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Federal Judge Orders Stay of DEA Subpoena of Vape Shops in Allen, Texas

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 kevin@kurthlampe.com.
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-

Hemp Industry Leaders of Texas

STRENGTH IN NUMBERS

My company will donate 250k to lobby a bill
to save your business.  Please read up and send it to your friends.

AJ Velador here, I’m pretty sure you all know me by now and the ones who don’t please
ask around because I’ve been in trenches with all of you during the inception of Hemp in
Texas. Just like all of you, I have retail locations, wholesale operations, and farms all at risk
if they ban legal THC.

My partners and I are prepared to donate $250,000 in an effort to lobby a bill that will
regulate our industry to save it for all of us. Our days are numbered, we have one year or
less before a ban on Delta 8 & THCA is coming.

We are NOT asking for donations but rather your support in the coming months.
We will be forming a committee of entrepreneurs and activists who want to participate in
our endeavor to keep Hemp THC legal in Texas. Again, we do not require any financial
obligations other than your time and support.
“Help us help you!”

My partners and I will fund the cost of our lobbying efforts and we’ll commission a
committee of Industry Leaders that can contribute their time and expertise towards
passing a bill that would prevent any future bans on Delta 8, or other Federally legal THC.
We will be hosting three events in the following cities.

Dallas – Target Date Friday, July 12th 2024
Houston – Target Date Friday, AUG 26th 2024
Austin – TBD

 

The purpose of our committee and its members will be to delegate responsibility to
achieve our independent goals that the committee will approve and execute. We have a
plan that we need help on all sides to accomplish. The different agendas will encompass;
drafting bill regulations, community service initiatives, and petition of registered voters to
demonstrate our strength which may involve a call to action outside the Court House that
we plan to make headline news, more to follow on this.
Proposed Plan

#1 Draft Bill
(Proposed Hemp Regulation)
We are searching for committee members who are passionate about assisting in the
development of guidelines and work closely with our attorneys to draft a bill we can lobby
into effect. This should be an easy task as we can adopt regulations from other Cannabis
states such as state-approved vendors, state-approved products, state-approved retailers,
age restrictions, packaging requirements, etc., as long as we can avoid any metrics
tracking we should be able to continue to thrive.

#2 Media Campaigns
There will be numerous media campaigns that have specific agendas such as:
Win Heart and Mind of Texans – shining a positive light on our industry through
charitable food drives, clean-up projects, etc. I will personally commission any initiative
that helps our communities.

Education – Lots of opposition are mothers complaining about their kids access to THC.
These mothers want to ban Delta 8 entirely. I want to reach these mothers through the
media and remind them of two things. First, if they outlaw D8 entirely, it will open up the
black market and invite fentanyl-laced drugs, cartels, and drug dealers back to our
schools and communities. Second, educate them that there will be a loss of 1 billion
dollars of tax revenue that actually makes their communities safer.

#3 Call to Action
(Petition Voters and Show our Strength)
30 million population in Texas, and a poll found that 82% of Texans support the legislature
passing a bill that would allow people to use cannabis. We will build the largest coalition
of retailers, wholesalers, and farmers that will use our customer base for a few different
agendas, such as:

Phone, e-mail, and social media blitz campaigns to their state representatives asking
them to support our bill for various reasons.

Host huge rallies with our supporters in each of our major cities, basically Cannabis
Festivals/Rallies throughout the year, with our main objective to gain support to raise
100k voters outside the Court House during the session in early 2025 while using the
relationships of our media outlets that we befriended earlier to make our gathering a
global phenomenon. We will have our designated spokespersons ready to deploy on
camera to promote our message and show strength to our politicians that we mean
business. Considering by this time, all House and Senate Representatives have been
receiving an abundance of calls and correspondence that will weaken any opposition’s
support that is already on the fence or neutral. Meanwhile, we will have our committee
leaders, including myself, lobbying with politicians to include LT Governor, Sen. Perry, and
other opposition to negotiate our terms to enhance our outcome. Ultimately, we just
need to get a majority vote to pass our bill.

I’ve already reached out to advocate leaders such as Hometown Hero ⁩and others to find a
way we can all collaborate our efforts for maximum participation and exposure.
Again, WE ARE WILLING TO PAY THE BILL ON ALL OF THIS, FREE FOR YOU TO HELP
US SAVE THE INDUSTRY, but without your assistance, we will surely fail, so what do you
say? If I pay for us to stay legal can I count on you to help us accomplish our goals? I have
experience in this field and my connections are strong so I’m down to put my money
where my mouth is!

Thank you guys and gals, and I look forward to meeting all of you.

Bastrop Poised to Decriminalize Low-Level Marijuana Offenses

In a significant move for cannabis reform, the city of Bastrop, Texas, is on the brink of decriminalizing low-level marijuana offenses. This progressive shift aligns Bastrop with other Texas cities that are reevaluating their approach to cannabis, reflecting a broader trend toward more lenient marijuana policies across the state.

 

The initiative in Bastrop follows a growing number of Texas municipalities that have taken steps to decriminalize minor marijuana possession. This movement is largely driven by the recognition of the disproportionate impact that low-level marijuana arrests have on communities and the desire to reallocate law enforcement resources to more pressing matters.

 

Local advocacy groups and community members have been instrumental in pushing for this change. Their efforts highlight the community’s preference for a more sensible approach to cannabis regulation. The proposed ordinance would make the possession of small amounts of marijuana a low priority for law enforcement, effectively reducing the number of arrests and prosecutions for these offenses.

