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Texas lawmakers poised to ban THC, threatening massive hemp industry
Texas lawmakers poised to ban THC, threatening massive hemp industry

Axios

time22-05-2025

  • Politics
  • Axios

Texas lawmakers poised to ban THC, threatening massive hemp industry

The Texas Legislature is poised to approve a ban on THC. Why it matters: The move would spell trouble for Texas' multibillion-dollar hemp industry, leaving those who rely on legal over-the-counter THC products, including veterans, in the lurch. Driving the news: The Texas House on Wednesday took an initial vote in favor of Senate Bill 3, already passed by the Senate. A final House vote could come as soon as Thursday, potentially sending the bill back to the Senate to approve minor changes — and then likely to Gov. Greg Abbott's desk. Abbott, who can veto the effort, hasn't indicated his thoughts on the issue. When asked about his stance on the bill, his office told the Texas Tribune he "will thoughtfully review any legislation sent to his desk." Context: The fight is over consumable delta-8 THC, which Texas lawmakers legalized in 2019. Delta-8 THC is a minor chemical variant of the main psychoactive ingredient in traditional cannabis and provides lesser psychoactive effects. It can be coupled with CBD, another hemp-derived compound used for pain relief and mental wellness. In 2019, Abbott signed the Texas farm bill, which partly legalized products containing small amounts of hemp-derived delta-8 THC, including edibles, beverages, vapes and traditional bud. Yes, but: Lt. Gov. Dan Patrick in 2024 waged war on the substance, saying products were being sold with "unlimited THC" and marketed to children with "life-threatening" consequences. With Patrick's backing, state Sen. Charles Perry (R-Lubbock) filed the THC ban bill in February. The Senate passed it 26-5 in March. Friction point: The Legislature appeared torn on how to move forward with consumable hemp-derived THC. Republican state Rep. Ken King filed House Bill 28, competing legislation seeking to instead regulate legal THC by imposing age restrictions, banning synthetic cannabinoids and introducing strict licensing requirements for the hemp industry. That bill received a hearing in the House Committee on State Affairs on April 7, the same day the committee heard testimony on SB 3. While SB 3 was voted out of the committee in the following days, HB 28 languished. What they're saying:"Banning this entire category won't protect children, but it will have devastating economic impacts on Texas hemp farmers, retailers, distributors and more," Jake Bullock, CEO of THC beverage company Cann, sold across Texas, said in a statement. "Instead of imposing the sensible regulations companies like ours have been advocating for … lawmakers compounded the problem by driving dangerous untested high-dose synthetic products underground and by taking away adults' freedom to choose the safe products they want," Bullock said. The other side: Patrick said regulating THC isn't possible, calling the substance "poison" in a social media video he shared this week. "We can't regulate it," Patrick said. "We don't have enough police to check every store when there are 8,000 to 9,000 of them." The big picture: The move comes as more states have loosened cannabis restrictions in recent years. Twenty-four states and the District of Columbia allow the sale of marijuana for recreational purposes, and medical marijuana is legal in 39 states, including a limited program in Texas, and the district, per Stateline.

Hearing held on legislation of Texas hemp industry
Hearing held on legislation of Texas hemp industry

