On June 23, 2025, Texas Republican Governor Greg Abbott shocked lawmakers and lobbyists alike by vetoing Senate Bill 3 (SB 3), a measure that would have banned hemp-derived THC products across the state.  He also called for a special session to bring lawmakers back to Austin on July 21 to craft regulations that restrict, but do not outright ban, intoxicating hemp products.

SB 3 passed the House 87-54, mostly along party lines. The Senate passed the final version 25-6.

“We Are Banning High”

SB 3 would have criminalized the manufacture, sale, and possession of any hemp-derived compound that causes intoxication, including popular substances like delta-8 and THCA, which have become fixtures in gas stations, smoke shops, and online marketplaces across the state.

“We are not banning hemp,” said Rep. Tom Oliverson (R-Cypress), who carried the bill in the House. “We are banning high. If it gets you high, it is not legal anymore.”

Why Abbott's Veto Is So Surprising

It may seem contradictory: Abbott has historically opposed recreational cannabis use, yet he’s now safeguarding hemp-derived THC products. But this veto reflects two key considerations:

1. Legal Vulnerability: Abbott cited that SB 3 would likely face constitutional and other legal challenges, potentially leaving the state stuck in litigation while the industry remained unregulated.
2. Economic & Agricultural Concerns: Texas’s $8 billion hemp sector supports over 53,000 jobs. Abbott noted the risk of “criminal entrapment” for farmers and disruption to a growing market.

Here, the difference is degree and control:

SB 3 would have banned THC-containing hemp outright, a stance more extreme than Abbott's typical policy. Instead, he prefers a regulated framework, giving businesses clarity and protecting consumers while still imposing meaningful safeguards.

Abbott’s veto suggests he might be trying to thread the needle with those supporting an outright ban and Texas businesses benefiting from the sale of hemp and their lawyers and lobbyists. By calling the special session, he is trying to both acknowledge the need for stricter oversight of hemp and avoid the economic backlash of an outright ban.

Time will tell if he can craft a regulatory framework that limits the high-potency and synthetic products without criminalizing the entire hemp industry.

What Regulations Does Abbott Support?

Abbott has called lawmakers back for a special session starting on July 21, 2025, specifically to frame a more robust regulatory structure instead of an outright ban. His recommendations include:

• Minimum age 21 for THC product purchase
• No sales near schools, parks, or churches
• Child-resistant, tamper-proof packaging
• Warning labels, regulated THC limits, purchase caps
• Permits & taxation similar to alcohol
• Local governments can further restrict sales

In Short:

• No ban, yet: The veto keeps hemp‑derived THC legal for now.
• Regulation is coming: A special session will aim to craft sensible, enforceable rules.
• Aligns with Abbott’s mantra: Not pro-cannabis, but pro-lawful, regulated usage — avoiding legal chaos and economic fallout.

Political & Industry Responses

Hemp advocates, business groups: Praised the veto. Organizations like the Texas Hemp Coalition, Texas Hemp Business Council, and Project Champion highlighted the positive impact for small businesses, farmers, and patients. Lobbyists flooded Governor Abbott’s office with veto requests, according to The New York Times.

Governor Abbott’s veto … is a critical win for thousands of small businesses and Texans across the state.”  – Texas Hemp Coalition

Industry and business leaders also expressed support for the proposed regulations.

“We have always been an advocate for sensible and thoughtful regulation, and we look forward to working with lawmakers on this,” said Mark Bordas, executive director of the Texas Hemp Business Council.

Lt. Gov. Dan Patrick: Strongly backs SB 3; Claimed the unregulated hemp industry was trying to “hook a generation of young people”; blasted the veto, citing widespread Republican legislative support and endorsement from law enforcement.

"The governor of the State of Texas wants to legalize recreational marijuana in Texas. That's the headline, folks," Patrick said.

Is the Texas Governor More Chill on Intoxicating Hemp Than the Governors of California and Tennessee?

The veto by Abbott stands in sharp contrast to illicit hemp bans supported by the governors of California and Tennessee.

California Governor Gavin Newsom (D) issued an emergency ban on September 6, 2024, after observing hemp-derived intoxicants being sold at a retail chain near his house. Newsom said the ban was necessary to protect California’s children from dangerous hemp products.

“We will not sit on our hands as drug peddlers target our children with dangerous and unregulated hemp products containing THC at our retail stores,” Newsom said when he proposed the emergency rule.

We’re taking action to close loopholes and increase enforcement to prevent children from accessing these dangerous hemp and cannabis products.”

Since November 2024, the prohibition has remained in effect, with near-total compliance among businesses, according to the California’s Alcoholic Beverage Control agency.

Tennessee Governor Bill Lee signed a sweeping crackdown on May 21 that will significantly restrict the production and sale of hemp-derived cannabinoid products beginning in 2026. The legislation, House Bill 1376, bans products containing THCA and synthetic cannabinoids while also outlawing direct-to-consumer sales.

Hemp or High-Potency Synthetic Cannabis?

Much of the urgency behind these bills stems from rising concern over synthetic cannabinoids. lab-created compounds that mimic the effects of THC but often fall outside regulatory definitions of cannabis.

In February, IVN reported on a sweeping California investigation titled The Great Hemp Hoax, conducted by Groundwork Holdings, Infinite Chemical Analysis Labs, the UFCW Western States Council, and a licensed private investigator. Their findings were startling:

• 95% of tested hemp products contained synthetic cannabinoids, despite state bans.
• Over half exceeded the federal 0.3% THC limit for legal hemp.
• 88% failed California’s stricter “Total THC” standards.
• One gummy contained 325mg of THC per serving—32 times the legal limit for edibles in California.
• Vape products often exceeded THC levels allowed in California’s regulated adult-use market.

Unregulated products remain easily available online, often shipped through the U.S. Postal Service with no age checks. Brands like Cheech & Chong’s Kosmic Chews, Cookies, and 3Chi were among those found to be selling illicit products in California. Even well-known companies like CANN and St. Ides (owned by Pabst) were caught violating California laws. Some brands claim ignorance, blaming third-party distributors for selling their products in California.

Others, such as Dazed, openly advertise their partnerships with online “hemp superstores.”

A National Loophole Under Fire

Texas isn’t alone in grappling with the fallout of the 2018 Farm Bill that opened the door to legal hemp but failed to anticipate the rise of intoxicating hemp derivatives.

Many of these compounds, often found in vape pens and gummies labeled as “hemp,” can be up to 30 times more potent than natural THC and are linked to seizures, psychosis, and even death. With federal legislation stalled, states are stepping in—and taking radically different approaches. In Texas, that path is now back up for debate starting July 21.