Texas Gov. Greg Abbott is expected to issue an executive order to regulate the state’s $5.5 billion hemp-derived THC market.

The Texas Tribune reported that Abbott will take action after a proposed ban on hemp-derived THC products stalled during a special session of the state Legislature last week.

While signing an unrelated bill Friday, reporters asked Abbott if he would wait until 2027 to address THC or call another special session.

Texas lawmakers meet in Austin for regular lawmaking every two years.

“I will say, ‘Stay tuned on that,’” Abbott replied, according to the Tribune. “Something may be happening soon.”

Three people close to the governor’s office said Abbott will issue an executive order on hemp THC, according to the Tribune.

Liquor-style regulations for Texas hemp-derived THC products

The timeline for Abbot’s executive order remains unclear.

Abbott’s office declined to comment to The Texas Tribune.

But he’s expected to instruct the Department of State Health Services to develop rules for regulating hemp-derived THC products, the Tribune reported.

The anticipated rules would resemble those around alcohol, such as:

  • Setting a 21-an-older age minimum for purchases or entry into certain businesses.
  • Requiring ID checks.
  • Establishing distance restrictions from schools.
  • Implementing labeling requirements.
  • Mandating THC potency testing.
  • Increasing fees for businesses.

It’s the latest chapter in a long-running saga that saw Republican Lt. Gov. Dan Patrick and the state Senate push for a blanket ban on the products beginning last winter.

The Legislature passed such a ban during the regular session in June but Abbott vetoed it, calling instead for regulation.

“Legislators could consider a structure similar to the way alcohol is regulated, with strict enforcement by an agency like the Texas Alcoholic Beverage Commission,” Abbott wrote in his June veto letter of Senate Bill 3.

The new regulations would treat THC sales similarly to liquor.

It position liquor stores as beneficiaries, especially as alcohol sales decline across the country.

Meanwhile, supermarkets and other retailers that sell beer, wine and hemp THC products could be excluded from THC sales under the new rules.

With only limited access to low-THC cannabis oil via the state’s medical marijuana program, hemp THC products are proving extremely popular in Texas.

 



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