After months of back and forth, Texas c-store retailers and others finally have some clarity around the sale of intoxicating products containing hemp-derived THC.
Gov. Greg Abbott on Wednesday signed an executive order “relating to protecting children from hemp and hemp-derived products,” while still “respecting federal law and protecting the liberties of responsible adults.”
The executive order bans all hemp-derived THC sales to minors and requires age verification, via government-issued ID at the point of sale, before purchase. Retailers who fail to do so could lose their licenses, according to the new state rules.
The order also calls for the Department of State Health Services (DSHS) to review and possibly revise existing rules, including strengthening testing and labeling requirements, increasing licensing fees and improving recordkeeping.
Plus, state agencies including DSHS, the Alcoholic Beverage Commission (TABC) and the Department of Public Safety (DPS) must work together to increase enforcement, the order said.
“Texas will not wait when it comes to protecting children and families,” Abbott said in a statement. “While these products would still benefit from the kind of comprehensive regulation set by the Texas Legislature for substances like alcohol and tobacco, my executive order makes sure that kids are kept safe and parents have peace of mind now, and that consumers know the products they purchase are tested and labeled responsibly.”
The executive order caps months of uncertainty in Texas, the state with more convenience stores than any other.
The Texas Legislature wrapped up its second special session last week, taking no action on a Senate bill that could have potentially banned all sales of hemp-derived THC in the state. Texas lawmakers only meet every two years, so retailers would have had a significant wait to change any legislation.
Abbott and his lieutenant governor, Dan Patrick, had been at odds over the sale of hemp-THC in the state. Abbott called for the creation of regulations, while Patrick lobbied for a complete ban on beverages, edibles and more.
In August, the Texas Senate voted 22-8 in favor of the ban.
But Abbott had warned that doing so could put “federal and state law on a collision course” by criminalizing cannabinoids that are currently legal under the 2018 Farm Bill.
It is estimated that hemp-THC sales contribute $5.5 billion in annual sales to the Texas economy, with estimated tax revenue of $268 million, according to a report by Whitney Economics. Retail revenue of the products grew to $4.3 billion in 2025, up from $3.3 billion in 2023, the report found.
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