In March, Texas Senator Charles Perry (R) filed Senate Bill 3 for consideration in the 2025 legislative session. This bill proposed a ban on the sale of all intoxicating THC products in Texas. If passed, it would have restricted thousands of Texans’ access to products they depended on to maintain a good quality of life while wiping out thousands of businesses.
Despite strong support from Lieutenant Governor Dan Patrick (R) and many other politicians in Texas, SB3 was vetoed by Texas Governor Greg Abbott. This effectively saved the hemp products industry in Texas.
Instead of dismantling an industry that helps thousands of people live better and provides thousands of jobs, Governor Abbott called for the industry to be regulated.
Here’s everything you need to know about Senate Bill 3 and the proposed THC ban – from what it would’ve done to where the industry (and Natural Ways CBD) stands today as a result of the veto.
Senate Bill 3: A Full THC Ban in Texas Was Proposed
Senate Bill 3 is a piece of legislation that was proposed during the 89th Texas Legislature (2025-2026).
Although its salient impact would be to ban THC and other intoxicating hemp-derived cannabinoids (in edible, vape, and flower form), it had several key features:
Cannabinoid restrictions
S3 would have banned all cannabinoids in consumable hemp products except cannabidiol (CBD) and cannabigerol (CBG). This means any product containing delta 8 THC, delta 9 THC, or similar compounds would be illegal in Texas.
The bill would have closed the so-called “Farm Bill loophole” that allowed businesses like ours to sell psychoactive hemp-derived products – and people like you to buy them.
If it had been passed, this change would gut the most profitable segment of Texas’s hemp market and severely limit access for non-intoxicating therapeutic alternatives, which large numbers of Texans rely upon – including disabled veterans and people who stopped using opioids due to the addiction risk.
Retailer licensing requirements
Under SB3, any business that sells consumable hemp products would have been required to register each individual retail location with the Texas Department of State Health Services (DSHS) and pay a fee.
This would have applied to both physical and online companies. The bill also tightens the renewal process for existing licenses and gives the state more authority to deny or revoke them.
While these measures aim to increase oversight and accountability, the added costs and bureaucracy will disproportionately hurt independent businesses and favor larger corporations that can easily absorb the financial and administrative burden.
Stricter testing & labeling
SB3 mandates comprehensive lab testing for all consumable hemp products before they can be sold.
Testing must be conducted by ISO-accredited labs and must screen for cannabinoid content, heavy metals, pesticides, and microbial contaminants.
On top of this, all packaging must be tamper-evident, child-resistant, resealable, and clearly labeled with cannabinoid concentrations and a QR code linking to a certificate of analysis.
For companies like Natural Ways CBD, this part of SB3 wouldn’t have been an issue – lab-testing and child-safe packaging have always been points of emphasis for us.
We have always been dedicated to serving people who can benefit from our products while restricting access for people that aren’t in a position to use them responsibly (by not selling to minors and using child-safe packaging).
Criminal penalties
SB3 attaches serious legal consequences to hemp regulation violations.
Possession or sale of banned cannabinoids like delta 8 or delta 9 THC would be a Class A misdemeanor.
Selling to individuals under 21 would be a Class B misdemeanor.
Additional penalties apply for selling within 1,000 feet of a school or marketing products in ways that appeal to children – such as using cartoons, fruit shapes, or candy-style packaging.
While some of the laws are legitimate public safety measures, others impose criminal liability for minor infractions and labeling mistakes, both of which do nothing for public safety. Instead, the new criminal penalties would have increased the workload for law enforcement agencies, pulling them away from more important matters (e.g. violent crime).
Backlash From the Hemp Industry
For a variety of reasons – many of them outlined previously in this article – companies like us took issue with SB3.
It would have done little to protect Texans; products like nicotine vapes and alcoholic beverages do far more harm to adolescents than hemp products do, and yet these industries aren’t on the chopping block as hemp recently has been.
While we acknowledge that intoxicating hemp products pose risks – especially in the hands of the wrong people – the answer is to regulate them, not to ban them altogether, given that thousands of people rely on delta 8 THC and delta 9 THC to live a normal life.
Given these arguments and many others, the hemp industry mobilized to stop SB3 from passing in a variety of ways:
- Petitions: Industry groups launched statewide petitions urging Gov. Abbott to veto the bill, gathering thousands of signatures in days. We emailed a petition to our customers and were able to collect many signatures.
- Capitol Protests: Business owners, veterans, and patients rallied at the Texas Capitol, speaking out against the ban and sharing personal stories.
- Legal Challenges: Multiple lawsuits were filed claiming SB3 violates federal law and threatens constitutionally protected commerce.
- Direct Lobbying: Hemp retailers and trade organizations lobbied lawmakers throughout the session, warning of economic fallout and regulatory overreach.
- Media Blitz: Hemp advocates organized interviews, op-eds, and press conferences to sway public opinion and amplify industry voices.
- Coalition Building: The Texas Hemp Business Council and other groups formed alliances with farmers, veterans’ organizations, and civil liberties advocates to mount a unified opposition.
Governor Abbott Vetoes Senate Bill 3
SB3 had the Texas hemp industry holding its breath – we definitely were.
Thankfully, on June 22nd, 2025, Governor Greg Abbott vetoed SB3 and called a special legislative session asking lawmakers to instead strictly regulate the substance.
This call for regulation is understandable and many hemp businesses support it: this will allow companies like us to continue helping people, and it will allow our customers to continue accessing life-changing THC products.
Impact on Natural Ways CBD & Other Hemp Businesses
If SB3 had passed and THC were banned, we would be out of business. THC products make up a significant portion of our sales; thousands of our customers use them therapeutically to live comfortably and maintain mental balance.
Thankfully, due to the veto of SB3, we remain in business. You are still able to buy delta 8 and delta 9 products in stores and online.
It is uncertain how our operations will change in light of any new regulations molded by the special legislative session. However, for now, we continue to sell online and in our five Houston, TX stores.
Conclusion: Keeping Up With Hemp Laws in Texas
At Natural Ways CBD, we’re greatly relieved by the veto and our customers are, too. What this experience has highlighted is that things can change, quickly – especially in an industry with as many legal gray areas as Texas hemp.
To stay updated on hemp laws and get involved with keeping beneficial cannabinoids legal, sign up for our email list (scroll down to see the form – you also get 10% off your first order!). That’s where we’ll send out new information as it comes available.