Yahoo

time08-04-2025

  • Business
  • Yahoo

Hearing held on legislation of Texas hemp industry

The Brief There was a hearing on legislation regarding the Texas hemp industry SB 3 would ban the sale of all products with THC HB 28 bans synthetic THC and products like gummies, but it allows hemp-infused beverages which would be regulated in alcohol AUSTIN, Texas - On Monday, members of the House State Affairs committee took up two bills that would dramatically reign in what's grown into a multi-billion-dollar industry. A House bill scales back sales with new regulations, while a plan from the Senate is essentially a ban on all products with THC. The sale of hemp products with low levels of THC was allowed about seven years ago. The backstory "Members, the unregulated industry that currently exists is a public health hazard. And it is our duty to ensure that we're protecting Texas against harmful products," said Committee Chairman Ken King (R) Canadian. SB 3 would ban the sale of all products with THC, except those authorized by the Compassionate Use law. HB 28 bans synthetic THC and products like gummies, but it allows hemp-infused beverages which would be regulated in alcohol. "This regulatory structure will also maintain the federal restriction on THC of no more than 0.3%, as well as limiting the amount a person can buy in a single day to 10 milligrams. House Bill 28 intends to stop advertising to children by making the legal age of consumption of these products 21, requiring ID verification during the purchase, and by creating regulations on advertising," said Chairman King. What they're saying The committee heard opposition to both bills. The police chief of Allen, Texas, Steve Dye, spoke to the committee about the crime linked to hemp stores in his town. He is with the Texas Police Chief's Association, which wants a tougher approach. "Our concerns with House Bill 28, as written include THC beverages, it should not be considered as a carve out. To us, the beverage is just another delivery method as vapes, waxes and edibles. We can't rush this decision as it will only create another loophole that we'll be addressing again in 2027," said Chief Dye. One loophole came up in the questioning a beverage distributor. It involved moving across the state line. Chairman King asked Ben Meggs of Bayou City Hemp if he moved out of Texas, would he still be able to ship his product to Texas residents? "Yes sir, we would. It's federally legal. We believe we can't stop interstate commerce," said Meggs. Lawmakers were also warned they could be helping those in the black-market. "If we ban everything on the market and don't have a solution for that $8 billion, then all we are doing is creating a bigger problem," said David Mukpo, the owner of Pamos Beverages. Concerns about over-regulation and unintended consequences were raised. That was a topic in the questioning from Dallas Democrat, Rafael Anchia, to cannabis law expert Susan Hays. Anchia noted how the House plan allows drinking a THC product but not allowing it to be put under a tongue as an oil. "To carve off these delivery systems as a crime and this is okay makes no sense to me. There are plenty of good manufacturers and retailers in this state," said Hays The committee was urged to regulate not to eliminate. "We want you to want our product. I want you to use my sleep gummies tonight. I just want you to believe in us enough to know that we will regulate for you and with you," said Katie Frazier, who runs a hemp product business in Austin. The owner of a company in Louisville, Kentucky, told the committee the reforms would close off Texas for his business. "Our Texas customers are not criminals, and neither am I, unless Texas makes me one," said Jim Higdon with Cornbread Hemp. The committee did hear strong support for banning synthetic THC products. Christine Scruggs, a mom from Pearland, testified her son was hooked on items he bought at a store in Georgetown, believing they were safe. "He was diagnosed with cannabis-induced psychotic disorder. He worked through a dual diagnosis program for eight and a half months. His therapist told him he's lucky not to have been converted to a long-term diagnosis of bipolar or schizophrenia," said Scruggs. What's next The House committee worked into the evening on the Senate Bill. Regardless of which regulatory hammer is sent to the full House, modifications are expected before any legislation is sent to the governor. The Source Information from the Texas legislative session

Future of THC up in the air at Texas Capitol as store owners call for regulation over bans
Future of THC up in the air at Texas Capitol as store owners call for regulation over bans

Yahoo

time08-04-2025

  • Business
  • Yahoo

Future of THC up in the air at Texas Capitol as store owners call for regulation over bans

AUSTIN (Nexstar) — Members of the Texas House Committee on State Affairs listened to hours of public testimony over the future of THC as lawmakers decide if the hemp-made products will be completely banned or regulated. As of 5 p.m. Monday, lawmakers were still listening to members of the public about House Bill 28, which would ban all THC consumables, like vapes and edibles, but would regulate THC-infused drinkables. Texas Rep. Ken King, R – Canadian, filed the bill. Also scheduled for testimony on Monday is Senate Bill 3, which would create a complete ban on THC products. It passed the Texas Senate on March 19. HB 28 calls for many of the regulatory measures that lawmakers and many cannabis industry advocates have been pushing for including 21+ age restrictions on purchases, banning synthetic cannabinoids, more stringent testing of products, packaging that is child-resistant and responsibly marketed, and limits on the milligrams of THC in a serving. Steve Dye, the Chief of the Allen Police Department, testified against HB 28 because he supports a complete ban on all THC products, including drinkables. Dye testified his 27-square-mile town has 24 shops that sell THC products, and investigations by his department found the potency of current products is far higher than in years past. 'The average THC concentration is 29%,' Dye testified. He also said his department is regularly finding high school-age children with THC consumables. Mickey and Todd Harris — third-generation Austinites — are brothers and business partners who own The Happy Cactus, a CBD store. They are approaching their four-year anniversary of opening, but they worry with this new legislation will lead to the closure of their business and many like it around the state. 'We're just frustrated that they're trying to attack something that's been so beneficial to our community in Texas,' Harris explained. A complete THC ban would leave their business with just one product eligible to be sold that is currently on their shelf. Their business also sells THC-drinks but that only makes up about 5% of their sales. They are against both bills and instead are asking lawmakers to require regulations instead of bans on THC products. The brothers say they regularly regulate the products they sell in their own store, and they would appreciate if the state required all businesses to do the same. 'So we could still supply all the products that Texans need, but still make sure that they're safe,' Harris explained. The Happy Cactus is actually located across the street from Crockett Early College High School, which has became a major concern for those who support a complete ban on THC products. The brothers sent a letter to the principal of the school to work with them on making sure no high school children are even entering their business. In the four years of being opened, the brothers say they have never had an issue with a high school student coming into their store as they always card everyone who comes to make sure they're over the age of 21. The letters can be read below: Letter to Crockett Early College High SchoolDownload Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Hundreds of Texas Businesses to Testify Against SB3 and HB28 as Texas Hemp Business Council Urges House Lawmakers to Reject Industry-Killing Legislation
Hundreds of Texas Businesses to Testify Against SB3 and HB28 as Texas Hemp Business Council Urges House Lawmakers to Reject Industry-Killing Legislation

