Texas Lt. Governor Dan Patrick Visits Responsibly-Managed Austin-Based Legal-Hemp Retailer
Yesterday, Texas Lieutenant Governor Dan Patrick visited the Happy Cactus, a legal hemp retailer in Austin, Texas. When Patrick entered the store, the employees asked for identification to verify his age. He complied and showed his ID, proving he was over 21.
The Happy Cactus team followed the standards of best practices established by the Cannabis Retailers Alliance for Texas and other organizations. Patrick asked about gummies and if products with more than 50mg per serving of hemp were available. Co-owner Todd Harris informed him products with more than 50mg per serving are NOT available in the store.
Patrick claimed that students from Crockett High School had been in the store. Harris said everyone who enters the store is asked for identification to prove they are over 21. Harris’ attorney sent Crockett High School administrators a letter warning students not to trespass in the store. The letter was sent more than six months ago.
“We are proud of our team here at Happy Cactus. They handled the visit according to the best practices of Texas hemp retailers and with professionalism and respect,” said Harris. “We are proud to provide a legal product that helps many people in our community, including veterans and seniors.”
“We are grateful that Lieutenant Governor Patrick decided to investigate stores on his own. We are very pleased that he chose Happy Cactus because they are one of the best examples of how to run a store properly. It’s obvious that they carry quality products for people in need and take extreme precautions to ensure their products do not fall into the wrong hands. They even ‘carded” Lieutenant Governor Patrick without knowing who he was,” stated David Sergi of Sergi & Associates.
“Lieutenant Governor Patrick came into Happy Cactus, our Client’s store, and saw that we do things correctly. He learned that we had sent a no-trespass letter to Crockett High School because we didn’t want their students in our store. He also learned that their students no longer attempt to come into our store. Happy Cactus does things right like most of our industry,” said David Sergi.
A video of the visit is here: https://www.dropbox.com/t/CvXgh9fbTRXidBSJ
For media interviews with Todd and Mickey Harris, Happy Cactus Owners, or David Sergi, Attorney for Happy Cactus, please contact Kevin Lampe at (312) 617-7280 or [email protected].
In an effort to remain vigilant and true to his word Texas Lt. Governor Dan Patrick is now making house calls to area store owners in a measure of enforcement that goes right to the top!
Employees of south Austin store owner Todd Harris of the Happy Cactus were greeted with questions about products his stores sell and legal dosing and compliance concerns as any grandmother might before making a legal purchase of CBD cream, or maybe a Texas Veteran who was looking for a gummy for a better night’s sleep.
Only this “house-call” was made by none other than Mr. SB 3 himself, Texas Lieutenant Governor Dan Patrick.
Happy Cactus, like many industry retailers are following a set of best compliance practices which are part of a statewide effort led by organizations such as (CRAFT) Cannabis Retailers Alliance for Texas.
According to Harris, Dan Patrick came in and asked about gummies and how many milligrams he had on certain legal-hemp products. Staff members provided info on one such item that was 50mg to the Lt. Governor as more questions ensued. Harris explained that products over 50mg are not available at his stores.
The Texas lawmaker also entered a line of questioning to Harris that alleged that students from nearby Crockett High School had come into the Happy Cactus when Happy Cactus staff insured Patrick that they not only card everyone that attends its establishment, but under his attorney’s advice they have sent the school a trespass warning so students know not to visit. That notice was delivered over six months ago.
“Lieutenant governor Patrick came into our Client store and found out that we do things the right way. He was even carded. He learned that we had sent a no trespass letter to Crockett high school because we don’t want their students in our store and he also learned that their students no longer attempt to come into our store and that we do things right like most of the rest of our industry. ” – Stated David Sergi the attorney of record for the south Austin retailer.
Security Video of Happy Cactus shows Patrick and his staffers coming into the south Austin store for an official visit. Unresponsive to Happy Cactus employees request for ID the Lt. Governor of Texas went on to explain that he was “Dan Patrick”. The Employee still demanded the identification. Afterwards, Todd Harris was notified by staff of the cordial visit by the top Texas lawmaker.
Harris and Sergi both emphasized that “we are grateful that Lieutenant governor Patrick decided to investigate stores on his own and very pleased that he chose Happy Cactus because they are one of the best examples of how to do how to run a store properly. It’s obvious that they carry quality products for people in need and take extreme precautions to ensure their products dont fall into the wrong hands. They even carded lieutenant governor Patrick without knowing who he was.” stated David Sergi of Sergi & Associates.
Details of the Call can be heard here, and the security tape recorded the visit.
The Happy Cactus is located at 5700 Menchaca Rd Ste # 520 and is owned by brothers Mickey & Todd Harris from Austin TX.
Cannonballs at the Alamo (Our Texas Hemp Industry)
On February 20, 2025, two significant regulatory shifts are set to take effect in Texas: the release of Senate Bill 3 (SB3) and the initiation of an intensified inspection protocol under the Texas Department of State Health Services (DSHS) Consumable Hemp Program. While these developments may seem unrelated at first glance, the coinciding timing of their implementation raises critical questions about their potential connection and underlying intent.
The DSHS Consumable Hemp Program Crackdown
Simultaneously, DSHS has announced a wave of inspections targeting consumable hemp manufacturers and retailers. According to an official communication dated February 20, 2025, DSHS has encountered increasing resistance from industry participants regarding inspections. In response, the agency has reaffirmed its authority under Texas Health and Safety Code (HSC) Chapter 431.042, which grants it broad oversight powers, including license revocations and civil penalties up to $25,000 per day.
