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On June 22, 2025, Texas Governor Greg Abbott vetoed Senate Bill 3 (“SB 3”), a measure that would have effectively banned most hemp-derived THC products in the state. The Bill, which passed both chambers of the state legislature and had strong backing from Lt. Gov. Dan Patrick, aimed to prohibit the manufacture, distribution, and possession of hemp products in Texas. However, Governor Abbott rejected the Bill, citing serious constitutional concerns and the high likelihood that it would be overturned in court.

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In his <a href="https://gov.texas.gov/uploads/files/press/VETO_proclamation_SB_3_IMAGE_2025-06-22.pdf" target="_blank" rel="noopener">veto statement</a>, Abbott shared his concerns related to the public safety risks posed by unregulated THC products, but emphasized that as written, SB 3 would likely face prolonged litigation and pointed to a similar law in Arkansas that was blocked by a federal court due to preemption and vagueness issues, warning that Texas could face the same fate. Abbott also raised concerns about the bill criminalizing federally legal products, potentially entrapping farmers, pharmacists, and even parents using FDA-approved treatments for their children.

For now, hemp-derived THC products are not banned in Texas. Governor Abbott has called for a special legislative session, expected to begin in late July 2025, to address the SB 3 issues he raised. He urged lawmakers to develop a comprehensive regulatory framework that aligns with federal law and is actually enforceable. Suggested elements include age restrictions, child-resistant packaging, product testing, licensing requirements, and oversight by an agency such as the Texas Alcoholic Beverage Commission.

We will continue to monitor developments closely and provide updates as the situation evolves. Please contact your Michael Best attorney to discuss how these changes may impact your business.

Close-up of green cannabis leaves against a soft, blurred background.

Close-up of green cannabis leaves with soft natural light and a blurred yellow background.

Uncertainty Continues for Texas Cannabis Market After Senate Bill 3 Veto

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