TEXAS — A bill banning consumable hemp products containing THC is on its way to Gov. Greg Abbott’s desk, jeopardizing the $8 billion industry and thousands of stores across the state.

The latest version of Texas Senate Bill 3 (SB 3) will ban all products with THC, like flower, gummies and beverages, leaving only CBD and CBG products on the shelves.

What You Need To Know

  • Senate Bill 3 (SB 3), which bans all products containing THC, has passed the Texas House and Senate, and now goes to Gov. Gregg Abbott to sign it into law

  • The law would go into effect on Sept. 1

  • Thousands of Texas businesses will be affected by the law and might be forced to close

  • Only a few products would be allowed to remain on shelves after the law is implemented

For stores like Dama Botanicals in Austin, the ban will mean a significant decrease in sellable products, and ultimately, shutting the store down.

“Atrocious,” said owner Ivan Tibbits. “It’s, I think it’s a massive overstep of power.”

Tibbits opened Dama Botanicals in 2022 and says business has steadily increased over the last three years. His work in cannabis, however, spans over 20 years.

Tibbits testified against SB 3 before the House Committee on State Affairs on April 7, saying that the industry needs to be regulated instead of being outlawed.

He suggested that locations selling hemp should undergo mandatory state training and also alluded to increasing the distance between hemp shops and schools and churches as opposed to the 300-foot distance mandated by the Legislature.

He says, ultimately, his testimony didn’t make a big difference in stopping the ban.

“For the most part, I think they just heard, ‘blah, blah, blah, blah, blah,’ because internally, they already have their own minds made up," Tibbits said.

There was a chance that THC would still be allowed. A committee substitute would have allowed for beverages with a maximum THC dosage of 10 milligrams to remain on the shelf regulated by the Texas Alcoholic Beverage Commission (TABC). Tibbits actually pursued an alcohol license when this version of the bill was released.

However, state Rep. Tom Oliverson, R-Cypress, introduced an amendment taking the bill back to its original intent, which bans all consumable THC.

As the bill awaits the governor’s signature, Tibbits and his staff have been going through their inventory to determine what is allowed on the shelf and what isn’t.

With only CBD and CBG left untouched in the bill, his list of available products went from hundreds to now only four items.

Tibbits said he will continue to order some products to continue selling to customers, but he says that if signed into law, SB 3 leaves consumers without a safe option.

“Once they shut us down on Sept. 1, I mean most of our clients are going to have to find a new realm, a new place to find their products, and it’s probably going to be the black market," Tibbits said. 

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