Notably, the inspections will focus on verifying compliance with pre-existing regulations, and businesses refusing to cooperate risk severe penalties. Given that hemp regulations have remained relatively stable over the past few years, the sudden urgency in enforcement—just as SB3 comes into play—suggests more than mere coincidence.
Conspiracy to Bully . . . an Industry?
The concurrent implementation of SB3 and heightened hemp inspections prompts speculation about whether this is a coordinated effort to reshape the industry landscape. While SB3 introduces new provisions that necessitate increased scrutiny, industry leaders are jumping ship and starting to take sides in the future of the consumable hemp market.
Interestingly enough, today Friday the 21st amidst the industry already noticeably shaken by these two initiatives from Texas authorities; Bayou City Hemp Co. released a flyer in its Capitol visit today agreeing that lawmakers should ban all Smokable Hemp Products.More concerning, is that members of Bayou City Hemp Co. are also part of the Texas Hemp Coalition whose stated goal is to keep these products legal.
Official statement was released the following Tuesday. (UPDATE)
“As an executive board member of the Texas Hemp Coalition, Bayou City Hemp does NOT speak on our behalf nor do we support their efforts to sabotage an entire industry we are all here to protect. An official statement will be made soon.” – Jake Garry stated in an industry stakeholders WhatsApp forum this afternoon.
It is perhaps in lue of the company’s interest and position in its beverage expansion that it no longer needs to support the flower market. Drink brands from Bayou City Hemp have now collaborated with Spec’s Wines, Spirits & Finer Foods and its 238 locations as of March of last year. Now that they are seeking national partners like Total Wine and others it looks like Texas retailers will now have to fend for themselves in the cannon-fire of the 89th Legislature.
While the Alamo (our industry)remainsunder enemy fire, we might be seeing notable differences in lobby teams’ goals with different opinions and strategies. The Texas Business Council is doing their best to work with members of the house and seems to have a good deal of support from many state Hemp Businesses. The move from Bayou City Hemp Co to take sides on the issue against smokable hemp flower is sudden since, traditionally, its leaders have been board members of the Texas Hemp Coalition. I know all these players as I too was a member of that same Board in 2023!
With DSHS Inspections and more bills being filed; the contents of SB3 this week is not a shocker . . . in that we all knew it was seeking the bidding of Dan Patrick’s goal to ban these products. SB3, is filed, which would create criminal offenses for manufacturing, selling, AND possessing hemp products. The first cannon-balls have been fired and the walls of the Alamo (our industry) has shown some cracks and even division amongst her ranks. However, Mark Bordas, Executive Director of Texas Hemp Business Council has stated before “We are early in this fight. We just need to end up on top.”
As the cannon-fire will continue to volley back and forth in the next 100 days of the 89th Texas Legislature in the fight for legal Hemp, you can be sure our team at the Texas Hemp Reporter will be in the thick of its coverage. In the words of Sam Houston “Remember the Alamo”
Austin, TX – February 17, 2025 – The 5th Annual Outlaw Party, produced by Grow House Media, returns on March 10, 2025, from 7-11 PM at Pour Choices Bar in Austin, TX. This year’s event, presented by Weedmaps, is set to be the most impactful yet, bringing together top advocates, artists, and industry leaders to support The Last Prisoner Project, an organization dedicated to cannabis criminal justice reform. Proceeds from ticket sales will directly benefit the cause.
The Outlaw Party has become a staple of the SXSW experience since 2019, fusing activism, entertainment, and community in an unforgettable evening. Attendees will experience a Flower Bar by Kache THCa, live glassblowing demonstrations, and a custom mural painted by Hail Mary ATX, all set to the funk-infused sounds of Austin’s own Flyjack.
“This event is more than just a party; it’s a movement,” said Liz Grow, CEO of Grow House Media. “It’s incredible to bring the Outlaw Party back to Texas, a state where the war on cannabis—and the people who choose plant medicine—is still raging. We are all outlaws here, standing together to demand change. We won’t stop until every last prisoner of cannabis prohibition is free.”
This year’s event is made possible by an impressive lineup of sponsors, including Cheech & Chong’s, Cannasite, Chief Stix, Kache THCa, Tejas Tonic, and San A Canna. Their commitment to cannabis reform and social justice fuels the mission of the Outlaw Party, ensuring a night filled with purpose and passion.
In addition to live art and music, the event will feature powerful speakers and top advocates in the cannabis movement, shedding light on the urgent need for criminal justice reform and the work of The Last Prisoner Project.
Tickets for this must-attend event are on sale now. Don’t miss your chance to be part of a night that blends advocacy with artistry in support of a vital cause.
Join us in making a difference—because no one should be incarcerated for cannabis.
For press inquiries, sponsorship opportunities, or additional information, please contact: Liz Grow, CEO Grow House Media 📧 [email protected]
📞 512-695-6747
The hemp industry in Texas is at a pivotal moment as lawmakers consider significant restrictions. Senate Bill 3, introduced by Lieutenant Governor Dan Patrick, aims to ban all THC products, including hemp-derived items like delta-8 and delta-9 THC. Critics warn this could severely impact an industry that employs over 50,000 people and generates $8 billion annually.
Agriculture Commissioner Sid Miller supports regulation but acknowledges the need for a balanced approach. Meanwhile, lawmakers like Representative Joe Moody advocate for regulation rather than prohibition.
This debate in Texas occurs against the backdrop of significant shifts in the national cannabis landscape. With a new administration in office, federal conversations on marijuana legalization and reclassification are gaining traction. The DEA’s recent discussions on reclassifying marijuana as a less restricted substance could dramatically influence state policies and industry standards nationwide.
As Texas navigates its legislative session and awaits a Texas Supreme Court ruling on delta-8 THC, these broader national developments serve as a reminder of the complexities of balancing local regulation with evolving federal policies.
