In the wake of Texas’ 2019 hemp legalization measure, a booming industry of consumable hemp products has cropped up. It generates, by some estimates, around $8 billion a year in revenue.
But Lt. Gov. Dan Patrick has made one thing clear: Consumable hemp products with psychoactive THC need to go. He’s said banning the sale of intoxicating cannabis products is one of his top legislative priorities this session.
Senate Bill 3, authored by Republican Sen. Charles Perry, would do just that. Members of Texas’ cannabis industry who oppose the bill say a ban on THC products would cripple the state’s booming hemp industry, killing thousands of jobs.
Heather Fazio, director of the marijuana reform advocacy group Texas Cannabis Policy Center, spoke with the Standard’s Angela Kocherga to explain why the hemp industry opposes the bill.
This transcript has been edited lightly for clarity:
Texas Standard: This bill would ban consumable THC products in Texas, which proponents of the bill say is largely unregulated in Texas. What are your concerns about this bill and how it could play out if it were to pass?
Heather Fazio: Well, it seems like there’s a lot of misunderstanding fundamentally about how this program is working. In 2018, the federal government legalized hemp, which was every part of the plant except for Delta 9 THC. Following suit was Texas in 2019, officially legalizing the cultivation, processing and retail sales of these products.
Since then, as you mentioned, this industry has really bloomed, and we see such a thriving market. Consumers are enjoying these products, businesses are thriving, and thankfully we’re seeing far fewer arrests for cannabis in the state of Texas, which is a good thing.
Supporters of this bill say it would help prevent intoxicating products from getting into the hands of minors. Now isn’t that a good thing? How do you respond to those concerns?
Well, there’s a lot of shared values here, a lot of shared concerns when it comes to young people having access to cannabis products that cause impairment.
The solution is not prohibition. We know from many years of history that prohibition simply doesn’t work. Instead, what we’d like to see instituted are sensible regulations that institute things like age restrictions. Right now, there are no age restrictions on these products. A simple 21 and up requirement would help keep these products out of the hands of kids.
We’d also like to see regulations on products, making sure they’re child-resistant, making sure we’re not advertising to young people, and setting these retail stores about a thousand feet away from schools if they’re selling impairing products.
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Let’s talk about the economic side of things. What would a total ban of THC mean for Texas’s cannabis industry?
Well, the latest reports have shown that it is about an $8 billion industry. I suspect this has grown since that report in 2022.
There are tens of thousands of people with legitimate jobs in these businesses, and this would be devastating not only to the business owners but to the employees as well.
The fiscal note for Senate Bill 3, which is the cost to the state, is estimated at $9 million. But if you look at the revenue from the sales and the estimated sales tax, we’re looking at more like over $200 million lost, plus untold costs on enforcing prohibition, which includes arresting individuals who possess this federally legal substance, the cost of prosecuting them, and of course the very real human cost of being saddled with a criminal record.
This is going to cost too much. It’s not gonna provide solutions to the problems that are presented. And we hope lawmakers take a better approach of getting a hold of this market, regulating it well for adult use so that we don’t slip back into an era of prohibition.
Well, let’s delve into that a little bit. What would an ideal legislative solution for cannabis regulation look like for you?
Well, Senate Bill 3 does include several proposals for regulation that we support – as mentioned, age restrictions, packaging and advertising standards. We also need to make sure that our regulatory agency is stepping up to the plate in a way that ensures real regulatory oversight.
There are thousands of cannabis businesses operating throughout the state, and there are very few samples of products on the shelves being taken for testing. We need to ramp that up so we can hold bad actors accountable and allow the market to thrive for those who are operating legitimately.
Are there any other cannabis-related bills on your radar this session?
This year we see dozens of cannabis bills that have been introduced, ranging from decriminalization for low-level possession to expanding our state’s compassionate use program.
We also see bills for outright legalization and hemp regulation. It spans a spectrum, and we see Texans from all across the state getting active and engaged to make sure lawmakers know where they stand on this issue.
