Texas’ medical marijuana industry entered 2025’s legislative session with a clear mission: to expand access for patients in need and to rein in a loosely regulated hemp market that threatens its survival. While lawmakers passed House Bill 46, which loosens some operational restrictions for the state’s Compassionate Use Program, Governor Greg Abbott’s recent veto of a bill to restrict hemp-derived THC has complicated that progress. Now, medical cannabis dispensaries are warning that without stricter hemp regulations, their own viability is at stake.
According to News From The States, House Bill 46, set to take effect on September 1, brings a slate of long-awaited changes. Dispensaries will be allowed to store products in satellite locations, reducing costly logistical burdens. Patients will also have access to additional forms of treatment, including patches, inhalers, and topical products. The bill expands eligibility by adding traumatic brain injuries, Crohn’s disease, and chronic pain as qualifying conditions. It also raises the cap on licensed dispensary operators from three to up to 15. Despite this progress, industry leaders argue that the price gap between heavily regulated medical marijuana and cheaper, unregulated hemp-derived products, particularly those containing synthetic THC like delta-8, threatens to undermine these reforms.
The core issue, according to dispensary operators like Texas Original CEO Nico Richardson, is that the medical marijuana industry simply cannot compete with hemp products made with synthetic cannabinoids. Delta-8 THC, for instance, is cheaper to produce and has a longer shelf life, making it widely available and attractive to consumers. Medical marijuana, on the other hand, is derived from natural delta-9 THC and must pass rigorous state testing and compliance protocols. These safety-focused steps increase product costs but are essential, operators argue, to ensure responsible cannabis use.
“Our products are comparable in price to the delta-9 THC products. What we can’t compete with is these delta-8 products because we can’t manufacture chemicals, and frankly, we wouldn’t want to because it’s not responsible,” Richardson said.
Governor Abbott’s veto did leave the door open for future regulation. He urged lawmakers to treat hemp products similarly to alcohol, proposing age restrictions, local sales bans, stricter product testing, and greater enforcement resources. Still, medical cannabis advocates are pushing for even stricter measures, such as banning synthetic THC outright, which they believe would restore balance in the marketplace and ensure consumer safety.
As Texas prepares for a special legislative session on July 21, the conversation is shifting toward coexistence rather than elimination. Industry voices like Jervonne Singletary of Austin-based goodblend emphasize that hemp and medical cannabis can share the market, but only if rules are clear, fair, and enforceable. They argue that meaningful regulation will protect patients, allow responsible recreational use, and support a sustainable future for both industries.
“But it also presents a unique opportunity to go back to the drawing board, bring important stakeholders to the table, and get it right this time around. Medical marijuana and hemp can co-exist in Texas, if it’s done responsibly,” said Singletary.
Until that balance is struck, however, medical marijuana dispensaries face a difficult path forward in a marketplace tilted by uneven oversight.
