Thousands of Texas hemp retailers dodged a bullet last night.
Just before the midnight deadline, Gov. Greg Abbott delivered a highly anticipated decision on Senate Bill 3 by vetoing the legislation that would have effectively banned the sale of most THC products derived from hemp in Texas, including Delta-8 and Delta-9 gummies and vapes, the Dallas Morning News reported.
The move will offer a temporary reprieve to thousands of storefronts and their landlords across the state.
Senate Bill 3 was passed by state lawmakers this spring and threatened to wipe out a hemp industry estimated to generate over $8 billion in annual revenue across at least 8,500 stores state-wide. The law was scheduled to take effect Sept. 1 and had sparked warnings from real estate professionals about its downstream effects on retail real estate.
Abbott also called for a special session to reconsider the bill, stating he vetoed the bill to give lawmakers time to more precisely define which products should be restricted. The session will begin July 21.
“We can do better,” Abbott wrote. “Texas must enact a regulatory framework that protects public safety, aligns with federal law, has a fully funded enforcement structure, and can take effect without delay.”
The bill’s broad language would have effectively outlawed the sale of most consumable hemp-derived THC products — a staple for thousands of retailers, especially in suburban and secondary markets. Landlords from Dallas to Houston stood to lose a stable category of small business tenants, while entrepreneurs feared a wave of closures and legal uncertainty.
Dallas-based developer Monte Anderson, whose Tyler Station redevelopment includes hemp vendors, previously warned that the bill would cause widespread lease defaults and put pressure on buildings that rely on niche, experience-based retailers.
Even with the veto, operators remain cautious. New rules could still emerge from the special session, and some landlords have already begun drafting lease clauses to address the legal status of cannabis-adjacent tenants.
The veto amounts to a temporary lifeline for the industry. But whether Texas will continue to tolerate the state’s booming hemp market remains an open question.
— Judah Duke
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