The Future of Texas’ Consumable Hemp Industry: Understanding Senate Bill 3 and House Bill 28

The Texas hemp industry has grown rapidly since the passage of House Bill 1325 in 2019, which legalized the cultivation and sale of hemp products containing no more than 0.3% delta-9 tetrahydrocannabinol (THC) on a dry weight basis. Businesses ranging from CBD shops to wellness brands have flourished, contributing to the state’s economy and offering consumers alternative health and wellness products.

Now, two new legislative efforts—Senate Bill 3 (SB 3) and House Bill 28 (HB 28)—are poised to reshape the landscape for consumable hemp products in Texas. As of today, these bills have not yet been signed into law, but they have ignited serious discussion among industry stakeholders, policymakers, and consumers.

This article outlines what each bill proposes, what it could mean for the future of consumable hemp in Texas, and the key facts every business owner, consumer, and policymaker should know.

Overview of Senate Bill 3 (SB 3)

Senate Bill 3, introduced by Senator Charles Perry, would substantially tighten regulations on consumable hemp products.

Key Provisions of SB 3:

• Bans hemp-derived products containing cannabinoids other than cannabidiol (CBD) and cannabigerol (CBG).
  
• Prohibits the retail sale, possession, and consumption of consumable hemp products containing delta-8 THC, delta-10 THC, THCP, and other similar cannabinoids.
  
• Establishes stricter labeling, testing, and packaging requirements for CBD and CBG products.
  
• Introduces criminal penalties for the possession and distribution of prohibited hemp products.
  

In simple terms, SB 3 would eliminate nearly all hemp products that contain any form of THC beyond the minimal federal standard—even if those cannabinoids are non-intoxicating—leaving only CBD and CBG products legal under specific compliance rules.

Overview of House Bill 28 (HB 28)

House Bill 28, proposed by Representative Ken King, takes a different but still restrictive approach.

Key Provisions of HB 28:

• Maintains the 0.3% delta-9 THC concentration limit established under federal law.
  
• Caps THC concentration to 10 milligrams per serving for consumable hemp products.
  
• Bans edible and inhalable hemp products containing THC, even if they comply with the 0.3% threshold.
  
• Prohibits marketing and sales that could appeal to minors.
  
• Requires additional licensing and regulatory compliance from manufacturers and retailers.
  

In practical terms, HB 28 would allow the continued sale of certain hemp products but would sharply limit the form these products can take and how much THC they may contain per serving.

Why Are These Bills Being Proposed?

Supporters of SB 3 and HB 28 have cited several motivations behind these legislative efforts:

• Consumer Safety: There is growing concern about the presence of unregulated products that could contain harmful levels of cannabinoids or contaminants.
  
• Youth Access: Legislators and public health officials worry that intoxicating hemp products are being marketed and sold to minors.
  
• Law Enforcement Clarity: Differentiating legal hemp products from illegal marijuana products has posed challenges for law enforcement agencies.
  
• Public Health: The long-term health effects of cannabinoids like delta-8 THC and other variants are not fully understood, prompting precautionary regulatory measures.
  

Industry Concerns About SB 3 and HB 28

While the intentions behind these bills focus on public safety and regulatory clarity, many in the hemp industry have raised significant concerns.

Main Concerns Include:

• Economic Damage: The Texas hemp market has been a major contributor to the state economy. These bills could lead to widespread business closures and substantial job losses.
  
• Scientific Inconsistencies: Cannabinoids such as delta-8 and delta-10 naturally occur in hemp plants. Banning all cannabinoids aside from CBD and CBG ignores the complexity of the hemp plant’s chemical composition.
  
• Shift to Illicit Markets: Overregulation could drive consumers toward unregulated markets, exposing them to unsafe or counterfeit products.
  
• Threat to Innovation: Hemp-derived cannabinoids have spurred significant research and product development. Restrictive legislation could halt innovation and deter investment in Texas.
  

The Current State of the Texas Hemp Market

Since the legalization of hemp in Texas:

• Over 1,100 licensed hemp growers have entered the market.
  
• Hundreds of retail businesses now specialize in hemp-derived products, from CBD tinctures to delta-8 edibles and vapes.
  
• Thousands of jobs have been created across farming, manufacturing, distribution, and retail sectors.
  
• Consumers have access to a wide range of products designed for wellness, relaxation, and health supplementation.
  

