Texas legislators are considering legislation which would ban hemp products from the state. A medical marijuana expansion package is being offered as a compromise.
Senate Bill 3 authored by State Sen. Charles Perry prohibits all cannabinoids with the exception of CBD and CBG. According to industry experts, this move would cause the hemp market to collapse, while driving potential consumers towards illicit sources.
Cynthia Cabrera, Hometown Hero told us: “This is the sledgehammer method to get rid of a fly.” Green Market Report After the Senate Committee hearings on Monday. If you’re going to address the issue of minors accessing websites, just put in an age limit and no one will fight against it.
Senate Bill 1505, which would extend Texas’s limited medical marijuana programs known as Compassionate Use Program, was also heard. This expansion will increase the number of licenses for dispensaries from three to six, and also allow satellite locations to help improve accessibility. Inhalable products would be allowed under the bill.
The critics point out that this program will remain very restrictive in comparison to the other states. THC levels are capped at five milligrams instead of the common 10 milligrams. Also, the eligible conditions have not been expanded to cover more widespread qualifiers like chronic pain and insomnia.
One conclusion that some people reached after the presentation of both bills is that lawmakers are trying to destroy the hemp industry while offering an expanded medical marijuana market as an alternative. Some senators, however, questioned whether the hemp bill was practical.
Katharine Neill Harris is a fellow for Drug Policy in the Baker Institute of Rice University. Green Market Report The “banning of all cannabinoids but CBD and CBG may not be feasible.”
Harris elaborated, “Sen. Perry has responded that we are also expanding our medical program to give people an alternative.” She questioned, however, whether this timing was right for the patients. Noting that it takes time to license new dispensaries, and establish satellite locations, Harris questioned if the plan would be feasible.
The critics also noted that possession of hemp products without authorization would be a misdemeanor Class A, with harsher punishments than marijuana possession.
Harris stated that “to make possession of THC-containing products a Class A Misdemeanor is a serious penalty.” It’s a “really backwards step in terms of prohibition and harmful effects.”
Hemp supporters have expressed their frustration over what they perceive as the efforts of the medical marijuana industry in Texas to shut down the hemp business. Advocates claim that the fledgling industry has already employed nearly 50,000 individuals.
“The hemp industry doesn’t roll into a marijuana-friendly state and say, ‘We need to shut down this marijuana thing and people just do their business,'” Cabrera said. It’s the marijuana side who comes back, like in Texas, and tells people, “No, no.” It’s time to end this business.
Alcohol distributors are among the groups that appear to jockey for position, even if they do not support medical marijuana. According to sources in the industry, both beer wholesalers as well as liquor retailers are advocating different approaches which would be beneficial for their respective industries.
Cabrera stated, “The beer drinkers would love to get rid of all other drinks.” The liquor stores want to be the only ones selling everything.
Tennessee is also waging a similar legal battle, as lawmakers consider placing hemp under the Tennessee Alcoholic Beverage Commission. According to a lobbyist for the industry, in Arkansas beer distributors want to include hemp products within Arkansas’ three-tiered distribution system. Yet, large cannabis companies from multiple states are increasingly focusing on hemp-derived goods.
According to GMR, sources say that it is possible the Texas Supreme Court could take on Hometown’s case regarding the injunction currently giving life to state industry. The court may wait to make a final ruling until after the legislature session ends. SB 3 would effectively render the appeal moot.
Perry, the author of the 2019 hemp legislation in Texas that was passed by Perry himself, has mentioned that he is proposing an alternative bill to increase license fees for business up to $20,000. Official documentation on this proposal, however, has yet be released.
You have to question yourself: Why are you contemplating the banning of an entire industry, while at the same time expanding a product that is illegal under federal law? Cabrera said. You’re gonna destroy this vapes industry and give the money to another industry?
Texas’ legislative session will continue until early June. This gives lawmakers several months in which to decide the fate of Texas’ hemp industry. Sources say that the bill will be picked up again next week after an 8 hour marathon session.