Follow the Money: How Texas Cannabis Monopolies Tried (and Failed) to Kill Hemp Derrived THC

Follow the Money: How Texas Cannabis Monopolies Tried (and Failed) to Kill Hemp

In the wild world of Texas politics, where big money and backroom deals often dictate policy, the recent attempts to ban intoxicating hemp-derived THC products stand out as a classic case of "politricks." Senate Bill 3 (SB3) in the regular session, followed by SB5 in the first special session and SB6 in the second special session—all aiming to outlaw delta-8, delta-9, and other hemp-based THC items—thankfully fizzled out. Governor Greg Abbott vetoed SB3, and the later bills stalled in the House despite Senate passage. But why the relentless push for these bans? Spoiler: It wasn't just about protecting kids from "dangerous snacks," as some politicians claimed. Let's peel back the layers and follow the dollars straight to the motivations of the state's medical cannabis industry, which saw hemp as a pesky competitor eating into their profits.

The Bills and Their Backstory

SB3, introduced during the 2025 regular legislative session, sought to clamp down on hemp-derived THC products that became legal after the 2019 federal Farm Bill. These items—think gummies, vapes, and drinks sold at smoke shops across Texas—exploded in popularity, creating a $5.5 billion industry with over 4,000 retail locations and 53,000 jobs. Proponents, led by Lieutenant Governor Dan Patrick, framed the bans as public safety measures, warning about easy access for minors and health risks from unregulated products. Patrick even showcased "a range of intoxicating THC products available in Texas to illustrate his concerns that seemingly harmless snacks and drinks pose a danger to public health among children and adults."

But none made it. Abbott vetoed SB3 in June 2025, opting for regulations over an outright ban. In the first special session, the Senate passed SB5—a full THC ban—on July 30, 2025, but it hit a wall in the House. Undeterred, the Senate advanced SB6 in the second special session, passing it on a bipartisan vote on August 19, 2025, and even for a third time later in the session. SB6 aimed to regulate and prohibit certain hemp-derived products, effectively transitioning to a strict prohibition on non-CBD/CBG items. Yet, like its predecessors, SB6 stalled in the House due to lack of votes. By September 4, 2025, Patrick announced no resolution after discussions with Abbott and House Speaker Dustin Burrows, and the Senate adjourned sine die, killing the ban for now.

Note that while full bans failed, partial measures like a ban on THC vapes took effect starting late August 2025, and other bills like SB 2024 targeted prefilled THC pens and carts. Still, most THC products remain legal.

The Real Motivator: Protecting the Medical Cannabis Monopoly

Dig a little deeper, and the true driver emerges: competition. Texas's medical cannabis program, the Compassionate Use Program (TCUP), was meant to give a handful of licensed companies—like Texas Original Compassionate Cultivation (TOCC), Goodblend, and Blissful CannaCo—a virtual monopoly on legal THC since its launch in 2017. These firms invested millions to meet strict regulations, expecting steady profits from patients with conditions like epilepsy or PTSD.

Then came the hemp boom. After 2019, hemp-derived THC products flooded the market, offering similar effects without needing a doctor's note or TCUP enrollment. The result? Medical cannabis sales plummeted—halving in 2021 alone, per Department of Public Safety records. TOCC, which supplied a whopping 77% of TCUP cannabis in 2022, saw its business tank despite a $21 million investment from AFI Capital Partners in 2021. AFI's managing director, Nico Richardson, took over as CEO and started aggressively pushing for a hemp THC ban to "restore the medical cannabis monopoly."

This wasn't altruism; it was survival. Hemp products were cheaper, more accessible, and cutting into TCUP's bottom line. As one industry observer put it, it's a "standoff... typical Texas politics" between medical marijuana firms and the hemp sector, with the former fighting to eliminate rivals.

Lobbying Power: Insider Connections and Big Bucks

To get the bans across the finish line, these medical cannabis companies didn't skimp on lobbying. They hired heavy-hitters with direct ties to Texas's top Republicans, turning the effort into a masterclass in influence peddling.

• TOCC and Logan Spence: In 2023, TOCC brought on Logan Spence, Dan Patrick's former chief of staff, as their lobbyist. Filings show they paid him at least $208,700—and possibly up to $417,000—for his services. Spence's insider knowledge of Patrick's office was gold for pushing these bills.
• Goodblend's Hires: Owned largely by Florida-based Surterra and led by Tommy Craddick Jr. (son of a former House speaker), Goodblend tapped Tx Public Affairs, run by Luis Saenz—Abbott's ex-chief of staff. They shelled out between $53,000 and $129,000 for lobbying.
• Blissful CannaCo: This newcomer hired Taylor Cummins, a Fort Worth attorney with connections to Patrick's team, including being law school classmates with Patrick's assistant general counsel.

These moves highlight a "shadow war" on cannabis, where established players use political muscle to squash competition. Patrick, a vocal ban supporter who repeatedly pushed SB5 and SB6, benefited indirectly from his former aide's involvement, raising questions about conflicts of interest.

Why They Failed—and What It Means

Despite the cash and connections, the bans crashed and burned. Abbott's veto of SB3 prioritized business and veterans (many of whom use hemp for relief) over the medical cannabis lobby. The House's resistance to SB5 and SB6 in the special sessions showed not everyone was buying the "public safety" narrative—especially with polls indicating Texans favor cannabis reform.

This saga exposes the underbelly of Texas legislation: When profits are threatened, companies turn to politricks, hiring ex-insiders to tilt the scales. Hemp lives to fight another day, but expect more battles as the medical cannabis crowd licks its wounds. If you're a Texan tired of this nonsense, remember: True reform starts with demanding transparency over lobbyist-fueled bans. Follow the money, folks—it's always the real high.