Austin, Texas — Texas Governor Greg Abbott formally vetoed Senate Bill SB3, a proposed measure that aimed to impose more stringent rules on products derived from hemp, on June 22, 2025. This highly anticipated decision, made just hours before the midnight deadline, has sent a clear message to the state’s burgeoning hemp industry, while simultaneously igniting a fresh political firestorm with Lieutenant Governor Dan Patrick, a staunch proponent of the bill.
Senate Bill 3, championed by Lt. Gov. Dan Patrick and State Senator Charles Perry, sought to enact a near-total prohibition on the sale of consumable hemp products containing any detectable amount of Tetrahydrocannabinol (THC), including popular cannabinoids like Delta-8 and Delta-9. While it would have permitted the sale of non-intoxicating cannabinoids such as CBD and CBG, provided they were entirely free of THC, the bill’s broad scope would have effectively decimated a significant portion of Texas’s rapidly growing hemp market.
The rules contained within the vetoed SB3 included:
- An outright ban on consumable hemp products containing any form of THC: This was the most contentious provision, aiming to criminalize products that many Texans use for wellness or recreational purposes and that are currently legal under federal law.
- Creation of new criminal offenses: The bill proposed various new criminal penalties related to the manufacture, delivery, or possession of banned THC hemp products, with possession being a Class C misdemeanor and manufacture/delivery treated as a third-degree felony.
- Strict regulatory framework for CBD and CBG products: Even for the non-intoxicating cannabinoids, the bill would have imposed new licensing requirements, strict labeling rules, and mandated child-resistant packaging.
- Prohibition on marketing to minors: Advertising or branding deemed appealing to minors would have been strictly forbidden.
- Mandatory decarboxylation testing: The bill would have required specific testing of all consumable hemp products to determine the total THC content, aimed at preventing the distribution of products that could be considered illicit marijuana.
- Prohibition of artificial or synthetic cannabinoids: The bill aimed to ban synthetic cannabinoids from use in products, seeking to close perceived loopholes.
- Product registration and QR code labeling: Manufacturers would have been required to register products and include QR codes linking to test results to assist law enforcement.
Governor Abbott’s decision to veto SB3 came after weeks of intense lobbying from both sides of the issue. Proponents of the bill, including Lieutenant Governor Patrick, law enforcement agencies, and some medical and education communities, argued that the unregulated proliferation of THC-infused hemp products posed significant public health risks, particularly to minors. Patrick had famously described these items as “poison in our communities,” asserting that they were being irresponsibly marketed and leading to adverse health outcomes.
However, the opposition to SB3 was equally vocal and diverse. The Texas hemp industry, which has boomed since the 2018 federal Farm Bill legalized hemp (defined as cannabis with less than 0.3% Delta-9 THC by dry weight), warned that the ban would devastate an industry supporting an estimated 53,000 jobs and generating billions in annual sales (with some estimates reaching $8 billion). Businesses argued that they had invested heavily based on existing state law (House Bill 1325 from 2019, which established the Texas Health and Safety Code Chapter 443), and an outright ban would lead to massive economic losses, business closures, and job eliminations.
Military veterans’ advocates, including Texas Veterans of Foreign Wars, also urged the governor to veto the bill, emphasizing that many veterans rely on hemp-derived THC products for chronic pain management, PTSD, and as an alternative to opioids. Farmers, who have embraced hemp as a new cash crop, also voiced concerns about the destruction of a key agricultural sector.
Crucially, Governor Abbott cited potential constitutional challenges as a primary reason for his veto. In his public statement, he argued that an outright ban on THC products, even those federally legal, would likely not withstand “valid constitutional challenges” and could “put federal and state law on a collision course.” He referenced the 2018 federal Farm Bill, which legalized hemp products at the national level, as a significant legal obstacle to the proposed state ban. Abbott also acknowledged that the current market is “dangerously under-regulated” and emphasized the need for a “regulatory framework that protects public safety, aligns with federal law, has a fully funded enforcement structure and can take effect without delay.”
Immediately after the veto, Governor Abbott called a special legislative session to begin on July 21, with consumable hemp regulation at the top of the agenda. He proposed a regulatory approach similar to how alcohol is overseen in Texas, suggesting rules such as:
- Banning the sale of THC products to minors (under 21).
- Requiring product testing throughout the production process.
- Giving local governments the power to prohibit stores that sell THC items.
- Providing law enforcement with additional resources to enforce regulations.1
- Implementing child-resistant packaging and clear labeling with warnings and ingredient disclosures.
- Potentially restricting sales hours and limiting purchase amounts.
- Assessing excise taxes to fund oversight and enforcement.
The veto has sparked a furious reaction from Lieutenant Governor Dan Patrick, who quickly took to social media to condemn Abbott’s decision. Patrick criticized Abbott for maintaining “total silence” on SB3 throughout the legislative session and labeled the late-night veto, supported by 105 of 108 Republicans in the legislature, law enforcement, and medical communities, as leaving “them feeling abandoned.” Patrick announced plans for a press conference to further address his strong disapproval.
Conversely, the Texas Hemp Business Council cheered the governor’s veto, calling it a “victory for freedom and free markets.” They lauded Abbott for “choosing balance over overreach” and protecting a vibrant industry. They also reiterated their support for sensible regulations like age limits (21+), child-resistant packaging, and school setbacks – provisions which they claim were initially rejected by proponents of SB3.
Polling consistently showed that Texans, including a majority of Republicans, did not support a full ban on hemp-derived products, favoring strict regulation instead. A statewide survey found 70% of voters supported legal hemp-derived THC under strict regulation, with only 16% supporting a full ban.
Governor Abbott’s veto of SB3 therefore represents a significant moment in Texas’s ongoing debate over cannabis and hemp. It keeps the state’s hemp industry alive, at least temporarily, and sets the stage for a contentious special legislative session where lawmakers will once again grapple with how to regulate these increasingly popular products. The outcome of this session will have profound implications for businesses, consumers, and the broader legal landscape of hemp in Texas.