While the move towards decriminalization is promising, it is not without challenges. Opposition from certain segments of the community and law enforcement, as well as the need for continued advocacy and education, remain key hurdles. However, the momentum for change is strong, and the potential benefits for both the community and the cannabis industry are significant.

 

Bastrop’s potential decriminalization of low-level marijuana offenses represents a win for cannabis reform and a step towards more progressive cannabis policies in Texas. This move not only reflects the community’s evolving attitudes towards marijuana but also sets the stage for broader changes that could benefit the cannabis industry statewide.

 

As Bastrop and other Texas cities continue to navigate the complexities of cannabis regulation, the support and engagement of the cannabis community will be crucial. By staying informed and involved, industry stakeholders can help shape a more favorable future for cannabis in Texas.

Top Funding Solutions for Hemp Entrepreneurs in Texas.

The hemp and cannabis industry in Texas is booming, with entrepreneurs eager to find funding for their new and expanding businesses. Despite facing unique challenges, several promising funding options are available to help these ventures thrive as listed below. Option #1- State and or (limited) Federal Grants

Hemp Businesses: Some agricultural grants are available, such as those from the Texas Department of Agriculture (TDA), which supports industrial hemp projects. Programs like the Specialty Crop Block Grant Program (SCBGP) provide funding for research, marketing, and education for crops like hemp. Cannabis Businesses: Direct federal grants are limited due to restrictions, but some state-level opportunities may exist.

Option #2- Private Grants and Foundations

Organizations like the Hemp Industries Association (HIA) and the Foundation for an Informed Texas sometimes offer research, education, and business development grants in the hemp and cannabis sectors. These grants often support innovative and sustainable projects.

Option #3- Business Loans and Financing

Traditional business loans can be difficult to obtain for cannabis businesses due to regulations. However, some financial institutions and private lenders, such as North Bay Credit Union, First Citizens Bank, Safe Harbor Financial, or Affinity Federal Credit Union. Some of these banks are starting to offer loans and credit lines specifically for hemp and cannabis businesses.

Option #4- Crowdfunding and Investment Platforms

Crowdfunding platforms like Kickstarter, Indiegogo, and specialized sites like Fundanna allow hemp and cannabis businesses to raise money from the public. Investment platforms like ArcView Group and Canopy Boulder connect startups with investors interested in the industry.

Option #5- State-Specific Programs

Texas has specific programs to support hemp businesses, like the Texas Hemp Program managed by the TDA, which provides resources, licensing, and regulatory guidance. These programs help businesses stay compliant and can attract other sources of funding.

Finding funding for hemp and cannabis businesses in Texas can be tough, but there are many options available. By looking into state and federal grants, private foundations, specialized loans, crowdfunding, and state-specific programs, entrepreneurs may be able to secure the funding they need. However, keep in mind that some state, federal, or foundation grant agencies may not even review your grant application unless you are 501©3, an officially recognized nonprofit charitable, religious, or educational organization that received tax-exempt status from the IRS. It’s important to learn the grant process and familiarize yourself with grant writing. Most grants are almost always tied to a specific project and or program that helps to support either education or the betterment of the community. Stay tuned for basic tips on grant writing in our next issue. Staying updated on new opportunities and following regulations is key to long-term success.

 

Adobe Stock Image:

Wyatt Purp: The Brand Changing Texas Cannabis landscape

(Story Originally written Jan 16th 2023 but was withheld by Wyatt Purp Legal Council)

 

Longtime friends Wyatt Larew and Dustin Ragon started their cannabis brand, Wyatt Purp. The business name stems from their cannabis oil that turns purple when it oxidizes. It’s also a play on Wyatt Earp, the American lawman and gambler who is portrayed in the classic movie “Tombstone.”

 

Ragon plays a behind-the-scenes operational role, while Larew is the dynamic face of the company. The pair call themselves complete opposites, but they complement each other nonetheless.

 

“I can’t do what he does, and he can’t do what I do,” Ragon said. “So it’s kind of like a perfect match.”

 

Upon receiving Texas hemp producer license No. 413 in 2020, Larew said he was determined to remain compliant with state laws. Originally, Ragon and Larew set out to manufacture delta 8 and other synthetic isomers but changed their minds after speaking with the Texas Department of State Health Services (DSHS).

 

“When you manufacture a drug, whether it’s delta 9 or delta 8 or any other synthetic isomer, you’re manufacturing a drug that replicates or is just like marijuana, and the intent behind that is that you manufactured a schedule 1 drug,” Larew said.

 

Larew said he went on to create a cutting-edge THC delivery system using recycled waste from hemp operations.

 

“Every single person who makes CBD isolate has a byproduct of waste called mother liquor, and they throw it away,” Larew said. “I took their waste and turned it into natural THC. I found a way to isolate THC for $50 for 1 million milligrams. I took the same mother liquor and made 90% distillate so that I can make a much stronger product. When I started this, it was considered trash, and facilities would pay you to just haul off their waste. Now, they sell it. I completely changed the whole industry. This is the greatest up-cycle in human history.”

 

Larew calls his THC isolation technique multi-billion dollar technology but also says corporations have ignored it.

 

“They want to keep their monopoly [on synthetic THC], and they don’t want to produce quality products at a lower price,” he said.

 

Larew said he has concerns surrounding the production of synthetic products because the customer never knows who is making them or the equipment used.

 

A growing brand

 

Wyatt Purp’s products are sold in more than 100 Dallas-area shops, and the company also white labels products for Planet K stores.

