Gov. Abbott's executive order regulates hemp products with THC

AUSTIN, Texas - Texas will regulate and not ban the sale of hemp products that contain THC. 

Gov. Abbott made that decision with an executive order.

The backstory:

An unregulated hemp industry has been described as a risk that could be ignored. With state lawmakers unable to decide what to do, a 5-page executive order was issued Wednesday by Governor Greg Abbot. 

The governor, after speaking at an event in Houston, explained why he stepped in and decided not to call lawmakers back to try again.

"There's one thing everybody agrees with, and that is we should ban it for kids. We tried to get that ban passed, and because it didn't pass, I wanted to use this opportunity to make sure that I empowered the State Department of Health Services to do what is already within their regulatory power," said Governor Abbott.

Advocates speak out

What they're saying:

Two advocates for the hemp industry, Heather Fazio and Mark Bordas, spoke out about the order.

"We're certainly encouraged that the governor didn't put this in front of a third special session because the chess pieces have already been established on the board, and we know it ends in a draw," said Bordas with the Texas Hemp Business Council.

Fazio, with the Texas Cannabis Policy Center, said the action was long overdue.

"And we're thankful that he has found a solution to protect younger people. But there are details that we still need to see how they work out," said Fazio.

The key details in the order include:

• Preventing sales to minors now making it a crime to sell hemp-derived products to them.
• Sales near schools, churches and other sensitive locations are not allowed under the executive order.
• Stores are not allowed to operate within 1,000 feet of those facilities.
• Enhanced testing and increased fees include ongoing monitoring for manufacturers, distributors and retailers.
• The State Health Department is to team up with Texas Alcoholic Beverage Commission on regulations.
• Stores who fail to comply could risk losing their licenses.

"So, I think that's why he brought them in, especially when you consider that DSHS, by their own admission, during the course of testimony, stated that they only have four and a half full-time employees trying to police 8,000 licensees," said Bordas. 

Things like the age restriction, according to Bordas, should start quickly. When the broader rules will start is unclear, although Governor Abbott wants work on the new rules to start in 10 days. 

The order resembles a regulation bill that failed to advance in the House earlier this year. In June, after Governor Abbott vetoed the THC ban bill, SB 3, Lt. Governor Dan Patrick did not hold back what he thought that would bring.

"One can only come to this conclusion, which surprises me: the governor of the state of Texas wants to legalize recreational marijuana in Texas," said Parick during a Capitol news conference.

Fazio did not agree with Patrick’s assessment of what the governor is trying to do.

"The laws we're talking about here relate to hemp. Marijuana laws remain intact," said Fazio.

The order does allow for local votes on whether to ban the sale of all hemp products with THC, and the retail sale of hemp flower is prohibited. That's a concern for Fazio.

"If we're restricting to a 0.3% total PHC, we're going to see demand for these products. Put underground and in the illicit market, there are no product standards, no labeling, no testing requirements and certainly no ID requirements. We would be better off allowing flower with normal amounts of THC in it to be sold through licensed and regulated businesses," said Fazio.

Under the order, hemp products, for now, will be available at any retail location. But the upcoming rule-making process could end up prohibiting sales in grocery and convenience stores.

"It remains to be seen whether there's going to be additional restrictions on who can sell these products and where. We'll have to see what the Department of State Health Services proposes during the rulemaking process. And we certainly will be paying attention and participating in that process to make sure we have the best laws moving forward," said Fazio. 

Dig deeper:

For Gruene Botanicals in Austin, the THC business says it's been quite a week.

"We've been on a rollercoaster of emotions," said Rachel Wells, manager at Gruene Botanicals Austin.

On Monday, Sept. 9, Senate Bill 2024 went into effect, making the selling and marketing of THC vapes a class a misdemeanor, carrying a possible 4,000 fine and up to one year in jail. 

Which meant getting rid of its THC vapes and cartridges.

"A lot of disappointed customers where I have to break their hearts, you know, coming in and telling them, hey, I don't have what your usual is this time," said Wells. 

Wells says the executive order doesn’t change much for them since they already were ID-ing minors.

Like this neighborhood, we serve to like adults, you know, middle-aged adults, essentially. So, I don't know about other shops, you know. Maybe their area, you know, maybe more recreational areas like, you know, college towns or something are having more issues with this. But not so much here because we're already on top of it," said Wells.

But Wells worries that with the new regulations, kids could turn to other more dangerous alternative options.

Under the order, hemp products, for now, will be available at any retail location.

What's next:

The head of "Smart Approaches to Marijuana", Kevin Sabet, in a statement called the Executive Order "an empty gesture." Sabet indicated the governor made a mistake by not following the advice from law enforcement officers and the state’s medical establishment.

"The governor has chosen to go it alone, undermining public confidence and possibly positioning Texas for a costly legal battle. Texas families deserve real, comprehensive protection. They do not need sweeping, ineffectual pronouncements made to cover up past mistakes," stated Sabet.

The organization urged state lawmakers to pass a THC ban when they return for the Regular Session in 2027.