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Texas lawmakers are considering sweeping legislation that would effectively ban most hemp-derived products in the state, with a medical marijuana expansion pack pegged as a concessional trade off.

Senate Bill 3, authored by state Sen. Charles Perry, would prohibit all cannabinoids except CBD and CBG, a move industry folks say would wipe out the hemp market while potentially driving consumers to illicit sources.

“This is a sledgehammer solution to kill a fly,” Hometown Hero’s Cynthia Cabrera told Green Market Report after the Senate committee hearing on the bills Monday. “If you want to deal with access by minors, then just introduce an age gate and nobody’s going to fight it.”

The bill was heard alongside Senate Bill 1505, which would expand Texas’ limited medical marijuana program, known as the Compassionate Use Program. The proposed expansion would up the supply of dispensary licenses from three to six and allow satellite locations as a way to improve access. The bill would also permit inhalable products.

However, critics note the medical program would remain highly restrictive versus other states, capping THC content at 5 milligrams (rather than the more common 10 milligrams) and not expanding eligible conditions to include more wide-catching qualifiers such as chronic pain or insomnia.

The introduction of the two bills led some to conclude lawmakers were attempting to eliminate the hemp market while offering a limited expansion of medical marijuana as an alternative. But some senators appeared to question the practicality of the hemp bill.

Katharine Neill Harris, a fellow in Drug Policy at Rice University’s Baker Institute, told Green Market Report that “banning all cannabinoids except CBD and CBG might not be workable.”

“Sen. Perry’s response to that, you know, is that we’re also expanding the medical program so there will be an option for people,” Harris explained. However, she questioned whether the timing would work for patients, noting the delays inherent in licensing new dispensaries and establishing satellite locations.

Critics also pointed out that the legislation would make possession of unauthorized hemp products a Class A misdemeanor, which carries stricter penalties than the current punishment for marijuana possession.

“To make it a Class A misdemeanor to possess end products with THC is just, I mean, to me is a very concerning penalty to establish,” Harris said. “Really going backwards as far as prohibition and the harmful effects of that.”

Those on the hemp side generally expressed frustration at what they see as efforts by the medical marijuana industry to shut down hemp businesses in Texas. The nascent industry already reportedly employs nearly 50,000 people, according to advocates.

“The hemp industry doesn’t roll into a marijuana-friendly state and say, ‘We need to shut down this marijuana thing and people just do their business,’” Cabrera said. “It’s only the marijuana side that comes back like what is happening here in Texas and says, no, no. You got to get rid of this industry.”

Several interest groups beyond medical marijuana appear to be jockeying for position in the legislative fight, including alcohol distributors. According to industry sources, beer wholesalers and liquor stores are advocating for different approaches that would benefit their respective sectors.

“The beer people would like to have all the drinks and get rid of everything else,” Cabrera said. “And then the liquor stores are pushing to just sell everything through them.”

A similar legislative battle is unfolding in Tennessee, where lawmakers are considering placing hemp products under the Tennessee Alcoholic Beverage Commission. In Arkansas, beer distributors are pushing to incorporate hemp products into the state’s three-tier distribution system, according to an industry lobbyist. That’s all while large medical cannabis multi-state operators sink their teeth into hemp-derived product lines more and more.

The Texas Supreme Court is expected to eventually take up Hometown’s case involving the current injunction giving life to the state industry, though sources tell GMR the court will likely wait until after the legislative session concludes before issuing a ruling. SB 3 passing would realistically render the appeal moot.

Perry, who interestingly authored the original 2019 legislation that legalized hemp in Texas, mentioned proposing a substitute bill that would increase licensing fees for businesses to $20,000, though official documentation has not yet been released.

“You have to ask yourself, why are you considering banning an industry while simultaneously expanding a federally illegal product?” Cabrera said. “You’re gonna kill this industry that sells vapes and flower, but you’re going to give it to this other industry?”

The Texas legislative session continues through early June, giving lawmakers several months to determine the fate of the state’s hemp industry. The bill was left pending in the committee after an 8-hour marathon session, though sources say it will likely get picked back up next week.