News Summary
Austin’s hemp industry is on the brink as local business owner Kelly Neves confronts Senate Bill 3, which could ban hemp-derived THC products. With the potential for extensive job losses and closure of businesses like Club 420, Neves and her community are voicing their concerns. As Governor Abbott faces a deadline to decide, advocates for the industry have rallied, seeking a more balanced regulatory approach without a total ban on these products. The fate of a $10.2 billion industry hangs in the balance, raising significant questions about the future of cannabis regulation in Texas.
Texas is facing significant changes in its hemp industry as a potential ban on hemp-derived THC products looms. Governor Greg Abbott is under pressure to act on Senate Bill 3 before Sunday, which, if signed into law, would outlaw all THC products derived from hemp. This legislation threatens to dismantle a $10.2 billion industry in Texas that currently employs around 53,000 people.
As the deadline approaches, business owners like Kelly Neves, who has invested five years into building her enterprise Big Dan’s Emporium, are bracing for the worst. Neves has expanded her business from a single food truck to a nine-location operation across Austin, embodying the spirit of small business growth in the state’s hemp sector. Currently, she is preparing to discard thousands of dollars in inventory and close her latest venture, Club 420, due to the potential ramifications of the bill.
The proposed legislation gained momentum after a significant police bust in Allen, where authorities seized over 75,000 pounds of illegal consumable THC products with concentrations ranging from 7% to 78%, far exceeding Texas’s limit of 0.3%. Allen Police Chief Steve Dye has voiced support for the bill, suggesting that its passage would simplify law enforcement practices by permitting testing for the presence of THC rather than measuring quantities. Such shifts in regulation, however, come at a high cost for small business owners like Neves.
Club 420, located in Austin’s entertainment district, currently employs 20 people and represents substantial investments made by Neves and her backers. The prospect of a ban is alarming for her and similar entrepreneurs, as it could not only bankrupt her businesses but also incur significant losses for the investors involved. Neves emphasizes that she never anticipated a complete prohibition on hemp products but expected the state’s hemp regulations to be modified in a more moderate way.
Sixty-five percent of the Texas hemp industry consists of small, independent businesses, which bolsters local economies but also leaves them vulnerable to sweeping policy changes. Senate Bill 3 could criminalize possession of hemp products containing cannabinoids besides CBD and CBG, effectively rendering Neves’ products illegal overnight. The legislation threatens felony penalties for manufacturing or selling the prohibited items and misdemeanor charges for possessing such products.
The potential legislation faces opposition from hemp advocates and local business owners who delivered over 118,000 petition signatures urging Abbott to veto the bill. Advocates express that with the industry’s rapid growth, many customers have benefited from safe access to a variety of hemp-derived products. Meanwhile, supporters of SB 3 have voiced concerns about safety risks associated with THC products, particularly when it comes to children.
When Neves launched Big Dan’s Emporium in 2019, just before the Austin City Limits Music Festival, she gained substantial exposure for her business and opened the door for multiple partnerships, culminating in the creation of Club 420, which features a bar that serves THC-infused beverages. However, without the ability to legally sell THC products to supplement bar revenue, Neves has no expectation of renewing her lease when it expires at the end of the year.
As the deadline for Governor Abbott’s decision draws near, Neves and thousands of other Texas business owners await the outcome that could significantly alter the state’s approach to hemp and cannabis regulations. If signed, Texas might transition from being a haven for hemp products to one of the strictest states in the nation regarding cannabis legislation.
Deeper Dive: News & Info About This Topic
- KXAN: Texas Hemp Business Faces Closure Under THC Ban
- Cannabis Business Times: Texas Hemp Advocates Gather Signatures
- Dallas Observer: The Fate of Texas THC Ban
- KEYT: Texas at a Crossroads with THC Ban
- Wikipedia: Cannabis in Texas
Author: STAFF HERE COLLEGE WRITER
The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
