23-05-2025
Retailers brace as hemp-derived THC products ban nears law in Texas
A sweeping ban on hemp-derived THC products is on the verge of becoming law in Texas, with Senate Bill 3 now awaiting only the governor's signature after clearing both legislative chambers.
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
CBS News Texas
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
Hemp retailers warn of closures
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.
