With prospects of a THC ban eroded, Texas hemp industry supports age restrictions, more regulation enforcement

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With a ban off the table for now, Texas hemp industry leaders said they are amenable to state lawmakers imposing more regulations on their THC products, such as age restrictions on purchases and more testing of their products, but caution against ineffective government overreach.

“We were ecstatic, as you can imagine, that Abbott saw through Senate Bill 3 that it didn’t make sense scientifically or legally. We have always been an advocate for sensible and thoughtful regulation, and we look forward to working with lawmakers on this,” said Mark Bordas, executive director of the Texas Hemp Business Council.

Gov. Greg Abbott, just minutes before the veto deadline on Sunday, rejected Senate Bill 3, which would have banned consumable hemp products that contained any THC, including delta-8 and delta-9. Instead, he has called a special session beginning July 21 to determine how to regulate hemp-derived THC.

Abbott urged lawmakers in his veto to consider an approach similar to the way alcohol is regulated, recommending barring the sale and marketing of THC products to minors, requiring testing throughout the production and manufacturing process, allowing local governments to prohibit stores from selling THC products and providing law enforcement with additional funding to enforce the restrictions.

Faced with a ban, many hemp stakeholders, including retailers, growers and users, have championed regulations, but how they want them implemented varies across different parts of the industry. Some want stricter enforcement on retailers while others want freedom to grow the plant without worry, but, all agree that the state should raise the age to purchase THC products to 21. Currently, there’s no age restriction in law, but most retailers prohibit minors younger than 18 from purchasing THC products.

“While many advocate for regulations, it’s important to define what good regulations actually mean,” said Sydney Torabi, co-founder of Austin-based cannabis business Restart CBD.

More regulations needed

Kyle Bingham, a hemp grower in the South Plains and president of the Texas Hemp Growers Association, said he woke up Monday morning shocked to learn about the veto but pleased that he agrees with most of Abbott’s suggestions for regulations.

“I think it’s a good idea,” he said. “Let's regulate cannabinoids like alcohol.”

Texas already has several regulations in place for the hemp industry, under the Texas Hemp Farming Act, which imposes THC limits (although producers have found loopholes to circumvent those caps), requires comprehensive testing, mandates licensing, stipulates labeling requirements, and provides for the issuance of accessible certificates of analysis. But, Bordas said there needs to be more enforcement of those laws.

“The state currently has four full-time employees trying to police over 8,000 licensees trying to sell the product, so it stands to reason the state needs to commit to enforcing the laws and regulations already on the books,” said Bordas.

Bordas said more can be done to control the market. He supports raising the age to purchase THC to 21 and measures to keep the products away from children, including preventing products to be sold within 1,000 feet of a school or church, implementing tamper-proof packaging and avoiding marketing strategies that are appealing to children.

Abbott proposed nearly 20 regulations for the hemp industry in his veto, including raising permit and registration fees for hemp high enough to support robust enforcement and testing by the Texas Alcoholic Beverage Commission, and posting warning and danger signs at any store selling these products.

“The Texas Alcoholic Beverage Commission is well equipped to do it,” Bingham said about adopting regulations similar to the alcohol industry. “[It] will allow for cleaner regulation that doesn’t put undue burden on the farmer.”

From a retail standpoint, Torabi said she would support raising licensing fees to filter out unscrupulous stores and gas stations, specifically those who cut corners or mislead consumers.

“These bad actors not only damage the reputation of responsible companies like RESTART, but also reinforce outdated stereotypes that THC and cannabis are harmful,” she said. “The reality is, it comes down to quality products and consumer education.”

Bingham said a critical piece to hemp regulation still missing from Abbott’s suggestions is more clarity on testing requirements, including what products must be tested for and the amount of THC that would be allowable.

“In short, until we have testing definitions, no bill will be enforceable. I see all these great things when it comes to limiting THC to minors, packaging requirements, a lot of things the industry needs, but without testing, we can’t enforce any of it,” he said.

Treating alcohol and hemp similarly 

Bingham said that while the alcohol industry could be a great model for regulating hemp, some of Abbott’s suggestions shouldn’t apply to THC products. For example, alcohol products require a surgeon general’s warning about the risks it carries for pregnant women, and hemp-based foods that don’t contain significant amounts of THC shouldn’t need a similar label.

“I don’t think we need a THC warning label on hemp hearts and hemp seed oil,” he said.

Some regulations Abbott suggested are directly inspired by Prohibition-era laws that don’t necessarily make sense for THC products, stakeholders say, including limiting sales between 10 a.m. and 9 p.m. and prohibiting sales on Sundays.

Retailers also caution against limiting the number of purchases that can be made in a given period and enforcing further limits on the amount of THC in a product, which could harm those who use the products for health purposes.

“One area of concern is the proposed cap on THC dosing per gummy or per package. Many of our customers rely on higher THC doses to manage serious conditions such as chronic pain and PTSD,” Torabi said. “It’s important to recognize that this isn’t just about recreational use; THC serves as a critical medicine for many Texans. Arbitrary limits could prevent patients from accessing the relief they genuinely need.”

Abbott also suggested making the public consumption of THC products and an open container in a car a crime similar to alcohol. Torabi said she would like more consideration before restricting THC consumption similar to alcohol since both substances have different intended effects.

“There’s been a significant shift toward non-alcoholic consumption in Texas and across the country, with many restaurants now offering THC and CBD beverages as alternatives,” she said. “Allowing adults the freedom to choose their preferred beverage, while also supporting local business, seems both reasonable and beneficial to the economy.”

In need of stability

Some states like Florida, where Gov. Ron Desantis also vetoed a hemp ban law, enacted age restrictions while others have restricted product potency.

Bingham said that he welcomes regulations because they will bring stability to the industry and allow the rest of Texas to truly see the benefits of THC.

“Any new industry goes through ups and downs, but what we need from lawmakers is some kind of consistency,” he said.

Some hemp industry leaders have suggested various initiatives to showcase the benefits of THC, such as research programs and education for lawmakers, before embarking on over-regulation.

“Right now, most regulations is based in fear mongering, confusion and chasing headlines instead of evidence,” said Chris Karazin, chief executive officer for Carolindica, an online hemp company from North Carolina. The company hopes other states follow Texas’ lead in creating more regulations instead of banning THC. “If states and federal governments invested in cannabinoid research, especially around dosage, impairment, and health outcomes, we’d be in a much stronger position to create fair, common sense hemp policy.”

Bordas hopes, though, that the ultimate proof that THC is safe comes from the general public.

“As more members of the Legislature become familiar with the product along with the social media campaigns of people who use hemp and do it for various reasons with no adverse effects, it will make it mainstream enough that the fear factor will go away,” he said.

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