Stay tuned to the Texas Hemp Show on ESPN in Austin or read the Texas Hemp Reporter magazine this spring for the latest details on the evolving Texas hemp industry.
As we step into 2025, it’s impossible to ignore the pivotal moment we’re facing in the Texas hemp industry. The announcement of Senate Bill 3 has cast a shadow of uncertainty over the future of hemp in our state. For years, The Texas Hemp Reporter has been a steadfast advocate and resource for this industry, highlighting its innovation, resilience, and potential. But now, more than ever, we need your support to ensure this voice continues to resonate.
Our mission has always been to provide a platform for education, activism, and industry updates that empower Texas hemp leaders and entrepreneurs.
Unfortunately, without sufficient backing from industry leaders through advertising revenue, we face difficult decisions about how frequently we can publish in 2025. It’s a stark reality: without your investment, the magazine that champions this industry may not remain as consistent or impactful as we all need it to be.
Despite these challenges, we are not standing still. This February, we are excited to debut Blazed Magazine, a new recreational-focused product that brings fresh energy to the cannabis conversation.
Alongside it, Blazed Weekly News and our new podcast will aim to expand our reach, building bridges with new audiences and opportunities. While these ventures offer promise, our hope is that they can complement—not replace—the foundational work we’ve done with The Texas Hemp Reporter.
This publication has always been more than just a magazine. It’s been a movement, a community, and a critical voice for an industry that deserves recognition and growth. But we can’t do it alone. If you believe in what we’ve built and the future we can achieve together, I urge you to stand with us—through advertising, partnerships, and collaboration.
With your support, we can continue to shine a light on the evolving Texas hemp market and likely remain a quarterly cornerstone for this community in 2025 and beyond.
Blazed Magazine will offer the recreational advertisers, smoke brands and culture of the plant a fun and entertaining avenue for our industry while keeping the Texas Hemp Reporter our authoritative and respected industry publication. Thank you for your continued dedication to this cause. Let’s face these challenges together and create a future where Texas hemp thrives.
We are working on our Legislative Edition this February and plan to release this special issue to lawmakers in March. With your support we can tell the Texas lawmakers why we deserve the opportunity to lead the nation in the growing Hemp industries in the United States.
Texas Legislative Edition Rate Card for advertising.
The CHAMPS Trade Show, a cornerstone event in the counterculture industry since
1999, is set to return to the Las Vegas Convention Center from February 12th to 15th,
2025.
This premier business-to-business expo brings together a diverse array of exhibitors,
including manufacturers, distributors, wholesalers, glass artists, and suppliers, all
showcasing a vast selection of smoking accessories, counterculture products, clothing,
hand-blown glass, and other specialty gifts.
Attendees can look forward to the renowned CHAMPS Glass Games, a live
glassblowing competition featuring elite artists vying for cash prizes and industry
recognition.
Additionally, the event offers numerous networking opportunities, informative keynote
sessions, and panels led by industry leaders, providing valuable insights into the latest
trends and innovations.
For those planning to attend, CHAMPS has secured special hotel deals. Rooms at
Tuscany Suites0 & Casino start at $89 per night, available from February 10th to 17th,
2025, with no resort fee and complimentary shuttle service to the convention center.
This deal ends on January 10th. Additionally, Resorts World offers rooms ranging from
$95 to $275 per night between February 9th and 15th, 2025.
As the premier counterculture B2B expo, CHAMPS Trade Shows provide an
unparalleled platform for businesses to connect, discover new products, and stay ahead
in a thriving marketplace. Whether you’re a retailer, wholesaler, or industry enthusiast,
this event is a must-attend to experience the forefront of counterculture trends and
innovations.
For Buyers:
CHAMPS offers retailers access to exclusive deals, cutting-edge products, and
connections with top brands and industry leaders. Attendees can discover the latest
trends, witness live glass art competitions through the CHAMPS Glass Games, and
benefit from a dynamic atmosphere conducive to business growth. The event is free to
attend but is strictly business-to-business and not open to the public. All attendees must
be at least 18 years old and provide two forms of business identification, such as a
reseller’s license, seller’s permit, business license, or tax ID.
For Exhibitors:
Exhibiting at CHAMPS provides a unique platform to showcase products to a diverse
and influential audience, facilitating market expansion and the formation of international
partnerships. The event is renowned for innovation and trendsetting within the
counterculture industry, offering exhibitors invaluable insights, exposure, and networking
opportunities that can drive business growth and success.
Each 10×10 booth includes an 8-foot table, a chair, a wastebasket, pipe and drape, and
up to four vendor badges. Larger booths receive proportional amenities. Additional
furnishings, carpet, and electricity can be ordered through the Exhibitor Kit. A 50%
deposit is due at the time of booking, with full payment required 45 days before the
show. Badge registration instructions are provided approximately one month before the
event, contingent upon a signed contract and full payment.
For more information and to register as a buyer or exhibitor, visit
https://champstradeshows.com/
Police Across Texas Using Faulty Testing to Raid Small Businesses Selling Legal Hemp
Hemp Industry Leaders of Texas Demand Law Enforcement Stop Using Questionable Standards
For Information: Kevin Lampe, Kurth Lampe Worldwide, 312-617-7280, kevin@kurthlampe.com
Over the past year, local police and sheriff’s departments have relied on faulty testing of legal hemp products. These departments are using analytical methods that the Texas Department of Public Safety official testified to in front of a legislative committee – that the analytical methods should be used to determine the legality of products sold in Texas.
Recently, a sheriff stated in the news media he doesn’t care about the science behind the analytical methods. These methods may provide law enforcement with fraudulent results. While these unsuspecting agencies have the best intentions to protect their neighborhoods, but they act on flawed intelligence.
