Vikki Goodwin unseats Dan Patrick, but THC products may stay off Texas shelves

Austin State Representative Vikki Goodwin defeated Lieutenant Governor Dan Patrick on Tuesday, ending a tenure defined by a contentious push to restrict hemp-derived products. Goodwin’s campaign centered on reversing Patrick’s efforts to ban smokeable THC items, a move that drew broad support from voters and industry leaders. Despite the electoral victory, experts say the path to returning these products to store shelves is complicated by existing regulations and upcoming federal changes.

Goodwin ran against Patrick, a close ally of President Trump, by targeting his incumbency and his unpopular stance on hemp. Her platform proposed using sales tax revenue from THC products to fund health insurance for low-income Texans. Lukas Gilkey, chief executive of Hemp-derived product manufacturer Hometown Hero, described the election result as a major moment for the industry. He said he believes Goodwin will immediately work to repeal the recent restrictions.

The industry faces immediate hurdles even with a friendly lieutenant governor. Shayda Torabi, co-founder of Austin-based RESTART CBD, cautioned that the election does not automatically fix the current regulatory mess. She noted that smokable products have already faced shifting agency rules and court orders, making it difficult for businesses to plan. Torabi warned that a new federal total THC test takes effect on Dec. 11. Under this rule, raw, unheated THCA flower fails the test, which could keep smokeable products off the market until lawmakers build a specific legal framework or the federal government adjusts its rules.

Patrick’s push to ban hemp-derived THC in 2025 generated significant backlash. JD McCormick, founder of the American Healthy Alternatives Association, stated that THC access was effectively on the ballot for voters. He argued that Patrick underestimated how popular hemp was, even among far-right personalities who previously supported him. The legislature passed the ban before the governor vetoed it, a process that reflected Patrick’s influence over the Senate.

The shift in leadership creates an opportunity for legislative action, but Goodwin cannot act alone. Katharine Neill Harris, a drug policy fellow at Rice University’s Baker Institute for Public Policy, explained that Goodwin will need support from the legislature to regulate hemp responsibly. While the governor’s election of Hinojosa may block some ban attempts, Senate Republicans still hold the power to influence the lieutenant governor’s authority over the chamber. Goodwin could potentially block ban efforts if she retains similar power to what Patrick held, but that remains uncertain.

The Texas Department of State Health Services implemented new regulations for consumable hemp-derived THC products on March 31. These rules require child-resistant packaging, new labeling, testing, and bookkeeping standards. The legal purchasing age was codified at 21. Retailers warned that limiting total THC in products to 0.3% would eliminate smokeable items like joints and flower buds, which account for more than 50% of some store inventories.

Licensing costs increased dramatically under the new rules. Manufacturers now pay $10,000 per facility, up from $258, while retail registrations rose to $5,000 from $155. Industry leaders argue these fees force businesses to close. Several hemp organizations have filed lawsuits against the rules, and they are currently playing out in the courts. Retailers expect these cases to face a more favorable environment now that voters have replaced many of the judges who initially ruled against the industry.

Industry leaders cite the economic impact of the restrictions. Gilkey noted that the hemp sector previously generated $300 million a year in state tax revenue. He argued that the existing regulatory framework worked for seven years and only needs minor adjustments to remove the rules created during Patrick’s tenure. Harris added that legislation is preferable to piecemeal rulemaking because it is less vulnerable to litigation. She noted that the Department of State Health Services has not indicated it will voluntarily change its rules, though ongoing litigation may influence the final outcome.

The Texas Legislature convenes on Jan. 12. Lawmakers will face the question of whether hemp-derived THC is legal under state law and whether to create a regulated market. If they choose to legalize the products, they will be sold only within the state, similar to models in other jurisdictions. Harris said Texas could also consider a comprehensive legal cannabis market, as 24 other states have done, to allow smokable cannabis through that channel. The decision will determine whether products return to shelves or remain in legal limbo.