In a whirlwind of legislative activity, Texas lawmakers have sent Senate Bill 3 (SB 3) to Governor Greg Abbott’s desk, a measure that could reshape the state’s multibillion-dollar hemp industry by banning all consumable hemp-derived THC products. Simultaneously, they are hammering out a deal to expand the Texas Compassionate Use Program (TCUP), the state’s tightly controlled medical marijuana framework. This dual approach reflects Texas’ fraught relationship with cannabis, balancing prohibitionist instincts with cautious steps toward medical access. The decisions made in Austin could ripple across businesses, patients, and farmers, with implications for everything from Medical Marijuana Online platforms to brick-and-mortar dispensaries.

A Looming Ban on Hemp-Derived THC

Six years ago, Texas lawmakers inadvertently sparked a hemp boom with House Bill 1325 in 2019, legalizing hemp production under the federal Hemp Farming Act of 2018. This opened a loophole, allowing retailers to sell consumable hemp products like gummies, vapes, and beverages containing delta-8 and other THC derivatives, provided they had no more than 0.3% delta-9 THC. The result was a thriving industry, generating an estimated $5.5 billion to $8 billion annually and supporting 50,000 jobs, according to Whitney Economics and other industry estimates. However, SB 3, passed by the Texas House in a 95-44 vote on May 21, 2025, and sent to the governor on May 26, aims to slam this door shut.

SB 3 bans all consumable hemp products containing any amount of THC, except for non-intoxicating cannabinoids like CBD and CBG, which must be registered with the state. Proponents, led by Lt. Governor Dan Patrick and Representative Tom Oliverson, argue the ban protects public health, particularly children, citing cases of psychosis linked to unregulated synthetic THC products. Oliverson, a physician, emphasized on the House floor that Texans should not “self-medicate with unregulated, inconsistent, and highly potent intoxicants.” The bill imposes harsh penalties: up to a year in jail for possession (reduced to a Class C misdemeanor with a $500 fine after amendments) and two to ten years for selling or manufacturing banned products.

Opponents, including the Texas Hemp Business Council, decry the ban as a “death sentence” for an industry that supports small businesses, farmers, and veterans. They argue it ignores the 62% of Texans who, per a 2025 University of Houston poll, support recreational marijuana legalization, and 79% who back medical marijuana. Critics like Representative James Talarico warn the ban will drive consumers to the black market, benefiting cartels over local businesses. Hemp farmers, like those at Caprock Family Farms in Lubbock, note that hemp cannot be grown without trace THC, threatening even non-consumable products like clothing or paper.

Expanding Medical Marijuana Amid Prohibition

While SB 3 tightens the screws on recreational THC, lawmakers are expanding the Texas Compassionate Use Program to soften the blow. TCUP, established in 2015, allows low-THC medical marijuana for a limited number of conditions, such as epilepsy and multiple sclerosis. House Bill 46, currently under negotiation, aims to broaden this program by adding chronic pain and other conditions, potentially increasing the number of licensed dispensaries from three to twelve. This expansion, championed by Oliverson and Patrick, was a key selling point for House Republicans supporting the THC ban, ensuring patients with medical needs retain access to regulated products.

The expansion could boost platforms like Medical Marijuana Online, which connect patients to licensed providers, and Medical Marijuana Wholesale suppliers, who distribute low-THC products to dispensaries. It may also spur growth in Medical Marijuana White Label services, allowing businesses to brand and sell state-approved cannabis products. However, the Senate’s move to scale back some proposed expansions has frustrated House members, who were promised robust access for veterans and others. Susan Hays, a member of the Department of Public Safety’s medical cannabis advisory council, warns that limiting TCUP while banning hemp-derived THC could leave patients “desperate for options,” potentially turning to unregulated markets.

Economic and Social Stakes

The hemp industry’s potential collapse is a major concern. Retailers like Sweet Sensi, located near the Texas Capitol, and Willie’s CBD Shop in Waco face closure if SB 3 becomes law on September 1, 2025. Business owners report serving customers, including veterans and older adults, who use THC products for pain, anxiety, and PTSD. One owner told ABC13, “My customers at 40-60 years old have pain, sleep anxiety... I give a veteran’s discount.” The Texas Hemp Business Council estimates the ban could shutter 8,500 licensed retailers, disrupting livelihoods and tax revenue.

Farmers are equally alarmed. Texas Agriculture Commissioner Sid Miller insists the ban won’t harm industrial hemp, but growers like Ann Gauger argue otherwise, stating, “This just puts us back to where we started.” The drought-resistant crop was a lifeline for farmers diversifying from cotton and wheat, but SB 3’s restrictions could make cultivation unviable. Legal challenges are already brewing, with Hometown Hero’s CEO Lukas Gilkey vowing to sue, backed by the Texas Hemp Business Council.

Public Sentiment and Political Tensions

Public opinion leans heavily against the ban. The University of Houston poll highlights strong support for cannabis legalization, reflecting a national trend. Morgan Fox of NORML told Newsweek that bans historically fail, pushing consumers toward dangerous, unregulated products. The Texas Hemp Business Council has flooded Abbott with veto requests, but the governor, who “thoughtfully reviews” all legislation, has not signaled his stance. Posts on X, like those from @MarijuanaMoment and @TexasTribune, underscore the tension, noting the ban’s threat to an $8 billion industry while highlighting TCUP’s expansion as a partial counterbalance.

A Fork in the Road for Texas

As Texas stands at this cannabis crossroads, the juxtaposition of SB 3 and TCUP’s expansion encapsulates a broader struggle: balancing public safety with personal freedom, economic growth with regulatory control. The ban could dismantle a vibrant industry, pushing consumers toward Medical Marijuana Online platforms or illicit markets, while the medical expansion offers a lifeline to patients but may fall short of expectations. For businesses involved in Medical Marijuana Wholesale or Medical Marijuana White Label ventures, the outcome hinges on Abbott’s pen and potential legal battles.

Texas’ cannabis saga is far from over. If signed into law, SB 3 will reshape the state’s economic and social landscape, forcing stakeholders to adapt or fight back. For now, all eyes are on the governor’s desk, where a single signature could redefine the future of cannabis in the Lone Star State.

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Reference:

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2.    Donnan, J., Shogan, O., Bishop, L., Swab, M., & Najafizada, M. (2022). Characteristics that influence purchase choice for cannabis products: a systematic review. Journal of Cannabis Research, 4(1). https://doi.org/10.1186/s42238-022-00117-0

Gebru, N., Aston, E., Berey, B., Snell, L., Leeman, R., & Metrik, J. (2023). “that’s pot culture right there”: purchasing behaviors of people who use cannabis without a medical cannabis card. Cannabis. https://doi.org/10.26828/cannabis/2023/000168