Texas Senate Moves to Ban THC-Infused Hemp Products, Threatening $8 Billion Industry

The Texas Senate has taken a decisive step toward banning all consumable hemp products containing THC, a move that could devastate an industry generating billions of dollars and employing tens of thousands of people. Lawmakers approved Senate Bill 3 on March 19 in a 24-7 vote, pushing the measure closer to becoming law.

Bill Advances to the Texas House

S.B. 3 now heads to the Texas House for consideration, carrying the weight of Lt. Gov. Dan Patrick’s endorsement. The legislation, sponsored by Sen. Charles Perry, seeks to undo portions of a 2019 law that legalized the commercial production and sale of industrial hemp in Texas.

That earlier law, House Bill 1325, aligned Texas with the federal 2018 Farm Bill, which permitted the sale of hemp products containing no more than 0.3% delta-9 THC. But Perry argued that companies have since abused the law, creating and distributing intoxicating hemp products that exceed intended THC limits.

Concerns Over Unregulated Products

According to Perry, what was originally intended to boost industrial hemp farming has morphed into an unchecked marketplace for high-potency THC products.

“This was never meant to be about intoxicating products,” Perry told his colleagues on the Senate floor. “The goal was fiber, the goal was industrial, but what we got instead was synthetic THC flooding the market.”

He pointed to the rise of delta-8 THC, a cannabinoid with psychoactive effects similar to delta-9 THC, though derived from hemp through a chemical process. While delta-8 exists in trace amounts in hemp plants, most commercial products use a process involving solvents and acids to create large quantities of the compound. The result? An explosion of unregulated intoxicating edibles and vapes on Texas store shelves.

What’s at Stake for the Industry?

The potential impact of this bill is staggering. The hemp industry in Texas is valued at an estimated $8 billion and supports around 50,000 jobs. If the legislation becomes law, businesses that rely on THC-infused hemp products could be forced to shut down overnight.

Industry advocates argue that the measure would punish legitimate businesses while driving consumers to unregulated markets. Others fear the economic fallout, as Texas has become a key player in the national hemp industry.

“The entire industry would collapse,” said one hemp retailer in Austin. “We’re talking about tens of thousands of people who will be out of work. It’s not just stores; it’s farms, manufacturers, distributors. It’s a chain reaction.”

Delta-8 and the Legal Grey Area

Delta-8 THC exists in a legal limbo. The 2018 Farm Bill legalized hemp-derived compounds, but it did not explicitly regulate finished goods like edibles and vapes. This has allowed delta-8 THC to flourish across the country, creating a multi-billion-dollar industry.

The federal government has yet to step in with comprehensive regulations, leaving states to tackle the issue on their own. Some, like New York and Colorado, have already banned delta-8 products. Others, like Texas, are now debating whether to follow suit.

A key legal argument hinges on whether delta-8 products qualify as “synthetic” cannabinoids. The DEA has suggested that synthetically derived THC remains a controlled substance, though enforcement varies by jurisdiction.

What Happens Next?

The Texas House will now take up S.B. 3, where its fate remains uncertain. If passed, Gov. Greg Abbott will decide whether to sign it into law or veto it.

Supporters argue the bill is necessary to curb an industry that has spiraled out of control, leading to unregulated products that pose health risks, particularly to minors. Opponents, however, see it as government overreach that could devastate small businesses and farmers.

With billions of dollars and thousands of jobs on the line, all eyes are now on Texas lawmakers as the debate continues.