Texas THC businesses worry as ban bill progresses

Texas Senate Bill 3, which initially equated to a total ban on THC products, passed out of the House just before 10 p.m. Wednesday for its third reading before the House. 

The bill could soon head to Governor Greg Abbott's desk and put an end to a multi-billion-dollar business in the Lone Star State.

RELATED: THC restrictions pass House

Legal battle for THC in Texas

What we know:

Since its federal legalization in 2019, THC products derived from hemp have become a multi-billion-dollar business in Texas, generally in the form of edibles and beverages. 

The THC in question can mimic some of the effects of marijuana.

In this legislative session, Lt. Governor Dan Patrick has argued that kids have unregulated access to THC products that can be stronger than some people can handle. He has made a total ban a legislative priority, and both the Texas House and Senate have voted accordingly.

The other side:

Houston's Bayou City Hemp was created after hemp's legalization, and they bought 8th Wonder Brewing, in part, to make and distribute THC beverages. 

Owner Ben Meggs says he was concerned as soon as he heard about Patrick's complaints, and has tried to argue for regulation. A ban, he says, will prevent the company from operating in Texas, and that he'd move to Florida where Gov. Ron DeSantis vetoed a similar bill in 2024. 

In Texas, there are more than 8,000 businesses that sell or make THC products, employing tens of thousands, generating billions of dollars in business.

‘A direct hit to Texas jobs’

What they're saying:

"It's disheartening to hear that, because what it means is that Texas is not open to business," says Bayou City Hemp owner Ben Meggs. "This ban is a direct hit to Texas jobs, veterans and responsible consumers, killing an industry that President Trump legalized and forcing companies to flee the state. We urge the governor to veto this."

The Source: Information in this article comes from The Texas Tribune, The Houston Chronical, previous FOX 26 Houston reporting, and an interview with Bayou City Hemp owner Ben Megga.

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