Tag: hemp

Federal Court Upholds Arkansas Hemp Restrictions, Contradicting Texas Governor’s Stance In Vetoing Proposed Ban In His State

Several of the reasons Texas Gov. Greg Abbott (R) made for vetoing a statewide THC ban, SB 3, were rejected Tuesday by the Eighth Circuit Court of Appeals.

The Texas legislature overwhelmingly passed SB 3 with bipartisan support during the regular legislative session. Late Sunday night, Abbott vetoed it.

In his proclamation explaining the veto, he said SB 3 was “well-intentioned. But it would never go into effect because of valid constitutional challenges.” If it were enacted, “its enforcement would be enjoined for years, leaving existing abuses unaddressed,” he said, adding that “Texas cannot afford to wait.”

He pointed to Arkansas enacting a THC ban in 2023, Act 629, which was challenged in court. A lower court halted it from going into effect, arguing it would “likely [be] preempted by federal statutes and that its criminal provisions were likely unconstitutionally vague,” Abbott said. “The result in Arkansas? Their law has sat dormant, meaningless, having no effect for nearly two years while further legal proceedings play out. That result must be avoided in Texas,” Abbott said.

Instead, he proposed regulating THC similar to how alcohol is regulated.

On Monday, Patrick challenged each of Abbott’s arguments, saying they were flawed and factually inaccurate. Federal law expressly permits states to impose their own restrictions, including banning THC, Patrick said. He also said the Fourth and Seventh circuits have ruled as much and California and Colorado banned THC with no problems, The Center Square reported.

He said he believed the 8th Circuit would rule in favor of Arkansas.

One day later, it did.

On Tuesday, a panel of judges on the Eighth Circuit, including the chief judge, reversed the lower court’s injunction.

The judges also confirmed Patrick’s argument, stating in their 16-page ruling that nothing in the 2018 Farm Bill “preempts or limits any law of a State or Indian tribe that…regulates production of hemp and is more stringent than this subchapter.”

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Rand Paul Files Bill To Triple Federal THC Limit For Hemp As House Pursues Crackdown On Consumable Cannabinoids

As the hemp industry raises concerns about congressional attempts to ban most consumable cannabinoid products, a GOP senator has filed a bill that would triple the concentration of THC that the crop could legally contain, while addressing multiple other concerns the industry has expressed about federal regulations.

Sen. Rand Paul (R-KY) introduced the legislation, titled the Hemp Economic Mobilization Plan (HEMP) Act, last week. It mirrors versions he’s sponsored over the last several sessions.

Hemp and its derivatives were legalized under the 2018 Farm Bill, but the industry has experienced multiple setbacks in the years since—and the proliferation of intoxicating cannabinoid products has led to pushes in Congress and state legislatures across the country to reign in the largely unregulated market.

To that point, a GOP-led House committee this week approved a spending bill containing provisions that hemp stakeholders say would devastate the industry, prohibiting most consumable cannabinoid products that were federally legalized during the first Trump administration.

The legislation would “effectively” criminalize hemp-derived cannabinoid products, including CBD, according to a Congressional Research Service (CRS) report.

In contrast, the newly reintroduced measure from Paul would address one of the most common complaints that lawmakers have heard from hemp businesses under the current law, which is that the crop is federally defined as containing no more than 0.3 percent THC by dry weight. They say that’s too low, and so the bill would increase that threshold to 1 percent.

It would also address potential problems with testing requirements under U.S. Department of Agriculture (USDA) regulations. Hemp processors currently get a 15-day window to test the crop’s flower to ensure that the THC concentration is within the allowed limits. But testing flower can be onerous and farmers have said it would stretch their resources thin, not to mention that the plant’s THC is significantly impacted by external factors.

To fix that issue, the bill calls for final hemp products themselves to be tested, rather than the initial flower from the plant.