Associated Press

time04-04-2025

  • Business
  • Associated Press

Hundreds of Texas Businesses to Testify Against SB3 and HB28 as Texas Hemp Business Council Urges House Lawmakers to Reject Industry-Killing Legislation

AUSTIN, Texas, April 04, 2025 (GLOBE NEWSWIRE) -- Hundreds of local businesses, farmers and industry advocates will gather at the Texas Capitol on Monday, April 7 to testify against Senate Bill 3 and House Bill 28, sending a clear message that this legislation would devastate the state's thriving hemp industry. The Texas Hemp Business Council is calling on state legislators in the Texas House of Representatives to reject SB3 and HB28 during Monday's public hearing, being held by the Texas House Committee on State Affairs. 'We are urging the Texas House to carefully consider the consequences of SB3 and HB28 on the tens of thousands of small businesses, farmers and consumers who rely on the hemp industry,' said Cynthia Cabrera, president of the Texas Hemp Business Council and chief strategy officer at Hometown Hero. 'Texas has built a thriving hemp market that provides jobs, tax revenue and access to safe, legal products for responsible adults. Restrictive measures risk stifling innovation, driving businesses out of state, and limiting consumer choice. We stand ready to work with lawmakers to ensure common-sense regulation that balances public safety with economic opportunity. The future of Texas hemp is at stake, let's get it right.' SB3 Threatens Jobs, Small Businesses and Consumer Choice A newly released economic report, Hemp-Derived Cannabinoids in the Lone Star State: A Revisit of the Economic Impact Analysis of Cannabinoid Retail in Texas,* reveals that the hemp industry is a major contributor to the Texas economy, generating $5.5 billion in annual sales with an estimated tax revenue of $268 million. Developed by Whitney Economics, the report also found that proposed state regulations, including Texas SB3, which seeks to ban all hemp-derived THC products, could cost the industry $7.5 billion and 40,201 jobs, according to the latest data. Other findings include: Retail Growth: In 2025, retail revenue reached $4.3 billion, up from $3.3 billion in 2023, highlighting sustained consumer demand. Industry Expansion: Total employment in the hemp industry grew to 53,300 jobs in 2025, an increase of 3,200 from 50,100 in 2023. Higher Pay: Industry-wide wages rose to $2.1 billion in 2025, up from $1.6 billion in 2023, with hourly pay increasing across all sectors. Texans Overwhelmingly Support Regulated Hemp, Not a Ban A recent survey by Baselice & Associates, Inc.** found that 68% of likely Texas voters support keeping hemp-derived consumable THC legal, provided it is regulated with measures like age restrictions and warning labels. In contrast, only 20% favor an outright ban. Other findings include: Support for legalization is strongest among younger voters, with 76% of those aged 18-34 in favor, compared to 55% of senior citizens. Republican voters favor regulation over prohibition by a two-to-one margin (57% vs. 29%), while Democrats overwhelmingly support keeping THC legal (80% vs. 10%). Independents align closely with the statewide average (72% vs. 17%). A Call for Common-Sense Regulation, Not Prohibition Texas law (HB1325 passed in 2019) already provides essential hemp oversight, including comprehensive testing, licensing, labeling requirements and certificates of analysis. Building on this foundation, THBC supports additional measures to further enhance safety and industry standards, including: Limiting sales to individuals 21 and older (except for veterans). Child-resistant packaging for consumer safety. Retail setbacks from schools for adult-use products. 'Hemp businesses across Texas are standing together because this isn't just about one industry, it's about livelihoods, consumer rights and the future of entrepreneurship in our state,' added Cabrera. 'Texas deserves better than a ban. Likewise, we strongly oppose HB28, which would further harm small businesses and limit consumer choice. We call on legislators to stand with Texans, not against them, and vote no on both SB3 and HB28.' How to Testify Texas residents who wish to electronically submit comments on SB3 and HB28 without testifying in person can do so after the public hearing is adjourned by visiting: For those persons who wish to testify in-person, information on witness registration can be found here: About the Texas Hemp Business Council The Texas Hemp Business Council is an industry organization dedicated to promoting the hemp-based cannabinoid industry in Texas, while advocating for consumer safety, education and stakeholder engagement. More information can be found by visiting Headquartered in Austin, Texas, Hometown Hero manufactures and distributes a variety of hemp-derived products, such as Delta-9 THC, Delta-8 THC, CBD, CBDA + CBGA, among others. Founded in 2015 by Lukas Gilkey and Lewis Hamer, the company donates a portion of all proceeds to various charities and organizations that support veterans. Hometown Hero is also a founding member of the Texas Hemp Business Council. For more information, visit or follow the brand on Twitter and Instagram @HometownHeroATX. * Conducted over six weeks in early 2025, the survey by Whitney Economics reached over 4,500 businesses, representing about 53% of Texas' estimated 8,500 hemp-related businesses. Media Contacts: 310.279.5980

