Policy showdown looms in Texas after governor’s veto of bill to ban intoxicating hemp

A rare rift between Texas’ top Republican leaders has upended efforts to ban hemp-derived THC products, setting the stage for a dramatic policy showdown in a special legislative session next month.

Gov. Greg Abbott’s surprise veto of Senate Bill 3, which pivots the state away from prohibition and toward tight regulation, drew sharp criticism from Lt. Gov. Dan Patrick and other longtime supporters of the ban after it was delivered just before midnight Sunday.

“It puzzles me why my friend Greg Abbott would, at the last minute, at about 22 minutes after 11, decide to veto this bill,” Patrick said at a press conference Monday. The lieutenant governor accused Abbott of abandoning law enforcement, medical groups, and families impacted by intoxicating hemp products.

Special session in July

Abbott’s last-minute veto stunned Patrick and many Republican lawmakers. SB 3 had passed with overwhelming support—105 of 108 Republicans in the Legislature—and was backed by the Texas Medical Association and law enforcement agencies across the state. Patrick emphasized: “This is not a Dan Patrick bill. This is a bill that reasonable people in professions that know best… all support.”

Abbott defended his move in a veto statement, calling the bill “well-intentioned but legally flawed.” He warned that enforcing SB 3 would be blocked by ongoing litigation and risked being permanently invalidated. “Texas cannot afford to wait,” Abbott said. “We must regulate hemp immediately.”

Texas in the national context

Texas is one of the biggest markets for hemp-derived THC products in the U.S., with more than 8,000 retailers and an industry estimated to generate $4.3 billion annually. The 2018 federal Farm Bill legalized hemp nationwide, but its definition—cannabis with less than 0.3% delta-9 THC—left room for products containing intoxicating cannabinoids such as delta-8 and HHC to thrive.

Texas lawmakers legalized consumable hemp in 2019, not realizing that hemp-derived CBD can be turned into synthetic substances that can give users a “high.” The state loophole led to a surge in products laced with the unregulated compounds in edibles, drinks, vapes, and cured flower. Patrick argues the state is not equipped to regulate the sector. “We’re not Colorado,” he said. “We are Texas.”

Abbott’s ‘sample regulations’

In place of a ban, Abbott proposed a regulatory approach modeled after alcohol control. He said legislation passed in the special session could still take effect this year, and offered “a sample of potential regulations”:

  • Banning sales to minors and restricting access under age 21
  • Prohibiting sales near schools, parks, and churches
  • Childproof, tamper-evident packaging
  • No marketing or packaging appealing to children
  • Required permits for retailers
  • Bans on products with other intoxicants (alcohol, kratom, etc.)
  • Mandatory testing at all production stages
  • Manufacturing facilities subject to food safety regulations
  • Permit and registration fees to fund enforcement
  • Operator permit and mandatory warning signage at stores
  • Sales allowed only 10 a.m. to 9 p.m., not on Sundays
  • THC limits and purchase quantity caps
  • Clear ingredient labeling, warnings, QR codes for test results
  • Falsifying lab results punishable as felonies
  • Criminal penalties for public consumption and open containers
  • Violations prosecutable under the Deceptive Trade Practices Act
  • Local governments allowed to ban or restrict retailers
  • Excise taxes to fund enforcement and oversight
  • Extra law enforcement funding for regulation

“This list, of course, is not exhaustive,” Abbott said. “But it may provide items to consider in a regulatory system that is strict, fair, and legally sustainable.”

“SB 3 would have banned widely used, federally legal hemp-derived products, pushing consumers toward unsafe alternatives,” the Texas Hemp Business Council said. Heather Fazio of the Texas Cannabis Policy Center also praised the move: “This is a win for freedom and free markets.”

More than 150,000 petition signatures were submitted urging Abbott to reject the bill. The Texas Veterans of Foreign Wars and farmers’ associations warned the ban would devastate livelihoods.

What’s next

Still, public health advocates and law enforcement groups back SB 3 and may push again for a prohibitionist approach. The special session beginning July 21 will determine whether Texas continues down the road of regulation—or reverses course.

Patrick said the governor’s veto sends the wrong signal: “Whether it’s unintentional and he didn’t think through it, or whether it’s intentional, that’s the result of the veto.”


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