State Crackdown on Cannabidiol (CBD) Products is Looming

In the past year, TAB has seen an increase in the number of inquiries from stations wondering about the legality of advertising “low” or “no THC” cannabis oil (CBD) products.  To be clear, it is legal for stations to advertise a specific CBD product sold by legal dispensaries that were created under SB 339, the 2015 Texas Compassionate Use law.  Beyond that, stations that advertise such products do so at their own risk.  There simply isn’t any Texas case law on which to rely and the federal regulations can be confusing.

In Texas, three dispensaries can manufacture and sell low-THC CBD oil by prescription only.  Tetrahydrocannabinol, or THC, is the psychoactive compound that creates a physical high.  The low-THC CBD oil allowed under Texas law produces no such high.  It is a treatment allowed for a specific epileptic medical condition as described by the law.

The three state-sanctioned dispensaries are: Cansortium Texas, Compassionate Cultivation and Surterra Texas.  To TAB’s knowledge, none is advertising, and there really isn’t a need for them to do so as the market for their products is limited.  The sale of any other CBD oil products in Texas, whether they contain low or no THC, is debatable, but it is poised to become clearer this summer. 

The Texas Department of State Health Services is set to adopt proposed procedures that contain a provision related to CBD infused products.  The DSHS proposal would allow the State of Texas to confiscate any food or supplement which has CBD or THC listed as an ingredient.  The proposal could affect several businesses in Texas selling food and supplements they claim treat a host of health ailments and which they claim are legal because they contain less than the federal limit of 0.3 percent THC.  Generally, the products list CBD oil as an ingredient and are usually described as having low or no THC.  Cannabis industry representatives say they will sue the State of Texas if DSHS implements the proposal.  TAB will advise stations when DSHS takes action.

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