Texas Lawmakers Revive Hemp THC Ban With Governor’s Backing as State’s $5.5 Billion Industry Faces Potential Shutdown

Texas Lawmakers Reignite Push to Ban Hemp-Derived THC Products in Special Session as State Eyes Tight Restrictions

Texas lawmakers are once again moving swiftly to ban intoxicating hemp-derived products across the state, a move that could upend an estimated $5.5 billion market. The renewed effort comes during a special legislative session in Austin, called by Governor Greg Abbott, and represents one of the most aggressive state-level pushes to curtail the sale of legal hemp-based cannabinoids.

Senate Bill 5 Proposes Sweeping Restrictions on THC Content in Hemp Products, Including THCA Flower and Delta Variants

At the center of this renewed legislative push is Senate Bill 5 (SB 5), introduced by state Sen. Charles Perry, a long-time critic of hemp-derived cannabinoids. The bill aims to ban the sale of hemp products that contain:

• More than three milligrams of delta-9 THC per package

• THCA-rich hemp flower by redefining the legal limits of THC in plant material

• Any product containing synthetic cannabinoids, which includes popular delta-8 and delta-10 THC variants

The bill advanced unanimously out of the Senate State Affairs Committee on Monday in a 10-0 vote, despite vocal opposition from business owners, consumers, and veterans’ groups. It now awaits further debate and a full floor vote before potentially moving to the House for consideration.

Governor Abbott Signals Support for Renewed Hemp Ban After Previously Vetoing Similar Legislation in June

Although Governor Greg Abbott vetoed a previous version of the bill in June, his tone has shifted. In a televised interview with Fox-4 News this week, Abbott voiced support for banning products with “intoxicating levels of THC,” saying Texas must continue criminalizing marijuana while still supporting hemp farmers.

Abbott’s comments drew attention across the political spectrum, particularly because his veto earlier this summer was interpreted by many in the hemp industry as a possible softening of his stance. Now, with the governor reaffirming his opposition to hemp-derived intoxicants, the industry is bracing for what could become a landmark change in policy.

Texas Hemp Industry Warns of Economic Catastrophe as Proposed Law Threatens Thousands of Businesses and Jobs

The Texas hemp industry has warned that the implications of the proposed ban are severe. Industry leaders estimate that more than 5,000 businesses, many of them small operations with local ties, would be forced to shut down if SB 5 is enacted. In total, the industry employs tens of thousands of workers and supports ancillary businesses across retail, logistics, agriculture, and manufacturing.

If passed, Texas would become one of the largest states to severely limit or ban the sale of hemp-derived cannabinoid products. The move would also contradict the intent of the federal 2018 Farm Bill, which legalized hemp and its derivatives so long as they contain less than 0.3% delta-9 THC by dry weight.

Opponents argue that the proposed milligram-based limit in SB 5 effectively re-criminalizes legal products, regardless of compliance with federal thresholds. For example, a legal hemp gummy with only 0.2% delta-9 THC could still be banned under the new three-milligram cap, due to total content per package.

Veterans’ Groups and Conservative Voices Push Back, Citing Benefits of Hemp for Mental Health and Economic Freedom

The push to ban hemp-derived THC has triggered a strong response from Texas-based veterans’ advocacy groups, who argue that cannabinoids like delta-8 and CBD are critical tools in managing PTSD, chronic pain, and anxiety for former service members.

Mitch Fuller, representing the Texas chapter of the Veterans of Foreign Wars (VFW), spoke out against SB 5 during Tuesday’s hearings, warning that veterans will be disproportionately affected by losing access to affordable, accessible alternatives to pharmaceuticals.

In addition, prominent conservative voices have emerged in opposition to the bill. Texas State Rep. Brian Harrison, a former Trump administration official and self-described constitutional conservative, took to X (formerly Twitter) to criticize fellow Republicans for focusing on hemp instead of core conservative issues.

His comment—”If you’re fighting harder to ban hemp than you are to ban property taxes… you’re doing it wrong” captured the tension between anti-drug policymakers and free-market conservatives who view SB 5 as a government overreach into personal choice and commerce.

Legal Experts Say the Bill Could Trigger Lawsuits and Federal Preemption Challenges Based on 2018 Farm Bill Protections

Legal analysts have suggested that if SB 5 is enacted, it will likely face immediate legal challenges, including claims of federal preemption under the 2018 Farm Bill. That federal law explicitly allows the sale and transport of hemp-derived products across state lines, provided they fall below the 0.3% delta-9 THC threshold.

By creating a separate metric—three milligrams per package—critics argue that Texas would be erecting an unconstitutional barrier to interstate commerce. Several states that previously passed restrictive laws on hemp products, including Arkansas and Indiana, are already defending legal battles from industry groups and businesses that claim overreach.

SB 5 also attempts to expand the state’s definition of THC to include precursor compounds like THCA, a non-psychoactive cannabinoid in raw hemp flower that converts to THC when heated. This move would effectively ban smokable hemp flower, which comprises a significant portion of many retailers’ sales.

Texas Could Become a Regulatory Flashpoint in the National Debate Over Hemp-Derived Cannabinoids

If passed, Texas would join a growing list of states, including Colorado and New York, that have imposed strict controls on hemp-derived cannabinoids, citing public health concerns and lack of federal oversight.

However, Texas’s size and economic influence could make it a tipping point in the national debate. With over 30 million residents and a strong base of hemp entrepreneurs, any major policy shift is bound to ripple across the industry and prompt federal lawmakers to address the growing patchwork of state laws.

The U.S. Food and Drug Administration (FDA) has so far declined to regulate CBD or delta-8 THC as dietary supplements or food additives, leaving enforcement in a legal gray area. That regulatory vacuum has allowed states like Texas to step in with their own rules, often conflicting and rapidly changing.

Industry Awaits Outcome of Special Session as Texas Charts a New Course for Hemp Regulation

With the special session in full swing, industry insiders say the coming days are critical. Lawmakers could vote on SB 5 and companion legislation as early as next week. If passed and signed into law by the governor, enforcement could begin within months, depending on the implementation timeline.

Retailers, processors, and farmers are now scrambling to prepare contingency plans. Some are exploring legal action, while others are already shifting inventory or halting product lines that would become illegal under the proposed rules.

For now, the future of hemp-derived THC in Texas hangs in the balance, with business owners, veterans, patients, and policymakers all watching closely. The outcome may determine whether the Lone Star State remains a haven for hemp entrepreneurship—or becomes one of the strictest regulatory regimes in the nation.