$8B Market On The Brink: Texas Senator Calls It 'Uncontrollable,' Proposes Erasing Hemp

During a Senate Committee on State Affairs hearing, Texas Senator Charles Perry expressed concerns over the state’s ability to regulate the growing hemp industry. 

Perry argued that the $8-billion industry has become uncontrollable and suggested removing hemp products from the market. "Don't deceive yourself. There's nothing good in this product because you're not able to control it," Perry said.

However, Austin-based business Hometown Hero, which is fighting to keep Delta-8 products legal in the Texas Supreme Court, disagrees. Cynthia Cabrera, the company's chief strategy officer, said that their products are regulated, inspected and comply with state requirements. 

Cabrera pointed to the Texas Administrative Code, which mandates that hemp products must be tested by accredited labs and certificates of analysis (COAs) made available to the Department of Health.

• Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. You can’t afford to miss out if you're serious about the business.

Enforcement Limitations

The Texas Department of State Health Services (DSHS) is tasked with inspecting hemp businesses, but with limited resources, the agency conducts inspections only once every five years. According to a DSHS spokesperson, an influx of new licenses has further complicated enforcement efforts.

 Hemp Businesses Affected 

Recent events have brought increased scrutiny on hemp businesses. In Houston, the owners of a popular THC store chain were arrested for money laundering and marijuana possession after an investigation revealed that pre-roll products labeled as hemp tested positive for marijuana. 

Read Also: It’s Your Constitutional Right: How You Can Break The Senate’s Block On Cannabis Legalization

Similar raids took place in Allen City, where THC levels in products reached 70%.

David Sergi, a cannabis attorney representing multiple businesses, claims these companies are unfairly targeted, noting that all products have COAs. He argued that Senator Perry's lack of action contributed to the gaps in regulation.

With Delta-8's legal status still pending a Supreme Court ruling, the future of hemp products in Texas remains uncertain.

Read Next: Hemp Thrives In Texas Shops Near Schools: Why This Company Bet On The Country’s Most Regulated Cannabis Market