Employment / 1 min read
In the 11th hour of June 22, the last day to do so, Governor Greg Abbott vetoed SB 3 which would have enacted a state-wide ban on THC products. SB 3 would have banned any products that contained THC, including but not limited to delta-8 and delta-9. Instead of enacting this legislation, Gov. Abbott has called for a special legislative session to come up with a new regulatory framework for THC in the Lone Star State.
Governor Abbott's Veto Statement
In vetoing the bill, Gov. Abbott said "Texas must enact a regulatory framework that protects public safety, aligns with federal law, has a fully funded enforcement structure and can take effect without delay." Gov. Abbott further called SB 3 "well intentioned," however noted that immediate constitutional challenges would prevent SB 3 from having any immediate impact.
Background on SB 3
SB 3 was a divisive bill with strong proponents on both sides of the aisle. Its veto is not surprising as the THC/Hemp industry is a multi-billion dollar industry in the pro-business State of Texas.
Expansion of the Texas Compassionate Use Program
In a separate cannabis-related action, Gov. Abbott also signed HB 46 which expanded the Texas Compassionate Use Program (TCUP). HB 46's enactment into law expanded the qualifying diagnoses from compassionate use of cannabis products, altered dosing allowances, and requires the Department of Public Safety to use 12 more licenses, up from 3, for dispensing organizations. Texas is now the 40th state to legalize medical marijuana for meaningful medical use.
Future Outlook
So what can we expect? Texas is not going to become California any time soon, but Gov. Abbott's approach to THC may be one that is not dissimilar to how alcohol is regulated. It is likely that we will see potential rules on how, when, to whom, and where THC products are sold. Gov. Abbott has called for a "strict enforcement by an agency like the Texas Alcoholic Beverage Commission." Thus, this new agency would have the responsibility to oversee the sale of THC/Hemp derivative products in Texas. As this develops in special session, we will provide additional updates.