Cannabis is here to stay in Texas, lawmakers and industry leaders said this week, as efforts to ban consumable hemp are losing steam. However, figuring out how to regulate the market remains a glaring problem that lawmakers will likely address in 2027.
State Sen. Nathan Johnson, D-Dallas, and Rep. Drew Darby, R-San Angelo, told cannabis industry leaders at the Texas Cannabis Policy Conference that the attempted ban on consumable hemp opened their eyes to how passionate Texans are about these products. Now it’s time to find a safe and responsible way to regulate businesses that sell THC instead of prohibition, they said.
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“I don’t know of any area that is so in flux than this issue right now,” Darby said Friday during a panel. “We almost have to take it on.”
In a span of a year, those in the Texas THC industry witnessed the Texas Legislature expand the medical cannabis program, only to ban all THC products.
Then Gov. Greg Abbott vetoed that ban. Now, rules and regulations seem to be on the horizon, even as Congress approved a nationwide ban that goes into effect in November. Though industry leaders believe Washington will reverse course.
“Texas is on a trajectory for providing safe and legal access for responsible adult use and continuing to build out access for patients who benefit from this medicine through the compassionate use program,” said Heather Fazio, director of the Texas Cannabis Policy Center, a nonprofit that advocates for greater access to cannabis and decriminalization.
At Abbott’s direction, two state agencies — the Texas Alcoholic Beverage Commission and the Department of State Health Services — are working together on industry rules and regulations.
Neither agency has jurisdiction over the entire landscape of retailers that sell consumable hemp products. For example, TABC rules wouldn’t apply to 8,000 licensed hemp retailers who fall under DSHS, including smoke shops and online retailers that do not sell liquor and presumably do not hold a liquor license.
The two agencies have proposed rules, such as a ban on sales to those under 21, that have been widely accepted by those in the THC industry. Other proposed rules have drawn sharp criticism.
Todd Harris, co-owner of The Happy Cactus Apothecary in Austin, said some of the proposed rules from the Department of Health and Human Services will shutter small businesses like his through strenuous regulation that would redefine hemp, hike licensing fees, and stop raw interstate commerce of raw hemp.
He described the proposed rules taking effect as a worst-case scenario, but remains hopeful that lawmakers can find another solution in 2027 by addressing the concerns that have received the most attention, such as marketing restrictions to keep the products out of reach of minors.
“No one, no one wants that — I don’t want kids to have it,” Harris said. “We want to be regulated.”
Both Darby and Johnson agreed that regulation has unfortunately fallen on the agencies due to the inability of the House and the Senate to reach a compromise.
“I think now we’re getting into these philosophical questions about what is the role of the agency versus what is the role of the Legislature?” Johnson said. “Are we legislating through agency action because the Legislature can’t get its act together? I think the legislators should be involved because there are more of us and we have more time to hear from different views than the agency.”
Abbott’s veto put him at odds with Lt. Gov. Dan Patrick, who has been an ardent supporter of a ban on consumable hemp products.
Johnson said he believes the ban will remain a priority for Patrick in 2027, but the political leverage he once had is gone.
“I believe he will try, but I don’t think the House is going go with it again,” Johnson told The Texas Tribune.