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CRAFT Leads the Way in Hemp Compliance as SB 3 Threatens Industry

CRAFT Leads the Way in Hemp Compliance as SB 3 Threatens Industry

 

As the Texas Legislature debates SB 3—a bill that would ban all THC products—responsible hemp retailers across the state are stepping up to protect their businesses, their customers, and their communities.

 

For the past 18 months, Texas hemp industry advocates, business owners, policy and legal experts have worked to create a set of training modules, model store manuals, SOPs and other compliance-related business standards that can be adopted statewide to assist small businesses with building their compliance and sales capacity while pushing back against the false narratives being used to push the Prohibitionist ban agenda. The Cannabis Retailers Alliance for Texas (CRAFT) is a multi-sector industry-led effort to prove that the hemp industry is capable of self-regulation. Our members have voluntarily implemented a 21+ age policy, adopted rigorous product sourcing and testing standards, and developed a comprehensive Retailer Playbook to help businesses stay compliant in a shifting legal environment.

 

Our members didn’t wait for politicians to tell them what’s right,” said Jay Maguire, CRAFT co-founder and spokesperson. “Moral panics don’t start with facts—they start with fear. And that’s exactly what Lt. Governor Dan Patrick and Senator Charles Perry relied on: Reefer Madness-style scare tactics and cherry-picked anecdotes. Even when the stories were true, they were outliers—not the norm. The vast majority of retailers are doing the right thing. CRAFT members voluntarily enforce a 21+ age policy and card every customer at the point of sale—just like alcohol and tobacco. That’s what responsible businesses do.”

 

When Lt. Governor Dan Patrick visited Happy Cactus shop in Austin last week unannounced and looking for evidence of super-high THC products, he was expecting a political “gotcha” moment. What he found instead was a professional, compliant business, stocked with compliant products and operated with trained staff following company policy, carding customers and following best practices. That’s not politics—that’s policy in action.

 

Key leaders in the hemp space are weighing in:

 

• Rhiannon Yard, owner of Hemp Gaia, says: “We teach retailers how to verify COAs match the products on their shelves and ensure lab tests were done using the correct methods at accredited labs. That’s how we protect our customers and our licenses.”

 

• Nick Mortillaro, owner of Lazydaze Coffeeshops, adds: “Retailers need to cut through the buzz and noise with real, evidence-based education. That’s what CRAFT provides.”

 

• Brian Dombrowsky, owner of Aim High Distro, says: “CRAFT helps business owners stay licensed and build trust by educating their communities about what they do.”

 

The public already supports this approach. Polls show that 68% of Texans favor safe, regulated access to THC—and the $8 billion Texas hemp market proves they’re voting with their wallets.

 

📣 To read the full press release or to join the movement, visit joincraft.org

 

If you’d like to learn more, speak with a CRAFT spokesperson, or schedule a visit to one of our member retailers, feel free to reach out directly.

 

 

 

Best regards,

Jay Maguire

CRAFT Co-founder and Spokesperson

📧 [email protected]

📞 512-954-8054

Ricky Williams Joins SB3 Fight

Will $475,000 Campaign Help Bring a 4th Quarter Win?

Former Longhorn and Heisman winner Ricky Williams hopes to sway Texas lawmakers on cannabis legislation. He co-founded Project Champion with former NFL athletes Jim McMahon and Kyle Turley. Together, the trio hopes to use their influence — and a $475,000 campaign — to stop Senate Bill 3 in its tracks. 

SB3 passed with bipartisan support through the Texas Senate on March 19. If the House passes the bill, it will ban THC in the state and kill an $8 billion industry. 

“As former professional athletes, we’ve experienced firsthand the physical and mental toll of high-impact sports,” Project Champion’s website states. “Many of us have turned to cannabis as a natural solution for pain management and overall well-being.

“Recognizing the need for safe, effective and accessible cannabis products, we’ve joined forces to advocate for fair legislation and shatter the stigma surrounding this powerful plant.”

Williams is no stranger to cannabis activism, as he was suspended from the NFL multiple times during his career for positive drug tests. In recent months, the league has loosened regulations surrounding cannabis. In 2023, Chiefs’ Travis Kelce told Vanity Fair that he estimates 80% of players use the substance.

