SB 3: Sen. Charles Perry Takes Aim at Hemp Industry

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Senator Charles Perry's much anticipated Senate Bill 3 has been introduced and, while the bill includes some good changes to the law, it also sends Texas back into an era of prohibition. 

Senate Bill 3 aims to significantly restrict the legal market for hemp products by banning THC and nearly all other cannabinoids. If passed, the bill would allow consumable hemp products to include only cannabidiol (CBD) or cannabigerol (CBG). The bill would also institute age restrictions for all consumable hemp products and require child-resistant packaging. Marketing and advertising would be limited as to not appeal to children and no products with any amount of any cannabinoid can be sold within 1,000 feet of a school. 

We share the senator's concern about youth access and potentially dangerous products sailing under the radar of regulators, but we oppose banning THC for responsible adult use. Such a ban would hand this multi-billion dollar industry over to the illicit market, abandoning all opportunity to enforce regulations.

SB 3 is priority legislation for Lieutenant Governor Dan Patrick, so the bill may move quickly through the Senate. The Texas House seems less enthusiastic about re-criminalizing THC.

Consumer Protection

• Requires testing for microbial contamination.
• Retailers must report to DSHS the type and concentration of each cannabinoid present in each consumable hemp product offered for sale in their store.
• Packaging and advertising cannot indicate that the product is for medical use.
• Labels must include the amount of CBD or CBG and a certification of any cannabinoid other than CBD or CBG in the product is not more than 0.0001% on a dry weight basis.
  

Preventing Youth Access

• A person must be 21+ to purchase any product that contains any cannabinoids. 
• Consumable hemp products must be displayed away from products that are legal for children to consume. They can be displayed alone or with tobacco or alcohol. 
• No products with any amount of any cannabinoid can be sold within 1,000 feet of a school. 
• Packaging must be tamper-evident, child-resistent, and if the product contains multiple servings or consists of multiple products purchased in one transaction, resealable in a manner that allows child-resistant mechanism to remain intact.
• Restricts edible consumable hemp product manufacturing, packaging, marketing, and advertising to avoid appealing to children. 

Penalties and Enforcement

• It would be a third degree felony to manufacture or sell hemp products with cannabinoids other than CBD or CBG. Administrative penalties for businesses can be up to $10,000 per violation of the law or department regulations.
• It would be a Class A misdemeanor offense to possess hemp products with cannabinoids other than CBD or CBG. If this offense constitutes an offense under another law, the actor may be prosecuted under this section, the other section, or both.
• It would be a Class A misdemeanor office to ship or mail a consumable hemp product with any amount of any cannabinoid.
• New hemp laws would go into effect on September 1, 2025. 

In 2019, Sen. Perry sponsored Texas’ hemp legalization bill, aligning with federal law. While it was generally framed as an agricultural measure to support hemp as an industrial crop, the legislation also established a regulatory framework for consumable hemp products containing less than 0.3% Delta-9 THC. In addition to federal oversight, these products are regulated by the Texas Department of State Health Services (DSHS) and the Texas Department of Agriculture (TDA).

Following nationwide legalization, an influx of hemp producers flooded the CBD market, leading to oversaturation. The industry quickly evolved as cannabis laboratories began converting CBD into cannabinoids like Delta-8 and Delta-10 THC, which remain legal under both state and federal law. These alternatives to naturally occurring Delta-9 THC have fueled rapid market expansion.

By 2022, Texas’ hemp industry was valued at $8 billion, supporting an estimated 50,000 jobs. Given its continued growth, projections suggest it could exceed $10–15 billion in 2025. 

While Sen. Perry views these developments negatively, the industry's adaptability has driven economic growth, job creation, and expanded consumer access to safe, regulated products.