Texas THC Ban: Retailers Warn It Could Spell Doom for Local Businesses

Sydney Torabi, co-founder of Restart CBD in Austin, felt crushed as the Texas House voted to ban all products containing THC. “I couldn’t believe what I was seeing,” she said. She and her sister started their business seven years ago, but by this fall, it could all come crashing down.

Senate Bill 3, introduced by Sen. Charles Perry, would make possessing THC-infused products a misdemeanor, potentially leading to up to a year in jail. For those who sell or manufacture these products, the consequences could mean up to a decade behind bars. This measure is now just a few steps from reaching Governor Greg Abbott.

Currently, Texas has over 7,000 registered hemp sellers and a booming hemp industry employing more than 50,000 people. In 2024, this sector was projected to generate about $7 billion in tax revenue, according to Whitney Economics. If the bill passes, many retailers are considering drastic measures, like closing their shops or relocating to states where they can continue their businesses legally. “It’s disheartening,” Torabi remarked, especially since other important bills were delayed for this vote.

Lt. Gov. Dan Patrick has been vocal about the ban, asserting that THC products are harmful to children. “We cannot leave this session without protecting our children,” he stated.

Historically, Texas just approved the sale of hemp products two years ago, hoping to boost agriculture in the state. Since then, there’s been a rise in hemp products sold everywhere—from dispensaries to convenience stores. A coalition of businesses and advocates has now joined forces, hoping to convince the governor to reject the ban, emphasizing the importance of hemp products for many Texans.

Retailers like Nick Mortillaro from Lazy Daze might have to leave Texas entirely. He mentioned plans to consolidate stores and move staff to states like New Mexico and Florida, which have friendlier cannabis laws. When California introduced a similar ban, it led to consumers rushing to stores to stock up, but Torabi doubts Texas has a similar customer base to do so.

A lot of users depend on hemp for medical reasons. Groups including veterans and parents of children with special needs had advocated for easier access to hemp products rather than relying solely on the medical marijuana system, which is still developing in Texas.

As the state contemplates expanding its medical marijuana program by 2026, some users prefer the accessibility and lower costs of hemp products compared to the stringent requirements of medical marijuana.

In response to the looming ban, Lukas Gilkey, CEO of Hometown Hero, announced that industry leaders are preparing to challenge it with a lawsuit. He believes the ban disrupts interstate commerce, echoing arguments made in similar cases elsewhere.

Torabi and others are gathering signatures and engaging with business councils to urge Abbott to veto the bill. “This will just push people back into the underground market,” she warned. Mortillaro is more cautious, focusing on helping customers stock up while he still can. “We’re here to educate them as long as we’re open,” he emphasized.

The future looks uncertain for Texas’s hemp industry, which has grown rapidly in the past few years. How this ban unfolds will likely reshape both the market and the lives of many Texans who rely on these products. For those involved, it’s more than just business; it’s about community and health.



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