What Texas Businesses Need to Know About the THC Regulation Shake-Up
A Political Tipping Point
On June 23, 2025, Governor Greg Abbott vetoed Senate Bill 3 (SB3), which would have banned all hemp-derived THC products, like Delta‑8 and Delta‑9, that are otherwise federally legal if under 0.3% THC. The veto keeps the $8 billion hemp industry operating in Texas, preserving tens of thousands of jobs, but it’s not over yet!
Abbott emphasized that outright bans faced constitutional risk, as he warned SB 3 would “make felons of innocent Texans” and likely be struck down in court. Instead, he has called a special session beginning July 21, 2025, to enact a more stable regulatory framework—similar to alcohol laws—covering packaging, age limits, testing, and sales oversight.
Why This Matters for Small Businesses
Hemp-derived THC products are widely available—from vape shops to wellness stores—and a flash ban would be devastating, especially for small retailers who suddenly risked felony charges for normal sales. The last-minute veto provides much-needed time to prepare.
Still, uncertainty remains. Debate continues between those like Lt. Gov. Dan Patrick, who argues the veto “legalizes marijuana,” and regulators working to draft sensible rules before the special session.
Preparing Your Business: 4 Smart Steps
Track the July special session proposals
Monitor legislation for rules on age limits (21+), child-resistant packaging, potency caps, testing standards, sales zoning, and licensed oversight by agencies like TABC.
Build compliance into operations now
Start implementing best practices early: use tamper-resistant, kid-safe packaging; label products with ingredients and THC percentage; train staff on age verification.
Join advocacy or advisory groups
The Texas Hemp Business Council and sector associations are already working with lawmakers—your voice matters. Industry input is shaping responsible regulation.
Adapt marketing and sales strategies
Prepare for restricted advertising, specifically near schools or playgrounds, and limited promotional hours. Adjust your branding, signage, and social presence ahead of time.
Key Takeaway: Act Now to Stay Ahead
No bans in place—for now—but the July special session will define new regulations.
Retailers need to get compliant before the rules are finalized.
Forward-thinking businesses can use this time to standardize operations, manage risks, and put themselves in a strong position.
Planning for Change
Ahead of July 21, your business should:
Build digital and physical compliance systems (e.g., ID verification, standardized labels)
Train staff on responsible sales and legal obligations
Update customer communications to reflect temporary Tobacco-like rules
Engage with peers and regulators to stay informed and influential
Think of this as a generational legal shift, similar to alcohol regulation in the 1930s. Businesses that prepare now will not just survive the transition—they’ll thrive.
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