 

“My company is always going to produce the best products,” Larew said. “I’ve won multiple awards for my edibles. My gummies are stronger than any marijuana gummy. They include all of your minor cannabinoids. That’s all I do is take the waste and remove the CBD, so you have an entourage effect.”

 

Wyatt Purp’s owners say they strive to cultivate long-term business relationships by providing premium products at competitive prices. The company also has a loyalty program that shoppers can sign up for on its website, wyattpurp.com. Every dollar spent equates to one point, and after earning 100 points, customers receive a coupon for 50% off all store products.

The flower of life

 

Larew said he had a near-death experience (NDE) related to a chronic kidney condition in 2019. During the phenomenon, he said he was given a glimpse into what’s next, as well as the notion that every plant is a conscious being like humans.

 

“I believe cannabis is a spirit, not just a plant,” Larew said. “That’s why there is so much karmic justice associated with it, and those that exploit it are never going to make it because they don’t realize what they’re messing with. During my NDE, I saw that cannabis was a really spiritual, powerful entity. It wasn’t like all of the other plants — it represents something like mother.”

 

While some may feel skeptical about Larue’s brush with the after-world, he says he has full faith in everything he saw and experienced. He calls cannabis “the flower of life” and believes humans were created through intelligent design to have and use it.

 

“Every mammal has an endocannabinoid system,” Larew said. “Whether you’ve ever used cannabis or not, you have it in your DNA. It controls your central nervous system and immune system. It’s part of what makes a Homosapien.”

 

Hate from the state

 

Larew has been vocal about his critical attitude toward state hemp and cannabis laws.

 

“The state just banned anyone in Texas from producing smokable hemp products in 2022,” he said. “We can still sell the products, just not from the farmers that are here.”

 

Additionally, Texas just opened a business license application period that will add more dispensaries to the state’s limited medical marijuana program. Requirements include a $7,500 non-refundable application fee as well as $10 million in liquid assets.

 

“The delta 8 and hemp thing in Texas was just a soft release of cannabis to get the people here to accept it. This was their incremental way of wedging their way in,” he said. “Now, they want to sell licenses to pharmaceutical companies and not allow anyone else to be part of it. The state wants to have a monopoly on cannabis productions.”

 

Larew points out that the state police are in charge of Texas’ medical marijuana program, which he calls obvious government corruption.

 

“They’re arresting people for using a schedule 1 drug that they say has no medical use,” Larew said. “They’re saying, ‘Unless you buy our drugs, it’s illegal.’”


A parting gift

 

As a result of his kidney condition, Larew said he has endured 15 life-saving surgeries in the past five years. Because he has a donor kidney that only matches three out of six genetic markers, he said he does not expect to live a long life.

 

“This is a patch, so this is my gift to everybody else,” he said. “I just know I was born for this. I know everything there is to know about cannabis. I’m a grower, and I have a spiritual connection to the plant.”

 

In the future, Larew believes that his technology will be accepted in industrial farming.

 

“We are just trying to bring natural safe cannabis options to the masses for a fraction of the cost of the government’s pay-to-play scam. It’s completely possible.”

 

Ragon echoes that sentiment and views Wyatt Purp as a way to provide a needed service for humanity.

 

“My mission is just to spread this medicine as far and wide as possible and get access to as many people as possible no matter what your income level is,” Ragon said.

 

Lawsuit Dismissal: A Major Win for Texas Cannabis Industry

In a landmark decision, a Travis County judge has dismissed the lawsuit filed by Texas Attorney General Ken Paxton against Austin’s progressive marijuana decriminalization ordinance. This ruling represents a significant victory for the cannabis industry, signaling a potential shift towards more lenient cannabis policies and enhanced local control across Texas.

 

The lawsuit, brought forward by Paxton’s office, sought to invalidate Austin’s 2020 ordinance, which decriminalized the possession of small amounts of marijuana. The ordinance, which received overwhelming support from Austin voters, prioritizes law enforcement resources away from low-level marijuana offenses. It prohibits city funds from being used to test substances suspected to be marijuana, effectively reducing the enforcement of possession laws.

District Judge Jan Soifer’s ruling emphasized that Paxton’s office did not have the authority to challenge the ordinance, stating that the power to enforce state laws lies with local prosecutors. This decision upholds the autonomy of cities like Austin to establish their own cannabis policies, reflecting the desires of their residents.

 

The dismissal of this lawsuit is a game-changer for the Texas cannabis industry, carrying several key implications:

Enhanced Local Control

The ruling empowers local governments to enact cannabis policies that align with the values of their communities. This could pave the way for more Texas cities to adopt decriminalization measures, fostering a more favorable environment for cannabis businesses.

 

Market Expansion

With reduced enforcement of minor marijuana offenses, consumer interest in cannabis products is likely to rise. This presents an opportunity for the cannabis industry to expand its market, driving innovation and growth.

 

Regulatory Clarity

The decision may prompt state legislators to reconcile state and local cannabis laws, providing clearer guidelines for the industry. This legal clarity can help businesses navigate the regulatory landscape more effectively.

 

Advocacy Success

The success of Austin’s ordinance underscores the power of advocacy and community engagement in shaping cannabis policy. It demonstrates that concerted efforts by industry stakeholders and voters can lead to significant policy changes.

 

Economic Benefits

As decriminalization and regulation of cannabis gain traction, the economic potential for the industry increases. This could result in job creation, investment opportunities, and the development of new businesses within the cannabis sector.

 

The dismissal of Paxton’s lawsuit is a monumental win for the cannabis industry, marking a shift towards more progressive and locally-driven cannabis policies in Texas. This ruling sets a precedent for other municipalities to follow suit, potentially leading to widespread decriminalization and a more robust cannabis market.

