Texas hemp businesses file lawsuit to stop THC ban

With just days left until a critical deadline, a coalition of Texas farmers, hemp manufacturers, and retailers have taken legal action in an urgent bid to stop Senate Bill 3 (SB 3), a measure that would outlaw most hemp-derived THC products in the state. The lawsuit was filed this week in Travis County District Court as Governor Greg Abbott faces a June 22 deadline to either sign, veto, or allow the controversial bill to become law without his signature.

The plaintiffs in the lawsuit include Caprock Family Farms — the state’s largest indoor hemp grower — along with CBD Pros USA, a prominent retail chain, and Benuvia Operations LLC, a company that specializes in producing pharmaceutical-grade cannabis compounds. Together, they argue that SB 3 threatens to wipe out an entire industry that has operated legally under both state and federal law.

“Senate Bill 3 would force us to destroy viable crops and strip away our rights overnight without compensation,” a Caprock representative said in a press release. “This lawsuit is about protecting constitutional rights, economic liberty, and the thousands of Texas jobs at stake.”

What SB 3 Would Do

Senate Bill 3, passed during the 89th Texas Legislative Session, aims to tighten regulations on consumable hemp products. Under the proposed law, the manufacture, sale, and possession of any hemp-derived product containing tetrahydrocannabinol (THC) — the psychoactive compound in cannabis — would be banned. Exceptions would be made for non-intoxicating cannabinoids such as cannabidiol (CBD) and cannabigerol (CBG), but even those products would face new age restrictions and packaging rules.

The bill mandates that only those 21 and older may purchase CBD and CBG products. It also prohibits retail locations from operating within 1,000 feet of schools and bans packaging that could appeal to minors, such as those with bright colors or cartoon imagery.

Critics argue that SB 3 will retroactively criminalize legal activity, leaving current producers and retailers vulnerable to immediate legal jeopardy and economic ruin.

The Legal Argument

The lawsuit contends that SB 3 violates both the Texas and U.S. Constitutions, citing due process, takings clauses, and protections against retroactive punishment. Plaintiffs claim the bill would destroy millions of dollars’ worth of lawfully cultivated crops and permanently dismantle businesses that have abided by existing laws since hemp was legalized under the 2018 federal Farm Bill and Texas’ own 2019 legislation.

Named in the lawsuit are state officials responsible for implementing and enforcing the law: Texas Health and Human Services Commissioner Cecile Erwin Young, Department of State Health Services Commissioner Jennifer Shuford, and Department of Public Safety Director Freeman Martin.

A Divided Industry Response

While many in the Texas hemp industry support the legal action, not all agree on the timing.

Hometown Hero, an Austin-based hemp company and vocal opponent of SB 3, posted a video on Friday expressing concerns that filing a lawsuit now could allow Governor Abbott to sidestep responsibility.

“That lawsuit gives the Governor an out,” said a company spokesperson. “He can say, ‘I’m gonna let the courts handle this and I don’t have to do anything with this bill.’”

Hometown Hero said it plans to mount its own legal challenge — but only if Abbott signs the bill or lets it become law. “Right now is a very fragile time,” the spokesperson added, urging others to wait until after the governor acts before pursuing litigation.

What’s Next

Governor Abbott has until 11:59 p.m. on Sunday, June 22 to act on SB 3. If he signs the bill, it will become law immediately. If he vetoes it, the legislation dies. But if he does nothing, SB 3 will automatically become law — a passive but still consequential decision.

Until then, the hemp industry, lawmakers, and consumers are bracing for impact.

“This isn’t just about hemp,” the Caprock representative said. “It’s about government overreach, property rights, and whether Texas keeps its promise to the small businesses and farmers who followed the rules.”

The court has not yet scheduled a hearing on the lawsuit. Meanwhile, all eyes remain on Governor Abbott’s office as the clock ticks down.