Chelsie Spencer, a Dallas attorney, specializes in ensuring Texas businesses that sell hemp-derived THC products adhere to the complex web of state and federal regulations. She offers a monthly service through her law firm that rigorously evaluates distributors and conducts independent product testing to confirm safety and legality for her clients’ stores.
“They pay us a significant amount to maintain compliance,” Spencer stated.
Thus, it was with disbelief that Spencer reacted when she discovered that one of her clients in North Texas had been subjected to a police raid involving local law enforcement and the Drug Enforcement Administration (DEA), akin to a major narcotics bust.
“They confiscated everything from my client—cellphones belonging to his children, every computer in the house, all vehicles, all assets, and froze all cash,” Spencer recounted regarding the raid that took place in July.
Since August 2024, law enforcement agencies at both local and federal levels have raided over 15 businesses throughout Texas, accused of selling consumable hemp products with illegal THC levels, according to attorneys representing these cannabis retailers. During these operations, law enforcement seized products and cash, which businesses are still unable to recover, leaving customers wary. Notably, many of these retailers have yet to be formally charged with any crimes.
<p“You often see headlines about the raids, but the same attention isn’t given to charges and indictments,” remarked Andrea Steel, a Houston attorney representing several THC businesses.
While these raids have affected only a small percentage of Texas’s 8,000 registered hemp retailers, the frequency of such actions has escalated over the past two years, seemingly to bolster public support for a ban on hemp-derived THC products. Steel pointed out that following a veto by Governor Greg Abbott on a bill aimed at banning these products, he instructed state agencies to impose stricter regulations instead.
However, her clients are apprehensive that the impending regulations could set THC limits nearly impossible to meet, potentially driving many businesses out of the market.
<p“The rate of raids has continued post-veto as before. In fact, we may see an increase in raids once new rules are finalized, particularly due to a proposed boost in licensing fees for enforcement; they will need justification for that,” she warned.
Law enforcement agencies, however, deny any political motivations behind the raids. They claim the actions are driven by concerns over retailers selling hazardous products, especially to minors, and engaging in illicit activities such as money laundering. Allen Police Chief Steve Dyes, whose department has conducted multiple raids since 2024, has been vocal at the Texas Capitol, asserting the need for oversight in an industry he describes as untrustworthy.
<p“You need a reliable industry partner to regulate, ensuring that the contents match the labels. Unfortunately, that trust is absent in the THC consumables sector,” Dyes stated following Abbott’s veto.
Sammy Rippamonti, a spokesperson for the Allen Police Department, noted the investigation linked to the raids is ongoing and refrained from providing further information. Dyes did not respond to requests for comment.
According to Sydney McBride, a spokesperson for the Temple Police Department, their enforcement actions are not influenced by political trends but are based on evidence and applicable laws. “Our focus remains on collaborating with the community to prevent, reduce, and solve crimes,” she asserted.
In the aftermath of the raids, several retailers have initiated lawsuits against law enforcement agencies, alleging they utilized faulty testing methods in their crime labs that inaccurately inflated THC levels in products. Law enforcement agencies have defended the validity of their results.
Data from the Texas Poison Center Network indicates a significant rise in cannabis-related poisoning cases since 2019, following the legalization of hemp-derived THC at the federal level. Reports surged from 923 calls to a peak of 2,592 in 2024, before dropping to 1,485 last year, with most incidents involving children under five and teenagers.
The Texas Department of State Health Services has recently proposed new regulations to tighten oversight of consumable hemp products, including testing requirements that industry participants argue may prohibit the use of hemp flowers, crucial for many THC products. Business owners fear these new guidelines will provide further justification for raids. Additionally, a proposed hike in licensing fees by over 13,000% could drive many businesses to closure, essentially achieving the objectives of those advocating for a ban.
<p“People are confused about the rules and often think that hemp was outlawed months ago,” Steel noted during her remarks at the Texas Cannabis Policy Conference, where heightened police activity was a major topic of discussion. “The overall confusion surrounding regulations is the most significant issue.”
Spencer explained that the raid from the previous year left her client with overwhelming legal expenses, disrupted revenue streams, and damaged reputation.
