In what is shaping up to be a significant shift for the cannabis industry in Texas, Senate Bill 3, targeting THC products derived from hemp, is making its way to the desk of Governor Greg Abbott after passing recent hurdles in both the Texas House and Senate. Noted by FOX 26 Houston, this bill, driven by concerns from Lt. Governor Dan Patrick over unregulated access to THC products, threatens to dismantle a burgeoning multi-billion-dollar sector built since the legalization of hemp in 2019.
The potential impact of this sweeping legislation cannot be overstated, as business owners like Ben Meggs of Bayou City Hemp — who ventured into THC beverages by acquiring 8th Wonder Brewing — have expressed deep concern; he stated that a ban "is a direct hit to Texas jobs, veterans, and responsible consumers," a sentiment that was echoed by Melanie Carpenter of Serenity Organics in Missouri City, who fears her business will shutter if the bill becomes law, affecting her customer base, which includes veterans and individuals seeking relief from pain and anxiety. Both ABC 13 and FOX 26 point out that with more than 8,000 THC-centric businesses in Texas, the potential fallout could reverberate economically throughout the state.
What began as the legalization of hemp has evolved into a complex dispute over the place of THC products in Texas society and the economy. The stakes are high for business owners like Meggs, who has suggested he might relocate to Florida, where similar restrictive measures were vetoed by Governor Ron DeSantis in 2024. Meggs told FOX 26 Houston, "It's disheartening to hear that, because what it means is that Texas is not open to business," highlighting the broader implications for the state's reputation as a business-friendly environment.
This emergent legislative challenge underscores the precariousness of an industry that, as per reports by the Texas Hemp Business Council and echoed by University of Houston Economics Professor Steven Craig to ABC 13, has generated billions in sales and vital tax revenue, Craig asserts that business closures due to the ban would result in a contracted economy the impact of which, could ripple across various sectors, "The people that are forced out of this business are going to make less, and they are going to stimulate the economy less, and the economy overall will be smaller. That's just a fact,” the reality of which has led Carpenter and the Texas Hemp Business Council to mobilize opposition through signature drives in a bid to reach the governor before the bill's enactment.
