SB3 arrives in Texas Senate committee to disinvent the Texas hemp market

Texas News

Senator Perry officially filed SB3 which aims to regulate the Texas Hemp market in the vision of Lt. Gov Dan Patrick.

SB3 is currently a regulatory death knell for hemp

This bill proposes some pretty significant changes to the regulation of consumable hemp products and hemp-derived cannabinoids in Texas. It introduces new restrictions, registration requirements, criminal offenses, and administrative penalties related to these products. The following is a breakdown of key provisions in the bill:

1. New Restrictions on Hemp-Derived Cannabinoids

  • Limits legal consumable hemp products to only cannabidiol (CBD) and cannabigerol (CBG).
  • Prohibits any other cannabinoids, including Delta-8 and Delta-9 THC, even in trace amounts.

2. Licensing and Registration Requirements

  • Requires businesses selling consumable hemp products to register with the Texas Department of State Health Services (DSHS).
  • Establishes a renewal process for licenses and fees for registration.

3. Manufacturing and Testing Standards

  • Mandates lab testing of hemp plants and products before they can be sold.
  • Hemp products must be tested for cannabinoid identity, concentration, heavy metals, pesticides, microbial contamination, and other harmful substances.
  • Restricts the manufacture of hemp products to only CBD and CBG-containing products.
  • Prohibits hemp products for smoking.

4. Retail and Consumer Protections

  • Requires clear labeling on all consumable hemp products, including:
    • Batch number and date
    • Cannabinoid content
    • Manufacturer details
    • Certification that no prohibited cannabinoids are present
  • Prohibits misleading packaging or marketing that could suggest the product does not contain cannabinoids.
  • Bans marketing that targets minors, including packaging with:
    • Cartoon characters
    • Candy or fruit shapes
    • Celebrity images
    • Trademark-mimicking designs

5. Criminal Offenses and Penalties

  • Felony (Third Degree) for:
    • Manufacturing, delivering, or possessing with intent to deliver a hemp product containing any cannabinoid other than CBD or CBG.
  • Class A Misdemeanor for:
    • Possessing any hemp product containing unauthorized cannabinoids.
    • Selling hemp products through courier, delivery, or mail services.
  • Class B Misdemeanor for:
    • Selling hemp products to anyone under 21 years old.
    • Selling hemp products near schools (within 1,000 feet).
    • Manufacturing, distributing, or selling hemp products for smoking.

6. State Oversight and Enforcement

  • Grants Texas Department of State Health Services (DSHS) the authority to:
    • Investigate violations, revoke licenses, and impose fines (up to $10,000 per violation).
    • Conduct random testing of cannabinoid products sold in Texas.
  • Requires DSHS to adopt new regulations by December 1, 2025.
  • Allows retailers already selling hemp products to continue until January 1, 2026, before they must comply with new registration rules.

Effective Date:

  • This bill would take effect on September 1, 2025.

Overall Impact:

  • This bill dramatically restricts the legal hemp market in Texas by banning all cannabinoids except CBD and CBG.
  • It criminalizes possession and sale of other hemp-derived cannabinoids, including Delta-8 THC.
  • It tightens regulations on hemp manufacturers, retailers, and consumers.
  • It introduces strict penalties and law enforcement measures to prevent sales to minors and near schools.
  • It imposes new compliance costs on businesses through mandatory licensing, registration, and testing.

The bill SB3 will be getting a hearing in the Senate State Affairs committee this next week on Monday.

Overall Impact:

  • This bill dramatically restricts the legal hemp market in Texas by banning all cannabinoids except CBD and CBG.
  • It criminalizes possession and sale of other hemp-derived cannabinoids, including Delta-8 THC.
  • It tightens regulations on hemp manufacturers, retailers, and consumers.
  • It introduces strict penalties and law enforcement measures to prevent sales to minors and near schools.
  • It imposes new compliance costs on businesses through mandatory licensing, registration, and testing.

The bill will get a committee hearing this coming Monday, March 3rd with State Affairs. Committee meeting will start at 9am but that does not mean that the bill will be heard at 9am. It does not mean that it will not be heard at 9am as it can be the first bill heard for the committee meeting. 

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