Texas Senate Passes Hemp Ban: What It Means for El Paso and the New Mexico Cannabis Market

The Texas Senate has approved Senate Bill 3 (SB 3), a measure that could effectively eliminate the state’s hemp industry, banning all consumable hemp-derived THC products, including delta-8 THC, delta-10 THC, and THC-O acetate. If enacted, the bill would mark a significant rollback of Texas’ 2019 hemp legalization law, which allowed hemp products containing up to 0.3% THC in line with federal regulations.

For El Paso residents, this bill could have a major impact on access to cannabis products, driving even more consumers to dispensaries in nearby Sunland Park and Chaparral, New Mexico. Meanwhile, the New Mexico cannabis industry stands to see an increase in demand as Texans lose access to hemp-derived THC products within state lines.

What SB 3 Does and Why It Matters

SB 3, introduced by Sen. Charles Perry (R) and strongly backed by Lt. Gov. Dan Patrick (R), passed the Texas Senate in a 24-7 vote and now moves to the Texas House, where its fate remains uncertain.

If signed into law, SB 3 would:

• Ban all consumable hemp products containing any trace of THC, even those legally permitted under federal law.
• Limit the market to non-intoxicating cannabinoids such as CBD and CBG.
• Mandate strict testing in DEA-certified labs for all hemp products sold in Texas.
• Require businesses to register hemp products with the Texas Department of State Health Services (DSHS), with each product registration carrying a $500 fee.
• Impose criminal penalties, making it a felony to operate a hemp business without proper licensing.

Proponents argue that banning hemp-derived THC is necessary to close loopholes in Texas’ hemp laws that have allowed businesses to sell intoxicating products. Perry claims the proliferation of delta-8 and delta-10 THC products mirrors past issues with synthetic drugs like K2 and Spice, causing public health concerns.

However, hemp industry leaders argue that regulated hemp-derived THC is not synthetic, nor is it comparable to dangerous designer drugs. They see the ban as a misguided prohibitionist measure that would eliminate an industry providing legal, lab-tested alternatives to illicit cannabis.

How SB 3 Could Push More Texans to the New Mexico Cannabis Market

For El Paso residents, SB 3 would severely restrict access to THC products, as Texas does not currently allow recreational cannabis sales. Consumers who rely on delta-8 or other hemp-derived THC products—many of whom use them for pain relief, anxiety, and sleep support—would be forced to either:

• Travel to New Mexico to purchase legal cannabis products.
• Turn to the illicit market, increasing risks of unregulated, unsafe products.

New Mexico legalized adult-use cannabis in 2021, and dispensaries in Sunland Park and Chaparral have flourished due to their proximity to El Paso. If Texas bans hemp-derived THC, Sunland Park dispensaries could see a surge in customers from El Paso seeking legal cannabis products they can no longer obtain in Texas.

What This Means for Sunland Park and Chaparral Dispensaries

New Mexico cannabis retailers near the Texas border are already benefiting from the influx of out-of-state customers. SB 3 would likely accelerate this trend, with more Texans choosing to purchase regulated, lab-tested cannabis products in New Mexico instead of uncertain alternatives in Texas.

This could:

• Increase sales at dispensaries in Sunland Park, Chaparral, and Las Cruces, boosting tax revenue for New Mexico.
• Further cement New Mexico’s status as a cannabis hub for Texans, much like how Oklahoma’s dispensaries have attracted Texas customers in the past.
• Expand product offerings in New Mexico to cater to demand from El Paso consumers, including more pre-rolls, edibles, and low-dose THC options.

However, traveling to New Mexico for cannabis comes with legal risks. While purchasing and consuming cannabis in New Mexico is legal, transporting it across state lines back into Texas remains illegal. El Pasoans who choose to visit New Mexico dispensaries must consume their purchases before crossing back into Texas to avoid potential legal issues.

Texans Overwhelmingly Oppose the Ban, Poll Shows

Despite the Senate’s approval of SB 3, a new poll shows that most Texans oppose banning hemp-derived THC.

A survey conducted by Bayou City Hemp Company, the Hemp Beverage Alliance, and the U.S. Hemp Roundtable found that:

• 68% of Texas voters support keeping hemp products legal, provided they are properly regulated.
• Support is highest among Democrats (80%) and Independents (72%), with even 52% of Republicans favoring a regulated market over a total ban.

“The responsible path forward isn’t prohibition, which would drive products underground,” said Jonathan Miller, general counsel for the U.S. Hemp Roundtable. “The Texas Legislature should enact thoughtful regulations that prioritize consumer safety while maintaining Texas’ leadership in the hemp industry.”

What Happens Next?

While SB 3 easily passed the Texas Senate, its future in the Texas House is uncertain. The House is currently considering alternative legislation that would impose tighter regulations on hemp-derived THC without banning it entirely.

Several key developments could shape the final outcome:

1. House lawmakers may reject the ban in favor of a regulatory framework that preserves access to delta-8 THC while enforcing stricter testing and labeling requirements.
2. If SB 3 passes, expect a surge in cannabis tourism to New Mexico, where El Paso residents will turn to licensed dispensaries for products they can no longer buy in Texas.
3. Legal challenges are likely, as hemp business owners and advocacy groups could sue the state over economic damages caused by the ban.

At the same time, Texas’ broader cannabis policy remains in flux. While local governments in Dallas, Austin, and San Marcos have moved toward decriminalization, state leaders like Gov. Greg Abbott and Attorney General Ken Paxton continue to oppose cannabis reforms, blocking local decriminalization efforts and resisting medical marijuana expansion.

Final Thoughts: What This Means for El Paso and the Borderland

For El Paso consumers, SB 3 represents a significant rollback of access to legal hemp-derived THC products, making it harder for residents to find affordable, regulated alternatives to cannabis.

For New Mexico dispensaries, the bill could boost sales and further solidify the region as a cannabis destination for Texas residents.

As the debate continues, one thing is clear: Texas’ prohibitionist approach is at odds with both consumer demand and national cannabis trends. If SB 3 becomes law, expect a growing number of Texans to look beyond their state’s borders for legal cannabis options.

EP Cannabis Club will continue to track developments, provide legislative updates, and monitor the impact of cannabis policy changes on the El Paso–New Mexico market.

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What are your thoughts on Texas’ proposed hemp ban? Will this push more Texans to buy cannabis in New Mexico? Let us know and stay informed with the latest industry updates.