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
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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-
Introducing the best industry event for smoke shop professionals.
Texas Hemp Reporter invites you to Alternative Products Expo!
This June 20th at Houston’s George R. Brown Convention Center, experience a 3-day gathering of the best from the world of Hemp, Vape, CBD, Kratom and everything smoke shops
Whether you’re a smoke shop owner, product manufacturer, distributor, retailer or even just a curious enthusiast, everyone can be part of this once-a-year event bringing the world of alternative products to the people of Houston
Texas Hemp Reporter has partnered with Alternative Products Expo to offer our listeners complimentary entrance passes to this year’s Houston event.
Alternative Products Expo Miami Show Marks a New Era of Industry Success
Miami, FL – The latest installment of the Alternative Products Expo, held from March 14-16, 2024, at the vibrant Mana Wynwood Convention Center, has once again set a benchmark in the smoke shop and alternative products industry. This year’s Miami show, a spectacle of innovation and networking, wrapped up with unprecedented success, drawing in an eclectic mix of vendors, buyers, and industry enthusiasts from across the globe and beyond, thanks to the innovative flight voucher program provided by AltPro.
As the first significant industry event of the year, the Alternative Products Expo in Miami showcased a myriad of breakthrough products and technologies, setting a strong pace for the industry’s direction in 2024. With over 300 exhibitors and thousands of industry attendees, the expo has not only exceeded expectations but has also amplified the buzz surrounding the potential of alternative products in the mainstream market.
Unparalleled Engagement and Opportunities
This year’s event featured an impressive lineup of exhibitors ranging from established market leaders to innovative startups, each bringing something unique to the table. From cutting-edge vape technologies to the latest in CBD, the expo served as a premier platform for showcasing the newest trends and products.
Noteworthy was the engagement level seen at the show, with exhibitors reporting record-breaking interactions and transactions. The strategic timing of the show, post-Q1, allowed vendors to gauge current market dynamics deeply, making it a critical checkpoint for adjusting annual business strategies.
Catalyst for Business Growth
The expo not only provided a platform for showcasing products but also acted as a catalyst for forging substantial business relationships. Many exhibitors and buyers finalized deals directly on the show floor, highlighting the expo’s role in driving direct trade and opening new channels for distribution.
Testimonials from participants echo the sentiment of success and satisfaction. Luke from Hidden Hills mentioned, “This show was the perfect opportunity to launch our new product line. The reception was beyond our expectations, and the connections we’ve made are invaluable.”
Highlights and Incentives
The show’s innovative buyer incentives included the AltPro flight voucher program, which saw buyers flying in from all over the nation and even from abroad to partake in the event. The climax of the show was the thrilling giveaway where two lucky store owners won over $50,000 each in wholesale inventory, significantly enhancing the excitement and engagement at the event.
Continuing the Momentum in TEXAS!
Building on the success of the Miami show, Alternative Products Expo is already gearing up for its next stops in Medellín, Houston, and Atlanta. These upcoming events promise to carry forward the momentum, with each location tailored to capture the unique aspects of their respective regional markets.
The Alternative Products Expo continues to not only meet but exceed the needs and expectations of the industry, solidifying its position as a leader in the trade show circuit for alternative products.
About Alternative Products Expo
Starting in 2017 as Vape Conventions and evolving through its rebranding as USA CBD EXPO, and finally to its current identity as Alternative Products Expo, the organization has been at the forefront of showcasing everything the alternative product industry has to offer. With a history of facilitating industry growth and innovation, Alternative Products Expo is committed to advancing the interests and success of all its participants.
From Texas to Maine, California to Florida, it’s nearly impossible to walk into a retail, grocery, or convenience store without seeing a THC-infused beverage, hemp-derived gummies, or CBD oil.
What was once known as modern-day snake oil, CBD, and hemp in general, is here to stay. In today’s modern world, consumers are able to access THC and other cannabinoids more easily than ever before. Even expanding to wellness shops on every corner, with hemp flower sales in storefronts that aren’t just legal dispensaries.