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Texas Governor Tells Lawmakers To Regulate Hemp THC Products Like Alcohol After Vetoing Bill To Ban Most Consumable Cannabinoids

The governor of Texas says that, rather than outright ban consumable hemp products, lawmakers should establish a regulatory framework that treats cannabinoids “similar to the way alcohol is regulated.”

After vetoing a controversial bill on Sunday that would have effectively eliminated the state’s hemp market, Gov. Greg Abbott (R) proposed an extensive list of policy changes that he says he would support—and which the legislature will have the chance to enact during a special session the governor is convening next month.

“Texans on each side of the Senate Bill 3 debate raise serious concerns. But one thing is clear—to ensure the highest level of safety for minors, as well as for adults, who obtain a product more dangerous than what they expected, Texas must strongly regulate hemp, and it must do so immediately,” Abbott said.

Part of the rationale behind his veto was the risk of litigation over “valid constitutional challenges” that he suggested would hold up in court. And to that end, multiple top Texas hemp companies did file a preemptive lawsuit challenging the legislation, SB 3, before the governor’s veto.

“If I were to allow Senate Bill 3 to become law, its enforcement would be enjoined for years, leaving existing abuses unaddressed,” Abbott said in his veto message. “Texas cannot afford to wait.”

“At worst, Senate Bill 3 would be permanently invalidated by the courts; at best, its implementation would be delayed for years as the case winds its way through the legal system,” he said. “We can do better.”

Rather than face the possibility of having the law enjoined, or indefinitely delayed, the governor said the state “must enact a regulatory framework that protects public safety, aligns with federal law, has a fully funded enforcement structure, and can take effect without delay.”

“Legislators could consider a structure similar to the way alcohol is regulated, with strict enforcement by an agency like the Texas Alcoholic Beverage Commission,” he said, adding a list of recommended policies he wants to see lawmakers adopt that include age restrictions, zoning requirements and bans on public consumption.

Here’s the full list of the governor’s recommended hemp regulations:

  • Selling or providing a THC product to a minor must be punishable as a crime.
  • Sales must be prohibited near schools, churches, parks, playgrounds, and other areas frequented by children.
  • Packaging must be child-resistant, tamper-evident, and resealable;
  • Products must not be made, packaged, or marketed in a manner attractive to children.
  • Any store selling these products must have a permit and restrict access to anyone under the age of 21, with strict penalties for any retailer that fails to comply.
  • Products containing THC may not contain other psychoactive substances (e.g., alcohol, tobacco, kratom).
  • Testing must be required at every phase of production and manufacturing, including for both plants and derivative consumable products.
  • Manufacturing and processing facilities must be subject to permitting and food safety rules.
  • Permit and registration fees must suffice to support robust enforcement and testing by the Texas Alcoholic Beverage Commission, in partnership with other state agencies.
  • An operator’s permit and warning/danger signs must be posted at any store selling these products.
  • Sales must be limited to the hours between 10:00 a.m. and 9:00 p.m., and prohibited on Sundays.
  • The amount of THC permissible in each product must be restricted and an individual may make only a limited number of purchases in a given period of time.
  • Labels must include a surgeon general-style warning, a clear disclosure of all ingredients, including the THC content, and a scannable barcode or QR code linking to test results.
  • Fraudulently creating or displaying manifests or lab results must be punishable as felony offenses.
  • Public consumption, consumption on the premises of any store that sells these products, and possession of an open container in a vehicle must be punishable as crimes.
  • The Attorney General, district attorneys, and county attorneys must have authority to pursue violations under the Deceptive Trade Practices Act.
  • Local governments must have the option to prohibit or limit stores selling these products.
  • Excise taxes must be assessed on these products to fund oversight and enforcement.
  • Additional funding must be provided to ensure law enforcement have sufficient resources to vigorously enforce restrictions.