 

For the Texas cannabis industry, this decision represents a new era of opportunity and growth. By continuing to advocate for sensible policies and supporting local initiatives, industry stakeholders can help shape a more favorable legal and regulatory environment.

 

As Texas navigates the evolving cannabis landscape, the cannabis community must remain engaged and proactive. This victory is a testament to the power of collective action and the potential for positive change within the industry.

 

Alternative Products Expo: Houston June 20-22

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.

Visit altproexpo.com, and for a limited time, use code TEXASHEMP on checkout to claim your complimentary tickets!

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.

Contact:

For Industry Buyer tickets: buyers@altproexpo.com

For media inquiries: media@altproexpo.com

For Booth inquiries visit: altproexpo.com/become-an-exhibitor

Website: Alt Pro Expo

 

TX Banning Delta-8 THC?

In a pivotal move this week, the Texas Senate State Affairs Committee convened to explore potential pathways for banning Delta-8 THC, following a directive from Lt. Gov. Dan Patrick. The hearing laid bare a host of issues that have thrust this hemp-derived compound into the eye of a growing storm.

Given its current legal status in Texas under the temporary injunction in the Sky Marketing case, Delta-8 THC products have become ubiquitous, which some witnesses said foster a dangerous misconception among consumers who believe they are purchasing a safe, regulated product. This situation stands in stark contrast to other states, even conservative ones, that have established comprehensive medical cannabis programs. Law enforcement finds itself in a quandary, as current technology struggles to distinguish between legal hemp and illegal cannabis products.

 

While cannabis earns praise for its superior efficacy in managing nerve pain compared to traditional medications, Delta-8 THC raises red flags, particularly concerning children’s health. A troubling surge in pediatric cases involving accidental ingestion has resulted in severe health issues. Experts and activists also sounded alarm bells about the potential for psychosis, especially among chronic users and children, underscoring the urgent need for stringent safety measures.

 

The hearing exposed gaping holes in the current regulatory framework. Many manufacturers self-report certificates of analysis, a practice that often leads to inaccurate product labeling. Enforcement is largely hamstrung, limited to food safety violations and products exceeding the 0.3% Delta 9 THC threshold. The state’s lack of jurisdiction over out-of-state labs further muddies the waters of quality control.

Ironically, the proliferation of Delta-8 THC is undermining Texas’s own highly restricted medical cannabis program. These products, which navigate fewer regulatory hurdles, are more affordable and accessible, causing a worrying decline in the state’s patient base. An influx of out-of-state products further complicates the market, making regulation an increasingly uphill battle.

 

A particularly disquieting issue is the proximity of Delta-8 THC sales in proximity to schools and other child-centric areas. This accessibility, paired with the alarming rise in accidental ingestion cases among children, has ratcheted up public safety concerns. Advocates are pushing for stricter regulations on packaging and marketing to prevent these products from appealing to minors.

In response to these challenges, the committee is weighing several consequential actions. They are considering revising Delta-8’s legal status to align with other states’ medical cannabis frameworks, enhancing product testing and certification standards, and bolstering enforcement mechanisms and of course, banning it outright. Additionally, they’re looking at regulating the influx of out-of-state products, launching targeted public health initiatives to protect children, and establishing proximity restrictions near schools.

 

Looking ahead, the committee plans to gather more data on Delta-8’s public health impact and engage a broad spectrum of stakeholders. Law enforcement, medical professionals, and industry representatives will all have a seat at the table as Texas works to forge a consensus on these critical changes. As the Lone Star State grapples with this complex issue, its decisions could reverberate across the nation, influencing the future of cannabis regulation in America.

 

The New Hemp Industry Landscape; More than Moving Pounds

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 Elevated Trading

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.

 

Texas Freedom Wholesaler: Pioneers in CBD Manufacturers

Nestled in the vibrant city of Texarkana, approximately 180 miles from Dallas, Texas Freedom Wholesalers has quickly become a symbol of the state’s burgeoning hemp and CBD industry as one of the first manufacturers in Texas.  With a commitment to high-quality CBD products derived from organically grown hemp. Texas Freedom Wholesalers has become a usual source for those seeking to distribute CBD products. Texas Freedom stands by its name and is more than just a supplier of CBD products, its products are very competitive in the wholesale market as they market and ship across the United States.

Customers can discover the benefits and wellness through the potential of CBD, offering a wide range of products that are tailored to each company’s needs including the latest edibles or products for micro-dosing. They offer state-of-the-art production facilities and stringent quality control processes to ensure products meet the highest standards of excellence and compliance.

As a leading manufacturer, they offer competitive pricing, efficient production capabilities, and a commitment to maintaining consistent product quality.  They even offer Military and First Responders discounts to their customers near and far.  Their goal is to distribute the highest standards of purity and potency and deliver consistency and quality control.

As the hemp and CBD industry continues to grow in Texas, Texas Freedom Wholesalers leads the way in offering accurate reliable information in a rapidly evolving industry. They are dedicated to promoting a healthier future for Texas, one CBD product at a time.

-Michael Sutton, Owner

“With a solid background in management and degrees in industrial electronics, robotics, and calibration, I am able to develop a diverse line of high-quality quality affordable hemp-derived products from a business development perspective. Being the sole manufacturer, I am privileged to have complete quality control in-house.”

-We are looking to make Texas Freedom a trusted household name.

-Brian Baker, Owner

As an East Texan native, currently residing in Rockwall, TX. I have an extensive background in business space sales, marketing, and scaling varied companies which allows me to contribute my field expertise.

