Governor’s Veto Sparks Legal Fight and Legislative Showdown Over THC in Texas

Published: 22 June 2025

Updated: 17 July 2025

In a dramatic late-night move, Texas Governor Greg Abbott vetoed a sweeping bill (Senate Bill 3) that would have banned all consumable hemp products containing cannabinoids other than CBD and CBG—including popular items with federally legal levels of Delta-8 and Delta-9 THC. While the veto preserved access to THC-infused products across the state, it ignited a wave of legal and political activity that is now playing out in courtrooms and at the Capitol.

The topic of THC and hemp regulation will be front and center during the special legislative session starting July 21, 2025.

A Rare and Growing Rift Between Texas’ Top Republicans

The veto has exposed a deepening divide between two of Texas’ most powerful Republican leaders. Lieutenant Governor Dan Patrick, who championed SB 3, has openly criticized Governor Abbott for reversing course, calling the veto “a backdoor effort to legalize marijuana in Texas.” He claimed the governor had privately committed to signing the bill and accused him of prioritizing political optics over public safety.

Governor Abbott, on the other hand, defended his decision by citing potential constitutional challenges and the likelihood that the bill’s enforcement would be stalled in court for years. He has since proposed a comprehensive regulatory framework instead of prohibition—a position that continues to inflame tensions within the Republican party leadership.

Hemp Industry Sues State as Legal Tensions Escalate

Shortly before the veto, a coalition of Texas hemp businesses—Caprock Family Farms, CBD Pros USA, and Benuvia Operations—filed a lawsuit in Travis County against state agencies. The suit alleges that a blanket ban on hemp-derived THC products would violate the federal 2018 Farm Bill, which legalized industrial hemp nationwide.

Business owners argue that they’ve operated lawfully under the 2019 Texas hemp law and that a ban would destroy an industry that now generates more than $8 billion in annual revenue and supports over 53,000 jobs. The plaintiffs are seeking legal protections to preserve what they say are constitutionally protected rights to operate under federal law.

Special Legislative Session: Regulation vs. Prohibition

Following the veto, Governor Abbott announced that a special legislative session will begin on July 21, 2025, with a renewed focus on hemp regulation. Two cannabis-related items have been placed on the agenda:

• Protecting children from THC: Criminalizing the sale of hemp-derived THC products to anyone under 21.
• Comprehensive regulation of hemp products: Establishing limits on potency, banning synthetic additives, requiring licensing, and enforcing age restrictions and zoning limits.

Abbott has proposed regulating THC products similarly to alcohol—with strict product testing, clear labeling, child-resistant packaging, taxation, and enforcement through state agencies. Retailers may face licensing requirements and sales restrictions, including limited operating hours and location-based zoning laws.

Still, Senator Charles Perry—the original sponsor of SB 3—has vowed to reintroduce the ban during the session, setting the stage for another high-stakes legislative battle.

Industry Impact: Legal for Now, but Uncertain Future Ahead

For now, Texas' hemp industry remains operational, and THC-infused products like Delta-8 are still legal to sell and consume. Thousands of retailers and dispensaries across the state continue to serve customers, including many medical patients and veterans who rely on these products for conditions like PTSD, chronic pain, and anxiety.

But the industry is operating in a legal gray area. If lawmakers cannot reach consensus, Texas could face prolonged regulatory uncertainty that might stall investment, innovation, and compliance planning. A new set of rules—or an outright ban—could be implemented within weeks, reshaping everything from cultivation and manufacturing to retail and marketing.

Election Pressure and the Future of THC Policy

Both Governor Abbott and Lieutenant Governor Patrick are up for re-election in November 2026. As cannabis policy becomes a more prominent political issue in Texas, their opposing positions may play a key role in how they are perceived by voters.

Advocacy groups and business leaders see Abbott’s call for regulation as a step toward sensible cannabis reform. Critics, however, warn that treating hemp products like alcohol could increase youth access and normalize THC use in ways that are difficult to control.

Either way, the outcome of the special session will shape Texas’ cannabis industry—and possibly its political landscape—for years to come.

What Comes Next?

Texans watching this issue closely—whether they're patients, business owners, lawmakers, or consumers—should prepare for big changes in the coming weeks. The July 21 session could either deliver a strict but stable regulatory framework or reignite efforts to dismantle the hemp industry through renewed bans.

Until then, the battle over cannabis-derived THC remains very much alive in the Lone Star State. Texas residents over 21 years old area are able to purchase hemp products in-person and online.