“This list, of course, is not exhaustive. But it may provide items to consider in a regulatory system that is strict, fair, and legally sustainable,” Abbott said. “Passing a law is not the same thing as actually solving a problem. Texas needs a bill that is enforceable and will make our communities safer today, rather than years from now. Next month, the Legislature will have the opportunity to address this serious issue. I look forward to working with them to ensure that we get it right.”

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Nebraska AG Sends Threat Letters To Retailers Over Alleged Sales Of Illegal THC Products

The owners of 82 smoke and vape shops and other THC-friendly retailers in Lincoln are receiving cease and desist letters this week from Nebraska Attorney General Mike Hilgers (R) about selling THC-containing products.

Hilgers, the state’s top prosecutor, ramped back up his push to get stores to stop selling delta-8, delta-9 and other products containing tetrahydrocannabinol that he argues offer people an unregulated, unsafe, illegal way to get high.

Store owners in several cities that Hilgers has targeted have argued state law is unclear about the legality of selling the products. Some have argued that federal law might have a loophole allowing it.

Hilgers had said he would pause his efforts to warn and then sue retailers still offering the targeted THC products if the Legislature in the 2025 session passed a bill to clearly make them illegal in the state, which stalled. The bill is likely to return in 2026.

His office, which also files civil cases to enforce state law, has sent the letters to 204 stores statewide alleging unfair business practices, deception and violations of safety requirements for food. That tally includes 104 stores in Omaha, four in Kearney and three in Nebraska City.

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Texas Hemp THC Ban and Medical Marijuana Expansion Set to Become Law on Monday

With the deadline for gubernatorial action falling on Sunday, June 22, both bills are now expected to become law without Abbott’s signature unless he issues a rare weekend veto.

If no veto is delivered by the end of Sunday, the measures will automatically take effect. House Bill 46 would significantly broaden the state’s limited compassionate use program by adding eligibility for patients with chronic pain, terminal illness, and traumatic brain injuries. It would also expand the number of licensed dispensaries from three to fifteen and legalize new product forms, such as patches and inhalers.

Senate Bill 3 would prohibit nearly all hemp-derived THC products—including delta-8, delta-10, and THCO—when intended for ingestion, inhalation, or topical use. Only trace THC amounts would be allowed in non-intoxicating products like CBD. If enacted, the ban would deal a major blow to Texas’ multibillion-dollar hemp THC industry. The restrictions would take effect September 1.

Despite both bills passing with strong bipartisan support, Abbott said earlier this week that he was still undecided on the hemp ban. With time running out, stakeholders are bracing for the likelihood that both measures will quietly become law on Monday, June 23.

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“What in the World Would Justify Doing This?”: A Texas Vet and Hemp-Business Owner on the Looming THC Ban

By Sunday, Texans will know whether the hemp-derived THC products that have been legal in the state since 2019 will be banned as of September 1. During the Eighty-Ninth Legislature, lawmakers passed Senate Bill 3, which would end a $5.5 billion industry and which now sits on Governor Greg Abbott’s desk. Sunday is the deadline for him to either veto the bill—breaking with Lieutenant Governor Dan Patrick, who made SB 3 a priority during the session and pushed it through both chambers with zeal—or allow it to become law. 

Lukas Gilkey, an Austin-based U.S. Coast Guard veteran, cofounded the cannabis company Hometown Hero, which has been producing hemp-derived THC products since 2019, and has emerged as one of the most outspoken opponents of the ban. The 44-year-old has gone viral for his social media posts responding to Patrick and defending the industry. With just days to go before Abbott determines the fate of the industry, we asked him to explain his position and make his pitch to the governor for why weed is good for Texas.  

Texas Monthly: So there’s an argument that legalization of these products in 2019 was kind of an accident: The Legislature legalized hemp, mirroring language that appeared in the federal farm bill the previous year, and in the process allowed the proliferation of certain derivatives that it did not consider. And so the argument goes that what it has done this session is just correcting an oversight. Does that hold water for you? 

