Fact Check: "SB 3's veto protects a $4.3 billion THC industry in Texas."
What We Know
On June 22, 2025, Texas Governor Greg Abbott vetoed Senate Bill 3 (SB 3), which aimed to ban all consumable hemp products containing THC, including delta-8 and delta-9 THC products. This veto was significant as it effectively preserved the existing THC market in Texas, which is estimated to be worth approximately $4.3 billion (Texas Tribune). Abbott's decision was influenced by concerns that the bill would not withstand constitutional scrutiny and would create legal conflicts with federal law, particularly the 2018 Farm Bill that legalized hemp products (CBS News). Following the veto, Abbott called for a special legislative session to establish a regulatory framework for THC products, indicating a shift from outright prohibition to regulation (Texas Tribune).
Analysis
The claim that the veto protects a $4.3 billion THC industry in Texas is partially true. While the veto does indeed maintain the status quo for the THC market, it does not provide explicit protections or guarantees for the industry. Instead, it opens the door for future regulations that could reshape the market significantly. Abbott's veto was framed as a necessary action to avoid legal complications and to ensure public safety, suggesting that the current market is under-regulated (Texas Tribune, CBS News).
However, the assertion that the veto "protects" the industry can be misleading. The veto allows the industry to continue operating without immediate threat, but it also signals that regulatory changes are forthcoming, which could alter the landscape of the THC market in Texas. Abbott's call for regulation indicates that while the industry is safe for now, future legislative actions could impose stricter controls that might impact its profitability and operational dynamics (Texas Tribune, CBS News).
In evaluating the sources, the Texas Tribune and CBS News are reputable and provide well-sourced information regarding the legislative process and the implications of the veto. They present a balanced view of the political dynamics at play, including the tensions between Abbott and Lt. Gov. Dan Patrick, who supported the ban (Texas Tribune, CBS News).
Conclusion
The claim that "SB 3's veto protects a $4.3 billion THC industry in Texas" is partially true. The veto does preserve the current market for THC products, but it also sets the stage for potential regulatory changes that could impact the industry in the future. Therefore, while the immediate threat to the industry has been alleviated, the long-term implications remain uncertain as new regulations are likely to be introduced.