On episode 134 of The Texas Hemp Show Podcast, Williams shared that he wished more pro-cannabis athletes would speak out – a mission Project Champion facilitates.

“The stigma is still strong,” he said. “I think people are afraid of it tarnishing their reputation. But to me, a reputation of being something that you’re not and pretending to that you are – not really worth it.”

Project Champion

With their NFL days behind them, Williams, McMahon and Turley have turned over new leaves as cannabis entrepreneurs. In recent years, Williams launched his Highsman brand, while McMahon and Turley have a joint venture called Revenant.

“To me, being an athlete is temporal, and people forget about you – unless you’re the best ever – people forget about you in a generation,” Williams told The Texas Hemp Show in 2023. “What I tell young athletes, I say, ‘Being a professional athlete in the long scheme of your life, it just gives you a platform to do something. But how are you going to use that platform?’ I feel very fortunate that I’ve been able to utilize my platform to touch and help and inspire a lot of people who don’t have any interest in football.”

The athletes work alongside the organization’s president, Gretchen Gailey, a seasoned Washington D.C. journalist who worked in the public affairs space and served as communications director for Congressman Bill Shuster (R-PA). 

As part of their nationwide efforts, Project Champion lands earned media telling powerful cannabis stories. They have secured headlines on Forbes, MJBizDaily, Benzinga and Chron (to name a few).

Texas’ 89th Legislative Session ends June 2, and it is not yet clear when the House will vote on SB3. In the meantime, Project Champion plans to launch a digital advocacy campaign, host high-impact events and build coalitions. 

For more information, visit projectchampion.org.

The Curious Timing of SB3 and the DSHS Inspections

 
 
The Curious Timing of SB3 and the DSHS Consumable Hemp Program Inspections
Cannonballs at the Alamo (Our Texas Hemp Industry)
 
On February 20, 2025, two significant regulatory shifts are set to take effect in Texas: the release of Senate Bill 3 (SB3) and the initiation of an intensified inspection protocol under the Texas Department of State Health Services (DSHS) Consumable Hemp Program. While these developments may seem unrelated at first glance, the coinciding timing of their implementation raises critical questions about their potential connection and underlying intent.
 
The DSHS Consumable Hemp Program Crackdown

Simultaneously, DSHS has announced a wave of inspections targeting consumable hemp manufacturers and retailers. According to an official communication dated February 20, 2025, DSHS has encountered increasing resistance from industry participants regarding inspections. In response, the agency has reaffirmed its authority under Texas Health and Safety Code (HSC) Chapter 431.042, which grants it broad oversight powers, including license revocations and civil penalties up to $25,000 per day.

 
Notably, the inspections will focus on verifying compliance with pre-existing regulations, and businesses refusing to cooperate risk severe penalties. Given that hemp regulations have remained relatively stable over the past few years, the sudden urgency in enforcement—just as SB3 comes into play—suggests more than mere coincidence.
 
Conspiracy to Bully  . . .  an Industry?

The concurrent implementation of SB3 and heightened hemp inspections prompts speculation about whether this is a coordinated effort to reshape the industry landscape. While SB3 introduces new provisions that necessitate increased scrutiny, industry leaders are jumping ship and starting to take sides in the future of the consumable hemp market.

Interestingly enough, today Friday the 21st amidst the industry already noticeably shaken by these two initiatives from Texas authorities; Bayou City Hemp Co. released a flyer in its Capitol visit today agreeing that lawmakers should ban all Smokable Hemp Products.More concerning, is that members of Bayou City Hemp Co. are also part of the Texas Hemp Coalition whose stated goal is to keep these products legal.

 
 Cracks in the Alamo 
 
Official statement was released the following Tuesday. (UPDATE)
 

“As an executive board member of the Texas Hemp Coalition, Bayou City Hemp does NOT speak on our behalf nor do we support their efforts to sabotage an entire industry we are all here to protect. An official statement will be made soon.” – Jake Garry stated  in an industry stakeholders WhatsApp forum this afternoon.

 

The Texas Hemp Reporter also tried to reach out to Jeromy Sherman – of Bayou City Hemp Company, Inc. for comment but did not get an answer.

