Proposed Ban on Hemp-Derived Cannabinoids Would Eliminate Tens of Thousands of Jobs and Cost the State Billions
AUSTIN, Texas, April 04, 2025 (GLOBE NEWSWIRE) — Hundreds of local businesses, farmers and industry advocates will gather at the Texas Capitol on Monday, April 7 to testify against Senate Bill 3 and House Bill 28, sending a clear message that this legislation would devastate the state’s thriving hemp industry.
The Texas Hemp Business Council is calling on state legislators in the Texas House of Representatives to reject SB3 and HB28 during Monday’s public hearing, being held by the Texas House Committee on State Affairs.
“We are urging the Texas House to carefully consider the consequences of SB3 and HB28 on the tens of thousands of small businesses, farmers and consumers who rely on the hemp industry,” said Cynthia Cabrera, president of the Texas Hemp Business Council and chief strategy officer at Hometown Hero. “Texas has built a thriving hemp market that provides jobs, tax revenue and access to safe, legal products for responsible adults. Restrictive measures risk stifling innovation, driving businesses out of state, and limiting consumer choice. We stand ready to work with lawmakers to ensure common-sense regulation that balances public safety with economic opportunity. The future of Texas hemp is at stake, let’s get it right.”
SB3 Threatens Jobs, Small Businesses and Consumer Choice
A newly released economic report, Hemp-Derived Cannabinoids in the Lone Star State: A Revisit of the Economic Impact Analysis of Cannabinoid Retail in Texas,* reveals that the hemp industry is a major contributor to the Texas economy, generating $5.5 billion in annual sales with an estimated tax revenue of $268 million. Developed by Whitney Economics, the report also found that proposed state regulations, including Texas SB3, which seeks to ban all hemp-derived THC products, could cost the industry $7.5 billion and 40,201 jobs, according to the latest data.
Other findings include:
- Retail Growth: In 2025, retail revenue reached $4.3 billion, up from $3.3 billion in 2023, highlighting sustained consumer demand.
- Industry Expansion: Total employment in the hemp industry grew to 53,300 jobs in 2025, an increase of 3,200 from 50,100 in 2023.
- Higher Pay: Industry-wide wages rose to $2.1 billion in 2025, up from $1.6 billion in 2023, with hourly pay increasing across all sectors.
Texans Overwhelmingly Support Regulated Hemp, Not a Ban
A recent survey by Baselice & Associates, Inc.** found that 68% of likely Texas voters support keeping hemp-derived consumable THC legal, provided it is regulated with measures like age restrictions and warning labels. In contrast, only 20% favor an outright ban. Other findings include:
- Support for legalization is strongest among younger voters, with 76% of those aged 18-34 in favor, compared to 55% of senior citizens.
- Republican voters favor regulation over prohibition by a two-to-one margin (57% vs. 29%), while Democrats overwhelmingly support keeping THC legal (80% vs. 10%).
- Independents align closely with the statewide average (72% vs. 17%).
A Call for Common-Sense Regulation, Not Prohibition
Texas law (HB1325 passed in 2019) already provides essential hemp oversight, including comprehensive testing, licensing, labeling requirements and certificates of analysis. Building on this foundation, THBC supports additional measures to further enhance safety and industry standards, including:
- Limiting sales to individuals 21 and older (except for veterans).
- Child-resistant packaging for consumer safety.
- Retail setbacks from schools for adult-use products.
“Hemp businesses across Texas are standing together because this isn’t just about one industry, it’s about livelihoods, consumer rights and the future of entrepreneurship in our state,” added Cabrera. “Texas deserves better than a ban. Likewise, we strongly oppose HB28, which would further harm small businesses and limit consumer choice. We call on legislators to stand with Texans, not against them, and vote no on both SB3 and HB28.”
How to Testify
Texas residents who wish to electronically submit comments on SB3 and HB28 without testifying in person can do so after the public hearing is adjourned by visiting: https://comments.house.texas.gov/home?c=c450.
For those persons who wish to testify in-person, information on witness registration can be found here: https://mytxlegis.capitol.texas.gov/HWRSPublic/About.aspx.
About the Texas Hemp Business Council
The Texas Hemp Business Council is an industry organization dedicated to promoting the hemp-based cannabinoid industry in Texas, while advocating for consumer safety, education and stakeholder engagement. More information can be found by visiting http://www.texashempbusinesscouncil.com.
About Hometown Hero
Headquartered in Austin, Texas, Hometown Hero manufactures and distributes a variety of hemp-derived products, such as Delta-9 THC, Delta-8 THC, CBD, CBDA + CBGA, among others. Founded in 2015 by Lukas Gilkey and Lewis Hamer, the company donates a portion of all proceeds to various charities and organizations that support veterans. Hometown Hero is also a founding member of the Texas Hemp Business Council. For more information, visit https://hometownhero.com/ or follow the brand on Twitter and Instagram @HometownHeroATX.
* Conducted over six weeks in early 2025, the survey by Whitney Economics reached over 4,500 businesses, representing about 53% of Texas’ estimated 8,500 hemp-related businesses.
** The survey, conducted by Baselice & Associates, Inc. from March 10-12, 2025, included 600 likely voters and had a margin of error of ±4.0%.
Media Contacts:
Natalie Mu/George Medici
PondelWilkinson
310.279.5980
nmu@pondel.com
gmedici@pondel.com
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