“What is disappointing is that these law enforcement agencies are acting recklessly. It is as if they do not care about bonafide testing. They find a testing results that suit their purpose and then raid a small business and seize legal products,” said AJ Valador of Hemp Industry Leaders of Texas. “Our member businesses are being targeted by overzealous law enforcement. They seem more interested in creating headlines than following legal standards.”
Hemp Industry Leaders of Texas is committed to working with law enforcement agencies to provide support through training and transparency. HILT wishes to be a resource for law enforcement.
“Hemp Industry Leaders of Texas (HILT) will aggressively support our members and just as aggressively criticize bad actors in the Texas hemp industry. As a combat veteran, I am used to being mission-driven. Our mission is to provide our community with safe and legal hemp products. We do not tolerate illegal or shady activity in our industry,” added Valador.
“The members of HILT are committed to maintaining and developing a Texas hemp industry that is responsible and ethical. We share a common goal of offering products that provide natural, effective alternatives to traditional products, helping individuals manage chronic pain, reduce inflammation, alleviate stress and anxiety, and improve sleep quality,” said Nick Mortillaro, HILT Austin Chapter President and Managing Partner of Lazydaze Coffeeshops.Academic experts in the field of chemical testing are troubled by how hemp is tested in the United States. One scientist has reached the following conclusion.
“In my professional opinion, testing hemp-derived cannabinoids in the US has been an ongoing problem due to the high variability between labs combined with the lack of uniform protocols and procedures amongst these testing facilities. With no federal oversight regulating the labs, “lab shopping” has become very common in the hemp industry. Thus, certificates of analysis may vary greatly depending on the lab that was used and may not be a reliable source for law enforcement to use when products are seized.” wrote Dr Andrea Homes in a legal affidavit filed in the lawsuit against the Allen, Texas Police department.
Dr. Holmes continued, “The hemp industry should be able to rely on certificates of analysis provided to manufacturers by federally certified and regulated testing facilities, which will serve legally to protect all parties such as to product wholesalers, retailers, and consumers.”
Dr. Holmes is a recognized expert in the chemical testing of hemp products. She is a tenured university professor of chemistry with a background in synthetic organic chemistry, biomedical research, and analytical testing. She has considerable experience with hemp manufacturing and analytical testing.
The raids have not survived lawsuits brought by Hemp Industry Leaders of Texas (HILT) and its legal counsel, David Sergi. HILT has been holding law enforcement accountable for its actions.
“Many recent raids have used testing procedures as the basis for search warrants. The raids generate news coverage, consumers are afraid to patronize small businesses, and the business is hurt, and the owner’s reputation is damaged,” according to Sergi. “Yet, none of the cases have been tried or a conviction secured.”
Sergi is litigating cases in Allen and Waco, Texas, where law enforcement has used analytical testing to accuse local store owners of selling illegal products that were reported to contain more than the legal limit of delta9-THC. Recently, the city of Post, Texas, and the Garza County Sheriff’s Office settled a lawsuit for $80,000 after local police used questionable testing as a basis for the raid.
HILT calls on law enforcement and the local community to protect these local businesses and the people they serve. Many citizens, veterans, and seniors depend on compliant hemp to help them each day with discomfort, mood, and rest. Let’s stand up for their rights to purchase legal products that improve their health and wellness.-30-
LoneStar Does Not Own Trade Secrets Listed in Court Filings
CenTex CBD beat back a claim by LoneStar Farms LLC, better known as Sweet Sensi, and their lawyer, Lisa Pittman, of misappropriation of trade secrets and intellectual property and allegations of unethical conduct. This ruling of Constructive Fraud and other charges against Sweet Sensi will have significant implications for the rapidly growing and changing hemp industry in Texas.
During the case, Greg Autry of Sweet Sensi attacked Wyatt Larew of Wyatt Purp and the Texas Hemp Reporter in an advertisement published in The Austin Chronicle on October 25, 2024. The jury verdict completely vindicated Larew and the Texas Hemp Reporter for its initial coverage of the case.
“Sweet Sensi tried to cover up its bad behavior and questionable business practices by attacking me. I am grateful that the jury ruled in CenTex’s favor and vindicated me. I am disappointed in my former attorney, Lisa Pittman, who took a contradictory position after providing a legal opinion for me. Justice is the winner this week. Also, Hemp businesses in Texas won because bad actors need to be exposed, and ethical standards must be respected,” said Larew.
The conduct of Sweet Sensi’s lawyer, Pittman, has come into question. During the legal process, Pitman moved the case to District court from small claims court, which allowed Sweet Sensi to counter-sue for $250k-1 million in damages. While the trial was progressing, CenTex asked the judge to sanction Pittman. The judge agreed and sanctioned her. Additionally, the judge found it necessary to remind Pittman of her Fifth Amendment right against self-incrimination, raising the concern that her actions could be viewed as criminal, not just unethical.
“The Texas Hemp Reporter bases our reporting on court filings and public documents. Factual court reporting does not require commentary for the parties involved to “spin” us with their interpretation of court proceedings,” said Russell Dowden, Publisher of the Texas Hemp Reporter.
In this case, the jury ruled that Sweet Sensi did not own certain trade secrets, which contradicts what Autry of Sweet Sensi said in his paid advertisement.
“In my opinion, the jury did a good job seeing through the thinly veiled arguments presented by Sweet Sensi attempting to misuse trade secrets and the patent process. Hemp businesses must maintain their integrity so we can continue to supply products for the people who need them the most,” said David Sergi, Attorney for Wyatt Purp and other hemp-related businesses.
