The battle over the future of Texas’ hemp industry, which will likely have a major impact on hemp regulations across the US is heating up as legislators return to a special session that has been marked by sharp disagreements between Republican Senate leaders and Governor Greg Abbott.
Senate Bill 5 is at the center of this debate. It would prohibit hemp-derived goods that contain THC. THC is detectable in any amount.
Anthony Coniglio is the co-founder and chief executive officer of NewLake Capital Partners and is one of industry’s most prominent voices when it comes to cannabis capital markets, regulatory strategy and other related issues. MEDCAN24: ​​”We’re on the eve of hemp being outlawed in Texas, which is one of the largest hemp markets in the country.
The hemp industry, and by extension the state-legal marijuana sector, will be affected. Texas’s ban on cannabis could serve as a precedent to other states.
The bill closely mirrors an earlier proposal Abbott vetoed in June, marking a ‘surprising’ turnaround in momentum.
Coniglio added, “It is surprising since the industry was able to successfully lobby the Governor for a veto of the original bill.”
They got him to refuse it and now we’re here. HB 5 looks very much like the original legislation. The question is: What was the purpose of the veto and how have we ended up with a new bill which achieves the exact same result?
“If HB 5 goes through the way people think it will, then this may be a pivotal moment. Even though the industry has been lobbying hard, it may not succeed in preventing prohibition. That’s significant.”
SB 5 passed unanimously by the Senate State Affairs Committee in one vote last week. It now awaits full Senate approval.
Gary VanDeaver introduced House Bill 5 Monday, the companion legislation. Both proposals permit only two cannabinoids—CBD and CBG—and make possession of banned hemp products punishable by up to 180 days in jail and a $2,000 fine.
While Governor Abbott calls for stricter regulations on intoxicating hemp-based products, he remains opposed to a ban.
Abbott called on lawmakers in his proclamation for a special session to adopt a framework of regulations that included:
- Under 21s are prohibited from purchasing cannabinoid-hemp products;
- It is illegal to use synthetic cannabinoids like delta-8 THC.
- The potency of THC can be limited by limiting the amount. The following is a list of the most popular ways to contact someone 0.3% or 3 milligrams per serving—a distinction that has sparked confusion among lawmakers and regulators alike.
Key Senate Republicans such as Lt. Dan Patrick (Governor) and Charles Perry (Senator), the architects of SB 5 are pushing for a total prohibition.
It’s disappointing to see that the Senate is ignoring Governor Abbott’s advice and pushing a law which would harm consumers, shut down small businesses and punish Texans, instead of protecting them. Thankfully, leaders in the Texas House — including conservatives who once supported a ban — now recognise that smart regulation is the right path forward,” said Heather Fazio, director of the Texas Cannabis Policy Center.
The Texas Police Chiefs Association (TPCA) and the Sheriff’s Association of Texas (SAT) are among the major law enforcement agencies that support the ban. They both testified in court that the complete ban would be the best way to protect the community from what was described by them as an unregulated flood of hemp-based intoxicants.
Hemp business owners and reform groups say that the ban proposed by the Governor would be a disaster for an industry which employs 50,000 people across approximately 8,000 retail outlets.
Katharine Neill Harris (PhD), a expert in drug policy with Rice University’s Baker Institute for Public Policy and a Rice University professor, stated: “Some officials had supported a complete ban on consumable products containing THC as SB 3 did. A ban on these products would divert them into illegal markets, and exempt them from regulations that are needed to guarantee their safety.
SB 5 appeared on the Senate’s calendar at the beginning of this week. However, the chamber did not take any action.