Sydney Torabi was shocked to see the Texas House vote late on Wednesday night, which would have banned all THC-containing products. She could not believe that she might lose a large part of her income by fall.
“My jaw dropped. Torabi who founded her company with her sister 7 years ago said, “I didn’t know what the result was.”
Senate Bill 3 by Sen. Charles Perry, a Lubbock Republican who also carried the 2019 hemp legalization bill that created the THC proliferation, would penalize violators who knowingly possess hemp products with any amount of THC with a misdemeanor that can carry up to a year in jail. The manufacturer or seller of these products could face up to ten years in jail. This measure has just a few more procedural steps to go before it reaches the governor. Greg Abbott (R)’s desk.
As of April 2024, Texas had over 7,000 registered hemp sellers. The state’s hemp industry is estimated to employ more than 50,000 people and generate $7 billion in tax revenue annually, according to a study done by Whitney Economics. The Texas Tribune reported that, as THC-containing hemp goods, such as gummies and drinks, clothes, lotions, coffee and more, are set to be criminalized on Sept. 1, many retailers have decided to either close their stores, sell in bulk or remain open, while being declared drug dealers by the state, to fight this issue in court.
Torabi added that it was “devastating” and that the other bills were held in limbo until Senate Bill 3 passed. The saddest thing is that Senate Bill 3 was held hostage until it passed. [Lt. Gov. Dan Patrick (R)] Use people to surprise everyone.
Patrick, the Senate’s chief overseer, led the campaign to ban THC in this session. He accused retailers of exploiting vulnerable minors, setting up shops near schools, and marketing their products to them.
Patrick wrote in a Facebook post, before Senate Bill 3 became law, “We can’t leave Austin with a good conscience, without banning THC. This drug is harming Texans and their families, as well as our children.”
A year after hemp was made legal in the United States, the GOP-controlled Legislature approved the sale of edible hemp to promote Texas agriculture. This included hemp that contained trace amounts of THC delta-9.
The result was the proliferation of hemp-based products in dispensaries, convenience stores and other retail outlets across the entire state.
The Texas Hemp Business Council released a statement on Thursday stating that they were “deeply disappointed” by the Texas House passing SB 3. This bill would destroy the legal hemp sector and disregard the voices of farmers, small business owners, veterans, and consumers in the state, who depend on hemp products to support their lives and livelihoods. We urge Governor Abbott not to sign SB 3 in order to protect tens and thousands of hardworking Texans.
Hemp producers and retailers were eager to convince House legislators of their desire to implement stricter licensing and oversight requirements. Lawmakers in the lower chamber initially seemed willing to adopt regulations despite an outright ban, which makes the sequence of events this week feel like a betrayal to many business owners.
I know that there are people who care in this House. Torabi stated, “It’s unfortunate.”
The future of hemp retail in Texas is now different.
For Nick Mortillaro, a managing partner at Lazy Daze, a Central Texas-based cannabis coffee shop chain, the ban means moving his business to another state.
He said: “We’re looking into closing some stores, consolidating, and moving our staff and stock to other states, like New Mexico and Maryland.” He said: “We’ll have to change the products in a number of stores.”
California banned hemp, which led to retailers having flash sales in order to clear out inventory. Customers also bought items in large quantities. The state’s medical marijuana program, which is a robust one in California, helped to buy the product.
Torabi believes her shop won’t try to dump products. Texas doesn’t have a big enough customer base for medical marijuana to allow this.
Torabi added, “They’ve made tiny steps to fix Texas’ medical marijuana program. We need giant leaps.” The medical marijuana program is a baby and many Texans are not able to access it. California has infrastructure, we don’t. Where are we going to send the customers that depend on us?”
Torabi claimed that, if the ban is implemented, she will lose “a great majority” (including gummies, drinks and hemp flower for smoking) of the products which she currently sells. She claimed that it is almost impossible to find a THC-free product in her store.
Those who use hemp for medicinal purposes have been the ones to most strongly oppose the ban of all hemp products. This year, veterans, parents with children who have mental or physical disabilities and elderly people spoke out to legislators about how important it is to be able to access hemp products.
The Legislature is considering plans to expand the state’s medical marijuana program by April 2026. Yet, many users say they prefer to purchase products in smoke shops. They find them cheaper, easier to access, and don’t have to travel far to see a physician.
Shortly after Wednesday’s House vote, Lukas Gilkey, chief executive of Hometown Hero, a manufacturer of hemp-derived products, said industry leaders would immediately begin preparing a lawsuit to challenge the expected ban, likely on the grounds that it disrupts interstate commerce, similar to arguments made in other court cases across the country.
In a post on his social media page, he stated: “This battle is not yet over. We’ll continue to fight so that you, your business, and your livelihoods survive, as well as this community.”
This could give retailers a little time. A Tennessee judge allowed hemp products to remain on the shelves earlier this year as she worked on arriving on a decision on whether to allow the state to regulate the industry there.
Torabi, along with her sisters, said they have been circulating petitions as well as speaking to various business councils on how to combat the ban. This includes asking Abbott to put a veto to the bill.
She said, “This will create the illicit market because people will be scared or timid.”
Mortillaro has become more sceptical, and is now focused on the long-term future of employees as well as customers.
I don’t believe the governor is going to veto. “We have signed the Petition and supported the Industry Groups, but our focus is on reaching out to customers, while they are still legally allowed, to help them stock up and educate them for as long as the store remains open,” Mortillaro stated.
This article originally appeared in The Texas Tribune at https://www.texastribune.org/2025/05/22/texas-hemp-THC-retail-smoke-shop-ban/.
The Texas Tribune, a nonpartisan and member-supported newsroom that informs and engages Texans about state politics and policies. Visit texastribune.org to learn more.
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Kimzy Nanney is the photographer.