In a move that could reshape the landscape of cannabis-adjacent commerce in Texas, the state Senate gave final approval late Sunday to Senate Bill 3, a sweeping proposal that would ban all products containing tetrahydrocannabinol (THC) — the psychoactive compound found in cannabis. The legislation, already passed by the House last week, now heads to Governor Greg Abbott’s desk.
If signed into law, the bill would take effect on September 1, 2025, outlawing the sale and possession of any hemp-derived THC products — including popular items such as delta-8 THC gummies, vapes, THC-infused seltzers, and smokable flower. Only non-intoxicating cannabinoids, such as cannabidiol (CBD) and cannabigerol (CBG), would remain legal for commercial sale.
The legislation is poised to dismantle Texas’ rapidly growing hemp industry, a sector estimated to employ over 50,000 people and generate more than $8 billion annually in revenue — a remarkable growth trajectory since 2019, when lawmakers first legalized consumable hemp products.
The Legal Loophole That Sparked a Green Gold Rush
The seeds of this controversy were planted in 2019, when the Texas Legislature passed a law permitting the cultivation and sale of hemp and hemp-derived products containing no more than 0.3% delta-9 THC — the primary psychoactive compound in cannabis. At the time, lawmakers believed they were authorizing a strictly agricultural product, envisioning a modest boost to rural economies and alternative cash crops for struggling farmers.
However, the bill did not account for other forms of THC, such as delta-8, delta-10, and THC-O — synthetic or naturally occurring isomers that, while chemically similar to delta-9, fell outside the regulatory definition of "marijuana" under state law.
Manufacturers quickly exploited the ambiguity, producing and marketing a range of intoxicating hemp-derived products that rapidly found their way into gas stations, wellness stores, and boutique dispensaries across the state. Today, over 8,000 retailers in Texas sell THC-containing products, many of which offer effects nearly indistinguishable from traditional marijuana — still illegal for recreational use in Texas.
“It was the perfect storm,” said Dr. Michelle Baker, a cannabis policy researcher at the University of Texas. “The industry found a gap in the law and filled it with products that are unregulated, accessible, and lucrative. And now the state is scrambling to put the genie back in the bottle.”
Political Winds Shift Against the Industry
Lt. Gov. Dan Patrick, a staunch conservative and vocal opponent of cannabis legalization, has taken a hard line on what he calls a “shadow recreational marijuana market.” He made banning hemp-derived THC products one of his top legislative priorities in the current session, framing the issue as a matter of public health, safety, and legal integrity.
“This isn’t medicine — it’s a legal loophole that’s putting potent, psychoactive drugs into the hands of children and vulnerable adults,” Patrick said in a statement earlier this month. “Texas never intended to legalize recreational THC.”
Supporters of the bill have leaned heavily into that narrative, citing a growing number of reports from parents, schools, and law enforcement about underage access, product mislabeling, and confusion between legal hemp and illegal marijuana.
Rep. Tom Oliverson (R-Cypress), an anesthesiologist and a leading proponent of the bill in the House, argued that consumers are “being duped into thinking these products are safe, regulated, and medically approved, when in reality, they’re anything but.”
Industry Backlash: Jobs on the Line, Investments at Risk
The hemp industry has not gone quietly. Trade groups, small business owners, and advocacy organizations have flooded Gov. Abbott’s office with phone calls, emails, and petitions, urging him to veto the bill and protect what they say has become a thriving, job-creating sector.
“This bill is economic sabotage,” said Max Mendoza, owner of Lone Star Botanicals, a CBD and hemp store in Dallas with 30 employees. “We’ve invested years and millions of dollars into building a legal, compliant business based on the law Texas passed in 2019. Now, they want to pull the rug out from under us.”
Advocates argue that banning THC-containing hemp products will not eliminate demand — it will simply drive consumers to the illicit market, where products are unregulated and potentially more dangerous.
“It’s prohibition all over again,” said Heather Fazio, director of Texans for Responsible Marijuana Policy. “We should be regulating, not banning. Let’s ensure safety and transparency instead of criminalizing commerce.”
Medical Marijuana Expansion: A Political Bargain
In a bid to soften the impact of the THC ban, House lawmakers pushed a parallel proposal to expand the Texas Compassionate Use Program (TCUP) — the state’s strictly limited medical marijuana program. That expansion originally included chronic pain as a qualifying condition, a move expected to benefit thousands of Texans who currently self-medicate with unregulated THC products.
However, that provision was removed in a surprise amendment by the Senate, leading to public friction between House and Senate leadership. Rep. Oliverson took to social media on Saturday, criticizing Lt. Gov. Patrick for reneging on a promise to support chronic pain coverage.
Patrick swiftly fired back, stating that he had made his position clear to Oliverson weeks prior.
The political standoff was resolved just hours before the Senate vote, when both lawmakers announced a last-minute deal: Chronic pain would be restored as a qualifying condition in the medical marijuana expansion, and the number of licensed dispensaries would quadruple. Additionally, providers would be allowed to open satellite storage facilities to make prescription fulfillment easier for patients in rural and underserved communities.
“We’re not abandoning patients,” Oliverson said Sunday. “We’re creating a clear, legal pathway for them to access treatment — one that’s safer and medically sound.”
All Eyes on Gov. Abbott
Now, with SB 3 awaiting Gov. Abbott’s signature, the fate of Texas’ hemp industry hangs in the balance. Abbott, who has historically taken a cautious, politically centrist approach to cannabis reform, has yet to publicly weigh in on the bill. In a statement last week, a spokesperson said only that the governor would “thoughtfully review” any legislation that reached his desk.
Should Abbott sign the bill, business owners would have just over three months to liquidate inventory, transition their operations, or close entirely. If he vetoes the bill — an outcome many advocates still hope for — lawmakers would need to muster a two-thirds override vote in both chambers, a high bar given the bill’s partisan support.
What Texans Can Expect Next
If Senate Bill 3 becomes law, consumers will no longer be able to purchase hemp-derived THC products in Texas, and thousands of small businesses — from vape shops to holistic health centers — may disappear overnight. Legal challenges are expected, with several industry groups already preparing lawsuits based on commerce clause arguments and potential violations of the 2018 federal Farm Bill, which legalized hemp nationwide.
In the meantime, uncertainty looms large over entrepreneurs, workers, and patients alike.
“This is more than a legislative decision,” said Baker, the UT policy expert. “It’s a cultural reckoning with how Texas defines cannabis, commerce, and care.”
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