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Axios Newsletter

Lt. Gov. Dan Patrick wants to ban delta-8 THC. Photo: Melissa Phillip/Houston Chronicle via Getty Images

1 big thing: House could take up THC ban bill

Lt. Gov. Dan Patrick’s push to outlaw THC in Texas is ramping up as a House committee considers his bill to ban the substance and another bill to place new limits on the industry.

Why it matters: A multibillion-dollar industry hangs in the balance with less than two months to go in the legislative session.

Driving the news: The House State Affairs Committee heard testimony this week on Senate Bill 3, which would ban THC, and House Bill 28, which would impose age restrictions, ban synthetic cannabinoids, and impose strict licensing requirements for the hemp industry.

  • HB 28 would allow an exception for THC-infused drinks to be sold in liquor stores, but it would ban edibles and smokable products.
  • Texas senators passed SB 3 27-4 in March. The House committee left both bills pending.
    The intrigue: A majority of speakers told committee members they opposed banning THC. Some speakers suggested more regulations to ensure nefarious products are kept off the market.

What they’re saying: “Get those off the shelf,” veterans advocate Mitch Fuller told committee members in support of HB 28. “Regulate the hell out of this industry.”

  • “In the veteran community, we’ve chosen this as an option in the toolbox that works for us.”

Between the lines: House Speaker Dustin Burrows (R-Lubbock) hasn’t said which bill he supports. His office did not return a request for comment from Axios.

  • “I’m all for small business, but I really don’t know what’s being sold,” Burrows told Community Impact this week. “I really don’t know how safe this is. I have significant concerns. That’s why we’re going to have these hearings.”

What’s next: All eyes are on the House State Affairs Committee to see if or when they’ll vote to move the bills to the House floor.

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2. Ban could end hemp business boom

Hemp is harvested from Tejas Tonic’s Dripping Springs ranch. Photo: Courtesy of Tejas Tonic

Aaron Owens began growing hemp at his Dripping Springs ranch five years ago, after the Legislature legalized its production.

He now farms 5–10 acres of hemp each year and runs his own business, Tejas Tonic, selling THC-infused seltzer and gummies.

Why it matters: The state’s 2019 agricultural hemp law opened the door for hemp farming and the sale of products containing less than 0.3% of THC. Business took off for farmers like Owens and thousands of small business owners.

By the numbers: A recent analysis from Whitney Economics and the Texas Hemp Business Council found that the state’s hemp industry generates $5.5 billion in annual sales, with an estimated tax revenue of $268 million.

  • Cynthia Cabrera, chief strategy officer at Austin-based Hometown Hero and president of the business council, said the proposed ban and additional regulations “will devastate small businesses, eliminate tens of thousands of jobs and strip billions from the Texas economy.”

Zoom in: The House’s proposal would halt the sale of Owens’ gummies and bring his THC-infused beverages under the regulatory authority of the Texas Alcoholic Beverage Commission, which Owens said would end his direct-to-consumer sales.

  • But if the Senate’s outright ban passes, “we’re all just out of business,” Owens added.

What’s next: As lawmakers consider how best to regulate the hemp industry, Owens and Jester King Brewery are launching a new partnership today to roll out hemp cocktails.

  • The nonalcoholic hemp beverages, which contain 5mg each of CBD and THC, will be available in three flavors and debut in cans and on draft at the brewery during its April 19 Green Acres Hop Fest.

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3. ???? The Roundup: Wrangling the news

Illustration: Brendan Lynch/Axios

????️ The Texas House has passed just 16 bills so far this session. (KUT)

???? The Senate approved a bill to require crash-rated safety bollards at hospitals across the state. (KXAN)

???? Thom’s Market will close its three locations on April 20 after 18 years in Austin. (Austin American-Statesman ????)

4. Weekender guide

Illustration: Lindsey Bailey/Axios

Here’s what’s on deck this weekend.

Friday

???? Bring a book to the Toasty Badger for a 3-course lasagna dinner book swap, 6:30-8:30pm. $25.

Saturday

???? Cheer on 10 teams as they face off in Victory Lap’s crawfish cook-off, noon-4pm, featuring crawfish tastings, bloody mary specials and live music. $15.

???? Mark two years of Uptown Sports Club with a Po’Boy competition between acclaimed local chefs. A $70 ticket gets you food samples, passed snacks, dessert and two beers. 5-9pm

  • Stay late to catch a three-piece band starting at 10pm.

???? Experience the interactive comedy show “Overheard on a Train” on the CapMetro Red Line, with performances at 2:15pm and 4:45pm. Tickets are $35 per person and sold in batches of four.

Sunday

???????? Enjoy Caribbean-inspired Irish fare as part of The Dead Rabbit and Canje’s one-night celebration, 4-10pm at Canje. Free with an RSVP.

???? Celebrate Frida Friday ATX’s anniversary during their Anything for Selena party, featuring Selena-themed drag performances, DJs and vendors, noon-6pm at Ani’s Day and Night. $25.

 

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