Texas THC Beverage Challenge: 2024

In a delightful display of taste and aroma, the Texas Hemp Reporter hosted its premier THC Beverage Challenge, bringing together flavors from across the state in a spirited contest of the senses. Held in a lively, yet meticulously controlled blind taste test, six volunteers embarked on a four-hour journey to crown the finest THC-infused beverage. Judging was based on a series of criteria including packaging, intensity, nose complexity, taste complexity, and taste finish, with a perfect score totaling 180 points. The participants, all over the age of 21, were kept in the dark about the brands until the very end to ensure a fair and unbiased evaluation of each entry. This event not only highlighted the creativity and innovation within the industry but also celebrated the unique characteristics that make each entry special. Stay tuned as we dive into the flavorful results of this exceptional competition.


1st Houston Juice (140 pts.)
Houston Juice is the OG THC-infused drink that delivers a potent punch, embodying the essence of Houston’s unstoppable spirit. Each sip combines zesty apple, fiery ginger, and refreshing lemonade, infused with 12 mg of emulsified hemp extract for a cool, relaxing breeze on a hot Texas day, perfectly capturing the grit and grace of its vibrant community.

2nd Honey Suckle – Strawberry Lemonade (139 pts.)
HoneySuckle Brand NECTAR Seltzer offers a refreshing escape with its sparkling blend of sweet strawberry lemonade, infused with 5mg of Delta-9 THC for a gentle, uplifting experience. Perfect for any occasion, this carefully crafted seltzer promises a quick onset of relaxation and joy, making it a must-have that quickly flies off the shelves.

3rd Studio TBD – Green Tea Lemonade – Intense (135 pts.)
Studio TBDs Green Tea Lemonade is an expertly crafted, organic beverage designed for the experienced user, offering a potent blend of 25mg THC and 25mg CBD per can. This low-sugar, low-calorie, gluten-free, and vegan refreshment is infused with fast-acting hemp extract, providing a swift and powerful effect while staying federally compliant and suitable for those over 21.

4th Sweet Sensei – Pineapple Kiwi Express – Fizzy Lifters (127 pts.) (tied)
Sweet Sensi Fizzy Lifters offer an invigorating alcohol-free experience with their Pineapple Kiwi Lemonade, crafted from estate-grown hydroponic flowers using organic nutrients. These refreshing beverages are infused with a full-spectrum, strain-specific, high THC hash rosin, delivering a fast-acting, gentle buzz. Perfect for enhancing your day or relaxing your evening, each sip is a low-dose delight designed to elevate without the effects of alcohol.

4th Studio TBD – Green Tea Lemonade – High (127 pts.) (tied)
This organic single origin green tea lemonade is a refreshing, low-sugar, and low-calorie beverage, perfect for health-conscious consumers. Infused with 10mg THC and 20mg CBD per can, this fast-acting, gluten-free, and vegan drink offers anti-anxiety benefits and complies with federal regulations, available only to those aged 21 and up.

4th Texas Hippie Cooler (127 pts.) (tied)
The Texas Hippie Cooler seltzer is a refreshing journey through the heart of Texas, combining the distinct flavors of peach, grapefruit, and cucumber with a mellow dose of 4.20mg emulsified hemp extract. This low-calorie, low-sugar beverage brings a taste of Texan orchards, groves, and cool waters directly to your lips, ensuring a chill experience that’s as soothing as a summer breeze. Whether you’re enjoying a sunset in Big Bend or dancing in Fort Worth, this
drink is your perfect companion for any Texan adventure, embodying the spirit of freedom and the laid-back vibe of the Lone Star State.

7th Studio TBD – Green Tea Lemonade – Mellow (125 pts.)
Experience the refreshing taste of organic single origin green tea lemonade, a low-sugar, low-calorie option that’s both gluten-free and vegan. Each can contains 4mg THC and 25mg CBD, infused with fast-acting, sun-grown hemp extract, ensuring a calming, anti-anxiety effect while remaining federally compliant. Designed for wellness-focused adults, this beverage requires purchasers to be 21 years of age or older.

8th Hi – Wild Berry (124 pts.) (tied)
Wild Berry Hi Seltzer redefines refreshment with its pure, vibrant blend of natural berry flavors. Each 12oz can harmoniously mixes the seedy essence of raspberries, the ripeness of strawberries, and the tartness of blueberries, infused with 5mg of hemp-derived THC for a zero sugar, zero calorie, and zero alcohol experience. This 100% natural seltzer offers a unique, thirst-quenching taste that’s as functional as it is delicious, making it hard to put down once you start sipping.

8th Ease Up – Watermelon Lime – Oak Cliff Cultivators (124 pts.) (tied)
Introducing Ease Up, a non-alcoholic Watermelon Lime THC Seltzer that elevates your beverage experience with the perfect blend of botanical goodness and captivating flavor. Each 12 oz can combines the natural essence of ripe watermelon and zesty lime, offering a symphony of flavors that tantalize your taste buds while delivering a refreshingly crisp and invigorating sensation. With 10mg each of hemp-derived Delta 9 THC, CBD, and CBG, this sugar-free, zero-calorie beverage allows you to indulge guilt-free, enhancing both relaxation and social moments without compromising your health-conscious lifestyle. Perfect for those seeking tranquility and balance, Ease Up is your ideal companion, committed to well-being with every sip.