{What Does the Future of Hemp hold for the Lone Star State? Operators will be more accountable to retailers moving forward.}
In addition to finding Sweet Sensi committed constructive fraud, the jury returned unanimous verdicts, finding that Sweet Sensi engaged in false, misleading, deceptive, and unconscionable actions when the jury answered the following questions.
Did LoneStar engage in any false, misleading, or deceptive act or practice that CenTex relied on to its detriment and that was a producing cause of damages to CenTex? Jury said Yes.
Did LoneStar engage in any unconscionable action or course of action that was a producing cause of damages to CenTex? Jury said Yes.
Did CenTex and LoneStar agree that CenTex’s cherry limeade gumdrops ordered from LoneStar would come with red sugar and contain approximately 15 mg of Delta 8 per gumdrop? Jury said Yes.
Did CenTex and LoneStar agree that LoneStar would provide shelf-ready/consumer-ready gumdrops to CenTex? Jury said Yes.
Did LoneStar fail to comply with its agreement with CenTex, if any? Jury says Yes.
Did CenTex substantially rely to its detriment on LoneStar’s promises), if any, and, if so, was CenTex’s reliance foreseeable by LoneStar? Jury said Yes.
Did LoneStar obtain a benefit from CenTex by fraud or the taking of an undue advantage? Jury said Yes.
Did LoneStar fail to comply with the Manufacturing Service Agreement? Jury said Yes.
Did LoneStar own a trade secret in the formula, pattern, compilation, program, method, technique, process, or list of actual or potential customers listed below?
1. The rosin-based process used to design and manufacture LoneStar’s rosin-based products. Jury said No.
2. The process for designing and manufacturing LoneStar’s rosin base. Jury said No.
3. The process for designing and manufacturing LoneStar’s rosin-based products. Jury said No.
4. The process for designing and manufacturing LoneStar’s vape cartridges and gummy products. Jury said No.
In addition to these findings, LoneStar Farms LLC dba Sweet Sensi must pay monetary damages to CenTex CDB.
Additional steps related to the people and businesses involved in this case will be taken in the coming weeks. We will continue to inform the public about any developments.
For media interviews. Please contact Kevin Lampe at (312) 617-7280 or [email protected].
In a high-stakes legal battle that could shape the future of hemp innovation in Texas, CenTex
CBD, LLC and LoneStar Farms, LLC (operating as Sweet Sensi CBD) are locked in a dispute over
trade secrets, intellectual property, and allegations of unethical conduct. The lawsuit, which
centers on competing claims of misappropriation and breach of trust, has significant
implications for both companies and the rapidly evolving hemp industry in Texas.
How We Got Here?
The conflict between CenTex CBD and Sweet Sensi began after what initially seemed like a
routine business issue. After a year of working together and spending over $50,000 on
products, CenTex CBD received an order of gummies from Sweet Sensi that was not only the
wrong color but also had double the labeled potency. The labeling error, which was Sweet
Sensi’s responsibility, prompted CenTex to reach out about the discrepancy. Instead of
resolving the issue through dialogue, CenTex was met with a Cease and Desist letter sent by
Attorney Lisa Pittman from Pittman Legal the same day, which legally prevented any further
communication with Sweet Sensi directly and, for the first time, accused CenTex CBD of stealing
trade secrets. Cent Tex asserts that Ms. Pittman prevented any kind of reasonable, timely
resolution by not communicating any offers from CenTex CBD to Greg Autry of Sweet
Sensi or even responding to communications from CenTex CBD for multiple weeks. Instead, Ms.
Pittman informed CenTex CBD that she would not communicate with CenTex CBD directly.
Her actions forced CenTex CBD to hire an attorney and take legal action for any resolution at all.
Following this letter, CenTex’s attempts at communication were allegedly ignored by Pittman,
who failed to pass on offers for resolution to Greg Autry, Sweet Sensi’s founder. Following this
letter, CenTex’s attempts at communication were allegedly ignored by Pittman, who failed to
pass on offers for resolution to Greg Autry, Sweet Sensi’s founder. However, the Texas Hemp
Reporter spoke to Adam Gregg, from CenTex CBD, he has confirmed that “no offer was made.”
Pittman’s refusal to engage in meaningful discussions forced CenTex to hire legal counsel and
escalate the matter, transforming a simple business disagreement into a full-scale legal battle
over intellectual property and trade secrets.
Sweet Sensi’s Allegations: Protecting Proprietary Information
At the core of Sweet Sensi’s claims is the accusation that CenTex CBD misappropriated their
proprietary rosin-based production methods to create competing products, including delta-8vape cartridges and rosin-based gumdrops. According to Sweet Sensi, their patent-pending
technology for producing rosin products was shared with CenTex CBD under the terms of Non-
Disclosure Agreements (NDAs). These agreements were intended to protect Sweet Sensi’s
confidential business methods and trade secrets, ensuring that their proprietary knowledge
would not be used without their consent.
Sweet Sensi claims that CenTex CBD breached these agreements by using the confidential
information to develop and market its own rosin-based products. They argue that this
constitutes a clear violation of intellectual property law, as CenTex is now directly competing
with them using the very processes they pioneered. Sweet Sensi asserts that their rosin-based
products represent a significant investment in research and development, and they are seeking
to hold CenTex accountable for what they view as unfair competition.
From Sweet Sensi’s perspective, this case is about protecting the integrity of their business and
ensuring that other companies cannot profit from their innovation without facing legal
consequences. They see CenTex’s actions as a deliberate attempt to undermine their position in
the marketplace by using their proprietary technology without permission.
