Relating to the regulation of products derived from hemp, including consumable hemp products and the hemp-derived cannabinoids contained in those products; requiring occupational licenses and permits; imposing fees; creating criminal offenses; authorizing an administrative penalty.

89th Legislature (2025) Introduced by Paul Bettencourt and 8 co-sponsors

Texas bill requiring licenses, permits, and fees for hemp and cannabinoid product businesses while creating criminal penalties for non-compliance; vetoed by governor.

Vetoed by the Governor

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Legislative bill overview

SB 3 establishes a comprehensive regulatory framework for hemp-derived products in Texas, requiring businesses to obtain occupational licenses and permits to manufacture, distribute, or sell hemp products and hemp-derived cannabinoids (such as Delta-8 THC and CBD products). The bill imposes licensing fees, creates new criminal offenses for violations, and authorizes administrative penalties for non-compliance with the regulatory scheme.

Why is this important

The hemp industry has grown substantially in Texas, but currently operates in a legal gray area with minimal state oversight. This bill would either bring that industry under formal state regulation or restrict access to these products—a significant issue affecting retailers, consumers, and public health. The governor's veto suggests disagreement over the bill's approach to regulating these products.

Potential points of contention

Scope of regulation: The bill regulates hemp-derived cannabinoids that are federally legal under the 2018 Farm Bill, raising questions about whether state regulation of federally compliant products is appropriate

Business impact: Licensing requirements and fees could eliminate small retailers and concentrate the market among larger operators with compliance resources

Criminal penalties: Creating new criminal offenses for hemp product violations represents a significant expansion of criminal law in an emerging industry with evolving legal standards