Second special session ends without new laws on THC, property taxes

Texas’ multibillion-dollar consumable hemp industry once again avoided shutdown as the special session came to a close. Lawmakers voted to ban all hemp-derived THC products in May, but Abbott vetoed that bill one month later, citing “undeniable” legal defects in the legislation.

In July, Abbott told Community Impact that he wanted lawmakers to tighten regulations on Texas' hemp industry and outlaw all “intoxicating” products with more than a 0.3% concentration of THC, or three milligrams per each gram of product.

State senators advanced a complete THC ban in both special sessions, although the measure did not reach the House floor. Patrick, who made banning THC one of his top priorities this year, announced Sept. 3 that he, Abbott and House Speaker Dustin Burrows were unable to reach an agreement after “hours of discussion.”

“My position remains unchanged; the Senate and I are for a total THC ban,” Patrick wrote on social media.

After long discussions last night between the Governor, Speaker, and me on THC, and continued hours of discussion today, we were not able to come to a resolution. I appreciate the effort by Gov. @GregAbbott_TX to find a solution. I thank Speaker Dustin @Burrows4TX and Republican...

— Office of the Lieutenant Governor Dan Patrick (@LtGovTX) September 4, 2025

Patrick and Sen. Charles Perry, R-Lubbock, who authored the proposed ban, have said that a legal THC market isn't practical due to testing and public safety challenges.

“The ability to regulate this is not doable, and the experts that have to be charged with the task of doing it have no enforcement. There is no way to stay ahead of the chemist and there’s no way, from a dollar standpoint, to pay for that," Perry told senators in July. "Regulation is decriminalization. Whether you admit it or not, the practicality of enforcement effectively does decriminalize.”

Critics of a THC ban have said outlawing the psychoactive substance would force thousands of local businesses to close and harm some veterans who use THC to treat mental health conditions.

In a video posted to X on Sept. 4, the Texas Hemp Business Council celebrated that a THC ban did not pass while reminding retailers to only sell their products to people who are at least 21 years old, avoid marketing products to minors and follow “proper testing standards.”

“Thank you to the legislators who stood with us and to the Texans who made their voices heard,” the post reads. “The message is clear: Texans want hemp. And we’re not going down without a fight.”

Special Session No. 2 is over: The House and Senate adjourned Sine Die after legislators failed to reach a compromise on hemp/THC.

Ban Bills Failed.

Industry Wins.

Fight’s Not Over.

Thank you to the legislators who stood with us, and to the Texans who made their voices... pic.twitter.com/nrQ1i9sAwo

More details

A plan to tighten limits on local property tax growth also fell apart in the final days of the special session after House and Senate lawmakers could not agree on the specifics of the proposal.

The Senate’s version of the measure would have required cities and counties with over 75,000 residents to seek voter approval before raising property tax rates by more than 2.5%. House lawmakers, meanwhile, sought to apply a 1% threshold to all cities and counties, regardless of size, with exemptions for public safety expenditures.

Under existing law, cities and counties can increase taxes by up to 3.5% annually before going to local voters.

Behind closed doors, a conference committee reverted the legislation to its original form, which would have enacted a 2.5% limit based on population. House lawmakers voted the measure down, with some Republicans arguing that many Texans would not see the benefits of the legislation if it were restricted to larger communities.

Bill author Sen. Paul Bettencourt, R-Houston, reprimanded House lawmakers for killing the bill.

“Unfortunately, not a single House member who voted No contacted me as Senate Author to get information before the vote,” Bettencourt said in a Sept. 2 statement. “The Senate cannot accept the House amendments on [Senate Bill] 10 that basically uncapped truth-in-taxation, allowing an unlimited property tax revenue increase on public safety expenditures.”

Rep. Tony Tinderholt, an Arlington Republican who supported the House’s proposal, argued that “conservatives in the House made the small property tax relief package better by ensuring it applies to all Texans.”

“Our team asked the bill author to support any of the [three] pro-taxpayer reforms we added to the bill. He is refusing to budge,” Tinderholt wrote in a Sept. 2 social media post. “We need a stronger bill.”

Also of note

Two bills aimed at helping communities better prepare for and respond to future natural disasters also did not reach the governor’s desk.

House Bill 3, which would have established a state interoperability council to improve communication among first responders, passed the House with a 136-1 vote Aug. 21 but was not heard in the Senate. Senate Bill 2, an omnibus bill that would have created licensing requirements for local emergency management coordinators and created a mass fatality training program for justices of the peace, died after lawmakers did not reach an agreement in a closed-door conference committee.

Abbott is scheduled to sign other flood-related legislation, including two bills that would tighten regulations on summer camps located in floodplains, into law Sept. 5.