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Texas to Regulate Cannabis Market by 2027

Illustration of cannabis plants with Texas map outline

San Antonio, Texas, February 1, 2026

Texas lawmakers are set to implement regulations on the state’s cannabis market by 2027, marking a significant shift from previous efforts to ban hemp-derived THC products. Governor Abbott’s veto of Senate Bill 3 highlights support for a regulated environment that encourages entrepreneurship and consumer safety. An executive order has directed state agencies to craft these regulations, including important measures like age restrictions and identification requirements. The hemp industry has largely welcomed this change, anticipating clarity on product safety and consumer protection.

San Antonio, Texas – January 30, 2026

Texas to Implement Regulations on Cannabis Market by 2027

Texas lawmakers have announced plans to regulate the state’s cannabis market starting in 2027, signaling a shift from previous legislative attempts to ban or restrict hemp-derived THC products.

In an exciting development for Texas entrepreneurs and the hemp industry, the state government is preparing to introduce regulations that will shape the future of hemp-derived THC products. This change comes at a time when many communities are emphasizing the importance of innovation and business resilience. By establishing a regulatory framework instead of pursuing a complete ban, local businesses stand to gain from a clearer environment that encourages both safety and economic growth.

Legislative Developments

The legislative landscape changed in 2025 when intense debates occurred over Senate Bill 3, which sought to prohibit the sale and possession of hemp-derived THC products. Governor Greg Abbott’s veto of this bill reflected a recognition of the potential benefits that a regulated market could foster. His vision emphasizes promoting entrepreneurship while ensuring public safety, a sentiment echoed by many stakeholders in the community.

Executive Actions

With an eye toward the future, Governor Abbott issued an executive order in September 2025. This order directed the Texas Department of State Health Services (DSHS) and the Texas Alcoholic Beverage Commission (TABC) to craft regulatory measures for THC products. Key components of these regulations include sales restrictions for individuals under 21 and requirements for government-issued identification to purchase cannabis products. This proactive approach will not only help safeguard consumers but also empower responsible local entrepreneurs.

Industry Response

The hemp industry has largely embraced the new path forward, expressing concerns about the prior lack of clear regulations. Industry leaders see the upcoming regulatory regime as an essential step toward ensuring both product safety and consumer protection. By striking a balance between public safety and the economic benefits inherent in the hemp industry, Texas can position itself as a leader in this evolving market.

Looking Ahead

The impending regulations signal a new chapter for Texas’s hemp-derived THC market. Stakeholders are eager for clarity on key issues like product testing, labeling, and age restrictions. By focusing on creating a safe and legal environment for consumers and businesses, Texas is establishing a framework that aligns with the values of entrepreneurial spirit and community support.

Frequently Asked Questions (FAQ)

What is the current status of hemp-derived THC products in Texas?

As of January 30, 2026, hemp-derived THC products remain legal in Texas. However, the state is in the process of developing regulations to govern their sale and distribution, with plans to implement these regulations in 2027.

Why did Governor Abbott veto Senate Bill 3?

Governor Abbott vetoed Senate Bill 3 in June 2025, advocating for a regulatory framework instead of a complete ban on hemp-derived THC products. He emphasized the need for regulations that protect public safety and align with federal law.

What measures are included in the executive order issued by Governor Abbott?

The executive order issued in September 2025 directs DSHS and TABC to develop rules and regulations for THC products, including prohibiting sales to individuals under 21 and requiring government-issued identification for purchases.

How has the hemp industry responded to the lack of clear regulations?

The hemp industry has expressed concerns over the absence of clear regulations, emphasizing the need for a structured framework to ensure product safety and consumer protection. Industry leaders have called for regulations that balance public safety with the economic benefits of the hemp industry.

What can consumers expect from the forthcoming regulations in 2027?

Consumers can expect regulations that address issues such as product testing, labeling, and age restrictions, aiming to create a safe and legal market for hemp-derived THC products. The regulations are anticipated to be implemented in 2027.

Key Features of the Texas Cannabis Regulation Announcement

Feature Description
Regulatory Framework Texas plans to implement regulations for hemp-derived THC products starting in 2027, focusing on product safety and consumer protection.
Legislative Actions Senate Bill 3, aiming to ban hemp-derived THC products, was vetoed by Governor Abbott in June 2025, who advocated for regulation instead.
Executive Order In September 2025, Governor Abbott issued an executive order directing DSHS and TABC to develop rules for THC products, including age restrictions and identification requirements.
Industry Concerns The hemp industry has called for clear regulations to ensure product safety and consumer protection, balancing public safety with economic benefits.
Implementation Timeline The forthcoming regulations are expected to be implemented in 2027, addressing issues such as product testing, labeling, and age restrictions.


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STAFF HERE AUSTIN WRITER
Author: STAFF HERE AUSTIN WRITER

The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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