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Tag: SB 3 impact on Economy in Texas

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 –

Texas Hemp: True Economic Numbers

Written by Jay Maguire on . Posted in Texas Legal & Regulatory News. No Comments on Texas Hemp: True Economic Numbers

“Who are you going to believe, me or your own lying eyes?” — Groucho Marx, noted comedian and cigar enthusiast

This week’s release of the Whitney Economics study on the Texas Hemp Industry should have been an eye-opener—at least for anyone willing to acknowledge reality. The more I review the numbers and rhetorics surrounding SB 3, the clearer it becomes that this isn’t about responsible regulation—it’s a deliberate effort to mislead the public and lawmakers while dismantling a thriving industry.

It would be almost laughable if it weren’t so blatant. On one hand, Sen. Perry ignores a vast body of evidence, from thousands of constituent testimonials to gold-standard, peer-reviewed studies demonstrating the safe and effective health benefits of cannabinoids. Instead, he insists that hemp retailers are preying on Texas children, addicting them, and causing untold harm to millions.

At the same time, the Comptroller of Public Accounts’ fiscal note—the official economic impact analysis provided to the legislature—downplays the industry’s contribution to the state, suggesting that Texas hemp businesses generate only $10 million per year in tax revenue. The reality? It’s at least TWENTY TIMES that amount.

So which is it? Is the Texas hemp industry so big, fearsome, and dangerous that it must be slashed down to size? Or is it so small and insignificant that lawmakers can vote to ban its products without fear of economic repercussions in their districts? They can’t have it both ways.

What’s happening here is not policymaking—it’s prohibition masquerading as regulation, built on fearmongering and bad math.

 

Flawed Fiscal Note: Bad Data, Worse Assumptions

The fiscal note attached to SB 3 is deeply flawed, significantly underestimating the economic impact of the Texas hemp industry. The Comptroller’s office arrived at its revenue projections based on an indefensible assumption: that a small sample of hemp retailers in Austin accounts for 25% of all sales statewide.

There is no data to support this claim, yet this flawed assumption forms the foundation of the state’s economic analysis of SB 3.

By contrast, Whitney Economics conducted a comprehensive, data-driven study of the industry and found:

• The Texas hemp-derived cannabinoid industry generates $5.5 billion annually.

• It employs more than 53,300 Texans, with $2.1 billion in wages.

• It contributes $267.7 million annually in state sales tax revenue.

• The retail sector alone produces $4.3 billion in sales, with manufacturing and wholesale adding another $1.26 billion.

 

Instead of considering this robust statewide industry, the Comptroller’s analysis relied on tax returns from a handful of vape shops in Austin, assumed those stores represented one-quarter of the entire state’s market, and extrapolated from there.

This is not a credible methodology. It grossly understates the economic fallout that SB 3 will cause.

 

The True Cost of SB 3

The fiscal note estimates only a $27 million loss in state revenue over two years. But it ignores the full economic impact of dismantling an industry of this scale.

According to Whitney Economics, the actual consequences would be far greater:

• $3.1 billion in lost retail sales

• $194.9 million in lost tax revenue

• 40,201 jobs eliminated

• $1.59 billion in lost wages

• $7.5 billion in total economic losses

This bill won’t just hurt individual business owners—it will have far-reaching economic consequences for:

• Commercial real estate (as retailers shut down storefronts across Texas).

• Supply chains (manufacturers, wholesalers, and logistics providers will be impacted).

• Local economies (thousands of Texans will lose their jobs and spending power).

The fiscal note, by narrowly focusing on direct sales tax revenue, fails to account for these larger disruptions.

 

Misinformation and Fear Tactics

Beyond the faulty fiscal analysis, SB 3’s backers are relying on scare tactics and misleading testimony to push the bill forward.

When veterans, chronic pain sufferers, epilepsy patients, and other Texans testify about the life-changing benefits of hemp-derived cannabinoids, proponents of the bill deflect by cherry-picking isolated incidents and misrepresenting their significance.

At the Senate State Affairs Committee hearing, I saw this firsthand. A witness gave an emotional testimony about a family member’s death, strongly implying that cannabis was to blame. But when the microphones were off, another witness calmly asked what actually happened.

 

Her response? “It was drugs, OK?”

This kind of vague, unverified testimony is being weaponized to justify dismantling a legitimate industry. Sen. Perry then seized on this uncorroborated story, using it as justification to attack law-abiding business owners.

 

This isn’t policymaking—it’s prohibition by way of fearmongering.

 

The Bottom Line

SB 3 is not about protecting the public—it’s about eliminating a $5.5 billion industry under the guise of regulation. The fiscal note is built on faulty assumptions, and the narrative supporting this bill is driven more by a political agenda than by facts.