Texas lawmakers ended their second special session without passing legislation to regulate or ban hemp-derived THC products. The result allows thousands of Texas hemp retailers to continue operating for now, according to a report from the Austin Business Journal.
Lt. Gov. Dan Patrick, who leads the State Senate, said last week on X that he, Gov. Greg Abbott and House Speaker Dustin Burrows could not reach an agreement on the issue. Patrick supported a complete ban on THC that had passed both chambers during the regular legislative session, but Abbott vetoed it.
Patrick’s proposed Senate Bill 3 would have banned most THC products derived from hemp, such as Delta-8 and Delta-9 gummies and vapes. Abbott vetoed this bill, saying there was a need for clearer definitions of restricted products and a regulatory framework before moving forward.
The bill’s failure is significant for retail real estate in Texas. Had it passed, an estimated $8 billion in annual revenue across 8,500 stores could have been lost.
Lawmakers did agree earlier in the year to prohibit vapes containing THC and other hemp-derived cannabinoids through Senate Bill 2024. This law bans vaping devices except those used for nicotine and includes restrictions on cannabinoids, kratom, kava, mushrooms and tianeptine.
The next regular session of the legislature will begin in January 2027 unless the governor calls another special session before then.
The decision not to move forward with broader restrictions is seen as positive news not only for retailers but also for Texas farmers involved in growing hemp. Together with retailers, more than 53,000 workers are employed in the state’s industry.
