THC Remains Legal in Texas Despite Another Ban Attempt – Passion Farms

While Texas continues to experience THC over the retail counter, the Legislature moved to impose blanket restrictions on Texas THC products for a second time unsuccessfully during the 2025 special sessions. The Texas Tribune reported how another round of overtime came to an end without first banning or doing much else to more extensively regulate most THC products, including declaiming the state’s now-$5.5 billion hemp industry. 

The latest legal effort to ban these products came from Senate Bill 6, which proposed to prohibit consumable hemp products containing any “detectable amount of any cannabinoid,” with the stated exception of non-psychoactive based CBD and CBG products. The House of Texas gave again its second special session a gavel out.

Executive Order GA-56 instituted an emergency rule prohibiting TABC license holders from selling THC products to any person under the age of 21, and formally established that date for enforcement would be October 1, 2025. 

Emergency Rules Create 21+ Age Restriction

The Texas Alcoholic Beverage Commission announced that the emergency rule would be under enforcement beginning October 1, 2025. 

The emergency rule stated that:

• A government-issued ID must be reviewed for the sale of THC products

• License revocation from TABC for selling to a minor

• Compliance immediately required from all retailers with TABC licenses

Additionally, those who violate the emergency THC rules now face a fine of permanent revocation of their license instead of the customary temporary license suspension.

UPDATE ON THE HEMP INDUSTRY LEGISTRATIVE PRESSURE CAMPAIGN

TEXAS, USA:  Lieutenant Governor Dan Patrick took aggressive steps to ban THC products completely. Legislative reports indicate that banning hemp-derived cannabinoids was Patrick’s “top priority” for the 2025 legislative session. Senator Charles Perry introduced numerous bills to decimate the Texas cannabis industry infrastructure, including the vetoed, SB 3. 

Whitney Economics provides a summary of the extent with which legislators nearly decimated Texas cannabis producers: 

• More than 8,500 hemp businesses have started and are operating in Texas.

• 53,300 directly employed jobs paying $2.1 billion in wages.

• $267.7 million annual sales tax revenue.

• Retail businesses are generating $4.3 billion in consumer sales. 

The hemp industry successfully opposed unprecedented industry pressures from being completely erased.  72% of businesses indicated profitability despite the challenges presented from punitive legislation. The Texas Hemp Business Council, along with other industry lobbying associations, successfully coordinated efforts to preserve hemp product market access while advocating for regulatory reform in Texas.

Abbott Prefers Regulation to Outright Ban

The comprehensive ban on THC vetoed by Governor Abbott during June 2021 was a paradigm shift in the development of cannabis law in Texas. The Texas Tribune reported, Abbott specifically mentioned the potential harm to hemp farmers and veteran’s use of THC for medical purposes, indicating a potential bias toward targeted regulation instead of a larger ban.

The Governor’s approach encompasses:

• Protection of minors through age verification.
• Enabling adults access to tested and labeled products.
• Customized agricultural hemp capabilities.
• Veterans’ address medical cannabis access.

Policy experts from Rice University articulated the above approach is one of significant departures from the normal Texas drug policy regard.

Growth of Hemp Market Remains Robust

Notwithstanding looming regulatory concerns, hemp sales in Texas continue to grow sharply. As Shanken News Daily reports, the state hemp market reached around $5.5 billion in 2024, a massive increase from previous years. To put that in perspective, retail sales alone were greater than $4.3 billion in consumer spend occurring in more than 7,500 licensed retailers.

Popular product categories contributing to the growth of the market are:

• Edibles at 26.4% of retail sales

• THCA flower products at 25.3%

• Vape products, 24.3% of purchases

• Beverages, 18.6%

The data from Cannabis Business Times shows THCA products produced $571 million in retail sales, followed closely by Delta-9 THC at $567 million.

Federal Compliance Poses Continuing Complications

Senator Perry’s recently sent letters to state agencies signal ongoing federal compliance hurdles. Cannabis Business Times reports that Perry asked that Texas agencies provide clarification in regards to hemp testing requirements that would include the federal formula for Total THC = (THCA x .877) + delta-9 THC.

This technical issue serves as a determining factor surrounding how Texas distinguishes legal hemp from illegal marijuana, and the implications are wide ranged, including the classification of the following:

• THCA Flower Products

• Testing protocols in laboratories

• Law enforcement investigation protocols

• Interstate commerce regulations

The Department of State Health Services continues to comb through existing rules for insight to a potential rule change, including further testing requirements and labeling.

Economic Effects Reach Far Beyond Direct Sales

The impact of the hemp industry on the economy extends well past retail sales. A Globe Newswire analysis showed this economic boom generates more than $10 billion in total economic output in Texas alone. This multiplier effect includes:

• Manufacturing Sector: is responsible for $956 million in revenues and 7,981 jobs paying $374 million in wages

• Wholesale Trade: employs 4,043 workers earning $190 million and generates $309 million in revenue

• Agricultural production: Farmers planted 4,900 acres in 2024, up from only 250 acres in 2023.

This industry employs over 53,000 Texans directly; however, there are thousands of supporting jobs in the supply chain.

Legislative Struggle to Push Forward Into 2026

Although immediate threats to ban hemp-derived consumables have calmed down, there is still a political battle over the regulation of products derived from THC. Lieutenant Governor Patrick has made it clear he supports total prohibition by stating the Senate “will not accept anything less than a total ban.” This continues to foster tension with the regulatory approach of Governor Abbott.

The Texas Legislature’s next regular session in 2027 will probably readdress an inclusive hemp bill. Industry advocates are hopeful of working toward a compromise that provides a level of safety without losing the economic benefits hemp can provide.

While emergency rules provide relief temporarily, regulatory certainty will only emerge from legislative action. The TABC has emergency (temporary) authority which exists for only 180 days and may extend only once for an additional 60 days.

Are you ready to explore the highest quality THC products from a licensed supplier in Texas? Passion Farms has 3rd party lab-tested, compliant hemp-derived products for 21+ adults. Reach out to our knowledgeable team to learn about wholesale availability and to explore our line of compliant hemp-derived products that comply with all current Texas regulations.