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.
Key Provisions of SB 5
- Felony Charges for manufacturing or delivering consumable products containing detectable THC
- Misdemeanor Offenses for possession, delivery, or transportation of these products, including via mail or courier
- Limited Exemption for first-time possession of small quantities
When vetoing the earlier Senate Bill 3, Governor Abbott indicated support for a regulated system, not a full prohibition. This continues to be the case. On Tuesday, Abbott explained that he wants a complete ban on THC and synthetic products, but would allow adults to obtain products with three or fewer milligrams of Delta-9 THC.
It remains doubtful that there is any growing alignment between the Governor and Senate leadership, at least publicly, suggesting that the Governor may again be confronted with the decision of whether to effectively ban most hemp products.
Regulatory and Business Implications – If Enacted, SB 5 Would:
- Represent one of the most restrictive THC laws in the nation.
- Criminalize many currently legal, but intoxicating, hemp-derived products (e.g., delta-8, delta-9, delta-10, THCA).
- Create enforcement uncertainty due to vague thresholds around what constitutes a "detectable" amount of THC.
- Pose significant compliance and operational risks for retailers, distributors, and manufacturers of hemp products.
- Likely trigger litigation around preemption and due process issues.
What's Next
If passed out of the Senate, the measure will move to the House, where discussions are ongoing regarding possible regulatory frameworks, which could offer an alternative path forward if SB 5 stalls or is again vetoed.
The debate in Texas is playing out while numerous other states have moved or are moving toward regulating the sale of hemp-derived cannabinoids—often through milligram caps, age restrictions, labeling requirements, and licensing.
Action in Texas also comes amid movement at the federal level, where the U.S. Senate Appropriations Committee has passed language that would close the loophole that created the opening for intoxicating hemp products. The Senate language closely mirrors language already adopted by the House Appropriations Committee. However, whether Congress can pass the actual appropriations bills containing this language is unknown. Congress could ultimately fail to enact appropriations bills and either shut down the government or pass the federal budget via a "Continuing Resolution." That latter path has become common in recent years.
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