Of course, what consumers don’t know is what it takes behind the scenes to navigate a complex hemp supply chain system to offer quality, safe hemp products to consume.
“Literally, everyone has pounds,” explains Justin Sandone, co-founder of Elevated Trading “Store owners are getting approached, all day every day, by every Joe Blow that has a friend with a farm.”
In such a burgeoning industry, you wouldn’t expect retailers to have to navigate the wild, wild west of hemp buyers. From those who bait and switch on quality products, leaving their customers hanging. Or, being unreachable when shipping issues arise instead of getting the type of support they need to succeed.
In an oversaturated market, it’s easy for retailers to get swindled by what looks like high profit margins, only to hurt their business even more by selling poor-quality flower, to potentially longtime, loyal customers.
An unfortunate fact that lends itself to the unprofessionalism of the current market. Fortunately, industry leaders like brothers Justin and Cody Sandone are taking it upon themselves to repair the broken hemp supply chain and breathe a level of professionalism into a market that so desperately needs it. Working behind the scenes to build farm-to-retail relationships that support quality, consistency, and reliable products reaching the shelves.
What’s Happening in Hemp
Since the 2018 Farm Bill legalized the cultivation, processing, and sales of hemp-derived products, the market has been flourishing – frantically. Regardless of the global hemp industry commanding $1.8 billion in sales in 2023, it’s an industry that is highly unregulated due to a lack of infrastructure.
Leaving retailers, who are responsible for distributing the industry’s main commodity, without much guidance or education on how to do so safely, legally, and, of course, profitably.
“There’s no good roadmap; there’s not a lot of information for retailers to know how to succeed,” Sandone explains, “Like, how to vet these people, how to vet these products, how to know whether they’re from licensed hemp farms or not, to maintain compliance and the legalities around having these products in your store.”
And leaving consumers without retailers to rely on for consistent, reliable, quality products. That’s why two retail pioneers and consumers themselves, set out to bridge the gap between farms producing quality flower, and retailers distributing it.
Two Brothers, One Goal
Elevated Trading co-founders Cody and Justin Sandone were no strangers to the wholesale and retail worlds when they started Elevated Trading.
“We had an electronic cigarette store and started seeing CBD come on. Once we started to see flower come on to the market, it became very evident, very quickly, how broken the supply chain was – it was hard to get good suppliers, ” says Sandone.
The brothers were also no strangers to the hemp industry after investing in a hemp farm located in Oregon. Only to be thrown into the thick of the market, needing to move 1,000 pounds of flower to recoup their investment, quickly thereafter.
With that experience in their pocket, they set out to create the best buying experience they could for the retailers they related to, with a few core values they related to even more. Like one value, “create raving fans” that they’re already clocking success with, serving thousands of retail stores across the US.
“We’re not here to be in the spotlight. We’re here to support our customers,” Sandone points out, “We’re here to put their brand in the spotlight by offering the best products we can at the right price point for them to be in line in the market and deliver a high value, fair price product to the customer. ”
Today, Elevated Trading does just that by sticking to their expertise in sourcing premium THCA flower, while supporting their retail customers with the network they’ve built over the years.
“We have a background in retail. We get it. We understand what consumers are looking for, and we know what it’s like to run a retail business. So working together to help round out their product set—the right pieces for their store, at the right price points where they can be competitive—that’s what we do,” affirms Sandone.
Bridging the Farm to Retail Gap
Where the hemp industry has especially struggled is building connections between the farms growing the hemp and the retailers selling it. Leaving farmers struggling to know what retailers are seeking and leaving retailers struggling to find a reliable, compliant source for product.
As soon as this gap became glaringly obvious to the retail pros, the Sandones, they knew they had the knowledge, network, and drive to fix it.
“It was a broken chain. So we saw an opportunity to come into it on the wholesale side, with an understanding of how to operate a business that’s focused on customer service and build something that could bridge the gap between farms and retailers to create the best buying experience possible.”
