Reviewing, analyzing, and navigating compliance, enforcement, investigation, and litigation developments and trends in the state and federal regulatory landscape
The Texas legislative session kicked off on January 14, and cannabis policy is set to be a major topic of debate. The state, known for its conservative stance on many issues, is at a crossroads with its cannabis laws, facing both calls for stricter regulations and pushes for legalization.
The Push for a Cannabis Ban
Lieutenant Governor Dan Patrick has been vocal about his desire to ban all forms of tetrahydrocannabinol (THC) products in Texas. Senate Bill 3, which he supports, aims to eliminate the sale of any consumable THC products, including popular items like delta-8 and delta-9 THC. This move comes in response to concerns that some products currently on the market exceed the legal THC limit of 0.3%, posing potential health risks. Patrick argues that the current laws are being exploited, leading to the sale of dangerously potent products. If passed, this bill would mark a significant shift in Texas’ approach to cannabis, aligning it more closely with its traditionally strict drug policies.
Patrick announced on December 4, 2024, that Senate Bill 3, will aim to ban all forms of consumable THC in the state. The legislation, sponsored by State Senator Charles Perry, responds to concerns over thousands of stores selling unregulated, potentially dangerous THC products. “Dangerously, retailers exploited the agriculture law to sell life-threatening, unregulated forms of THC to the public and made them easily accessible,” Patrick said in a statement. “These stores not only sold to adults, but they targeted Texas children and exposed them to dangerous levels of THC.” Patrick said there has been a surge over the past two years in stores selling these products.
“Since 2023, thousands of stores selling hazardous THC products have popped up in communities across the state, and many sell products, including beverages, that have three to four times the THC content found in marijuana purchased from a drug dealer,” Patrick said. The goal of Senate Bill 3, Patrick said, is to prevent retailers from circumventing the law and ensure Texans’ safety by removing unsafe THC products from the market. “We are not going to allow these retailers to circumvent the law and put Texan’s lives in danger.” “This bill will have broad bipartisan support in the Senate, and I trust the House will also see the danger of these products and pass this bill with overwhelming support so it can become law immediately.”
The Unregulated Market and Its Consequences
Despite the state’s stringent laws, Texas has inadvertently become a hub for unregulated cannabis products. The 2019 law that legalized hemp for agricultural purposes created a loophole, allowing the sale of low-THC products. This has led to a booming market, with more than 7,000 dispensaries and various cannabis products readily available. Critics, including Nico Richardson, CEO of Texas Original, argue that this unregulated market undermines the state’s medical marijuana program and poses safety risks due to inconsistent product quality and lack of age restrictions.
“We’re getting slaughtered by a completely unregulated, intoxicating hemp industry,” Richardson said. He pointed out that some hemp consumables in Texas far exceed the legal limit for THC and are contaminated with heavy metals, pesticides, and mold. “There is no recreational market in the country that would allow that. Not one.”
Efforts to Legalize Recreational Marijuana
Contrasting the push for a ban, some lawmakers are advocating for the legalization of recreational marijuana. State Representative Jessica González has introduced House Bill 1208, which aims to permit adults aged 21 and over to use, possess, and transport up to 2.5 ounces of cannabis. Additionally, adults would be allowed to store up to 10 ounces of cannabis at their residence, provided it is kept in a secure location. Cannabis product packaging would be required to be child-resistant, clearly labeled, and not easily mistaken for candy. The proposed legislation also includes a 10% tax on cannabis sales, intended to generate substantial revenue for the state. This initiative aligns with a growing trend among Texas municipalities, where voters have expressed support for decriminalizing marijuana possession. However, the bill faces significant opposition from conservative leaders, such as Patrick, who are committed to closing the hemp loophole and preventing any form of recreational cannabis legalization.
The Medical Marijuana Program
Texas’ medical marijuana program remains limited but is a crucial aspect of the state’s cannabis policy. The Texas Compassionate Use Program allows patients with specific conditions, such as epilepsy, multiple sclerosis, and PTSD, to access low-THC cannabis. However, the program is highly regulated, and the products are often more expensive than those available in the unregulated market. Advocates for medical marijuana argue that the current system needs to be expanded and better regulated to ensure patient safety and access.
The Legislative Battle Ahead
As the legislative session begins, the future of cannabis in Texas hangs in the balance. The debate will likely be intense, with significant implications for the state’s legal landscape and its residents. Whether Texas will tighten its grip on cannabis or move toward legalization remains to be seen, but one thing is clear: cannabis policy will be a defining issue of the 2025 legislative session.
Patrick’s stance has drawn criticism from various stakeholders. Cynthia Cabrera, chief strategy officer for Hometown Hero, an Austin-based cannabis business, said, “It’s disappointing but it didn’t come as a surprise. If this ban passes, businesses will close their doors, they’ll default on retail spaces, and people will lose their homes. The ripple effect will be huge.” She emphasized the need for regulation rather than an outright ban, suggesting that age limits and better testing could address many of the concerns raised by Patrick.
Texas Agriculture Commissioner Sid Miller also expressed reservations on social media platform X, stating, “The GOP needs to find some consensus instead of constantly running in opposite directions. We know what the polls say. It’s time to support the will of the people of Texas.”
The outcome of this session will undoubtedly shape the future of cannabis policy in the Lone Star State.
Jean has dedicated her entire career to the cannabis sector, helping growers, dispensaries, investors, receivers, and other stakeholders achieve their business goals and prepare for unexpected issues. She has extensive experience with medical marijuana, retail marijuana, hemp, and CBD products, and helps clients…
Jean has dedicated her entire career to the cannabis sector, helping growers, dispensaries, investors, receivers, and other stakeholders achieve their business goals and prepare for unexpected issues. She has extensive experience with medical marijuana, retail marijuana, hemp, and CBD products, and helps clients as they establish their businesses, mitigate risk, and resolve disputes. Known for responding to clients within 24 hours or less, Jean is also a go-to advisor for a wide range of day-to-day operational issues.
Julia St. John is an associate with Troutman Pepper Locke. She assists clients with corporate transactions.
Troutman Pepper Locke helps clients solve complex legal challenges and achieve their business goals in an ever-changing global economy. With more than 1,600 attorneys in 30+ offices, the firm serves clients in all major industry sectors, with particular depth in energy, financial services, health care and life sciences, insurance and reinsurance, private equity, and real estate. Learn more at troutman.com.
In addition to cookies that are necessary for website operation, this website uses cookies and other tracking tools for various purposes, including to provide enhanced functionality and measure website performance. To learn more about our information practices, please visit our Global Privacy Notice.
AgreeDecline
The Current Landscape of Texas Cannabis Policy and Laws: A 2025 Overview – Regulatory Oversight