Lukas Gilkey: Knowingly or unknowingly, they legalized these products, and subsequently a fully legal industry was created from that decision. This industry has over four billion dollars in retail sales in Texas. It’s created over 53,000 jobs, over eight thousand small businesses. If they wanted to correct it, it should have been done much sooner, rather than letting so many Texans enter this industry under the assumption it was legal and the politicians were okay with it. They allowed this thing to grow and then changed their mind six years later when they could have done it in 2021. Why did they not? 

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Texas medical marijuana companies spent big on Republican lobbyists to push THC ban

Gov. Greg Abbott has a choice when it comes to banning hemp-derived delta-8 and delta-9 THC products: listen to hundreds of thousands of Texans who enjoy them or a handful of powerful Republican lobbyists working for marijuana investors.

Abbott is in the crossfire of a cannabis civil war. Medical marijuana and retail hemp companies are fighting over who can legally get people high. The standoff is typical Texas politics, with the medical marijuana companies hiring former aides to Abbott and Lt. Gov Dan Patrick to lobby for them, and the hemp industry relying on public pressure.

The Texas Legislature authorized medical marijuana in 2017 for a tiny number of patients. Three medical cannabis companies have spent millions complying with the Texas Compassionate Use Program to legally sell products with THC, the ingredient in marijuana that makes you high. They expected exclusivity. Since then, lawmakers have steadily expanded TCUP to treat more conditions, adding people with chronic pain this year.

In 2021, cannabis-focused venture capital firm AFI Capital Partners led a $21 million Series B investment in Texas Original Compassionate Cultivation. The company supplied 77% of the medical cannabis consumed in 2022, the latest full-year data available in an annual Texas Department of Public Safety TCUP analysis.

The investment had horrible timing. In 2019, federal and state lawmakers legalized hemp, a type of cannabis with low levels of THC. Hemp entrepreneurs figured out how to concentrate the THC, and today, the hemp industry primarily sells edibles containing enough THC to get you stoned.

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Why Is Texas Supporting Psychedelics Research While Criminalizing Cannabis?

Texas just announced it will invest $50 million into studying ibogaine, a powerful psychedelic drug that remains illegal at the federal level. The goal? To develop it into a potential Food and Drug Administration-approved treatment for conditions like opioid use disorder, PTSD and depression; especially among veterans.

On the surface, this might sound like a bold and progressive move. But here’s the irony: at the very same time, Texas continues to criminalize cannabis and might soon even outlaw hemp-derived THC products.

Let’s break this down. Cannabis, a plant with centuries of use, decades of medical data and broad public support remains illegal for adult use in Texas. Despite overwhelming national support for legalization—a staggering 88 percent of Americans now back medical or recreational cannabis use)—the state has chosen to double down on prohibition, with lawmakers sending Gov. Greg Abbott (R) a bill that would outlaw consumable hemp products with any traces of THC. He has until Sunday to decide whether to allow that ban to take effect.

Even worse, prohibition isn’t stopping anything. The black market is thriving in Texas. Cartels and illicit operators flood the state with unregulated, untested cannabis. No taxes are collected, no consumer protections exist and legal hemp retailers are now being threatened. It is a misguided public safety argument deluded by a lack of facts and science, political conservatism, contradictory business objectives and outdated stigmas.

Meanwhile, ibogaine, a hallucinogenic alkaloid that can induce intense psychedelic experiences, is now the subject of a $50 million state-funded research push. The same lawmakers who claim cannabis is too dangerous and not well studied are throwing their support behind a compound with far less research and much more uncertainty with the intent of studying it.

This isn’t a critique of psychedelic medicine. Ibogaine may very well hold incredible therapeutic value. But if Texas is willing to support cutting-edge, controversial treatments for serious mental health and addiction issues, why not start with widely available data and access to cannabis? Cannabis has already been shown to help with chronic pain, anxiety, sleep, seizures and opioid dependency.

