Texas is quickly becoming a battleground for legal marijuana. The latest shooting was between Texas cannabis industry leaders and Sabihe Khan, who has filed a lawsuit against the city of Allen, Texas, the Allen Police Department and others for attacking Khan's smoke shop. .
A problem was brewing
Smoke shops became concerned in May when various smoke shops received letters from the Allen Police Department warning them they were selling illegal products and operating in violation of the Texas Controlled Substances Act and Section 443. I knew that was happening. The subpoena from the DEA requested information about the company. Those subpoenas were later stayed by Eastern District Judge Mazzant in July.
In June, the city also began considering rezoning certain areas to prohibit the sale of cannabis-related products, according to the complaint. However, the rezoning issue was postponed to September.
hemp raid
Not wanting to wait for a court decision, on August 27, 2024, the Allen Police Department raided a 70-year-old man's business, Allen Smoke and Vamp. They claim the search warrants used were based on questionable laboratory testing methods and standards. They allege that the search warrants were executed in coordination with the DEA and in direct violation of Federal Judge Amos Mazant's order halting the enforcement of DEA subpoenas.
Mr. Khan began operating a retail business in the cannabis industry with his wife and son. Khan said he and his colleagues took great care to ensure compliance with all applicable laws and regulations, including requiring a certificate of analysis (COA) for all products sold.
“In August, Mr. Khan sat shackled and unrestrained in his prison cell for two days,” said David Serge, chief attorney for the Texas Hemp Industry Leaders Association. “This guy was arrested for selling a product that is legal in Texas. In fact, it's legal nationwide.”
The complaint noted that the search warrant used the general term THC too broadly, but did not further define whether it was hemp-based THC or regulated cannabis THC. They also claim that the company they used to test the product, Armstrong Laboratories, did not use proper modern hemp testing methods to protect THCA during the process.
The DEA used the Allen Police Department to do what they themselves could not do. Not only did the DEA not comply, it went to great lengths to circumvent the federal judge's order.
Allen City, Texas. Allen Police Department. Allen Police Chief Steve Dye. Collin County Sheriff Jim Skinner. The lawsuit alleges violations of the Fourth, Fifth, Eighth, and Fourteenth Amendment rights of HILT and Sabbih Khan before, during, and after the defendants' raids on legal cannabis businesses. has been indicted for.
The complaint states that since the raid, the city has been able to pass zoning ordinances restricting the location of new smoking establishments, with more than 50% of sales selling cigarettes, e-cigarettes, vapes and cigars. , related to the sale of tobacco, pipes, etc.) smoking supplies), effectively accomplished what Section 443.003 sought to prevent. Existing stores can continue, but cannot expand, and new stores are limited to specific locations.
Delta 8 is ok
According to the complaint, Delta 8 products are not specifically identified as illegal under Texas Farm Code Chapter 113, Section A112.003, and only Delta 9 products are illegal. The lawsuit notes that all of the products seized were Delta 8 products.
They also claim that Armstrong Labs was creating Delta-9 by testing for THCA. “Although liquid chromatography is a process readily available in Texas laboratories, defendants use gas chromatography, which necessarily heats the product to high temperatures (turning legal THCA into illegal amounts),” the complaint states. “They were willing to spend exorbitant amounts of money to get the results they wanted on exams.” Delta-9) according to Armstrong's calculations.
The complaint also states that under Texas law, companies can legally sell hemp products with documented certificate of analysis testing, which Khan claims he complied with.
The complaint also alleges that Mr. Khan has been labeled a drug dealer, even though he is a businessman who sells legal products. The hemp industry said its members are scared and business is down. They also said the raids had an impact on membership growth.
the stakes are high
Hemp is already big business in the state, and the stakes are high. The Whitney Economics report, titled “Hemp-Derived Cannabinoids in the Lone Star State: An Economic Impact Analysis of Cannabinoid Retail in Texas,” found that these companies will generate more than $8 billion in revenue in 2022. It is estimated that it employs more than 50,000 workers. He added that manufacturers and extractors of hemp-derived cannabinoid products are investing more than $1 billion in infrastructure to establish and expand operations across Texas. It is worth noting that this study was commissioned by Hometown Hero CBD.
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