In Texas, getting high has never been easier, despite the state’s reputation for strict policies and socially conservative values. While recreational cannabis remains illegal, Texas boasts over 7,000 marijuana dispensaries—nearly double the number in California. The market has expanded to include 24/7 marijuana delivery services, mobile dispensary trucks, vending machines, and even mail-order options.
The contradiction arises from the state legislature, which has consistently opposed legalizing recreational cannabis. Yet, due to a rapidly growing and loosely regulated hemp market, Texas has unintentionally earned the nickname “the THC Republic.”
It began when Congress passed Farm Bill 2018, which legalized hemp by classifying it separately from cannabis. While cannabis contains high levels of THC, hemp has significantly lower levels. In 2019, Texas followed suit by allowing farmers to grow hemp for uses like textiles, paper, and clothing. Legislators believed they were steering clear of legalizing cannabis. However, a loophole in the hemp law enabled the sale of potent cannabis products.
Texas isn’t alone—eleven other states, primarily in the South, have experienced similar unintended consequences after passing hemp-friendly legislation. However, with its large cities and rapidly growing population, Texas has become the center of this trend. Although medical cannabis is legal in Texas, it’s tightly regulated, expensive, and limited to certain conditions like multiple sclerosis and cancer.
The largely unregulated hemp market has grown far beyond medical cannabis, creating significant challenges. Without age restrictions, some shops sell hemp products to underage buyers, including students after school hours. Moreover, licensed medical cannabis providers face difficulty competing with the hemp industry, which operates with fewer restrictions and a dedicated customer base.
Interestingly, the hemp market has also led to a dramatic decrease in the cannabis black market. Seizures of illegal cannabis along the Southwest border decreased by 72% between 2021 and 2023. Consumers now prefer regulated cannabis over the harsher, cartel-supplied “brickweed.”
In places like El Paso, residents who previously relied on dealers from Juarez, Mexico, can now cross into nearby New Mexico, where recreational cannabis has been legal since 2021, to shop at upscale dispensaries.
Psychoactive hemp will be a high agenda item when the Texas legislature meets for its biennial session. While the marijuana industry hopes for more mild rules, Gov. Dan Patrick has pledged to advocate for a total prohibition of THC products. If successful, it could mark the end of Texas’ thriving THC marketplace.
The broader marijuana industry, including Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), will be following the developments in Texas to see how the legitimate needs of residents who wish to consume THC products will be addressed by the conservative lawmakers in the state.
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