<p“We heard a lot of posturing, claims about money being funneled back to the Middle East. The district attorney issued threats, asserting that these individuals would face imprisonment. Then, 60 days later, we received a call saying to retrieve our belongings; they were not proceeding,” she recounted. “We spent over $100,000 just to reach this point.”
In August 2024, Allen police and allied agencies raided nine hemp shops, leading the Hemp Industry Leaders of Texas to file a lawsuit claiming unlawful seizure of legally owned inventory.
The organization accused law enforcement of aggressive harassment and intimidation of retailers, including warnings about potential rezoning that would effectively ban hemp-related businesses.
While the lawsuit is currently pending in federal court, the Allen Police Department, in collaboration with the DEA, conducted a raid in July on three warehouses, seizing over 75,000 pounds of THC products and approximately $7 million in cash and assets.
When questioned by CBS News Texas, which had been invited to cover the raid, Dyes denied any connection between the timing of the raids and pressure on Abbott to endorse the proposed ban. Nevertheless, the news outlet noted Dyes went directly to Austin following the raid to meet with Abbott’s staff regarding the ban.
The DEA in Dallas stated that investigations are still underway concerning the businesses involved in the August 2024 and July 2025 raids, and no charges have been filed so far.
Numerous lawsuits have emerged from the raids in the past two years, with some success for the hemp industry in securing relief for businesses. The Garza County Sheriff’s Office and the city of Post agreed to a settlement of $80,000 to a Texas smoke shop in October 2024, after the owners alleged law enforcement conducted a “warrantless search.” The city and county clarified that the settlement did not indicate any admission of wrongdoing but was intended to avoid litigation costs.
State Representative Drew Darby, a Republican from San Angelo who previously opposed hemp-derived THC, has now shifted his stance. During the Texas Cannabis Policy Conference, he acknowledged the fears politicians harbor regarding THC products, recounting a personal story about a family friend whose grandchild became addicted. He also mentioned circulating rumors that these products are controlled by foreign adversaries intent on infiltrating the country.
Nonetheless, he recognizes the therapeutic benefits of THC products for elderly individuals suffering from pain, children with epilepsy, and veterans grappling with PTSD. He urged lawmakers to prioritize the legality and safety of these products.
<p“We must continue to dispel misconceptions and concentrate on the real issues,” he emphasized.
In mid-June 2025, authorities raided seven vape and smoke shops in Temple and Belton, seizing products they claimed were falsely labeled as legal hemp.
Documents from the Temple Police Department reveal that the multi-agency investigation involved purchasing and testing items from these stores, where certain “flower” products exceeded the legal THC limit.
Charges have been filed against six shop owners for the manufacture or delivery of a controlled substance, while one owner faced charges for manufacturing, delivering, and possessing marijuana in quantities between five and 50 pounds. The Temple police indicated that these charges remain pending adjudication.
Various lawsuits filed by hemp businesses contend that the raids are based on unreliable testing methods, which the Texas Forensic Science Commission cautioned against in 2022. The commission highlighted that these methods may artificially inflate THC levels.
“A plant or liquid item containing CBD can arrive at the lab with a specific amount of Delta-9 THC, which can be increased through high heat during testing,” the commission stated in its report.
These problematic testing methods have been employed in both private and public crime labs statewide, including those utilized by the Texas Department of Public Safety, as per the HILT lawsuit.
McBride asserted that the Temple Police Department relies on laboratories operated by the Texas Department of Public Safety and its approved affiliates for forensic analysis.
<p“We stand by the laboratory results provided by DPS and its approved affiliate laboratories,” she noted. “Enforcement decisions are made based on the totality of the evidence, including verified forensic findings.”
Peter Stout, CEO of the Houston Forensic Science Center, acknowledged that many crime labs lack effective methods for testing THC levels and face challenges such as inadequate funding for training and time constraints. He remarked that testing cannabis is often deprioritized due to its association with lower-level offenses.
<p“I cannot justify the expenses involved in creating the capacity to test everything seized from a street vendor,” he stated at the cannabis conference, emphasizing the need for prioritization