One measure of property tax relief works its way through Ohio Statehouse
One measure of property tax relief works its way through Ohio Statehouse

Yahoo

time25-03-2025

  • Business
  • Yahoo

One measure of property tax relief works its way through Ohio Statehouse

COLUMBUS, Ohio (WCMH) — Property tax reform and relief is something Ohio lawmakers say they want to get done and now, after years of inaction, one measure has taken a step forward. House Bill 28 is a reintroduction of a bill from the last general assembly that never saw a floor vote, but this general assembly, three months in, and it is on its way to the Ohio Senate. The legislation would eliminate replacement levies. 'We have a lot more work to do in this body,' Ohio House Assistant Minority Leader Dontavius Jarrells (D-Columbus) said. 'And that bill takes us in the wrong direction.' 'If we want to enact real property tax reform, we need to fix the system that got us into the point that we're in today,' Rep. Thomas Hall (R-Madison Township), one of HB 28's sponsors, said. Here's what to know about levies: there are three different types you might see when you go to the polls. One always results in an increase, one never does, and one is variable. A 'renewal levy' reinstates an already existing levy. A 'renewal with an increase,' reinstates an already existing one with an increase. A 'replacement' recalculates property taxes owed based on the latest valuation of one's home, oftentimes resulting in an increase. 'I think [House Bill 28] brings transparency for the voters when they go to the ballot box to make informed decisions,' Hall said. 'Replacement levies are very confusing. This doesn't take away the ability for renewal. This doesn't take away the ability for people to have a renewal with an increase. It just takes away one of their tools that we feel like is very misleading when presenting to voters.' Hall said voters often don't know that type of levy will cause an increase and said that overall, this will simply empower voters with more information with two clear levies. In the state's November 2023 election, replacement levies passed at an 89% rate across the state, and renewal with increase levies passed at an 86% rate. Democratic leaders said eliminating replacement levies does not help bring Ohioans direct relief, and it stands to hurt local governments. 'It would take away opportunities for our local governments to be able to have options when they're putting levies on the ballot,' Rep. Beryl Brown Piccolantonio (D-Gahanna) said. 'It is maybe a tiny little piece of what we've been talking about with property tax relief, but it does it at the expense of flexibility for our local governments who are already struggling.' What services might be at risk? Jarrells said he worries that fire and police departments, mental health services and other locally funded services might feel the brunt of a removal of replacement levies if the bill goes all the way through. 'We should be really having honest conversation around property taxes,' Jerrells said. 'How do we actually support our cities without necessarily taking tools away?' While this bill has gotten through the Ohio House, there are at least 15 others aiming to bring Ohioans property tax relief that are being worked on in committee. But how is it going to get done? 'When you're trying to solve a big problem with lots of parts to it, I think it's best to pass the things that are easiest first and that are clearest,' Ohio House Speaker Matt Huffman (R-Lima) said. 'I think it's a good start, but there is much more to do.' 'We need comprehensive property tax reform instead of just taking a buzzsaw to every little thing,' Rep. Dan Troy (D-Willowick) said. 'We can do better.' Right now, several of the bills focus on relief for elderly Ohioans, but lawmakers said that is not where they want to stop, just where they want to start. 'I do think that property tax reform is needed for all levels of age, but I do have a soft heart and focusing primarily on our people, on a fixed income,' Hall said. 'Our system right now is taxing some of these people out of their own homes.' House Bill 28 must now be considered by the Ohio Senate before a vote to pass sends it to the governor's desk. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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