Texas Prepares to Expand Medical Cannabis Access While Threatening to Dismantle Its Hemp Industry

Texas is on the verge of making its most significant move in years toward expanding access to medical marijuana. At the same time, it faces a fierce backlash from business owners and advocates over a proposed crackdown on hemp-derived THC products—threatening the future of the state’s $5 billion hemp industry.

On Sunday, state lawmakers passed a bill that would broaden eligibility and access under the state’s highly restrictive medical marijuana program. But just a day later, the spotlight shifted to a separate bill that could outlaw many hemp products currently sold legally throughout Texas.

House Bill 46 Could Mark a Turning Point for Texas’ Strict Medical Cannabis Program

Under current law, patients in Texas can only access low-THC oil through the Compassionate Use Program, one of the most limited medical marijuana programs in the country. The THC content is capped at 1%, and product types are tightly controlled. The market is also extremely small, served by just three licensed “dispensing organizations.”

House Bill 46, which now awaits Governor Greg Abbott’s signature, proposes sweeping changes that would increase access to medical cannabis. The legislation would:

• Expand the number of licensed producers from three to 15, greatly increasing capacity for production and distribution across Texas.
  
• Allow these licensed operators to open and operate “satellite locations,” which would make it easier to reach patients in rural or underserved regions of the large state.
  
• Permit the sale of vaporizable products, while continuing the prohibition on smokable marijuana flower.
  

In addition to expanding infrastructure, the bill also seeks to broaden the pool of eligible patients. It would add chronic pain, traumatic brain injury, and terminal illnesses requiring palliative care to the list of qualifying medical conditions.

If signed into law, these changes could significantly expand the reach of the program, potentially allowing tens of thousands of new patients to legally access medical cannabis products in Texas.

While Medical Access Grows, Hemp Businesses Face Existential Threat from Senate Bill 3

Even as cannabis advocates celebrated the progress made in medical marijuana access, Texas’s hemp industry entered a state of emergency. Senate Bill 3, which also sits on the governor’s desk, aims to outlaw the sale of hemp-derived THC products. This includes popular and widely available items such as delta-8 and delta-9 THC gummies and vapes, which are sold in thousands of shops across the state.

SB 3 would essentially eliminate the legal gray area that has allowed hemp-derived THC to flourish in Texas, particularly after the passage of the 2018 federal Farm Bill that legalized hemp at the national level.

Hemp business owners argue that the measure amounts to a death sentence for their industry. An estimated 8,000 companies—most of them small or independently owned—would be forced to shut down or pivot away from THC products entirely. The industry also warns of massive job losses and a significant hit to state tax revenue.

Hemp Advocates Call for Veto as Industry Rallies in Austin to Save Legal THC

On Monday, members of the Texas Hemp Business Council and other stakeholders gathered in front of the Capitol in Austin to urge Governor Abbott to veto SB 3. They emphasized the economic benefits the industry has brought to the state, including tax contributions, jobs, and expanded access to non-intoxicating wellness products used by patients—including veterans—for pain management and anxiety.

The proposed ban has drawn criticism not only from industry players but also from consumers who rely on legal hemp products as alternatives to pharmaceutical medications or illicit cannabis.

Despite these appeals, political momentum behind the bill remains strong, especially among conservative lawmakers concerned about public safety and drug use. The bill’s lead sponsor, Lieutenant Governor Dan Patrick, has aggressively campaigned against hemp-derived THC, describing such products as harmful substances that undermine public health.

Texas Stands at a Crossroads: Expansion of Medical Marijuana or Recriminalization of Hemp THC?

As Governor Abbott weighs two starkly different cannabis-related bills, Texas finds itself at a pivotal moment. On one hand, House Bill 46 represents a cautious but meaningful step toward normalizing medical cannabis in a historically prohibitionist state. On the other, Senate Bill 3 could trigger a rollback of hemp legalization, potentially reintroducing prohibition-style enforcement and economic disruption.

The outcome of these legislative decisions will not only reshape the state’s cannabis landscape but also send a powerful signal to other conservative-led states watching closely.

In the weeks ahead, Texas residents, business owners, and patients await the governor’s decision, which could either widen access to regulated cannabis or abruptly curtail a booming industry that has flourished in a legal gray area.