 
It is perhaps in lue of the company’s interest and position in its beverage expansion that it no longer needs to support the flower market. Drink brands from Bayou City Hemp have now collaborated with Spec’s Wines, Spirits & Finer Foods and its 238 locations  as of March of last year. Now that they are seeking national partners like Total Wine and others it looks like Texas retailers will now have to fend for themselves in the cannon-fire of the 89th Legislature.

While the Alamo (our industry) remains under enemy fire, we might be seeing notable differences in lobby teams’ goals with different opinions and strategies. The Texas Business Council is doing their best to work with members of the house and seems to have a good deal of support from many state Hemp Businesses. The move from Bayou City Hemp Co to take sides on the issue against smokable hemp flower is sudden since, traditionally, its leaders have been board members of the Texas Hemp Coalition. I know all these players as I too was a member of that same Board in 2023!

 
With DSHS Inspections and more bills being filed; the contents of SB3 this week is not a shocker . . .  in that we all knew it was seeking the bidding of Dan Patrick’s goal to ban these products. SB3, is filed, which would create criminal offenses for manufacturing, selling, AND possessing hemp products. The first cannon-balls have been fired and the walls of the Alamo (our industry) has shown some cracks and even division amongst her ranks. However, Mark Bordas, Executive Director of Texas Hemp Business Council has stated before “We are early in this fight. We just need to end up on top.”
 
As the cannon-fire will continue to volley back and forth in the next 100 days of the 89th Texas Legislature in the fight for legal Hemp, you can be sure our team at the Texas Hemp Reporter will be in the thick of its coverage. In the words of Sam Houston “Remember the Alamo”

Russell Dowden
Texas Hemp Reporter
The Texas Hemp Show
ESPN 102.7 FM Sundays at 7AM

Texas Advocacy for Hemp: Life Rafts vs. Torpedoes

 

The Texas Legislature is not kind to perceived bad industries that show division. Lawmakers, especially those in the governing party, are well-practiced in divide-and-rule. When they see infighting, they exploit it. When they see an industry that can’t even align on its own interests, they stop taking it seriously. That is why survival in this fight depends entirely on solidarity.

 
And yet, Bayou City Hemp just made the worst possible mistake. By circulating a flyer in the Capitol calling for a ban on all smokable hemp—without even informing their own trade association leaders—they didn’t just undermine the industry’s collective voice. They handed prohibitionists exactly what they wanted: proof that even we aren’t convinced of our own legitimacy.

It’s as if, seeing the torpedo in the water, Bayou City launched their own life raft, hoping to save themselves before the ship went down. But that’s not how this works. The prohibitionists don’t see them as allies—they see them as easy targets. The second the industry collapses, Bayou City’s raft won’t be spared. It will be machine-gunned like the rest. And in the process, they’ve weakened the entire industry’s argument for reasonable regulation. Instead of presenting a united front to lawmakers, they’ve reinforced the very narrative prohibitionists are pushing—that this is an industry that cannot regulate itself and therefore must be banned altogether.

 

If they truly believed in this course of action, they should have done it the right way—resigning from the board, stating their case within industry discussion groups  and working with the professional advocates and advocacy groups—who are expert at understanding the political landscape, the unwritten rules, and finding ways to win when weaker sisters panic—to find a compromises and creative solutions. For example, the main knock on our industry right now is the largely unproven allegation that we sell and market to kids. While we can all agree that mimicking brands of children cereals and candies is a bad look, there’s no Joe Camel-level duplicity happening here but the narrative is established and refuting it costs more energy than we any benefit we’d derive from engaging in the “I know you are, but what am I?” tropes that so often ensue in similar circumstances.

 

The answer: we’ve been working diligently to identify and refine technologies that make it much less chancy when it comes to age gating—as an upcoming article in Special Legislative issue of the Texas Hemp Reporter will demonstrate, harnessing the power of AI and facial recognition tightens up on the one area of weakness we all admit we have—consistent carding of customers and retail clerks who are 100% compliant and on the ball every single transaction.

 
As you’ll see from the machines, we can show law makers we’ve got it figured out and seek collaboration on areas of alignment, not mindless deflection to other players in industry when we feel out own interests threatened. This is just one example of what Bayou City might have done. Instead, they’ve set the stage for a circular firing squad within the industry, betraying the broader interests they had at least an arguable duty to represent and doing the prohibitionists’ work of undermining credibility for them.
Now is the time for discipline, not desperation. If we want lawmakers to treat this as a mature, responsible industry worthy of negotiation, we need to act like one. Anything less, and we are simply making the case for our own demise.

