/>iLast week, the Texas Senate Committee on State Affairs held a hearing to discuss how the Lonestar State might soon regulate THC-infused beverages. Led by committee chair Sen. Bryan Hughes, the hearing heard from members of Texas agencies and representatives of companies in the hemp industry, all discussing the need for reasonable regulations, as well as from citizens urging a total ban of the products. We break this down a bit more below but suffice it to say that this will be a hot topic during this next legislative session in Austin.
Most Urge Sensible Regulations
The committee heard from Dr. Timothy Stevenson from the Texas Department of Health and Human Services Deputy Commissioner for Consumer Protection, Thomas Graham, the executive director of the Texas Alcoholic Beverage Commission, and Lindy McGee, M.D., of the Texas Pediatrics and Texas Medical Association. The focus from these hearing participants was understandably about protecting Texas’ children. Doing so involved proposals for product packaging and labeling regulations, age restrictions, distance setbacks from schools, and potential potency caps.
The hemp industry advocates – Lukas Gilkey, CEO of Hometown Hero, Andrea Sallis Daniels, vice president of Corporate Affairs for Dreamz Cannabis, and Mark Bordas, the executive director of the Texas Hemp Business Council – echoed many of these calls for common-sense regulations. These industry leaders recognized the need for regulations and expressed a desire to not only protect vulnerable Texas citizens but also a need to educate the general public on the products they manufacture and sell.
Sen. Charles Perry appeared to be the hemp industry’s most fierce adversary – going as far as encouraging personal injury lawyers to explore future litigation against the hemp industry akin to the tobacco litigation of the 80s and 90s. Needless to say, the hemp industry will face staunch opposition in the Texas Senate, most likely led by Sen. Perry, when the legislature addresses these issues during the 89th Texas Legislative session next January.
Talk of a Three-Tiered System Approach to THC-Infused Beverages
Senators, the TABC representative, and hemp industry representatives spoke of moving the regulation of THC-infused beverages within the three-tiered distribution system that currently governs the alcohol industry. As that system, which requires a three-tiered hierarchy of manufacturers, distributors/wholesales, and retailers who operate independently of one another, has existed and operated for decades in Texas, moving THC-infused beverages underneath that system appeared to make perfect sense to the hearing participants. There is no doubt that THC-infused beverages have taken the cannabis industry by storm, with a reported U.S. market size of $2.04 billion in 2023. In Texas, these beverages can currently be purchased from retail giants Total Wine & More and Spec’s, among many other retail locations. These realities haven’t gone unnoticed by the Texas Legislature, and (sans Sen. Perry) there does not appear to be much of a thirst to eliminate them all together. As they say, that genie is out of the bottle. However, those that follow this industry and this blog know that words used in legislation and regulations can carry significant weight, even when the consequences may be unintended. As everything is bigger in Texas, the ultimate path chosen by the Texas Legislature can’t be understated. Fasten those belt buckles and hang on.
