Texas moves closer to banning all forms of recreational THC, sparking fears of economic consequences

THC in Texas could soon be a thing of the past if the governor signs a bill that has the backing of both the House and Senate, undoing a 2019 law that legalized hemp production.

Many businesses that have popped up since then worry they’ll have to close their doors for good.

“It has been our livelihood, and we’ve been here since 2020. We’re going to have to figure something out,” Melanie Carpenter, who owns Serenity Organics in Missouri City, said.

That’s because Texas is one step closer to banning THC, which she says, the majority of her products at the store contain.

Now, she’s worried about the future of her business if the bill becomes law.

“We would close the store, and we would have to start over,” Carpenter said.

In 2019, the state passed a law legalizing hemp products. It also allowed products that contained less than 0.3 percent of THC to be sold.

But Lt. Governor Dan Patrick says, since then, people took advantage of it and opened up shops with THC products across the state, which he claims was never the intention.

Carpenter says that if she has to shut down, it would hurt her customers.

“My customers (are) 40-60 years old (and have) pain, sleep anxiety. I do have veterans. I give a veteran’s discount, PTSD,” Carpenter said.

According to the Texas Hemp Business Council, since 2019, the state has seen several billion dollars in sales and millions in tax revenue.

Economic experts tell ABC 13 that if businesses close, it could have a ripple effect on the whole state.

“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,” said Prof. Steven Craig, Economics professor at UH.

Now, Carpenter must figure out what to do next as her business faces an uncertain future.

“It’s frustrating. We’re angry. And the next thing is the governor. I mean, the governor can stop this.”

Carpenter, along with the Texas Hemp Business Council, plans on gathering signatures from other businesses who oppose the bill and also plans on reaching out to the governor before it gets to his desk.

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