10th Sweet Sensei – Purple Tangie – Fizzy Lifters (123 pts.)
Sweet Sensi Fizzy Lifters present a revolutionary approach to refreshment with their alcohol-free, plant-based beverages, enhanced by a patented formula from owner Greg Autry. Crafted from estate-grown hydroponic flowers and all-organic nutrients, these drinks feature a potent, solvent-free Hash Rosin, delivering a gentle, fast-acting buzz. The Purple Tangie variety offers a low-dose cocktail infused with a balanced, full-spectrum, strain-specific, high THC blend, perfect
for enlivening your days and chilling your nights. Enjoy the delightful natural flavors in each sip, designed for a sublime, guilt-free experience.

11th Cannajuice – Mango Pineapple Lemonade (122 pts.)
Cannajuice brings a tropical twist to your refreshment routine with their Mango Pineapple Lemonade, infused with 25mg of hemp-derived Delta 9 THC. This vibrant beverage combines the lush sweetness of mango and pineapple with the crisp tang of lemonade, creating a perfectly balanced and invigorating drink. Each sip offers a potent infusion of THC, ensuring a relaxing and enjoyable experience that’s both delicious and potent. Ideal for those looking to enhance their relaxation with a fruity, flavorful escape.

12th PowerHouse – Lemon Lime – Power Biopharms (118 pts.)
Discover the zesty refreshment of Lemon Lime, a fizzy, sugar-free beverage infused with 5mg of D9 THC per 12-ounce can. Designed to enhance your plant wellness journey, this invigorating drink blends the crisp, clean tastes of lemon and lime for a delightful, bubbly experience. Perfect for sipping on a relaxing day, this product is meticulously crafted to meet legal standards with less than .3% delta-9 THC, ensuring a safe and enjoyable session. Please note: this product is intended for adults over 21, and caution is advised against mixing with alcohol, drugs, or medications, and operating vehicles or machinery after consumption.

13th Hi – Real Cherry (116 pts.)
Experience the bold and luscious taste of Real Cherry, a unique beverage crafted from domestically sourced American cherries. This drink offers a familiar yet distinctly unique flavor profile, combining sweet and dark cherry notes for a fruit-forward taste and a refreshing finish. With 0 sugar, 0 calories, and 0 alcohol, its a guilt-free indulgence. Each 12-ounce can contains 5mg of THC, derived from hemp and compliant with legal standards of less than 0.3% THC. Dive into the deep cherry flavors you’ve always loved, now enhanced with a tantalizing secret that makes each sip irresistibly refreshing.


14th PowerHouse – Strawberry – Power Biopharms (111 pts.)
Indulge in the refreshing taste of this Strawberry-flavored, fizzy beverage, a sugar-free delight infused with 5 mg of D9 THC in each 12-ounce can. This drink offers a vibrant, fruity experience designed to enhance your plant wellness with each sip. Perfectly balanced for enjoyment at any time, it contains 0 sugar, 0 calories, and is free from alcohol, making it a guilt-free choice for those seeking a subtle, relaxing effect.

15th Delta Light – Tropical Mango (103 pts.)
Tropical Mango offers a blissful blend of euphoria, relaxation, and calm with each sip, featuring 5mg of Delta 9 THC and 1mg of CBD in a sugar-free, zero-calorie formula. Perfect for social settings, this beverage allows for easy micro-dosing with its minimal, plant-based ingredients, enhancing any gathering without the guilt.


16th Tejas Tonic – Agarita Berry (100 pts.)
Tejas Tonic introduces the Agarita Berry flavor, capturing the essence of this native Texas bush. Enjoy the distinct, sweet-tart taste of the vibrant red berry that blooms across Texas, especially poignant on 4/20. With no need to brave the prickles of hand harvesting, this beverage brings 25mg of CBD and 5mg of THC to your glass, making it the perfect choice to celebrate the day with a taste true to Tejas.

17th Sweet Sensei – Mellow Melon Berry (99 pts.)
Sweet Sensi Fizzy Lifters deliver a mellow melon berry experience crafted with Greg Autry’s patented formula, using heavenly plant-based ingredients and high THC, solvent-free Hash Rosin. These alcohol-free beverages are made from estate-grown hydroponic flowers and all-organic nutrients, offering a fast-acting, gentle buzz to brighten your day and relax your night.

 


18th  | Blood Orange – Live Resin (97 pts.)
Experience the invigorating taste of Blood Orange, an expertly crafted beverage designed for & users with its robust blend of 20mg Delta 9 THC and 10mg CBD. This zero sugar, zero calorie drink offers euphoric, relaxing, and calming effects, infused with live resin terpenes and made from minimal, plant-based ingredients.

19th Tejas Tonic – Natural Lime (96 pts.)
Tejas Tonic combines natural lime flavor with a potent mix of 25mg CBD and 5mg THC, enhanced with boosted terpenes for a full-bodied experience. This refreshing drink offers a balanced blend for relaxation and well-being, perfect for those seeking a subtle yet effective way to unwind.

20th Hi – Lemon Lime (76 pts.)
Experience the unparalleled taste of Lemon Lime, where flavors are freshly extracted just days before canning, delivering a clean, crisp, and refreshing beverage. Zesty lime greets you first, evolving into a sweet and juicy limeade finish, with a fruit-forward taste that’s complemented by a sharp tartness, all in a bright, bubbly sip that contains zero sugar, zero calories, and zero alcohol.

21st OnlyDank Drink (70 pts.)
Introducing OnlyDank’s Revolutionary THC-Infused Drink, a passport to pure bliss and a world-first in legal beverages. Enjoy the unique blend of terpenes and hops infused with 20mg of THC in this refreshing, vibrant drink that contains zero carbs, sugars, or calories. This alcohol-free beverage is the ultimate way to elevate any occasion, providing an uplifting and guilt-free moment of relaxation.