Many small and family-owned businesses have thrived under the current regulatory framework, creating an industry that has supported both rural and urban economies.

How Senate Bill 3 and House Bill 28 Differ

Though both bills aim to regulate consumable hemp products more strictly, their approaches differ significantly:

• Senate Bill 3 seeks to ban all cannabinoids except CBD and CBG entirely from the consumable market.
  
• House Bill 28 allows the continued sale of hemp-derived products but caps THC concentration at 10 milligrams per serving and bans edible and inhalable forms containing THC.
  

In terms of potential impact:

• SB 3 would dramatically reduce the number of legal hemp-derived products in Texas.
  
• HB 28 would allow some products to remain but would make it harder for businesses to offer popular edibles, gummies, or vape products.
  

Potential Impact on Texas Hemp Businesses

If either SB 3 or HB 28 were to pass:

• Many businesses would need to reformulate or remove large portions of their product offerings.
  
• Compliance costs could rise sharply, especially for labeling, testing, and packaging.
  
• Retailers specializing in delta-8 or other alternative cannabinoids would likely be forced to shut down or pivot their business models.
  
• Farmers growing hemp strains bred for minor cannabinoids could lose their investments.
  
• The black market for hemp products might grow, creating enforcement challenges and greater consumer risk.
  

Arguments in Favor of SB 3 and HB 28

Supporters of these bills argue that:

• Protecting minors from intoxicating or misleading products is a top public health priority.
  
• Clearer, stricter regulations will assist law enforcement in distinguishing legal and illegal cannabis products.
  
• Reducing the availability of high-potency consumable hemp products minimizes potential abuse and public health risks.
  
• Ensuring only “safe” hemp products reach the market maintains consumer trust and protects vulnerable populations.
  

Arguments Against SB 3 and HB 28

Opponents of the bills counter that:

• The hemp industry contributes substantially to Texas’ economy, and overregulation could cause massive economic damage.
  
• Scientific understanding of cannabinoids like delta-8 is still developing, and blanket bans ignore nuanced data.
  
• Consumers want access to alternative wellness products and deserve the right to make informed choices.
  
• Overly strict laws could push the market underground, where consumers are at greater risk from untested and unsafe products.
  
• Criminalizing hemp-derived cannabinoids undermines the original spirit of Texas’ 2019 hemp legalization effort.
  

Stakeholder Perspectives

Industry Stakeholders:

• Fear economic collapse for small businesses and local farmers.
  
• Argue for reasonable regulation rather than prohibition.
  

Public Health Advocates:

• Generally favor age restrictions and rigorous testing but warn that prohibition may worsen public safety outcomes.
  

Law Enforcement:

• Support clear definitions to make policing easier but recognize the resource burden associated with new regulations.
  

Consumers:

• Favor access to safe, transparent products.
  
• Express frustration at the prospect of losing access to products that support their health and well-being.
  

What Could Happen Next?

As of now:

• Senate Bill 3 and House Bill 28 remain under legislative consideration.
  
• Both bills could be amended before any final vote.
  
• Industry groups, advocacy organizations, and concerned citizens are actively lobbying for adjustments or alternative solutions.
  
• A final decision is likely to emerge later this legislative session.
  

If either bill becomes law, the hemp industry in Texas will be required to quickly adapt. Lawsuits and regulatory challenges are also a possibility, depending on the final language of the bills.

Practical Steps for Hemp Businesses Right Now

Businesses can begin preparing by:

• Monitoring legislative developments closely.
  
• Engaging with local trade associations and chambers of commerce.
  
• Consulting legal counsel specializing in cannabis law to understand potential compliance needs.
  
• Educating consumers about possible changes and the importance of safe, legal products.
  
• Exploring diversification into non-THC hemp products or services, if needed.
  

Proactive engagement now can make a significant difference in how businesses weather potential regulatory shifts.

A Critical Crossroads for Texas Hemp

The consumable hemp industry in Texas stands at a critical crossroads. Senate Bill 3 and House Bill 28, though motivated by legitimate concerns about public health and safety, present serious challenges to the state’s thriving hemp economy.

Finding a balanced solution that protects consumers without stifling innovation and economic opportunity is crucial. Texas has an opportunity to create a model for responsible, science-based regulation that supports both public health and entrepreneurship.

The decisions made this legislative session will determine whether Texas continues to lead in hemp innovation—or falls behind in a rapidly evolving national market.