Twin Bills, One Goal: Sweeping Hemp Crackdown

Why HB 5 Mirrors SB 5.

A second shoe has dropped in the Texas Legislature, and it has the same number as the first. House Bill 5, filed by Rep. Gary VanDeaver during the first called session of the 89th Legislature, is a word-for-word duplicate of Senate Bill 5 by Sen. Charles Perry. The filing sets the stage for what appears to be a coordinated attempt by legislative leadership to force through a prohibitionist overhaul of the state’s hemp market with unprecedented speed and severity.

The significance of the bill number cannot be overstated. In the Texas legislative process, bills are numbered sequentially as they are filed. But the first ten or so slots in each chamber are traditionally held for measures that reflect leadership priorities. HB 1 is the state budget. SB 1 is its Senate counterpart. When the House and Senate each file a bill with the same number, and the text of those bills is identical, it is a clear signal to members, lobbyists, and stakeholders that the bills are being coordinated at the highest levels and are intended to move in lockstep.

In this case, HB 5 and SB 5 do more than signal urgency. They mark an aggressive attempt to criminalize nearly every cannabinoid product currently legal under Texas law, with almost no exceptions. The text of the bills prohibits the manufacture, sale, or possession of any consumable hemp product containing any cannabinoid other than cannabidiol (CBD) or cannabigerol (CBG). This prohibition includes popular products containing Delta‑8 THC, Delta‑9 THC derived from hemp, THCP, HHC, and other minor cannabinoids that make up a significant portion of the Texas hemp industry’s product line.

Both bills introduce criminal penalties that go well beyond regulatory oversight. Manufacturing or distributing non-compliant products would constitute a third-degree felony. Possession would become a Class C misdemeanor, escalating with repeat offenses. For retailers and consumers alike, the consequences of noncompliance would be swift and harsh. There is no grace period for existing inventory, no allowance for naturally occurring trace cannabinoids, and no scientific standard for impairment or threshold-based enforcement.

Moreover, the regulatory framework proposed by HB 5 and SB 5 imposes punitive financial burdens on businesses. The legislation requires a $10,000 licensing fee for each location where hemp is processed or products are manufactured. It sets a $20,000 annual registration fee for every retail location selling hemp-derived products and imposes a $500 registration fee for every product SKU offered for sale. These costs are not marginal. They are designed either to force small operators out of the market or to consolidate the industry under a few large, well-capitalized firms that can absorb the costs and navigate the bureaucracy.

Every product must be tested using high-performance chromatography by a DEA-registered, ISO-accredited lab located in Texas. Each item must carry a QR code linking to the Department of State Health Services registry. Law enforcement is granted inspection authority over all retail locations, and business owners must grant written consent to allow DPS or local law enforcement to conduct physical inspections of their premises at any time. In short, compliance is not a path to security—it is an ongoing vulnerability.

In parallel, both bills include sweeping marketing and packaging restrictions. Products may not resemble candy, use cartoon images, reference medical use, display green crosses, or imitate brands familiar to minors. While the goal of reducing youth access is a legitimate one, the enforcement mechanisms are overbroad and leave room for arbitrary interpretation.

Perhaps most disturbingly, the bills do not provide for exemptions for patients, veterans, or those who rely on hemp-derived products for pain relief, sleep, anxiety, or seizure control. There is no carve-out for Texas Compassionate Use Program patients. The state’s medical cannabis program remains limited to a narrow list of qualifying conditions and a short roster of licensed operators. HB 5 and SB 5 do not bridge this gap. They widen it.

Governor Abbott’s veto of SB 3 earlier this summer made clear that he does not support total prohibition. In his veto statement, he emphasized the importance of protecting consumers, regulating intoxicating products, and preserving the legal hemp market created by the Legislature in 2019. Abbott called for age restrictions, labeling rules, validated testing, and a framework that supports—not destroys—Texas hemp businesses.

HB 5 and SB 5 ignore that directive. Their drafters appear to be daring the Governor to veto again or challenging the House to rubber-stamp the Senate’s punitive approach. Whether this strategy succeeds depends in large part on the House Committee process and whether stakeholders can educate members in time.

For now, the industry must take HB 5 as seriously as SB 5. They are one and the same. And they represent the most immediate threat to the existence of a lawful, regulated, and economically vital hemp market in Texas since the passage of HB 1325 five years ago.

The Texas Hemp Reporter will continue tracking developments on both bills, publishing updates, stakeholder analysis, and legal commentary throughout the special session.

If you operate a licensed hemp business in Texas and have not yet contacted your state representative, now is the time to do so. The House has a choice: double down on prohibition or course-correct toward regulation. That decision may hinge on what happens with HB 5.