Tim Stafford – Cannabis Industry

July 22, 2025July 22, 2025 by Tim Stafford

After Texas Governor Vetoed the Total Ban, Low-THC Consumables May Stay on Shelves

Discussions on SB 5 (Formerly SB 3) Began Today in Texas’ 89th Legislature 1st Special Session

Minutes before the June 22, 2025 deadline, Texas Governor Greg Abbott surprised many by vetoing Senate Bill 3—the proposed ban on all consumable hemp products containing THC.

The veto is a major victory for Texas’s booming hemp industry, estimated to be worth $5.5 billion. “Senate Bill 3 is well-intentioned,” Governor Abbott said, but the bill went too far, presenting “valid constitutional challenges.” He emphasized the need for legislation that can withstand legal scrutiny in his veto proclamation: “Allowing Senate Bill 3 to become law—knowing that it faces a lengthy battle that will render it dead on arrival in court—would hinder rather than help us solve the public safety issues this bill seeks to contain.” Governor Abbott acknowledged the many Texan businessowners that invest millions to responsibly grow, produce, and market safe products for adults. Noting that Texas needs to add regulations to ensure safety, Governor Abbott added SB 3 to the top of the Special Session’s agenda.

In response to the veto, Lieutenant Governor Dan Patrick, a supporter of SB 3, has not backed down from his stance against hemp products, accusing Governor Abbott of wanting to “legalize recreational marijuana” and signaling that he will push for a ban again during the Special Session. Senator Charles Perry, who authored SB 3 & SB 5, acknowledged that Governor Abbott “raised some legitimate concerns.” However, Senator Perry expressed optimism, saying he has “all the confidence in the world” that the Special Session will “alleviate and address [Abbott’s] concerns.”

Industry leaders, however, welcomed the veto. Heather Fazio, director of the Texas Cannabis Policy Center, called Abbott’s decision “a win for freedom and free markets” specifically because the hemp-derived products industry in Texas supports over 8,500 retailers and generates $3.5-8 billion annually. Jonathan Miller, general counsel for U.S. Hemp Roundtable, called the veto “a seminal moment for hemp farmers and businesses across the country.”

Texas’ Legislative Special Session started yesterdat and can last up to 30 days. During the Session, the legislators may only work on the governor’s agenda items. Fortunately for hemp businessowners and consumers, the legislators who fought against a total ban have a second bite of the apple.

Duane Morris LLP will continue to monitor and provide updates on the status of SB 5.

May 23, 2025May 23, 2025 by Tim Stafford

Texas House Changed SB 3 Dramatically… before a Late-Night Amendment Slashed it to Match Senate’s Version for Approval

The complete ban on consumable hemp will soon head to Governor Abbott’s desk and go into effect September 1, 2025.

Two months and three public hearings lead to an SB 3 that still allowed the sale of consumables with 2018 Farm Bill-levels of THC, excluding vapes. The House Committee on State Affairs, chaired by the author of its version of SB 3 Rep. Ken King (R-88) aimed to regulate low-THC hemp, rather than ban it.

“I read about the 1920s. I don’t think Prohibition worked in [the] 1920[s]. It’s not gonna work in [the] 2020[s].”

Rep. King offered his counter option after considering the failure of Prohibition in the United States. As advocates and businessowners in the hemp industry started to believe that the House would pass the “regulation instead of elimination” version of SB 3, however, Rep. Oliverson (R-130) introduced an amendment that set SB 3 back to its original, senate-approved form. The amendment bans consumable hemp with any trace of THC.

“As a physician, I cannot in good conscience support a system where Texans self-medicate with unregulated, inconsistent and highly potent intoxicants.”

Rep. Oliverson was met with over an hour of discussion, during which many members stated plainly that Texans will still have options for hemp and cannabis if a total ban is approved—but those options will be found underground and from the illicit market.

According to Rep. James Talarico (D-50), “This ban is a gift to the cartels.”

Rep. Talarico was a final speaker in opposition before the third and final vote to approve SB 3. After discussing how helpful SB 3 will be to cartels, he stressed the importance of legal hemp to adults looking to relax, seniors looking to manage chronic pain, and veterans looking to manage symptoms of PTSD. Despite Rep. Talarico’s message, House Representatives approved Rep. Oliverson’s amendment before approving the final version of SB 3 with a 95-44 vote. Though SB 3 will travel through the Senate again because of the addition of a “stair-step” approach to enforcement and punishment, its original author, Senator Perry (R-28) announced his support for the minor changes while Lieutenant Governor Dan Patrick thanked the House for approving the bill and “protect[ing] Texas children and adults.”

We will continue to monitor and provide updates on the status of SB 3, particularly as businesses and industry leaders begin responding to the new law.

March 19, 2025April 7, 2025 by Tim Stafford

SB 3 Rolls into the Texas House of Representatives

After an hour and a half of debate on the Senate floor, Senate Bill (SB) 3 is engrossed. The bill received 24 ayes and 7 nos.

Senators who support the bill told stories of children and young adults losing all function after ingesting products containing intoxicating hemp. They emphasized how important it is for law enforcement officers to be able to immediately tell whether a product is illegal during a traffic stop, rather than make an assumption.

Opponents of the bill requested regulation instead of a total ban and raised the issue of veterans and other individuals who rely on these products rather than relying on alcohol and opioids for relief. Senator Charles Perry assured them that physician-prescribed hemp products will be more accessible under the Texas Compassionate-Use Program after a corresponding bill—SB 1505—is introduced and passes this Legislative Session.

March 18, 2025April 7, 2025 by Tim Stafford

Is Delta-8 Going Away in Texas?

The 89^th Legislative Session in Texas officially began on January 14, 2025, and one of the hottest topics during this session is Senate Bill (SB) 3, which proposes to ban all forms of consumable THC in Texas. According to Texas Lieutenant Governor Dan Patrick, SB 3, carried by Senator Charles Perry (R – Lubbock), is intended to prevent the sale of products that, on the surface, appear to be compliant with federal law as they are purportedly hemp products, but in reality are oftentimes manufactured in such a way that resulting THC concentrations are higher than cannabis products sold in state-licensed retail dispensaries. Importantly, recreational cannabis use remains illegal in Texas, but is legal for medicinal use with a physician’s prescription through the state’s Compassionate Use Program.