In 2018, the U.S. Farm Bill legalized industrial hemp cultivation across the country, including in the State of Texas. In 2019, Texas passed state-level hemp legislation to implement a regulatory framework for the state’s emerging hemp industry.
“Here in Texas, House Bill 1325 was signed into law in June 2019 and authorizes the production, manufacture, retail sale, and inspection of industrial hemp crops and products. This also includes products for consumable hemp products which contain cannabidiol (CBD), as well as other edible parts of the hemp plant. The Texas Department of Agriculture opened the hemp licensing and permit application process online on March 16, 2020.” The Texas Department of Agriculture states on its website.
Texas does not currently limit the number of dispensary registrations or hemp licenses it allows. Retailers must pay an annual fee of $155 per location. According to Houston’s Alternative Products Expo, Houston has experienced a 20% increase in new hemp businesses over the past year, “and now boasts over 500 smoke shops in total” according to original reporting by Chron.
During a recent Texas Senate hearing, “the state department of health and human services revealed there are just six full-time employees tasked with inspecting the state’s over 7,000 licensed hemp businesses, to say nothing of its unlicensed purveyors” reports Chron.
There is a current push underway in Texas to ban hemp-derived cannabinoid products such as CBD, Delta-9, and Delta-8 products, which has received considerable pushback from the state’s hemp industry.
“Any bans or excessive legislation of hemp-derived cannabinoids as suggested by Lieutenant Governor Dan Patrick and others will negatively impact an industry that has an $8 billion economic impact, pays $1.6 billion in annual wages, and supports more than 50,000 workers,” said Lukas Gilkey, CEO and cofounder of Hometown Hero, in a press release.
“Millions of Americans, including an ever-growing number of veterans, many whom live here in our home state, choose these products as part of their daily lifestyles, while others may rely on them as alternatives to marijuana, opioids, and other pharmaceuticals.” the press release also stated.
The Texas Hemp Business Council lists the following information about the Texas hemp-derived cannabinoids market:
- Sales of hemp-derived cannabinoids in Texas generate more than $8 billion annually.
- Between $19.1 and $22.4 billion in economic activity is generated by the local hemp-derived cannabinoid retail, manufacturing and wholesale sectors.
- The hemp industry pays upwards of $1.6 billion in annual worker wages.
- The hemp sector has created or expanded more than 5,000 businesses in the state.
- More than 750 licensed Texan farmers cultivate up to 3,300 acres of hemp for the state and throughout the U.S.
The Texas Hemp Business Council is an advocacy organization dedicated to promoting the growth, development and sustainability of the hemp-based cannabinoid industry in Texas.