Legislature Contemplates Different Approaches to THC Product Sales, from Outright Bans to Heavier Oversight

posted on 4.01.2025

Lt. Gov. Dan Patrick has made good on a promise to pass legislation banning the sale of all forms of consumable Tetrahydrocannabinol (THC) products in Texas.

In 2019, Texas lawmakers approved HB 1325 by Rep. Tracy King, D-Uvalde, which authorized commercial hemp agriculture in Texas.

It allowed the cultivation, manufacture, and sale of certain hemp and hemp-derived products including consumable goods containing cannabidiol—popularly known as “CBD.” 

Senate lawmakers say retailers exploited the agriculture law to sell life-threatening, unregulated forms of THC to the public and made such products easily accessible.

"Kids are getting poisoned today," Patrick said from the dais in late March before the Texas Senate passed SB 3 in a 26-5 vote.

The measure, authored by Sen. Charles Perry, R-Lubbock, bans the sale of all forms of consumable THC products, but continues to allow the sale of products that only contain CBD or cannabigerol (CBG). 

The sales of such products would be subject to a strict regulatory framework.

SB 3 would prohibit the sale of consumable hemp products to minors under 21, prohibit marketing consumable hemp products to minors, and would require all legal consumable hemp products to be properly labeled and placed in tamper-evident, child-resistant, and resealable packaging. 

Additionally, a product’s packaging or advertising may not indicate the product is for medical use.

The measure does not affect the state’s highly regulated “compassionate use” program (CUP) which allows the sale, by prescription only, of certain low-level THC cannabis for limited medical conditions such as epilepsy, seizures, autism, cancer, and post-traumatic stress disorder.

Another Perry measure, SB 1505, would impact CUP by doubling the number of licensed dispensers from three to six and allowing them to operate satellite facilities to make the filling of prescriptions easier.

The latter element would counter SB3 committee testimony by several veterans’ groups that preferred the ease of access and affordability offered by the sale of THC products at local retailers.

SB 3 has been received in the House and was referred to the House State Affairs Committee on March 26.

That’s also where the house version of a hemp bill, HB 28 by Rep. Ken King, R-Canadian, has been residing it was referred on March 14. 

The House bill takes a different tack on the issue by imposing stricter oversight and licensing of hemp-derived products.

It would not ban THC altogether.

The issue will likely wind up in a conference committee on one of the two measures before the session concludes.

The Texas Hemp Business Council said there are more than 7,000 licensed hemp product vendors in

Texas, creating 50,000 jobs and adding billions in state tax revenue. 

Advertising CBD Products Today

While the sale and advertising of certain types of CBD-related cannabis products is currently legal, the regulations that allow it are quite specific.

Stations accepting such advertising do so at their own risk and therefore must perform the necessary due diligence or risk the consequences of advertising an illegal product.

TAB’s longtime state legal counsel, Jackson Walker LLP, has prepared an advisory on advertising marijuana and hemp-based CBD products under current Texas law.

View TAB’s CBD Advertisement Legal Advisory

The main takeaways from the advisory are:

• Marijuana remains illegal in almost all contexts, and only three entities are authorized to dispense it for medical use under the Texas “compassionate use” law. Broadcasters should deal only with those entities and should not air advertisements that depict the consumption of marijuana.
• Broadcasters should avoid advertisements depicting consumption, suggesting illegal drug use, targeting children, or promising miraculous medicinal results that have not been adopted by the FDA.
• Broadcasters should avoid advertisements for CBD products derived from any source other than legal hemp. Broadcasters should also ask advertisers to warrant the purity and THC content of their products—only hemp-derived products with Delta-9 THC in concentrations less than .3% are legal.
• Broadcasters should only air advertisements for CBD processed by licensed manufacturers, from hemp grown by licensed producers, and sold by registered distributors. Where possible, broadcasters should obtain appropriate representations, warranties, indemnification, or other certifications from prospective advertisers as to those issues.

Questions? Contact TAB’s Michael Schneider or call (512) 322-9944. 

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