Total THC Ban Could Leave Dallas Breweries High and Dry

On Dec. 4, Texas Lt. Gov. Dan Patrick announced Senate Bill 3, a legislative initiative that seeks to prohibit the sale of all forms of consumable Tetrahydrocannabinol (THC) in Texas. Patrick has significant control over the Senate's legislative agenda. The bill’s low number signals that it is one of his top priorities in the upcoming session.

Dallas and Texas-based producers of THC beverages also welcome oversight but hope legislators take a rational approach.

For a bit of background, in 2018 the federal Farm Bill legalized hemp products containing up to 0.3% delta-9 THC by weight with the aim of supporting agriculture. In 2019, the Texas legislature passed House Bill 1325 aligning state and federal laws. Anything more potent than 0.3% is considered marijuana and remains illegal.

However, Patrick says some retailers have abused the law, selling products with dangerous levels of THC and allegedly marketing them to minors.

Since the passage of the laws, THC-infused drinks and seltzers have hit the market. Brands like Hi, Power House THC and Buddi and CannaBl!ss from Community Brewing can be found in liquor stores. These drinks typically do not have alcohol — only THC, usually 10 mg or less. But Patrick isn't hearing it and has been threatening a new law to ban the products for months.

“Retailers exploited the agriculture law to sell life-threatening, unregulated forms of THC to the public and made them easily accessible,” Patrick said in a statement. “These stores not only sold to adults, but they targeted Texas children and exposed them to dangerous levels of THC. Since 2023, thousands of stores selling hazardous THC products have popped up in communities across the state, and many sell products, including beverages, that have three to four times the THC content which might be found in marijuana purchased from a drug dealer.”

Last year, we spoke to Jeromy Sherman at Bayou City Hemp, which produces Howdy Seltzer. Sherman told us he welcomes regulation because transparency is crucial for attracting new customers. He, too, sticks to low-milligram drinks, adding, "That's the game we're playing. That's the right way."

Jamie Fulton, a brewer and co-founder of Community Beer Co., said he welcomes legislation that supports fair regulation and taxation, but he wishes the legislators would use common sense when approaching this topic so that Texans can make their own decisions on the products they consume responsibly.

“They need to understand that there are responsible, professional and experienced manufacturers in this space […], setting the standards above and beyond the regulatory requirements set forth by the state,” Fulton said in an email to the Observer.

But Senate Bill 3 would ban all forms of THC.

Fulton said their delta-9 THC beverages are low-dose products, with 10 milligrams or less per serving, and are sold only to those 21 years old or over. Besides, Community has a full chain of custody documentation from reliable hemp suppliers and tests every batch of THC drinks through an independent, third-party lab. Moreover, a code on each can lets customers review lab results for the specific beverage and canning date.

Fulton also emphasizes that many people buy THC drinks as a substitute for alcohol to avoid hangovers or for therapeutic use, saying the products improve their sleep cycle and quality of life.

“Removing low-dose THC options from the market, that many consider a much safer alternative to alcohol and other drugs, would be an unfortunate step backward for Texas residents,” Fulton says.

The upcoming legislative session is set to convene on Jan. 14.