CenTex CBD’s Defense: Allegations of Overreach and Unfounded Claims
On the other side of the courtroom, CenTex CBD presents a very different narrative. CenTex
contends that Sweet Sensi’s accusations are exaggerated and unsupported by clear evidence.
According to CenTex, their company has always acted with integrity, developing its products
independently without relying on any proprietary information from Sweet Sensi. They view the
lawsuit as an attempt by Sweet Sensi to stifle competition, using intellectual property claims as
a tool to block CenTex from selling its own innovative products.
CenTex argues that Sweet Sensi’s claim to exclusive ownership of rosin-based production
methods is overly broad and legally questionable. They maintain that rosin production is a
widely known technique within the hemp industry, and the methods used by CenTex do not
infringe on any valid trade secrets or intellectual property owned by Sweet Sensi. From
CenTex’s perspective, Sweet Sensi is using the legal system to intimidate a competitor rather
than address a genuine legal dispute.
Moreover, CenTex has pushed back against discovery requests made by Sweet Sensi, which
they argue are excessive and invasive. Sweet Sensi has demanded access to sales figures,
financial records, and advertisements, which they claim are necessary to prove the extent of
the alleged misappropriation. CenTex, however, believes that Sweet Sensi is engaging in a
fishing expedition, asking for information that goes beyond what is relevant to the case and
placing an undue burden on CenTex’s operations.
Discovery Disputes and Allegations of Spoliation
One of the more contentious issues in the lawsuit involves discovery disputes between the two
companies. Sweet Sensi has accused CenTex of failing to provide key documents, including
profit and loss statements and advertisements, which they believe could help prove their claims
of trade secret theft. Furthermore, Sweet Sensi has alleged that CenTex deleted social media
pages and advertisements that could have served as critical evidence in the case, a charge that
has escalated into accusations of spoliation—the deliberate destruction of evidence.
CenTex, for its part, denies these allegations, arguing that any changes to their social media
presence were part of routine business operations and not an attempt to destroy evidence.
They insist that they have complied with discovery requirements to the best of their ability and
that Sweet Sensi’s accusations of spoliation are unfounded.
The Ethical Dispute: Lisa Pittman and Wyatt Larew
The legal battle between the two companies took an unexpected turn with the involvement of
Lisa Pittman, Sweet Sensi’s attorney, and Wyatt Larew, a key expert witness for CenTex CBD.
Larew had previously had an attorney-client relationship with Pittman and later testified that
Pittman made improper contact with him after learning that he had been retained as an expert
witness for CenTex.
According to Larew’s testimony, Pittman called him on June 10, 2024, and tried to dissuade him
from testifying on behalf of CenTex, citing her financial interest in the case and even suggesting
that Larew should prepare for potential legal consequences if he continued in his role as an
expert witness. Larew described the conversation as intimidating and felt that Pittman was
attempting to coerce him into stepping down.
CenTex seized on this testimony, filing a Motion for Sanctions against Pittman for allegedly
violating ethical standards. The court ultimately agreed, ruling that Pittman’s communication
with Larew was a violation of Texas Disciplinary Rule 4.02(b), which governs communication
with represented parties. As a result, the court imposed sanctions, barring Pittman from
deposing or cross-examining Larew during the trial.
Court Rulings and Sanctions – LETTER HERE: 24-080924 ORDER on Motion for Sanctions-1
The court’s decision to sanction Pittman was a significant victory for CenTex, bolstering their
claims that Sweet Sensi’s legal team had engaged in unethical conduct. However, the broader
dispute over the alleged misappropriation of trade secrets remains unresolved, with both sides
continuing to argue their positions as the trial approaches.
While CenTex celebrates the sanctions against Pittman as a validation of their stance, Sweet
Sensi continues to argue that the core issue—the protection of their proprietary
information—has not been fully addressed. Sweet Sensi maintains that CenTex has yet to
account for its alleged misappropriation of rosin-based production methods and that the case is
far from over.
The Stakes for the Hemp Industry
This legal battle between CenTex CBD and Sweet Sensi carries significant implications for the
hemp industry in Texas. Though CenTex may appear to be the David in this scenario—smaller in
size and resources compared to the industry giant Sweet Sensi, the Goliath—the outcome of
this case could set important precedents for how trade secrets and intellectual property are
protected in the rapidly evolving hemp space. As more companies invest in proprietary
production methods, the legal framework around innovation and intellectual property will be
critical in determining how businesses compete.
For CenTex, this case is about defending their right to innovate and compete freely in the
marketplace, without being crushed by unfounded allegations from larger competitors. They
argue that Sweet Sensi is using its size and influence to block CenTex from making a name for
itself in the market. On the other hand, Sweet Sensi sees the lawsuit as a necessary step to
protect their innovations and ensure that competitors do not misuse confidential information
or infringe on their proprietary methods.
As the trial date approaches, the confrontation between these two companies will likely shape
the future of intellectual property disputes in Texas burgeoning cannabis and hemp sector. The
court’s ruling will set a legal precedent, not just for CenTex and Sweet Sensi, but for how
intellectual property protections are enforced across the state’s growing hemp market.
Hemp beverages are seltzers, sodas, mocktails, coffees, teas, and other drinks that contain an infusion of hemp-derived cannabinoids, terpenes, or fibers. Common cannabinoids include CBD and THC, but other “minor cannabinoids” can also be incorporated.
On Tuesday, August 27th, Allen Police raided nine hemp shops, accusing them of selling illegal
products containing higher-than-allowed levels of THC. Texas Hemp lawyer David Sergi, who
represents eight of the nine store owners, stated that his clients were operating legally under
both Texas and Federal law.
