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Takeaways

  • New compliance requirements are coming: Texas agencies will soon roll out stricter rules on age verification, labeling, and retailer obligations.
  • Retailers face heightened risk: Noncompliance could result in loss of permits and increased enforcement by multiple state agencies.
  • Costs may rise: Licensing fees and compliance expenses are expected to increase, reshaping the competitive landscape.

On September 10, 2025, Texas Governor Greg Abbott issued Executive Order GA-56 to impose more rigorous regulations on THC products derived from hemp. The order comes amid legislative gridlock on how to regulate or ban hemp-derived THC products, as we previously reported on July 24 and July 7.

Key Provisions of EO GA-56Continue Reading Texas Issues New Executive Order on Hemp-Derived THC Products: What It Means for Industry and Lawmakers

Takeaways

  • The Texas Senate is advancing Senate Bill 5 (SB 5), which would impose one of the strictest bans on hemp-derived THC products in the nation, including criminal penalties for manufacturers, distributors, and consumers.
  • SB 5 defines “detectable” THC with vague thresholds, creating potential compliance challenges and legal uncertainty for the hemp industry.
  • Governor Abbott favors a regulated THC system with low milligram caps over a full prohibition, setting up ongoing tension with Senate leadership.

The Texas Legislature kicked off a special session Monday, July 21, 2025, to address more than a dozen matters, including responding to Governor Greg Abbott’s recent veto of a full THC ban (as previously reported). Now that the first week of Senate action has concluded, it’s obvious that the Senate is not backing down. The Senate State Affairs Committee unanimously reported out Senate Bill 5 (SB 5), which, like the vetoed Senate Bill 3, would ban virtually all consumable hemp-derived THC products. Like its predecessor, SB 5 would impose criminal penalties on manufacturers, distributors, and consumers of any product containing a detectable amount of THC, with narrow exceptions for non-psychoactive cannabinoids such as CBD and CBG.Continue Reading Texas Senate Continues to Push Broad Ban on Hemp-Derived THC in Special Session