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Home » How the War on Marijuana Creates Revenue in Texas
Crime

How the War on Marijuana Creates Revenue in Texas

Staff ReportBy Staff ReportJuly 28, 2025No Comments8 Mins Read
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Webb, Stokes & Sparks

Despite objections from both sides of the aisle, Gov. Greg Abbott vetoed a state ban on THC products few weeks ago saying the bill wouldn’t have stood up to “valid constitutional challenges,” and “put federal and state law on a collision course.”

Senate Bill 3 would have banned consumable hemp products with any amount of THC, including delta-8 and delta-9 variants.

Local shops report that people rely on many of these products, in lieu of receiving professional medical care, for pain and other ailments.

Daniel Weston, owner of Third Eye Botanical in San Angelo says the proposal will draw huge backlash:

Webb, Stokes & Sparks Personal Injury Law

“I have customers who are cancer patients, veterans, who’ve been using these products for treatment for years.

“It’s going to take away a lot of products, shops will have to diversify. Local businesses that only focus on these products are probably going to go out of business. There’s a lot of big money in this fight. They legalize it in 2019 and then try and take it away. It’s about following the money.”

Although Lt. Governor Dan Patrick claims to be interested in protecting children from the only illegal drug less dangerous than alcohol, many marijuana industry experts are saying the reality is, Republicans want the War on Weed to continue for financial reasons.

Historically representing the bulk of drug-related offenses, marijuana generates revenue for Texas’ criminal justice system by imposing steep fines, court costs and probation fees, and by keeping more people in jails.

Inside Senate Bill 5

Lt. Gov. Dan Patrick speaks about Senate Bill 3 during a press conference in the Texas Capitol on May 28, 2025. PHOTO: Lorianne Willett / The Texas Tribune.

The new bill is almost identical to the measure vetoed in June.

The bill would not strip medical marijuana protections which remain in place under section 487. It does make specific requirements about the packaging, distribution, and retail of any hemp products, and states “a license holder may not manufacture a consumable hemp product that contains any amount of a cannabinoid other than cannabidiol or cannabigerol. (CBD or CBG)

“Retail sale of a consumable hemp product for smoking is prohibited. A person commits an offense if the person manufactures, distributes, sells, or offers for sale a consumable hemp product for smoking.”

History Of Prohibition

The “Marihuana” Tax Act of 1937 was the first attempt to criminalize using the power federal tax regulation, though it had been sold at pharmacies nationwide for decades at this point.

Drafted by Bureau of Narcotics boss Henry Anslinger, considered to be the grandfather of the War on Drugs, he claimed cannabis caused people to commit violent crimes and act irrationally and overly sexual. The FBN produced propaganda films promoting Anslinger’s views, often speaking directly to the press about his views on marijuana.

“Marihuana” tax stamp. PHOTO/ U.S. Bureau of Engraving and Printing

It was eventually overturned by the supreme court in Leary v. United States. Today’s prohibition was established with the Controlled Substances Act of 1970, signed into law by Richard Nixon, which established the modern classifications.

Aggressive anti-drug policies that Nixon domestic policy chief John Erlichman would eventually criticize in a 2016 interview with Harper’s:  

“The Nixon campaign in 1968, and the Nixon White House after that, had two enemies: the antiwar left and black people, we knew we couldn’t make it illegal to be either against the war or black, but by getting the public to associate the hippies with marijuana and blacks with heroin. And then criminalizing both heavily, we could disrupt those communities. We could arrest their leaders, raid their homes, break up their meetings, and vilify them night after night on the evening news. Did we know we were lying about the drugs? Of course we did.”

As anticipated, Mandatory-minimum sentencing laws and aggressive drug enforcement have led to overcrowding in prisons and long sentences for nonviolent drug offenses.

The War on Drugs has disproportionately impacted communities of color. Black Americans are arrested for marijuana possession at a rate 3.73 times higher than white Americans, despite similar usage rates.

Marijuana prosecution peaked in 2000, with an estimated 735,000 arrests that year.