Congratulations to Houston Juice for emerging as the standout in the Texas Hemp Reporter’s Top THC Beverage Challenge! We extend our heartfelt thanks to all participants who entered their unique and flavorful beverages into this exciting competition. Your creativity and commitment to quality have truly enriched this event. As we close out this thrilling taste test, we celebrate not only the winners but everyone who contributed, making this a memorable and enjoyable experience for all involved. Here’s to more such spirited competitions in the future! Cheers!

DEA Rescheduling of Cannabis and Its Broader Impact on Texas

In a landmark decision by the Biden administration, marijuana is set to be reclassified from a
Schedule I to a Schedule III controlled substance, reflecting a significant shift in the federal
stance on cannabis. This pivotal change, stemming from recommendations by the U.S.
Department of Health and Human Services and propelled by President Biden’s directive,
acknowledges marijuana’s medicinal benefits and promises to reshape research and regulation
landscapes.

The proposed reclassification by the Drug Enforcement Administration (DEA) would not only
relax federal restrictions but also align national policy more closely with the evolving public and
scientific perspectives on cannabis. In Texas, where the legal cannabis industry is nascent yet
promising, this reclassification could catalyze state-level legislative adjustments, fostering
growth and innovation in hemp and marijuana markets.

The proposed shift in cannabis classification marks a watershed moment in American drug
policy, reflecting a broader national trend towards the legalization and acceptance of
marijuana. Several factors drive this shift, including increased public support, as recent surveys
show a majority of Americans favor legalizing marijuana for both medicinal and recreational
use. Additionally, economic analyses suggest that a more relaxed regulatory framework could
significantly bolster the national economy through job creation and increased tax revenues.
Federal recognition of marijuana’s medical potential aligns U.S. policy with those of many other
countries that have already embraced the drug’s therapeutic benefits. This change at the
federal level could also pave the way for enhanced scientific research, enabling more
comprehensive studies on cannabis’s efficacy and safety, which have been restricted under its
Schedule I classification.

Moreover, the shift could have a profound impact on federal criminal justice policies,
potentially leading to decreased incarceration rates for cannabis-related offenses and
addressing racial disparities in drug-related arrests. This is seen as a step towards correcting
historical injustices associated with the war on drugs.

For Texas businesses, this shift could reduce significant tax burdens under IRS code Section
280E, which has long stifled the financial viability of legal cannabis enterprises. By potentially
introducing tax deductions and credits typical to other businesses, Texas could see an influx of
investment and development in the cannabis sector. Additionally, easing research restrictions
could spur pharmaceutical innovation and broader acceptance of cannabis in medical
communities across the state.

DEA Online

The reclassification is expected to influence Texas’s approach to cannabis-related criminal
justice. With federal acknowledgment of cannabis’s medical applications, state policymakers

might be encouraged to reform punitive laws that disproportionately affect minority
communities. This could lead to broader discussions about expungement of past convictions
and more equitable legal frameworks, aligning with a growing national recognition of the need
for criminal justice reform in the context of cannabis.

While the federal shift is a significant advance, it introduces new challenges for regulatory
adaptation and market readiness in Texas. The state must navigate these changes amidst
existing legal frameworks and public opinion, which varies widely across its diverse population.
Community leaders and advocates emphasize the need for a thoughtful approach that balances
economic benefits with social justice and public health considerations.

As Texas and the rest of the nation anticipate the official enactment of these changes following
a public comment period, the cannabis industry remains poised at the threshold of a new era.
Stakeholders, including local businesses, healthcare providers, and legal experts, will need to
collaborate closely to ensure that the transition supports sustainable growth and reflects the
complex, nuanced needs of Texans.

The rescheduling of cannabis marks a significant milestone in the journey towards more
rational, science-based drug policies. For Texas, it represents an opportunity to redefine its
cannabis landscape, promising economic prosperity, enhanced medical research, and progress
in social justice. As federal and state policies continue to evolve, the dialogue between
policymakers, industry leaders, and communities will be crucial in shaping a balanced approach
to cannabis regulation.

Dear Grandma, Lt. Gov Dan Patrick is coming after your Hemp Products

I hope that this finds you doing well, but your grandson has some concerns about your near future.

 

I’ve tried telling you in the past that he was looking into ways he could do this. I remember you telling me that there was nothing on the news about it, so it must be my wild imagination. Well, it’s on the news now if you didn’t see.

 

Our Lt Governor just put out a written list of legislative priorities for the next legislative session. One of them is exactly this grandma. Banning Delta 8 and 9:  Examine the sale of intoxicating hemp products in Texas. Make recommendations to further regulate the sale of these products, and suggest legislation to stop retailers who market these products to children.

 

Nana, we both know you’re no kid. And I hope you know better than to believe that anybody in this state was making products with the hopes that children would get their hands on them. And nobody is trying to argue that the retailers should even be allowed to sell to children. I know that you like the packaging that reminds you of some of your favorite candies, but it’s not like that to get kids involved. It’s like that because it reminds you of your favorite candies and it helps you decide which ones better suit your taste.

AI generated Image

And it’s not just the gummies and Dan and his senators will be going after. They will go after any flower products, oils, tinctures, and even the salves you use on your joints. When they say ban the intoxicating substance grandma, they mean to ban the very thing that gives you relief at the chemical level, not the final product level.