San Marcos-based attorney Sergi emphasized that his clients are being accused of
manufacturing and distributing illegal tetrahydrocannabinol (THC) products, but under current
state and federal guidelines, the products they sell are legally permissible.
Who is at Fault?
While many argue that the Allen Police Department overstepped by executing search and
seizure warrants, there is a broader context. The DEA had been conducting a joint task force
investigation, targeting similar shops less than a month prior. Subpoenas were issued to several
of these same store owners earlier in the summer, with the DEA seeking access to financial
documents, customer transactions, and supplier lists—requests that Sergi claims violate the
Fourth and Fifth Amendments to the U.S. Constitution.
Sergi, who previously helped overturn a statewide ban on consumable hemp products,
successfully defended his clients against these subpoenas. In that case, a federal judge ruled
that the DEA could not obtain the requested information, marking a significant victory for the
businesses involved.
“This is straight out of a Russian KGB novel or a mafia gangster film,” Sergi remarked,
comparing the heavy-handed tactics to fiction.
The stores recently raided, including Lit Smoke & Vape, Chasing Vapes, and Hazel Sky, are some
of the same businesses Sergi represents in ongoing legal battles with the Allen Hemp Coalition.
Fighting Back
AJ Velador, founder of Hemp Industry Leaders of Texas (HILT), is organizing a GoFundMe page
to assist with bond and legal expenses for those affected by the raids. Velador and his
organization aim to put an end to what they see as unlawful and disruptive actions against legal
hemp operators and retailers in Texas.
Sergi echoed Velador’s concerns, describing the raids as poorly conceived and
counterproductive. The coalition, comprised of small, family-owned businesses, provides
employment to many in the Allen area and serves customers in need of legal cannabinoids,
such as veterans and individuals suffering from pain and PTSD, as alternatives to opioids.
Sergi further warned that the city’s actions could inadvertently open the door for cartels to step
in with unregulated and dangerous products. Industry professionals, he said, strive to work with
law enforcement to ensure that compliant products are sold to adult consumers.
The Bigger Picture for Hemp Operators
The ongoing raids have raised several critical questions for hemp business operators. How is
law enforcement testing these products? Are they using the same standards that certified labs
use to issue Certificates of Analysis (COAs)?
These concerns are especially pressing as the hemp industry faces a new legislative session,
during which lawmakers are expected to address product labeling, packaging, and age
restrictions. The May 2024 hearing of the State Affairs Committee highlighted these issues.
Sergi & Associates Response
David Sergi argues that the actions of the Allen Police Department and the DEA represent a
clear escalation of tactics used across the state to intimidate businesses selling legal hemp-
based products. According to Sergi, the raids resulted in the destruction of products, the seizure
of point-of-sale systems, and the confiscation of personal computers belonging to
employees—all actions that he contends were unlawful.
“These businesses are operating legally under Texas law,” Sergi said. “There is a right way and a
wrong way to address compliance concerns, and they have chosen the wrong way. They will be
held accountable.”
Sergi is no stranger to cases like this. He also defended Sky & Hobbs after their indoor growing facility was raided by Navarro County sheriffs in 2021.
The Allen Hemp Coalition, representing many of the affected businesses, is currently fighting in
court to uphold their legal rights to operate. Sergi and his team have already successfully stayed
a DEA subpoena they deemed a blatant “fishing expedition.”
Join us on September 6th
6:00-6:30 PM: Drink, Appetizers & Meet and Greet
6:30-7:00 PM: Introduction
7:00-8:00 PM: Guest Speakers & Open Mic for attendees.
Questions, Comments, or Suggestions are welcomed
Guest Speakers:
Top TX Hemp Attorneys
Fellow Hemp Business Owners
Hemp Advocates
Location
Fogo de Chão Brazilian Steakhouse
200 Congress Ave., Austin, TX 78701
Date & Time
September 6, 2024, 6:00 PM – 9:00 PM
Objective:
We intend to establish HILT Chapters throughout Texas to organize and utilize our combined networks to promote legislation that benefits the hemp industry. We plan to recruit fellow business owners to participate in vital organizational roles that will encompass promoting Delta 8 legislation and defense against the imminent threat to ban intoxicating hemp in Jan 2025, Win the hearts and minds of Texans through positive marketing of our Industry, as well as charitable contributions such as feeding homeless and community service initiatives all while collaborating with leading advocacy groups in Texas. By working together, we’ll be empowered to demonstrate our strength to Texas legislators in terms of Tax dollars and registered voters, which will be our biggest weapon in the long term.
It’s time to prepare for the imminent threat to ban Delta 8 and THCa in January 2025.
We’re NOT asking for money, only your support! It’s time for Dallas & North Texas to help at the state and federal level.
The Texas Hemp Show podcast will return to the local air-waves this September in time for the NFL Kickoff and 2024 regular season.
Previously airing on both Waterloo Media properties, KLBJ 590 & ESPN Austin 102.7 FM; Dowden and crew will be heard this fall on Sundays from 11am – 12pm just in front of the NFL Gameday syndicated crew at ESPN.
Host Mike Greenberg will join the returning analysts – Super Bowl Champions Teddy Bruschi and Rex Ryan, Pro Football Hall of Famer Randy Moss, three-time Pro Bowl quarterback Alex Smith on most of the regular season programing at the 12 O’Clock hour.
However, ESPN Austin is now home of the Dallas Cowboys radio network and at least 4 regular season games will be heard right after the Texas Hemp Show on the local ESPN affiliate at 12pm!
