On June 22, 2025, Texas Governor Greg Abbott made a pivotal decision that resonated across the state’s economic and social landscape, vetoing Senate Bill 3 (SB3), a measure that would have banned all hemp-derived products containing any amount of tetrahydrocannabinol (THC). The SB3 Bill Veto marked a significant moment for Texas, preserving a burgeoning $8 billion industry that supports an estimated 50,000 jobs. This decision came after intense pressure from hemp industry leaders, veterans, farmers, and consumers who rallied against the bill, highlighting its potential to devastate livelihoods, limit medical options, and push consumers toward unregulated markets. The Texas Governor Veto SB3 not only safeguarded an economic powerhouse but also underscored the power of grassroots advocacy in shaping policy.

A Booming Industry Under Threat

The Texas hemp industry, born from a 2019 legislative loophole, transformed the state’s agricultural and retail sectors. Legalized under House Bill 1325, hemp products with up to 0.3% delta-9 THC fueled an economic boom, with over 8,000 retailers selling edibles, vapes, drinks, and flower buds. By 2022, the industry was valued at $8 billion, with projections suggesting growth to $10–15 billion in 2025. This economic engine employed farmers, processors, and small business owners, contributing billions in tax revenue. However, Senate Bill 3, championed by Lt. Governor Dan Patrick and authored by State Senator Charles Perry, aimed to dismantle this market by banning all THC-containing products, allowing only non-intoxicating cannabinoids like CBD and CBG. The bill’s proponents argued it was necessary to curb unregulated, high-potency products allegedly marketed to minors, citing public health concerns.

The Battle Over Senate Bill 3

The SB3 Bill Texas Veto saga began in March 2025 when the Texas Senate passed the bill with a 24-7 vote, reflecting strong support from conservative lawmakers. The legislation proposed stringent regulations, including criminal penalties for possessing or selling THC products—a third-degree felony for manufacture or delivery and a Class C misdemeanor for possession. Lt. Governor Patrick, a vocal advocate, claimed the hemp industry exploited the 2019 law, selling “dangerous” products near schools. He argued that regulation was unfeasible, requiring excessive manpower, and pushed for a total ban. The Texas House initially considered a regulatory approach, with State Representative Ken King proposing a version of SB3 that would tax and oversee THC products rather than prohibit them. However, a floor amendment by Representative Tom Oliverson restored the Senate’s outright ban, passing 86-53 on May 22, 2025, and the Senate concurred on May 26, sending the bill to Governor Abbott’s desk.

Voices of Opposition Rise

The hemp industry, veterans, and consumers mounted a fierce counteroffensive. The Texas Hemp Business Council, representing thousands of stakeholders, delivered 5,000 letters and a petition with over 120,000 signatures to Abbott’s office, urging a veto. At a June 2, 2025, press conference, industry leaders, farmers, and military veterans, including the Texas Veterans of Foreign Wars, argued that SB3 would criminalize safe, legal products used for chronic pain, PTSD, and anxiety relief. Veterans like Dave Walden emphasized that hemp-derived THC offered a safer alternative to opioids and alcohol, warning that the ban would push users toward dangerous black markets. Small business owners, such as Lukas Gilkey of Hometown Hero, highlighted the economic fallout, with projections of $10 billion in lost revenue and 50,000 job cuts. Posts on X echoed this sentiment, with users like @TexasHempBiz calling the bill “insane” and a “direct attack” on Texans’ livelihoods.

The Case for Regulation Over Prohibition

Critics of SB3 argued that regulation, not prohibition, was the solution. The Texas Hemp Business Council proposed measures like age restrictions (21+), tamper-proof packaging, and barring sales near schools—policies already mandated by the 2019 law. Heather Fazio of the Texas Cannabis Policy Center noted the difficulty of producing CBD without trace THC, warning that SB3’s strict standards would make compliance nearly impossible, decimating even the CBD market. A 2025 University of Houston poll revealed 79% of Texans supported legalizing medical marijuana, 69% favored decriminalizing possession, and 62% backed recreational use, indicating public preference for regulation over bans. Opponents, including Democratic Representative James Talarico, argued that prohibition would empower cartels by driving demand to unregulated markets, undermining consumer safety.

Governor Abbott’s Decisive Veto

As the June 22 deadline loomed, Governor Abbott faced mounting pressure. Lt. Governor Patrick held a fiery press conference on May 28, displaying THC products and claiming they could “kill” or cause schizophrenia, urging Abbott to sign the bill. However, the governor’s office remained silent, with a spokesperson stating only that Abbott would “thoughtfully review” the legislation. In a move reminiscent of Florida Governor Ron DeSantis’s 2024 veto of a similar THC ban, Abbott rejected SB3, citing concerns over economic devastation and government overreach. In his veto statement, he echoed DeSantis, noting that the bill would “impose debilitating regulatory burdens on small businesses” and fail to achieve its public safety goals. The SB3 Bill Veto was celebrated by advocates who saw it as a victory for personal freedom and economic vitality, though it drew criticism from ban supporters like Patrick, who warned of continued “assaults” on public health.

Economic and Social Implications

The Texas Governor Veto SB3 preserved an industry integral to Texas’s economy. The hemp sector’s $8 billion valuation supported rural farmers, small retailers, and urban dispensaries, with 8,300 licensed locations generating significant tax revenue. The veto ensured that veterans and patients could continue accessing hemp-derived THC for medical purposes without resorting to prescription drugs or illegal markets. Industry leaders like Cynthia Cabrera of the Texas Hemp Business Council praised Abbott for standing with “farmers, entrepreneurs, and consumers.” However, the veto also highlighted the need for stronger oversight. Advocates renewed calls for regulations to address bad actors selling high-potency products, ensuring consumer safety while preserving market access.

A Broader National Context

Texas’s decision aligns with a national trend of grappling with hemp-derived THC. The 2018 federal Farm Bill legalized hemp, but states like Tennessee and California have since imposed restrictions or bans, citing youth access and potency concerns. Seventeen states have banned delta-8 THC, according to a 2023 National Cannabis Industry Association report, while others have opted for regulation. Texas’s veto sets it apart, reinforcing its commitment to balancing economic growth with public safety. The decision may also influence future legislative sessions, with advocates pushing for a regulated hemp market in 2027, potentially mirroring alcohol oversight models.

The Road Ahead for Texas Hemp

The SB3 Bill Texas Veto marks a turning point, but the fight is far from over. The hemp industry faces ongoing scrutiny, with lawmakers like Perry signaling intent to revisit the issue. Potential lawsuits, similar to a 2021 injunction blocking a smokable hemp ban, could further shape the legal landscape. For now, Texas remains a leader in hemp production, with farmers like those at Caprock Family Farms continuing to innovate. The veto underscores the power of collective advocacy, from veterans to small business owners, in defending an industry that has become a cornerstone of Texas’s economy and identity. As the state navigates this complex issue, the focus shifts to crafting policies that protect consumers while fostering growth, ensuring that Texas’s hemp market thrives for years to come.

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Reference:

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2.      Campiglia, E., Gobbi, L., Marucci, A., Rapa, M., Ruggieri, R., & Vinci, G. (2020). Hemp seed production: environmental impacts of cannabis sativa l. agronomic practices by life cycle assessment (lca) and carbon footprint methodologies. Sustainability, 12(16), 6570. https://doi.org/10.3390/su12166570

Finley, S., Javan, G., & Green, R. (2022). Bridging disciplines: applications of forensic science and industrial hemp. Frontiers in Microbiology, 13. https://doi.org/10.3389/fmicb.2022.760374