Texas House Committee Advances Restrictive THC Regulations, Impacting $8 Billion Industry

The Texas House State Affairs Committee has significantly revised Senate Bill 3, which originally sought to ban nearly all consumable hemp products containing THC, the psychoactive compound in cannabis. Instead of a total ban as proposed by the Senate, the House version would permit regulated sales of certain hemp products, restricting their availability to licensed specialty stores and imposing bans on vapes, vape shops, and all synthetic cannabinoids. The revised bill introduces age limits, electronic ID verification, and criminal penalties for unauthorized sales, while empowering counties—but not cities—to prohibit hemp sales entirely. Additional provisions include caps on THC content for edibles and drinks and a new regulatory and tax structure, with revenue allocated to the Texas Alcoholic Beverage Commission, crime labs, and law enforcement opioid response. This compromise follows strong industry pushback against the original ban, which advocates warned could eliminate tens of thousands of jobs. The move sets up a potential conflict with the Senate, which had prioritized a complete prohibition, citing concerns for youth safety.