DALLAS GAMES ON ESPN FOLLOWING THE TEXAS HEMP SHOW ARE:
DALLAS VS. NEW ORLEANS SAINTS SUNDAY SEPT 15TH –
DALLAS @ ATLANTA ON SUNDAY NOV 3RD
SUNDAY NOV 24TH @ WASHINGTON
SUNDAY DEC 15TH @ CAROLINA
The show will air through the 2024 NFL season and consider extending future shows based on sponsors support for the program and availability with media partners at Waterloo Media.
Since 2020, Texans have been growing legal Hemp and the show is known for its coverage of this new crop in the industry from financial, technology, health, finance and business opportunities in new Texas agricultural laws. The magazine is made available in close to 1,000 plus CBD & Smoke-shop retail locations in Texas!
With 100+ New Products; Enhanced Features for Cannabis Custom Packaging
CannaZip, a leading provider of custom packaging solutions for the cannabis industry, is excited to announce the launch of its new and improved website. The revamped platform offers a seamless and user-friendly experience for customers, with over 100 new products,including bags, boxes, labels, shrink sleeve, containers, dube tubes, vape hardware, label application services, direct branding services, in-house design, low minimums, 5-15 business day production on most items, innovative in-site bag design tools, and enhanced ordering capabilities.
“We’re always working to enhance our products and services, and this new website is a
demonstration of that commitment,” said owner Davis Tiburzi. “We’re committed to providing the
most complete customizable product packaging options for the cannabis industry and give our
customers the tools and resources they need to stay ahead of the rest.”
100+ New Products for Diverse Packaging Needs
CannaZip’s new website features an expanded product lineup, including a wide variety of
custom packaging options tailored specifically for the cannabis industry. From resealable bags
and pouches to jars and boxes, the site now offers more than 100 new products, ensuring
customers can find the perfect packaging solution to meet their needs. These products include
but are not limited to Bags, boxes, jars, labels, pre-roll packaging, vape hardware, liquid
packaging, and much more!
In-Site Bag Design: Customize with Ease
One of the standout features of the new website is the in-site bag design tool. This innovative
feature allows customers to create custom packaging designs directly on the website. With a
user-friendly interface, clients can choose from various colors, materials, and finishes, add logos
and graphics, and preview their designs in real-time. This streamlined process ensures that
customers can achieve the exact look they want for their products without the hassle of
third-party design software.
Fast & Easy Online Ordering
CannaZip‘s new website simplifies the ordering process with fast and easy online ordering. The
intuitive navigation and clear product categorization make it simple for customers to find what
they need. The streamlined checkout process saves time and ensures a smooth experience
from selection to purchase.
Hemp Lawyer David Sergi Fights to Protect the Rights and Privacy of Local Businesses, Their Workers, and Customers
(Allen/San Marcos, TX) Texas Hemp Lawyer David Sergi won a stay against a Drug Enforcement Agency (DEA) subpoena that targeted nearly every vape shop in Allen, Texas.
“This action by the DEA was clearly on a fishing expedition to gather information unrelated to any public investigation,” said Sergi. “These local businesses operate well within federal and Texas laws and regulations. The subpoena seeks information beyond what the DEA may require in data collection or within its duties. They are seeking information protected by the Fourth and Fifth Amendments.”
On June 25, 2024, the DEA subpoenaed vape shops located in Allen, TX. The subpoena requested these businesses turn over to the government a wide range of their records:
● All financial and banking records, including all customer transactions
● Wages of employees
● All credit card transactions
● Venmo and CashApp transactions
● List of all the suppliers that provide products to be sold (including non-Hemp products)
● Wages of employees
● Names of distributors or transportation companies/facilitators
“The vape shops are more than willing to share all the records required by federal and Texas law. The subpoena goes way beyond the duties and authority of the DEA and violates the Fourth and Fifth Amendments of the US Constitution,” added Sergi. “The subpoena does not meet the standards of those amendments.”
“The Fourth Amendment requires that the subpoena be limited in scope and relevant in purpose. It also must be specific and not unreasonably burdensome.”
“Each business maintains Certificates of Analysis as required to be kept as part of the business of hemp sales; the financial information from the business, employees, owners, and customers necessarily is not; therefore, much of the DEA subpoena implicates the Fifth Amendment and is far outside anything that could be considered reasonable.”
Sergi represents the Allen Hemp Coalition, which includes Lit Smoke & Vape, Vapex, Hemp & More, Hazel Sky, Allen Smoke & Vape, Chasing Vapes, Vape Shack, Allen Vape, Puff Station, and Isky Vapor.
“These Allen-based businesses operate legally and each day follow all laws and regulations. They are grateful that Federal Judge Amos Mazzant has stayed the subpoena. They are committed to the community and will continue to operate their business to the highest legal and moral standards,” added Sergi.
Here is the text of the ruling issued by United States District Judge Amos L. Mazzant: Before the Court is Movant Allen Hemp Coalition’s Motion to Quash and/or Limit DEA Administrative Subpoena (Dkt. # 1) in the above-entitled matter. It is hereby ORDERED that the enforcement of the subpoenas that are the subject of this motion is STAYED, pending the Court’s full consideration of the matter after a response to the motion is filed. IT IS SO ORDERED SIGNED this 24th day of July 2024.
Attached is a copy of the order and David Sergi’s motion to quash the subpoena.
David Sergi is available for media interviews. Please get in touch with Kevin Lampe at (312) 617-7280 or [email protected].
David Sergi is a San Marcos-based lawyer who focuses on the Hemp industry in Texas and throughout the United States. He has been active in litigation throughout Texas, Florida and most recently Wisconsin. His firm was trial counsel in the case that kept Delta 8 legal in Texas in the case of TDSHS and Hellerstadt v Sky Marketing Corp. dba Hometown Hero, Create a Cig Temple LLC, Darrell Surif and Dave Walden, 03-21-00571-CV. -30-