For consumers included. Over the years, Elevated Trading has helped bring thousands of products to the shelves, supporting large scale retail operations with reach across the nation.
“Behind the scenes, Cody and I work very closely with the farms we’re partnered with. We’re constantly bridging the gap between retailers and farms, with conversations like, ‘Hey, a lot of retailers are looking for this strain.’ Or, ‘retailers are looking for this indoor flower’, Sandone continues.
“We’re making sure those lines of communication are open.”
Changing the landscape of wholesale hemp
As we’ve seen in history, it only takes one or two players to shape the way an industry operates. Until now, the hemp industry has lacked a sense of professionalism that the Sandones are seeking to breathe back into the market.
In an industry where there are still “tons of brokers out there, just selling material they don’t own yet, promising the moon and not being able to deliver,” Sandone describes, Elevated Trading’s operations were specifically designed to operate differently.
“It’s not enough to have a satisfied customer. We want our customers to be so happy and so thrilled to be working with us – they can’t wait to tell someone else and that drives everything we do in our company,” continues Sandone.
A mission that’s glaringly obvious for any first-time retailer placing an order with the company.
“From the initial introductory call, to the sales process, to the delivery, to the handling of any issues, to following up to make sure the product is the right fit, and checking in to make sure it’s working for their store,” explains Sandone “We emphasize so much on creating raving fans – on providing excellent customer service and an amazing buying experience for customers.”
So, what’s the future of hemp look like for Elevated Trading?
Looking forward, the Sandones will continue to nurture relationships with the network of farms and retailers they work with to shape the future of the cannabinoid market. Serving as the trusted partner that bolsters the hemp supply chain for shared success across its players.
As consumers increasingly seek out unique strains or as minor cannabinoids ebb and flow, Elevated Trading seeks to stand out as a wholesale partner that retailers can rely on.
Meet Cody Sandone, Founder & CEO of Elevated Trading
Why did you get into the hemp industry?
In 2019, I was introduced to the industry by a family friend, and we invested in a large outdoor farm in Southern Oregon. I was expecting a capital return, but the farmer was having trouble selling the material, so my brother and I stepped in to sell the material and recover our investment.
While moving thousands of pounds of CBD flower, we saw a huge gap in the supply chain between farmers and retailers and quickly knew we could fix this problem. At the time, the industry was heavily plagued with bad actors, inconsistent products, failed business dealings, and a lot of frustrated retailers left holding the bag…literally.
We formed Elevated Trading in January 2020 on a mission to elevate the supply chain and build a reliable, trusted bridge from the farm to the retailer. I left my corporate sales gig in Cybersecurity in September 2020 to pursue Elevated Trading full-time, and I haven’t looked back. This industry is incredibly exciting, and I’m glad to be a part of it.
What do you think are the main challenges within this industry?
I see two big challenges in this industry. Legislation and infighting.
In such a regulated industry, there is always an underlying concern of business impacting legislation that could make it impossible to operate with the hemp industry. We fully support sensible legislation around consumer safety and age restrictions, but the vast majority of legislation that’s been introduced is seemingly done out of ignorance or malice.
The second issue is the infighting within cannabis (both marijuana and hemp). The fact is that we’re all participating in the cannabis industry in different capacities. There’s room for everyone, but, surprisingly, the vast majority of negativity surrounding the hemp industry seems to be launched directly from the marijuana world. Everyone needs to stay in their lane and focus on their customers instead of fighting so hard against other businesses that are all promoting access to cannabis.
What is the most important advice that you would give individuals who are looking to get involved in this industry?
Most people underestimate this industry. I’m a capitalist and believe in competition so I welcome anyone to the industry, but the vast majority of folks entering the cannabis space seem to believe this is a quick way to make a lot of money. There is a blindness for a lot of business owners entering this space because they are so connected with the plant. Having passion for the plant is a great attribute, but you need some business chops to play in this arena.
