TEXAS, USA — A new bill in Texas threatens the state’s hemp industry, potentially putting thousands of jobs and hundreds of small businesses at risk.
Senate Bill 3, which passed 24-7 in the Texas Senate last week, would ban all products containing any amount of THC—a drastic change from current laws that allow products with up to 0.3% THC. If approved by the House, the bill would effectively eliminate hemp-derived products like gummies, vapes and drinks.
Treehouse Dispensary owner Kallan Salganik says “this bill will absolutely kill [his] business.”
Local business owners like Salganik are sounding the alarm about the potential economic fallout. The Texas hemp industry currently generates billions of dollars annually and employs nearly 50,000 Texans. It also effects other industries.
“It’s a large industry and it’s going to destroy it overnight,” said Salganik. “You know, we depend on a lot of other industries as well to survive. We depend on freight, we depend on farmers, which it’s gonna affect them as well, not just the hemp industry. This is much bigger than just this, than just us, you know, and my seven employees will be unemployed, along with 50,000 other Texans.””
Small, family-owned businesses like Kristi McGaughey’s Redbird Dispensary in Temple could be forced to reshape their entire business model.
“The hemp industry is a lot of mom and pop shops, like myself included, we started this business back in 2019 with a $500 investment and we’ve just reinvested our money to grow it into what it is now,” said McGaughey. “But we’re we’re not rich.”
Business owners aren’t arguing against regulation. In fact, many support stricter age restrictions and safety measures.
“We are all for regulation,” McGaughey stated. “We want to ensure these products don’t reach children. We’ve been asking for these policies for a long time.”
Salganik echoes these sentiments, warning that a total ban could increase public safety risks by driving consumers to unregulated black markets.
The bill’s fate now rests with the Texas House. House Bill 28, a similar proposal, takes a slightly different approach, focusing on stricter licensing rather than a complete ban. Importantly, the proposed legislation would not impact the state’s medical marijuana “Compassionate Use Program.”
Lieutenant Governor Dan Patrick is a primary backer of the Senate bill, suggesting significant political momentum behind the proposed restrictions.
