Prepared & written by:

Rhiannon Dee Yard, MBA
Founder & CEO, Hemp Gaia

 

Introduction

The hemp industry in Texas has seen rapid growth since the passage of the 2018 Farm Bill, which legalized the cultivation and sale of hemp products nationwide. However, the regulatory framework in Texas for consumable hemp products remains underdeveloped and inconsistent. This lack of robust regulation has led to a "Wild West" environment where consumer safety is compromised, and the integrity of the hemp market is at risk. As stakeholders in this industry, it is our responsibility to advocate for stricter regulations, improved testing standards, and clearer distinctions between hemp products and other substances like tobacco and alcohol.

Separation of Hemp Products from Tobacco and Alcohol

In many states with mature cannabis markets, the sale and consumption of cannabis products are strictly separated from tobacco and alcohol. This separation is designed to prevent the conflation of these substances, ensuring that consumers are not exposed to mixed messaging or environments where multiple intoxicants are available simultaneously. Unfortunately, in Texas, this separation does not exist for hemp products, leading to a situation where consumable hemp products are often sold alongside tobacco and alcohol in retail environments such as smoke shops and liquor stores.

Key Issues:

• Mixed Retail Environments: The sale of hemp products alongside tobacco and alcohol creates an environment where consumers may mistakenly associate hemp with these more harmful substances. This undermines the positioning of hemp as a natural wellness product and diminishes consumer trust.
• Inadequate Consumer Safeguards: Without clear separation, there is a heightened risk of misuse or overconsumption, particularly in environments like bars or tobacco shops, where the primary focus is not on health and wellness but rather on recreational use of intoxicants.

Recommendations:

• Regulatory Separation: The Texas legislature should mandate that consumable hemp products are sold only in dedicated retail environments, similar to the regulations governing cannabis in other states. This will help maintain the integrity of hemp as a wellness product and protect consumers from the risks associated with mixed-use environments.
• Event Regulations: In line with practices in other states, Texas should implement regulations that prevent the sale or consumption of hemp products at events where alcohol or tobacco is also being consumed. This will further safeguard consumers and reinforce the distinction between these substances.

Need for Enhanced Testing and Product Vetting

The current testing and vetting processes for consumable hemp products in Texas are insufficient to guarantee consumer safety. Many retail licenses require only Certificates of Analysis (COAs) that verify THC content, neglecting comprehensive testing for pesticides, microbial contaminants, and heavy metals. This lack of thorough testing poses significant risks to consumers and undermines the credibility of the Texas hemp market.

Key Issues:

• Limited COA Requirements: The requirement for COAs that only verify THC content fails to address the full spectrum of potential contaminants that can affect consumer health. Without testing for pesticides, microbial contaminants, and heavy metals, consumers are left vulnerable to products that may be unsafe.
• Lack of Batch Testing: Inadequate batch testing and white labeling practices mean that not all products on the market are subject to the same level of scrutiny. This inconsistency leads to variability in product quality and safety.
• Absence of Track and Trace Systems: Unlike other states with robust cannabis markets, Texas does not have a track and trace system in place for hemp products. This makes it difficult to monitor the movement of products through the supply chain, increasing the risk of contamination and fraud.

Recommendations:

• Full Panel Testing: The Texas legislature should require full panel testing for all consumable hemp products, including tests for THC content, pesticides, microbial contaminants, and heavy metals. This will ensure that all products on the market are safe for consumption and meet the highest standards of quality.
• Implementation of Track and Trace Systems: Texas should adopt a track and trace system similar to those used in other states for cannabis products. This system would monitor the movement of hemp products through the supply chain, ensuring transparency and accountability at every stage of production and distribution.
• Stricter Vetting of Imported Products: To protect the integrity of the Texas hemp market, the state should implement stricter vetting procedures for hemp products imported from other states or countries. This will prevent substandard or unsafe products from entering the Texas market and protect consumers from potential harm.

Conclusion

The rapid growth of the hemp industry in Texas presents both opportunities and challenges. While the market for consumable hemp products has expanded significantly, the lack of robust regulation and consumer safeguards has created a volatile environment that poses risks to both consumers and legitimate businesses. By implementing stricter regulations, enhancing testing and product vetting, and ensuring the separation of hemp products from tobacco and alcohol, Texas can create a safer, more credible market for hemp products. These changes will not only protect consumers but also support the long-term growth and sustainability of the Texas hemp industry.

It is imperative that the Texas legislature takes swift action to address these issues and create a regulatory framework that ensures the safety, integrity, and success of the hemp market in our state. By doing so, Texas can position itself as a leader in the hemp industry, setting a standard for other states to follow.

This paper outlines the key issues facing the Texas hemp industry and provides actionable recommendations for improving regulation and consumer protection. It is intended as a starting point for discussion at the upcoming Cannabis/Hemp Policy Conference and as a foundation for legislative advocacy efforts moving forward.

 

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