Texas THC ban: Senate Bill 5 debate put on hold as Senate adjourns

The expected debate over Senate Bill 5, a legislative crackdown on the Texas hemp industry, was put on hold Monday.

The Texas Senate is adjourned until Wednesday at 11 a.m.

What is in SB 5?

What we know:

SB 5, as currently written, has been described as a near total ban.

Key points of the bill include:

  • A ban on all hemp products with THC with an exception for cannabinoid (CBD) and cannabigerol (CBG) products
  • Criminal penalties for possession
  • Manufacturing and selling banned products would be a felony
  • Age restriction prohibiting sales to minors as well as marketing
  • Requirement for all legal consumable hemp products to be properly labeled and placed in tamper-evident child-resistant and resealable packaging
  • Permitting fees as well as requiring occupational licenses and registrations

Impact on business owners

What they're saying:

Smoke shop owners, like Flee Montemayor, were hoping to get news of a rewrite.

"I know there's got to be some compromise," said Montemayor. 

When SB 5 was fast tracked out of committee on July 24, it included a section that allows the sale products with CBG and CBD. 

However, it's not the kind of compromise Montemayor wants.

"It's more like a vitamin. So if one of our veterans is going through a hard time and he needs immediate relief, CBG and CBD is not going to help him immediately," said Montemayor.

Lt. Governor Dan Patrick, in a social media post last week, held firm on his push for a ban.

He cited testimony from law enforcement and parents who claim hemp products with THC are dangerous and have hurt children. 

Montemayor is preparing for a possible business model change.

"I'm ready to, I'm ready to pivot, as there's have a whole bunch of accessories and safer routes," said Montemayor, who went on to say change will come at a deep cost. 

What could the delay mean?

What they're saying:

"Well, we're surprised to see that the Senate didn't take up any bills today," said Heather Fazio with the Texas Cannabis Policy Center.

Fazio spoke to FOX 7 Austin about what the delay could mean.

"It's good news that the Senate has more time to consider SB 5. The bill is flawed deeply. It misses the mark when it comes to the governor's mandate to the legislature to regulate, not ban THC. So, this gives them more time to decide on amendments and to work out details of the Bill," said Fazio.

What's next:

Eventually, the focus and the debate will shift to the Texas House.

"We've seen a number of bills introduced this special session and not a single one of them hits the mark when it comes to what the governor is asking for is a comprehensive regulatory infrastructure for hemp-derived products," said Fazio.

The clock on the 30-day special session winds down in late August.

The Source: Information in this report comes from reporting/interviews by FOX 7 Austin's chief political reporter Rudy Koski.

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