In Texas, almost 200,000 people were arrested for possession of marijuana between 2018 and 2023. Even for a small amount, conviction can result in a permanent criminal record that can have lifelong consequences. This record will stay on your record unless it is expunged or a specialized court order is issued.

Having a criminal record can make it challenging to find jobs or housing. Certain professional licenses may be difficult to obtain or could be revoked. A conviction can lead to an automatic driver’s license suspension, typically for at least 180 days. Expungement or an order of nondisclosure can limit public access to your criminal record, law enforcement agencies may still be able to access it.

Who Profits From Prohibition?

Cannabis was often sold in tincture form as a cure for rheumatism and other ailments. PHOTO/National Library of Medicine

Asset Forfeiture

Law enforcement agencies regularly seize cash, cars, and other assets suspected to be involved in drug-related crimes, regardless of a conviction. 

Victims of the practice and their advocates say unscrupulous law enforcement entities often claim to smell marijuana during traffic stops so they can search vehicles, and if they find cash — they seize it — whether any drugs were found or not.

Between 2003 and 2012, approximately $486 million was confiscated in asset forfeiture cases in Texas, and the state received an additional $744 million from the US Government in federal equitable sharing between 2000 and 2019, according to The Institute for Justice.

Court Fees, Fines, and Federal Funding

Individuals arrested for marijuana-related offenses and other drug crimes usually face steep fines and court costs, and the many fees associated with probation. Possession of 2 oz or less in Texas can result in a maximum fine of $2000 dollars, or 180 days incarceration.

Texas also receives millions in federal funding for drug enforcement programs.

Urinalysis Rakes In Billions

The global urine testing market, also known as the urinalysis market, is experiencing significant growth. One source estimated the market size at $4.37 billion in 2024 with projected growth to $6.85 billion by 2030.

The Texas drug testing market was valued at $350 million in 2024.

The Choice Between Private or Public Profit

Most estimates suggest that regulating and taxing cannabis in Texas could generate substantial revenue and create thousands of jobs, while ending arrests and prosecutions for low-level cannabis possession would also save the state an estimated $311 million annually in criminal-justice costs. 

Since 2014, Colorado reports that its tax on legal marijuana sales has generated over $2.9 billion in revenue. That’s in a state of 5.9 million residents. Texas has over six times that amount. This is noteworthy as the legislatures priorities continue to emphasize austerity and budget cutting measures.

Public Health Risks of Alcohol

In Texas, a significant portion of crimes are directly related to alcohol consumption, with nearly 40 percent of violent victimizations involving alcohol, and a similar percentage of fatal motor vehicle accidents being alcohol related.

This includes offenses like driving under the influence (DUI), intoxication assault, and intoxication manslaughter. 

Here’s a more detailed breakdown:

Driving Under the Influence accounted for 1505 fatalities in 2023, and 85,858 criminal charges in 2024. This is the most common alcohol-related offense in Texas. Intoxication Manslaughter is the most serious alcohol-related offense, involving the death of another person due to intoxication while operating a vehicle or other device.

Nationwide, in 2022, alcohol-impaired driving fatalities accounted for 13,524 deaths, or 32 percent of overall driving fatalities.

Alcohol and Violent Crime – studies and statistics indicate that alcohol is a contributing factor in a substantial number of violent crimes, including aggravated assault, robbery, and even homicide. A significant number of domestic violence incidents are linked to alcohol consumption, with some studies reporting that alcohol was involved in 30 percent of such cases. 

According to a 2017 report by the Substance Abuse and Mental Health Services Administration: approximately 7.5 million U.S. children ages 17-and-younger live with a parent who has alcohol use disorder.

An analysis of death certificates showed that deaths involving alcohol among people ages 16 and older rose 25.5%, from 78,927 in 2019 to 99,017 in 2020, in the first year of the COVID-19 pandemic.

Highway Robbery?

Senate Bill 5 sets the price for a license to sell hemp-based products at $20,000 annually, and for each new business opened. The equivalent license to open a liquor store or bar is $5,300 initially, and $2,600 annually for renewal.

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