MAHA a “yes”- but no to Reefer Madness

In recent years (and certainly during the last political cycle) the United States has
experienced a growing shift, and overall desire for natural products, with an increasing
number of people seeking alternatives to processed foods, beverages, and man-made
medicines.

This movement towards holistic choices preceded the more recent MAHA (Make America
Healthy Again) campaign, made popular by Robert F. Kennedy, who has been undergoing
hearings to become the nation’s top health official as Secretary of The United States Health
and Human Services agency.
In an era where processed foods, drinks, and synthetic medicines have dominated, there is
a rising popularity of plant-based solutions, as well as a nationwide effort to restore vitality
by regaining a healthier, more sustainable lifestyle. In its most elemental form MAHA seeks
to empower individuals to take control of their lives by embracing organic, plant-based, and
holistic approaches.

Hemp, a versatile plant with nutritional, health, and industrial benefits, is emblematic of
that significant shift towards more natural lifestyles, offering the least amount of THC from
the cannabis plant, along with high concentrations of CBD, omega fatty acids, fiber and
protein.

Recent misrepresentations of hemp (again by definition delivering the least amount of
psychoactive compound THC than any other offering) are reminiscent of an equally out of
touch 1930’s exploitation film “Reefer Madness”. The movie’s premise revolves around
melodramatic events after high school students are introduced to marijuana. Decades
later, the film is now only referenced and enjoyed as a campy parody for laughs.
Although SB 3 has yet to be released (as of this writing) it is no laughing matter, and it too
would seem to suffer from the same, out of step relationship with today’s reality. If the state
of Texas suffers from a “THC problem” it is only logical to deduce that the problem is
derived from sources containing large amounts of THC- not the product with the lowest
amount. Anything being offered as hemp but surpassing the .03 percent THC by dry weight,
by definition, is marijuana and not hemp. So, if Texas has a THC problem it is due in part to
unscrupulous sellers seeking to circumvent existing laws- not the 8,000 licensed hemp
concerns seeking to adhere to it.

Admittedly, the state of Texas has an enforcement problem with perhaps up to eight agents
seeking to enforce existing laws surrounding licensing, quality control, and compliance

checks. Additionally, hemp should be available only as intended: for responsible, adult
use. We need to refine regulations and pass similar product restrictions, akin to those
applied to alcohol, tobacco, and nicotine.

Any thought of prohibiting the product outright should be met with caution. In age of e-
commerce and a historically mobile populace, the thought of eliminating the product

altogether seems fanciful. Afterall, a similar attempt to make alcohol illegal in the United
States is now often referred to as the “Failed Noble Experiment”. From 1920-1933 the
United States saw crime, sickness and deaths climb as black-market alcohol hit the
streets to satisfy the public’s thirst. Today the transport of any product is easier than ever,
as out-of-state and overseas internet concerns would prosper under any prohibition, while
Texas businesses would be shuttered and over 50,000 industry jobs lost. Bootlegged and
black-market products raise the specter of a true public health concern: fentanyl
poisoning.

I remain optimistic that our legislative leaders will ultimately embrace MAHA by allowing
Texans to make individual choices in pursuing healthier lifestyles and rejecting the dated,
misplaced mindset of Reefer Madness.

Keep in mind how proud (and rightfully so) our legislative leaders are of the “Texas Miracle”:
the Lone Star State has been recognized as the Best State for Business for 20 years! It has
won the prestigious Governor’s Cup 12 years in a row for being the most job-creating
corporate location or place to expand existing businesses. Based on federal and state
legalization of hemp, it has grown year-over- year and was valued at being an $8 billion
industry in 2022. Hemp industry owners are part of the 3.2 million small businesses that
employ nearly half of all working Texans. As our legislative leaders like to say they, small
business is the backbone of our state’s economy.

In closing- further, thoughtful regulations to protect the consuming public, by restricting
access to adults, and ensuring those who wish to purchase the product are doing so
through duly licensed, regulated, law-abiding businesses, will serve Texas best. I look
forward to the state winning its 13th Governor’s Cup in a row, and the hemp industry being a
part of that calculation.

Mark Bordas
Executive Director
Texas Hemp Business Council
02/13/25