When the DEA knocks on the door, good news rarely follows. And several tobacco shops in Allen, Texas that sell cannabis products just learned this the hard way after a raid.
CBS News reportedly attended the raids on Tuesday, August 27, and filmed police officers arresting store employees and effectively shutting down nine tobacco shops in Allen by destroying products and taking cash registers.
According to CBS, the stores were selling products with “illegal levels of THC.” Allen Police Department Chief Steve Dye told the news agency that police officers conducted undercover investigations and even sent minors to various tobacco shops to purchase products. But not everyone agrees with the way police conducted the raids, let alone the reason behind them.
San Marcos-based hemp attorney David Sergi of Sergi & Associates represents the Allen Hemp Coalition, which includes some of the companies targeted in the recent raids. In an emailed statement, Sergi said, “Under Texas law, there is a right way and a wrong way to handle products that may not be compliant,” noting that law enforcement officials “took completely the wrong approach and will be held accountable for the recent raids in Allen.”
Texas state law requires that consumable hemp products be tested “before a hemp plant is processed or otherwise used to produce a consumable hemp product” or “before any material derived from hemp by processing is sold, offered for sale, or incorporated into a consumable hemp product” or “before a consumable hemp product is sold at retail or otherwise placed on commerce in this state.”
Retesting of hemp-based products on the shelves does not appear to be required, although state law specifically mentions random testing of cannabinoid oil.
If a store sells consumable hemp products, it must have a state license. To be considered compliant with the Texas Consumable Hemp Program, stores must provide Certificates of Analysis (COA) from accredited labs proving that each hemp product contains no more than 0.3% THC. Businesses that don’t comply are likely to be more vulnerable to raids.
The Texas Department of State Health Services (DSHS) states on its website that it currently “does not conduct enforcement actions on properly packaged, labeled, and tested consumable hemp products for smoking for distribution and retail sale by properly licensed distributors or properly registered retailers.”
Given the lack of regulation of the recreational cannabis sector in Texas, including the lack of a minimum age requirement to purchase products, it is no wonder that there appears to be a gray area for both store owners and consumers.
However, many experts in the hemp industry are calling for stricter regulations, for example regarding age and packaging requirements.
Reddit users react to raids on tobacco shops in Allen, Texas
Reddit users also shared their thoughts on Tuesday’s raids in the Dallas suburb of Allen in a post on the r/Texas subreddit.
Reddit user CuznJay, who apparently runs his own cannabis business, said they “spend days doing research and independent testing before a cannabis-related product hits my store shelves,” but noted that “not enough” retailers do the same.
High-Fidelity Cannabis Co., a Houston-based cannabis company, also commented on the post and revealed what it believes is the reason for the recent raids on smoke shops in Allen: “We suspect it has something to do with local politicians stirring up trouble and provoking federal authorities.”
“Although THCa is legal under both federal and Texas state law, in practice it all comes down to the attitude of local law enforcement and prosecutors toward cannabis. In Texas, it’s usually OK in the big cities, while in Allen, it’s usually not so OK. Take care, friends!”
Although Police Chief Dye of Allen believes that “illegal THC” is being sold “right under our noses” and is “causing long-term harm to many of our citizens,” Sergi disagrees.
“The actions by Allen, Texas police and the DEA represent an escalation of tactics used in other parts of the state to intimidate businesses that sell legal hemp-based products.
“These local, family-run businesses are operating legally. The Allen, Texas, police and the DEA exceeded their authority by destroying products, seizing point-of-sale systems and records, and confiscating employees’ computers,” Sergi said.
It is currently unclear whether those arrested have since been released.
