What started as an opportunity for Texas farmers in 2019 has turned into one of the state’s most contentious political debates.
When Texas passed House Bill 1325, the legislation opened the door for the production and sale of hemp products. The law followed the 2018 federal Farm Bill, which removed hemp and the THC in hemp from the federal Controlled Substances Act. But what was originally intended to support agriculture soon developed into a growing consumer market for hemp-derived THC.
Seven years later, Texas lawmakers and regulators are working to restrict an industry that state legislation helped create, raising questions about public safety, political influence and the consequences for businesses and consumers.
“It was thought that this could be helpful for the state’s agricultural industry by allowing farmers to grow hemp, to sell hemp,” said Katharine Neill Harris, a drug policy fellow at Rice University’s Baker Institute for Public Policy. “What happened instead is that we saw this massive consumer market for hemp and hemp-derived products take over. And that was largely due to the way that the language defined hemp at the federal level and in Texas.”
In 2025, Lt. Gov. Dan Patrick and state Sen. Charles Perry sounded the alarm over access to these products, particularly among children. They championed Senate Bill 3, which Perry authored. They argued that highly potent, unregulated products were being packaged like candy and marketed to children.
On May 28, 2025, Patrick held a news conference to advocate for SB 3. Joined by Perry and law enforcement officials, Patrick showed reporters an assortment of THC-infused products, including gummies, cereal bites, lollipops and drinks.
“Don’t let them tell you ‘we didn’t target kids.’ What do you think this targets?” Patrick said. “This is to save an entire generation from being hooked on drugs.”
“It took about four years and unfortunately lives lost and lives ruined,” Perry said.
Gov. Greg Abbott then vetoed Senate Bill 3 on June 22, 2025. In his veto proclamation, Abbott cited potential constitutional problems, pointing to a similar ban Arkansas enacted through Senate Bill 358 in 2023. That law was challenged, and U.S. District Judge Billy Roy Wilson blocked its enforcement.
However, the 8th U.S. Circuit Court of Appeals ruled in Arkansas’ favor on June 24, 2025.
Abbott also warned of economic risks for Texas businesses.
“But there are also many Texans conducting business responsibly, who invested millions of dollars planting fields or opening up retail stores,” Abbott wrote.
A 2025 Whitney Economics report estimated the industry’s total revenue at $5.5 billion and its overall economic impact at $10.3 billion.
Abbott also expressed a preference for strict regulation over an outright ban. He warned that the bill could turn farmers growing hemp and veterans using the products into criminals overnight.
“Senate Bill 3 not only invites potential criminal entrapment for Texas farmers. It would also make felons of other innocent Texans, like pharmacists stocking health supplements, veterans treating PTSD, and parents caring for epileptic children with FDA-approved medications,” Abbott stated in his proclamation.
“At the time, there was a lot of opposition to it from within the Republican Party, especially among, like, more libertarian types and certain veterans groups,” Harris said.
The following year, new rules from the Texas Department of State Health Services, or DSHS, counted THCA toward the state’s 0.3% total delta-9 THC limit by dry weight for consumable hemp products. The rules took effect March 31, 2026, restricting the sale of THCA flower.
On May 1, 2026, the Texas Supreme Court ruled in favor of the state, giving it a victory in the legal battle over manufactured delta-8 THC. The court said the Legislature had given the DSHS commissioner primary responsibility for overseeing the civil schedules of controlled substances.
On July 31, 2026, DSHS reinstated definitions in its Schedule I controlled substances list affecting delta-8 and certain other forms of THC. The agency says only naturally occurring trace amounts of delta-8 in hemp are exempt. Compliant hemp-derived delta-9 THC products and CBD goods remain legal under state law.
For shop owners and farmers, these regulations limit which products can legally reach Texas retail shelves.
For Texans who purchased these products for personal use, the restrictions could lead to consequences beyond losing access to their preferred products.
Under Texas law, possession of prohibited THC products can result in felony charges. Possession of less than 1 gram of a Penalty Group 2 controlled substance, including adulterants or dilutants, is generally a state jail felony, punishable by 180 days to two years in state jail and a fine of up to $10,000.
Sarah Todd, director of the Texas Cannabis Policy Center, expressed concerns about how these criminal penalties could affect Texans who previously purchased these products legally.
“The Texas Cannabis Policy Center is a hub for Texas cannabis news, policy overviews, recommendations, as well as a civic center for grassroots engagement with lawmakers. We bring together organizations and individuals from all over the political spectrum, and our mission is to bring about sensible cannabis policies here in Texas,” Todd said.
“I mean, look, a possession arrest is life-altering,” Todd said.
She said the mental health effects of an arrest can last a lifetime, even without a conviction.
With so many shops and products on the shelves, retailers, farmers and consumers have to navigate these changes. Todd said criminal records can create barriers to housing and professional licensure. She also pointed to marijuana-related arrests across the state.
“Texas, we arrested close to 30,000 people in 2025 alone,” Todd added.
When asked about product safety and changes in consumer behavior, Harris said some consumers would likely stop buying these products if they became unavailable, while others would return to the illicit market to get their THC.
“They’ll just go back to doing that. It’s not really, like, changed their lives that much one way or the other,” Harris said.
Harris also said some consumers would turn to online retailers.
“They’re not going to be able to stop the online retailers. It’s much more difficult for a state to do that,” Harris said. “And so, you know, some of these products, people are just going to get online. They come from other countries where the ingredients are even less regulated.”
When asked about changes she would like to see, Todd said she wants Texas lawmakers to address both the restrictions on hemp businesses and the criminal penalties consumers face.
“I would like to see a more comprehensive framework in place,” Todd said.
Todd said her priorities for the 2027 legislative session include rolling back restrictions on hemp operators and decriminalizing low-level possession. She also said she would like to see past charges expunged.
Speaking before the election, Todd pointed to Vikki Goodwin’s promise to roll back some of those restrictions if elected lieutenant governor.
Texas’ hemp debate will enter the 2027 legislative session with a newly elected Democratic governor and lieutenant governor. Gina Hinojosa defeated Gov. Greg Abbott, while Vikki Goodwin defeated Lt. Gov. Dan Patrick. James Talarico also won his U.S. Senate race, adding to the party’s statewide victories.
For shop owners, farmers and consumers, the next legislative session will offer another opportunity for lawmakers to reconsider restrictions on hemp products and penalties for possession.
“I would like to see no penalties at all for a simple possession,” Todd said.
The legal fight over Texas’ hemp regulations will continue before lawmakers return in 2027. The Fifteenth Court of Appeals is scheduled to hear oral arguments at 9:30 a.m. Dec. 8 in Austin in an appeal involving the Texas Hemp Business Council’s challenge to DSHS hemp rules.
