existing laws.

Adults found in possession of any THC product could face up to a year in jail, while distribution could lead to felony charges.

However, the bill does not affect the Texas Compassionate Use Program, which allows for the use of low-THC cannabis for medical purposes.

Additionally, Texans approved for medical marijuana use can keep their prescriptions.

AspectDetails
Banned SubstancesDelta-8, Delta-9, all intoxicating THC forms (beverages, gummies, vapes, etc.)
Exempted SubstancesCBD, CBG
PenaltiesUp to 1 year in jail for possession; felony charges for distribution
ExemptionsTexas Compassionate Use Program, approved medical marijuana prescriptions
Effective DateSeptember 1, 2025 (if signed by Governor Abbott)

Texas set to ban all THC products: What it means for the state’s $8 billion industry
Texas Original

Why the Ban?

The push for the ban stems from concerns over the unregulated sale of THC products, particularly to minors.

Lieutenant Governor Dan Patrick, a leading advocate for the legislation, has emphasized the need to protect children and adults from what he calls “dangerous, highly-potent, uncontrolled substances.”

In an X post, Patrick stated, “These products are destroying lives and are sold primarily within blocks of our schools.”

The THC industry in Texas has grown rapidly since the passage of House Bill 1325 in 2019, which followed the federal Hemp Farming Act of 2018.

Critics argue this growth has come at the expense of public safety, with unregulated products posing health risks, especially to young people.

Lawmakers have pointed to instances of stores marketing THC products to children and selling them without age restrictions, as seen in recent police raids.

Opposition Grows

The ban has faced significant pushback from industry groups, small businesses, and consumers.

The Texas Hemp Business Council expressed disappointment, stating that SB 3 “dismantles the legal hemp industry” and ignores the needs of small businesses, farmers, veterans, and consumers.

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John Burk, owner of Shell Shock CBD in Richardson, testified against the ban, highlighting that “Texans don’t want this.”

He noted that many veterans use THC products as an alternative to opioids for managing pain and PTSD.

In March, over 170 people signed up to speak at the Capitol against the proposed ban, signaling strong public opposition.

Critics warn that the ban could lead to the closure of thousands of CBD shops and dispensaries, affecting livelihoods and consumer access to these products.

They argue that instead of banning THC outright, the state should focus on regulating and taxing the industry, as proposed by some lawmakers.

Political Divide

While the bill passed with a significant majority, there were notable divisions, even within the Republican party.

State Representative Ken King (R-Canadian) proposed an amendment that would have regulated and taxed THC products instead of banning them outright.

King compared the situation to the failures of Prohibition, arguing that a ban would push users to the black market.

State Representative Brian Harrison (R-Midlothian) also opposed the bill, citing government overreach and the potential harm to small businesses.

He warned that the ban could drive consumers to illegal sources or back to pharmaceuticals.

On the other hand, Republicans like State Representative Tom Oliverson (R-Cypress) and State Representative Terri Leo Wilson (R-Galveston) supported the ban.

Leo Wilson shared a personal story about her daughter’s struggle with THC addiction, underscoring the dangers of these products.

Democrats also voiced opposition, with State Representatives Ron Reynolds (D-Missouri City), Gene Wu (D-Houston), Rafael Anchía (D-Dallas), and Josey Garcia (D-San Antonio) voting against the bill.

Garcia emphasized the reliance of veterans on THC for medical purposes, highlighting the potential negative impact on those already suffering.

PartySupportersOpponents
RepublicansTom Oliverson (R-Cypress), Terri Leo Wilson (R-Galveston)Ken King (R-Canadian), Brian Harrison (R-Midlothian)
DemocratsNoneRon Reynolds (D-Missouri City), Gene Wu (D-Houston), Rafael Anchía (D-Dallas), Josey Garcia (D-San Antonio)

Implications for Texas

The passage of SB 3 could have profound implications for Texas’ economy and public health.

The $8 billion THC industry supports thousands of small businesses and provides jobs across the state.

Critics warn that the ban could lead to the closure of many CBD shops and dispensaries, affecting livelihoods and consumer access to these products.

There are also concerns that the ban might not eliminate the use of THC but could instead push it underground, potentially increasing the risks associated with unregulated products.

Some lawmakers, like King and Harrison, argue that regulation and taxation would be a more effective approach than an outright ban.

Texas set to ban all THC products: What it means for the state’s $8 billion industry
KEYE Austin

Medical Marijuana Expansion on the Horizon

While the state moves to ban all THC products, there is simultaneous legislation aimed at expanding access to medical marijuana.

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House Bill 46, which has already passed the House, seeks to broaden the list of qualifying conditions for medical cannabis use and introduce new forms of administration, such as patches, lotions, suppositories, and vaping devices.

Currently, Texas has a limited medical marijuana program under the Compassionate Use Act, which allows for low-THC cannabis oil for patients with certain conditions like epilepsy, multiple sclerosis, and cancer.

HB 46 would add conditions like chronic pain, PTSD, and autism to the list. The bill also proposes increasing the number of licensed dispensaries from three to fifteen, making it easier for patients to access their medication.

This dual approach—banning recreational THC while expanding medical access—reflects the complex landscape of cannabis policy in Texas, where lawmakers are trying to balance public safety with the therapeutic benefits of cannabis.

However, the fate of HB 46 is uncertain, as it still needs to pass the Senate and be signed by the governor.

Given the recent passage of SB 3, reconciling these two pieces of legislation may prove challenging.

What’s Next?

With SB 3 now passed by both the House and the Senate, it awaits Governor Greg Abbott’s signature. If signed, the ban is expected to take effect on September 1, 2025.

As Texas stands on the brink of this significant legislative change, the debate over the balance between regulation and freedom continues to rage, reflecting broader national conversations about cannabis policy.

The outcome will likely shape Texas’ economy, public health, and cannabis policy for years to come.

Stakeholders on all sides—business owners, consumers, lawmakers, and advocates—will be watching closely as the state navigates this complex issue.

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