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75,000 pounds of THC products seized in DFW raids as Texas Gov. Abbott weighs statewide ban

Police raided locations across DFW on Tuesday in a year-long investigation into THC sales. 

The Allen Police Department, with help from the DEA, seized products at three warehouses in Dallas, while other agencies raided the owners’ homes in Carrollton, Colleyville, and Plano.

Allen’s police chief took the CBS News Texas crew inside one of the warehouses as officers pulled products off the shelves. 

According to early estimates from Allen PD, investigators seized over 75,000 pounds of THC products and $7 million worth of cash and assets in Tuesday’s raids.   

Chief Steve Dye said the warehouse raids are the product of an investigation that began more than a year ago with undercover purchases at shops in Allen. The I-Team documented how the Allen Police Department’s narcotics unit bought and tested the items ahead of raids at nine stores last August. Investigators said the illegal products found in Allen are being supplied by the warehouses in Dallas. 

“You don’t have to go to your drug dealer anymore to buy drugs,” said Dye. “You can go to a vape shop on any corner.” 

He believes the products found on store shelves are more dangerous than illegal drugs because, Dye said, the false sense of safety has led to an explosion in use.

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Federal Bill Would ‘Effectively’ Ban All Consumable Hemp Products—’Including CBD’—Congressional Researchers Say

A federal spending bill that’s advancing in the House would “effectively” prohibit hemp-derived cannabinoid products, including CBD, congressional researchers say.

In a report published by the Congressional Research Service (CRS) last week, legislative analysts looked at the potential impact of hemp-related provisions that advocates and stakeholders say would devastate a core sector of the industry.

While report language attached to the 2026 appropriations bill was recently amended to clarify lawmakers’ intent not to disrupt the non-intoxicating cannabinoid market—signaling that products like CBD shouldn’t be banned—the legislation itself hasn’t changed and could still jeopardize the industry without further amendments to its provisions.

The CRS analysis, which came out after the bill’s report language was revised, seems to validate the industry’s concerns about the legislation, explaining how it would “expand on the existing statutory definition of hemp,” which currently means cannabis containing no more than 0.3 percent THC by dry weight, “to include industrial hemp products and exclude hemp-derived cannabinoid products.”

“Excluding hemp-derived cannabinoid products from the federal definition of hemp effectively would prohibit production and sale of hemp-derived cannabinoids, derivatives, and extracts thereof, including cannabidiol (CBD),” it says. “Excluded cannabinoids would cover also non-naturally occurring and synthesized or manufactured compounds.”

“The proposed provision would make other broader changes to the hemp definition by changing the allowable limits of THC—the leading psychoactive cannabinoid in the cannabis plant—to be determined on the basis of its total THC, including tetrahydrocannabinolic acid (THCA), instead of delta-9 THC. This would codify the regulatory practice established in USDA’s 2021 final hemp regulations. The provision would exclude from hemp ‘any viable seeds from a Cannabis sativa L. plant’ that exceed a total THC (including THCA) of 0.3 percent in the plant on a dry weight basis.”

As it stands, the legislation has cleared a House Appropriations subcommittee—but while it was discussed in the full committee last week, members ultimately did not act on it before recessing for a district work period. The panel is set to take the bill back up next week.

Before breaking, however, the full panel did adopt a manager’s amendment to the attached report from Rep. Andy Harris (R-MD), a vocal opponent of cannabis reform. Despite his personal opposition, the revised report clarifies that the panel does not intend to prohibit non-intoxicating cannabinoid products with “trace or insignificant amounts of THC” that were federally legalized during the first Trump administration.

“In determining the quantifiable amounts, the Committee does not intend for industrial or nonintoxicating hemp-derived cannabinoid products with trace or insignificant amounts of THC to be affected,” it says.

Harris said in opening remarks at last week’s hearing that the legislation closes “the hemp loophole from the 2018 Farm Bill.”

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