 

The legislature doesn’t know of a way of banning just the end product without allowing some sort of base product that could be used in a way they don’t approve of. They just find it easier to ban the substance altogether. And this substance, it’s naturally part of the plant. All of the work spent creating viable crops with a market that would buy any end product, gone. Out the window. 5 years of hard work across an entire industry will be wiped out. You’ll be left with nothing to use, and the economy will take a giant hit too.

 

Oma, I’m telling you that over 19 billion dollars in economic action will take a major hit, if not wiped out from the ban. I know that nineteen billion sounds like a joke number to you at times. But one of those big economic firms called Whitney Economics with a load of qualified professionals, reported last year about these numbers. Over one and a half billion dollars was spent on wages in this state alone. That’s over a hundred million dollars in social security funds that are helping to cover your current check from social security. Yeah, you can be mad about it possibly running out, but it won’t help if the state is slashing funds going into the pool of money.

Grams, it won’t help if they cut 5,000 businesses from the market and destroy 50 thousand jobs. It will put a toll on the unemployment system and possibly take a major hit on increasing the homeless population. It will take a hit on families that started these businesses with everything they own as investment to see it succeed. The government isn’t going to bail out a business it tries to cut.

 

Abuela, I know that you had access in other states and in one of the places you lived before retirement that it was the equivalent of a parking ticket for getting caught. It’s not like that here in Texas. If you have flower it’s class B misdemeanor which means a huge fine and jail time. If you have the gummies and oil, it’s jail time from being a felony. Por el amor de Dios Abuela, te ruego que tomes esto en serio. Al estado de Texas no le importa un carajo tu vejez.

 

Older people are making up a bigger population of the prison system grandma, and it’s coming from new arrests and not just people getting old in the system. I don’t want to see you becoming one of them. Those people don’t get almost any of their proper meds. Your special diet for your heart and blood sugar, doesn’t exist.

 

I’m not asking for people to be able to sell to kids. It hasn’t really been an issue. I don’t think anybody would have a problem with requiring only adults to be able to purchase it over the counter. We’re not needing marketing legislation either, grandma, it already exists to stop companies from ripping off other products’ trademarks. We both know kids like anything flashy and shiny, but that doesn’t mean we ban everything flashy and shiny does it?

Just remember this for the next 6-7 months Grandma as election campaigns start asking for your opinion. You have to let them know you don’t want to lose your therapeutic hemp products. You have to remind them that addressing imaginary or minor problems with a ban doesn’t fix anything. Holding people responsible for careless behavior that hurts others, that’s a solution.

 

Anyways Grandma, I can’t wait to see you again and have some of those cookies and that tasty pecan pie you make every time. It’s my favorite. Has been since I can remember you making it for me back when you said I was a big boy that didn’t need a highchair anymore. Hugs and kisses.

 

Te amo abuela.

 

Sincerely,

 

Jesse Williams

 

 

 

Building a Sustainable Texas, One Brick at a Time

Deep in the heart of Texas, a green revolution is slowly taking over.  This innovative change is being fueled by an unlikely hemp hero that is long celebrated for its versatility and sustainability, and ultimately a game-changer in the quest for eco-friendly construction and building materials.

As the development of hemp continues to flourish in Texas so does the need to construct a greener, more sustainable future. Traditionally, construction materials like concrete and steel have dominated the construction industry, but their production usually comes with a hefty price along with an additional environmental cost added to the price of building materials. Building and construction costs including cement have significantly increased since the COVID-19 Pandemic. Cement, which is a vital ingredient in concrete, accounts for a significant portion of global carbon dioxide emissions while interestingly enough, hemp offers a sustainable alternative that is renewable, biodegradable, and carbon-negative. Hempcrete will ultimately transform the construction industry for hemp farmers in Texas which are beginning to collaborate with their sustainable neighbors and consider investing their money in environmentally friendly construction materials for companies that manufacture hempcrete locally, leading the way toward sustainable building practices.

Photos: Paul Carbone

One of the most promising applications of hemp in construction is hempcrete, a lightweight, insulating material made from hemp fibers, lime, and water. This material uses hemp shives, aggregate, water, and a specific type of binder to act as nonbearing walls, insulators, plasters, and blocks.  Hempcrete offers several advantages over traditional building materials including superior thermal performance, great breathability, and resistance to mold and pests. Hemp fibers can act as a reinforcement in construction because it is known for their remarkable strength and longevity which can bolster concrete and plastics. This helps reduce our dependency on renewable resources such as steel and fiberglass. By incorporating hemp fibers into construction materials, we can reduce our carbon emissions and strengthen the resilience and durability of constructed edifices. Although the potential of hemp in construction is most obvious some regulatory and infrastructure constraints remain. Nevertheless, as our awareness grows around hemp and its benefits so does the continued environmental impact of conventional building materials. According to an article from de Zeen, “There has been mounting evidence that suggests the construction industry must adopt bio-based alternatives to common carbon intensive materials, such as concrete, to play its part in reducing emissions and limiting global temperature rises.”

Photos: Paul Carbone

Texas lands offer fertile soil and favorable climate conditions that are perfectly poised to lead the way in hemp cultivation for construction. By harnessing the power of this versatile plant, the state is not only reducing its environmental footprint but also stimulating economic growth in rural communities. Texas is ready to leverage the agricultural benefits of hemp to foster innovation in construction materials by continued education and research, we can position ourselves as a trailblazer in sustainable construction. This quest will help make way for a brighter, cleaner future for generations to come as we emerge as a powerful ally in the construction industry.

Testimony to the Texas Health and Human Services Commission

Comments on Proposed Rule Review Chapter 300

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.
Thank you for your attention.
Sincerely,
Russell Dowden
Publisher, Texas Hemp Reporter