This industry is exciting and lucrative, but you need to differentiate yourself and your product set if you’re going to enter at this stage of the game. There are too many copycat vendors and products, and the consumers are starting to get wiser about the quality they expect from their products. Biggest advice is to do extensive market research, figure out exactly where you want to play, and go all in on that particular domain. Don’t try to be everything to everyone…that’s not how you win.
What do you hope to see for the future of the hemp industry in Texas?
Texas has a booming hemp market today, and I hope to see us continue to flourish and lead the charge on how a robust, mature hemp market should be operating. There are a lot of companies in the Texas market operating with integrity and putting the consumer first.
Everyone deserves the freedom to choose what they consume, and I firmly believe that the hemp program in Texas is a testament to watching the consumers vote with their dollars. Hemp is a game changer for Texas residents, and I’m stoked to be a part of it.
As the industry matures in Texas, we’re continuing to see the level of products and integrity among brands really increase which is exciting and encouraging for us who’ve been operating in Texas for a long time.
How to Utilize Elevation Trading:
At Elevated Trading, we’ve always specialized in wholesale bulk flower products, and we’re hyper-focused on our customer’s success. We have a very high touch sales process that allows us to learn a lot about our customers and really formulate a partnership that drives real revenue and growth to their bottom line. We look forward to learning more about your business.
Find Elevated Trading online at www.elevatedtrading.com or call 972-373-4240 and mention Texas Hemp Reporter.
The Texas Hemp Coalition’s goal is to provide industry specific information to growers, processors and entities that are involved in the Texas Hemp Industry. We will serve as an advocacy, educational and networking liaison to reputable entities within the hemp industry. Visit www.texashempcoalition.org for more information.
As the publisher of the Texas Hemp Reporter, I am honored to offer my testimony regarding the pivotal role our publication has played in advancing the understanding and development of the hemp industry in our state. Over the past four years, our comprehensive coverage has spanned across various media platforms, including our magazine, news website, and podcast, all dedicated to the thriving $25+ billion hemp industry.
Beyond our professional endeavors, the impact of hemp products hits close to home for my family. My wife, Jennifer, who battles Lupus and Rheumatoid Arthritis, relies on these products to alleviate swelling and inflammation. Additionally, my mother, Linda, found relief during her battle with lung cancer in 2020 and 2021, using CBD products as a complementary treatment alongside radiation and chemotherapy. Today, she stands cancer-free, a testament to the potential of hemp-derived remedies.
Throughout our journey, our business has served as an educational resource for farmers, entrepreneurs, and the general public, disseminating valuable information on hemp products for four years. We have distributed 350,000 copies of the Texas Hemp Reporter magazine across 26 issues, reaching communities in Houston, Austin, San Antonio, Dallas, McAllen, Lubbock, Midland, and numerous smaller towns across central Texas. Furthermore, our podcast has aired on prominent radio stations such as ESPN and KLBJ, becoming a rare voice in terrestrial radio discussions on hemp-related topics in Texas.
Our efforts have not only informed but also influenced cultural conversations. We have conducted interviews with celebrities, lawmakers, agricultural commissioners, congressmen, industry leaders, and legal experts, shedding light on the burgeoning hemp sector. Our magazine has found its way into over 1,000 CBD stores and smoke shops, including major retailers like HEB, Randalls, and Whole Foods in central Texas.
While acknowledging the potential for improvement in Texas’ hemp and cannabis programs, it is imperative to recognize the state’s leadership alongside Tennessee and North Carolina in this industry. Texas has established a robust hemp program, paving the way for economic growth and job creation, supporting not only my family but also over 50,000 Texans employed in this dynamic field.
In conclusion, we express gratitude for the opportunity to contribute to the review of Chapter 300 and commend your commitment to exploring the vast potential of hemp. As journalists and media professionals, we take pride in our role in covering this topic and showcasing the remarkable benefits that this plant offers to our communities.
