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 – Kelly Neves, the owner of Big Dan’s Emporium, is facing the imminent closure of her latest venture, Club 420, and potential financial ruin due to pending legislation that could impose a statewide ban on hemp-derived THC products. Governor Greg Abbott has until this Sunday to decide on Senate Bill 3, which would outlaw all products derived from hemp that contain THC, a psychoactive compound.
The proposed legislation, if enacted, would obliterate a burgeoning industry in Texas that currently generates approximately $10.2 billion annually and provides jobs for around 53,000 people. Neves, who has dedicated years of hard work to expand her business from a single food truck to a multi-location operation in Austin, expressed concerns that the ban could bankrupt her business and result in significant financial loss for her investors.
The push for SB 3 gained momentum following a significant police bust in Allen, Texas, where authorities seized over 75,000 pounds of illegal THC products, with concentrations as high as 78%, far exceeding the legal limit of 0.3% in Texas. This incident has drawn support for the bill from Lieutenant Governor Dan Patrick and Allen Police Chief Steve Dye, the latter of whom believes the ban would simplify enforcement by allowing police to focus on the presence of THC rather than its quantity.
Neves’ Club 420, located in the heart of Austin’s entertainment district, employs 20 people and represents significant investment from both family and external sources. The establishment offers a bar experience featuring THC-infused beverages, contributing to the wider fabric of the Texas hemp industry, which is primarily composed of small, independent businesses rather than large corporations. Neves noted that without the ability to sell THC, she would likely not renew the lease for Club 420, set to expire at the end of the year.
Senate Bill 3 would criminalize the possession of hemp products containing cannabinoids other than CBD and CBG, rendering Neves’ offerings illegal almost overnight. The bill also includes provisions for felony charges related to the manufacturing or sale of banned products, with misdemeanor penalties for simple possession. Although Neves and other business owners anticipated modifications to current hemp laws, they were not prepared for an outright ban.
As the legislative deadline approaches, opposition to SB 3 is mounting, with hemp advocates delivering over 118,000 petition signatures to Governor Abbott’s office in a bid to stop the bill. These advocates argue that the ban would be detrimental not just to businesses like Neves’, but also to consumers who enjoy legal access to hemp-derived products. Supporters of the bill, however, cite safety concerns regarding the potential risks of THC products, especially for children.
Neves’ journey to establish Big Dan’s Emporium began in 2019, just before the Austin City Limits Music Festival, an event that provided a significant platform for the growth and popularity of her brand. The success of her initial food truck led to partnerships and expansions across multiple locations, culminating in the creation of Club 420. After investing nearly 20 months and considerable financial resources into establishing this newest chapter of her business, Neves is now left hanging in uncertainty.
The outcome of Governor Abbott’s decision on SB 3 could drastically reshape the landscape of hemp regulation in Texas, potentially moving the state from a hemp-friendly environment to one characterized by some of the strictest regulations in the country. Neves, along with thousands of other business owners in the sector, anxiously await the governor’s verdict, which stands to impact not only their livelihoods but also the future of the Texas hemp industry at large.
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 GEORGETOWN
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