In a legislative move that caught many in Texas's booming hemp industry by surprise, a new law is set to ban the sale of most disposable THC vapes and certain nicotine-based vaporizers across the state, effective September 1st. This development, enacted through Senate Bill 2024 (SB 2024) and signed by Governor Greg Abbott in June, has created significant confusion and concern among specialty retailers, many of whom have spent the past year focused on a separate, more publicized battle to prevent a total ban on all intoxicating hemp-derived consumables.
While Governor Abbott ultimately vetoed the broader consumables ban and called for a special session to regulate the industry instead, his approval of SB 2024 means a significant portion of the market is about to be outlawed. For specialty retailers who sell a wide array of gummies, snacks, and vapes containing tetrahydrocannabinol (THC), the psychoactive compound in cannabis, this new vape-specific ban could eliminate products that comprise more than 30% of their business, threatening their livelihoods and the jobs of their employees.
The Two Fronts: Understanding SB 2024 vs. the Broader Consumables Debate
To understand the current situation, it's crucial to distinguish between two separate legislative efforts that have defined the cannabis and hemp debate in Texas:
- The Broader Consumables Ban (SB 5 in the special session): This has been the high-profile fight, pushed by Lieutenant Governor Dan Patrick and Senator Charles Perry. It aims to ban all intoxicating hemp-derived THC consumables, from drinks and edibles to smokable flower, including products containing both natural THC and synthesized compounds like delta-8. This is the bill that drew hundreds to testify at hearings and generated viral outrage, particularly from veterans who use these products for therapeutic purposes. Governor Abbott vetoed the version of this ban that passed in the regular session, calling instead for a special session to create a regulatory framework.
- The Vape-Specific Ban (SB 2024): This is the law that was successfully passed and signed, and is the focus of immediate concern for retailers. It has a much narrower, but still highly impactful, scope.
The vape ban under SB 2024 surprised many retailers and their advocates precisely because they were so focused on the larger battle over all consumables. "Everybody slept on this bill," said Chelsie Spencer, a Dallas attorney who works with the hemp industry.
What Exactly Does the New Vape Ban (SB 2024) Outlaw?
SB 2024 started as a relatively narrow proposal targeting nicotine vapes with parts made in adversarial countries like China, where an estimated 90% of electronic vaping devices are manufactured. Initially, this wasn't seen as a major threat by the hemp industry, as many nicotine vape companies were already exploring ways to pivot their operations to more neutral nations.
However, during the legislative process, the Texas House amended the bill with no public testimony, dramatically expanding its scope. The final version, which won passage in the frenetic final days of the regular session, now bans the sale and marketing of vapes containing a wide range of substances, regardless of their country of origin. As of September 1st, it will be illegal to sell vapes in Texas that contain:
- Any amount of THC (tetrahydrocannabinol)
- Alcohol
- Kratom
- Kava
- Psychedelic mushrooms
- Tianeptine
- Or any derivatives of these substances.
The law also maintains the ban on nicotine-based vaporizers with parts made in China or other designated adversarial countries. It's important to note that SB 2024 does not criminalize the personal possession of these vapes, only their sale and marketing. This means consumers could still potentially purchase them out of state and bring them into Texas for personal use.
Products that remain legal under this new law include:
- Retail THC consumables that are not vapes (e.g., gummies, smokable flower, snacks, drinks – though these are still subject to the ongoing special session debate).
- Nicotine vapes made in non-adversarial countries.
- Vapes prescribed through the state’s limited medical marijuana program.
The Impact on Texas Retailers: Confusion and Financial Strain
With the September 1st effective date looming, retailers across Texas are scrambling to understand the broad language of the 11-page statute and its implications for their businesses. Many are working under the assumption, shared by the offices of both Governor Abbott and Lieutenant Governor Patrick, that the ban will wipe out a sizable chunk of their inventory and revenue.
"We do sell hemp vapes and concentrates, and with that bill passing, we will probably be losing that revenue," said Hans Enriquez, owner of Lazydaze dispensaries in Austin. For Yelena and Sean Yuen, who co-own The Glass House TX, a family business with five locations in Dallas, the impact is substantial. They estimate that about 35% of their overall revenue comes from the low-dose THC vapes and e-cigarettes that will now be illegal to sell.
"It’s not just me and my husband. We have to worry about our family and our employees, and that’s what I worry about. I don’t want to put them, or anyone, our customers, into a bad situation," Yelena Yuen said. "So we’re just going to have to see what this does to our business and go from there."
Retailers are now faced with the challenge of figuring out where to unload or ship their soon-to-be-illegal products to sell in other states to avoid losing their investments, all while brainstorming new revenue streams to fill the gap. The lack of clarity in the bill's language regarding specific vape styles and constructs adds to the confusion. "How is this to be interpreted? Are my products safe from the law? Who’s going to enforce all this?" asked Sean Yuen.
Some, like Hans Enriquez, have contingency plans. He will be able to offload the banned vapes to a similar coffee shop he owns in New Mexico, where recreational marijuana is legal. He plans to continue operating his Austin locations as coffee shops with legal infusions and other consumables, adapting to whatever the final regulatory landscape looks like. "We were prepared to pivot and adapt," he said. "We absolutely would survive as a coffee shop while still providing a cannabis-themed experience."
The Path Forward: A Call for Regulation Over Prohibition
The passage of the vape ban, even as the broader consumables ban was vetoed, highlights the complex and sometimes contradictory political dynamics at play in Texas. The state's hemp industry has flourished into an estimated $8 billion business in the five years since federal and state farm bills opened up the market, but it has done so largely without regulation.
Now, as lawmakers convene for a special session, one of their primary assignments from Governor Abbott is to create a regulatory framework for the remaining retail hemp-based THC market, rather than banning it outright. Many in the industry, like the Yuens and Enriquez, welcome this opportunity. They see it as a chance to bring what they call "bad actors" into compliance with sensible regulations like strict age limits (many reputable shops already enforce a 21+ entry policy), high-quality product testing, and clear packaging and labeling guidelines – or to remove them from the market.
Enriquez, who was "sweating a little" before Abbott's veto of the total ban in June, is now optimistic about the special session. "I was confident common sense would prevail," he said. "With the special session, there is still some uncertainty, but also an amazing opportunity for smart regulation. … Our focus will be participating in the regulations and focusing on setting the standards for compliant operations."
The surprise passage of the THC vape ban serves as a stark reminder of the precarious position of the hemp industry in Texas. While one major battle for survival was won through a gubernatorial veto, another significant portion of the market was lost through a less-publicized bill. As the state moves towards regulation, the industry and its advocates will be working to ensure that the new framework is one that supports responsible businesses and consumer access, rather than simply ceding more ground to prohibition.
