“I’m more scared about my customer, you know? If we shut down in a year, going out to the street and taking something that could possibly kill them.”
HOUSTON — The federal government’s new cap on THC has some celebrating, and others worried about its impact on businesses and consumers, with confusion surrounding what the restriction means for the hemp industry.
The cap, passed as part of the new federal budget bill, will limit THC to 0.4 milligrams per container when it takes effect next November. The restriction would effectively ban thousands of products currently being sold and threatens a billion-dollar industry.
For Tristan Taylor, CEO of Tayco Farms in Crosby, Texas, the news came as a surprise. His employees hand-make gummies daily, stirring, pouring, and filling molds dozens of times as part of a business his entire family has invested in for six years.
“If you look through the landscape for the past couple of years, there’s been nothing but decriminalization,” Taylor said when asked if he anticipated federal action coming so quickly.
Taylor acknowledged problems within the industry but questioned why legitimate businesses should suffer.
“I’m not gonna lie and say there aren’t bad actors. There are. There are tons of businesses that don’t care, that are mislabeling, that aren’t following regulations that were already put into place. But why should that damage us?” he said.
His concerns extend beyond his own business to consumer safety.
“I’m more scared about my customer, you know? If we shut down in a year, going out to the street and taking something that could possibly kill them,” Taylor said.
Aubree Adams, director of Citizens for Safe and Healthy Texas, welcomed the federal cap. Her group previously spoke in favor of Texas banning THC-containing products earlier this year, an effort that ultimately failed.
“On one hand, it was surprising to me to see them get that done so fast,” Adams said, noting the group had been working toward such restrictions for some time.
Adams argued the 2018 Farm Bill had different intentions.
“Hemp was legalized to make textiles and ropes and CBD creams and stuff like that,” she said.
She emphasized that the cap isn’t about blocking medical access.
“This isn’t about medical marijuana or any medical benefits. There’s also already products approved through the FDA that people can have access to,” Adams said.
The economic impact could be substantial. Beau Whitney, chief economist with Whitney Economics, outlined what the decision means for Texas.
“Fifty-three thousand jobs and roughly $2 billion in wages. And then there’s additional lost revenues from a taxation perspective as well from the sales tax,” Whitney said.
Although the ban was signed this year, it won’t take effect until next year. Taylor said his company is currently debating how to move forward as the November implementation date approaches.
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