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Tag: Sb 3

Lt Dan. Making House Calls

Written by texashempreporter on . Posted in News. No Comments on Lt Dan. Making House Calls

In an effort to remain vigilant and true to his word Texas Lt. Governor Dan Patrick is now making house calls to area store owners in a measure of enforcement that goes right to the top!

Employees of south Austin store owner Todd Harris of the Happy Cactus were greeted with questions about products his stores sell and legal dosing and compliance concerns as any grandmother might before making a legal purchase of CBD cream, or maybe a Texas Veteran who was looking for a gummy for a better night’s sleep.

Only this “house-call” was made by none other than Mr. SB 3 himself, Texas Lieutenant Governor Dan Patrick. 

Happy Cactus, like many industry retailers are following a set of best compliance practices which are part of a statewide effort led by organizations such as (CRAFT) Cannabis Retailers Alliance for Texas.

According to Harris, Dan Patrick came in and asked about gummies and how many milligrams he had on certain legal-hemp products. Staff members provided info on one such item that was 50mg to the Lt. Governor as more questions ensued. Harris explained that products over 50mg are not available at his stores.

The Texas lawmaker also entered a line of questioning to Harris that alleged that students from nearby Crockett High School had come into the Happy Cactus when Happy Cactus staff insured Patrick that they not only card everyone that attends its establishment, but under his attorney’s advice they have sent the school a trespass warning so students know not to visit. That notice was delivered over six months ago.

“Lieutenant governor Patrick came into our Client store and found out that we do things the right way. He was even carded. He learned that we had sent a no trespass letter to Crockett high school because we don’t want their students in our store and he also learned that their students no longer attempt to come into our store and that we do things right like most of the rest of our industry. ” – Stated David Sergi the attorney of record for the south Austin retailer.

AUDIO FILE OF PART OF VISIT

Security Video of Happy Cactus shows Patrick and his staffers coming into the south Austin store for an official visit.  Unresponsive to Happy Cactus employees request for ID the Lt. Governor of Texas went on to explain that he was “Dan Patrick”. The Employee still demanded the identification. Afterwards, Todd Harris was notified by staff of the cordial visit by the top Texas lawmaker.

Harris and Sergi both emphasized that  “we are grateful that Lieutenant governor Patrick decided to investigate stores on his own and very pleased that he chose Happy Cactus because they are one of the best examples of how to do how to run a store properly. It’s obvious that they carry quality products for people in need and take extreme precautions to ensure their products dont fall into the wrong hands. They even carded lieutenant governor Patrick without knowing who he was.” stated David Sergi of Sergi & Associates.

 

Details of the Call can be heard here, and the security tape recorded the visit.

The Happy Cactus is located at 5700 Menchaca Rd Ste # 520 and is owned by brothers Mickey & Todd Harris from Austin TX.

[ Happy Cactus was profiled on the Texas Hemp Reporter website last year after a hit-piece questioning testing methods of the hemp industry made waves in Texas Monthly last August.] – links to article –

The Economic Toll of SB 3: How Restrictive Hemp Legislation Could Devastate Texas’ Economy

Written by Jay Maguire on . Posted in Business, Legislative. No Comments on The Economic Toll of SB 3: How Restrictive Hemp Legislation Could Devastate Texas’ Economy

Texas, as the state anthem says, is “supremely blessed“ as the nation’s second largest economy—in the top ten in the world if it were considered an independent nation surpassing nations like Canada and Russia, with businesses relocations and startups benefitting from low taxes and regulations, economic miracles happen here every day.

 

But, With Senate Bill 3 (SB 3) looming on the legislative horizon, the fate of thousands of businesses, tens of thousands of jobs, and billions of dollars in economic activity hang in the balance. According to a recent report by Whitney Economics, the proposed restrictions on hemp-derived cannabinoids would not only cripple the state’s booming hemp industry but also trigger a chain reaction of economic downturns that would reverberate throughout Texas.

 The Numbers Speak Volumes

The hemp-derived cannabinoid market in Texas is no small enterprise. It generates an estimated $5.5 billion in revenue annually, with retail sales alone contributing $4.3 billion. The overall economic impact of the industry, when factoring in supply chains and related economic activity, is pegged at a staggering $10.2 billion. In addition, the industry provides over 53,000 jobs, paying out $2.1 billion in wages and contributing $267.7 million in state sales tax revenue.

These figures highlight the significant role hemp plays in the state’s economy. Unlike traditional cannabis markets, hemp-derived cannabinoids operate under legal protections established by the 2018 Farm Bill, allowing Texas businesses to engage in interstate commerce. This has led to thriving local supply chains, with most Texas hemp businesses sourcing materials from multiple states while prioritizing in-state suppliers.

 

What SB 3 Would Mean for Texas

If SB 3 is enacted in its current form, the consequences would be severe:

 

6,350 businesses would be forced to close, including retailers, wholesalers, and manufacturers

40,201 workers would lose their jobs, leading to $1.6 billion in lost wages .

A $10.2 billion decline in economic activity, affecting not just hemp businesses but adjacent industries, including agriculture, packaging, and distribution.

A loss of $267.7 million in annual sales tax revenue, directly impacting Texas’ ability to fund essential services.

The bill would effectively outlaw or heavily restrict many of the most popular hemp-derived cannabinoid products, such as CBD, Delta-8 THC, and Delta-9 THC derived from hemp. These products have been a lifeline for many businesses, particularly as consumer demand for alternative wellness products continues to grow.

 

Public Safety vs. Economic Stability: The False Choice

Proponents of SB 3 argue that stricter regulations are needed to address public safety concerns related to hemp-derived cannabinoids. However, the FDA has stated publicly that there is no public safety crisis justifying the outright banning of converted cannabinoids. While concerns about youth access and product consistency are valid, these can be addressed through targeted regulations rather than blanket prohibitions.

The unintended consequences of prohibition-based approaches have already played out in other states. In Oregon, for example, legislative overreach in hemp restrictions led to a $50-75 million annual loss in CBD processor revenues and a disrupted supply chain that impacted multiple industries. Similar legislation in Colorado would have wiped out an estimated $500 million per year in product manufacturing sales had it not been reconsidered.

 

 A Call for Common-Sense Regulation

Rather than stifling an industry that is generating billions in revenue and supporting tens of thousands of Texas jobs, lawmakers should consider alternative approaches:

 

Implementing clear, standardized regulations for product testing, labeling, and age restrictions.

Establishing a regulatory framework that ensures consumer safety while allowing businesses to continue operating.

Working with industry stakeholders to develop practical policies that balance economic growth with public health concerns.

 

Texas has an opportunity to be a leader in the hemp industry rather than a cautionary tale of regulatory overreach. By choosing sensible regulation over prohibition, the state can continue reaping the economic benefits of hemp while addressing legitimate safety concerns.

 

 

The Bottom Line

SB 3, if passed as currently written, would decimate an industry that has become a cornerstone of Texas’ economy. The loss of jobs, tax revenue, and economic opportunity would far outweigh any perceived public safety benefits. As Texas lawmakers deliberate on the future of hemp-derived cannabinoids, they must consider the real-world economic consequences of their decisions.

 

For Texas to remain an economic powerhouse, the path forward must be one of regulation, not eradication.