Hearing held on legislation of Texas hemp industry

AUSTIN, Texas - On Monday, members of the House State Affairs committee took up two bills that would dramatically reign in what’s grown into a multi-billion-dollar industry.

A House bill scales back sales with new regulations, while a plan from the Senate is essentially a ban on all products with THC.

The sale of hemp products with low levels of THC was allowed about seven years ago. 

The backstory:

"Members, the unregulated industry that currently exists is a public health hazard. And it is our duty to ensure that we're protecting Texas against harmful products," said Committee Chairman Ken King (R) Canadian.

SB 3 would ban the sale of all products with THC, except those authorized by the Compassionate Use law. 

HB 28 bans synthetic THC and products like gummies, but it allows hemp-infused beverages which would be regulated in alcohol.

"This regulatory structure will also maintain the federal restriction on THC of no more than 0.3%, as well as limiting the amount a person can buy in a single day to 10 milligrams. House Bill 28 intends to stop advertising to children by making the legal age of consumption of these products 21, requiring ID verification during the purchase, and by creating regulations on advertising," said Chairman King.

Discussion on hemp and THC-infused products

What they're saying:

The committee heard opposition to both bills. 

The police chief of Allen, Texas, Steve Dye, spoke to the committee about the crime linked to hemp stores in his town. He is with the Texas Police Chief’s Association, which wants a tougher approach.

"Our concerns with House Bill 28, as written include THC beverages, it should not be considered as a carve out. To us, the beverage is just another delivery method as vapes, waxes and edibles. We can't rush this decision as it will only create another loophole that we'll be addressing again in 2027," said Chief Dye.

One loophole came up in the questioning a beverage distributor. It involved moving across the state line. 

Chairman King asked Ben Meggs of Bayou City Hemp if he moved out of Texas, would he still be able to ship his product to Texas residents?

"Yes sir, we would. It's federally legal. We believe we can't stop interstate commerce," said Meggs. 

Lawmakers were also warned they could be helping those in the black-market.

"If we ban everything on the market and don't have a solution for that $8 billion, then all we are doing is creating a bigger problem," said David Mukpo, the owner of Pamos Beverages.

Concerns about over-regulation and unintended consequences were raised. That was a topic in the questioning from Dallas Democrat, Rafael Anchia, to cannabis law expert Susan Hays. 

Anchia noted how the House plan allows drinking a THC product but not allowing it to be put under a tongue as an oil. 

"To carve off these delivery systems as a crime and this is okay makes no sense to me. There are plenty of good manufacturers and retailers in this state," said Hays

The committee was urged to regulate not to eliminate.

"We want you to want our product. I want you to use my sleep gummies tonight. I just want you to believe in us enough to know that we will regulate for you and with you," said Katie Frazier, who runs a hemp product business in Austin.

The owner of a company in Louisville, Kentucky, told the committee the reforms would close off Texas for his business.

"Our Texas customers are not criminals, and neither am I, unless Texas makes me one," said Jim Higdon with Cornbread Hemp.

The committee did hear strong support for banning synthetic THC products.

Christine Scruggs, a mom from Pearland, testified her son was hooked on items he bought at a store in Georgetown, believing they were safe.

"He was diagnosed with cannabis-induced psychotic disorder. He worked through a dual diagnosis program for eight and a half months. His therapist told him he's lucky not to have been converted to a long-term diagnosis of bipolar or schizophrenia," said Scruggs.

What's next:

The House committee worked into the evening on the Senate Bill. 

Regardless of which regulatory hammer is sent to the full House, modifications are expected before any legislation is sent to the governor.

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