Texas Hemp Businesses Fear Uptick in Police Raids

Attorneys say raids have hurt revenue and reputation, while police claim they're necessary to root out illegal THC products.

Published on Mar. 9, 2026

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Since August 2024, local and federal law enforcement agencies have raided more than 15 businesses across Texas that were accused of selling consumable hemp products with illegal levels of THC. Attorneys for these cannabis retailers say the raids have hurt their revenue and reputation, while police maintain the raids are necessary to root out products with illegal THC levels, especially those that may be reaching children. The hemp industry fears these raids will continue as the state finalizes new regulations on THC products.

Why it matters

These raids by law enforcement agencies have ramped up over the last two years, which attorneys say is an effort by some lawmakers to build public support for banning hemp-derived THC products. The hemp industry is concerned the new regulations being considered could create THC limits that will be nearly impossible to meet, forcing many businesses to shut down.

The details

Since August 2024, local and federal law enforcement agencies have raided more than 15 businesses across Texas that were accused of selling consumable hemp products with illegal levels of THC. During these raids, law enforcement seized products and cash that businesses have still not recovered, and customers were scared away. Many of those retailers have not yet been found guilty of any crime, according to their attorneys. Law enforcement agencies deny the raids were politically motivated, saying they were based on concerns about dangerous products, especially for children, and other unscrupulous activities like money laundering. However, attorneys for the hemp businesses say the raids are based on faulty testing methods that artificially inflate THC levels.

  • Since August 2024, local and federal law enforcement agencies have raided more than 15 businesses across Texas.
  • In July 2025, Allen police and the DEA raided three warehouses, seizing more than 75,000 pounds of THC products and an estimated $7 million in cash and assets.
  • In mid-June 2025, seven vape and smoke shops in Temple and Belton were raided, with authorities seizing products they claimed were falsely labeled as legal hemp.

The players

Chelsie Spencer

A Dallas attorney who specializes in helping Texas businesses that sell hemp-derived THC products stay in compliance with state and federal rules and regulations.

Andrea Steel

A Houston attorney for several THC businesses.

Steve Dyes

The Allen Police Chief, who has been a fixture at the Texas Capitol warning lawmakers that the hemp industry is corrupt and can't be trusted.

Drew Darby

A San Angelo Republican state representative who once opposed hemp-derived THC but now supports it.

Martha Velez

The owner of a hemp retail store in Dallas who has prepared her staff to be ready for inspections by state agencies.

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What they’re saying

“They took everything from my client…his children's cellphones, every computer in the house, took all the vehicles, seized all assets, and froze all cash.”

— Chelsie Spencer, Attorney (sacurrent.com)

“You have to have a trustworthy industry partner to regulate to know when they put something in a package, it matches the label. We just don't have that with the THC consumables industry.”

— Steve Dyes, Allen Police Chief (sacurrent.com)

“The Temple Police Department does not conduct enforcement actions based on political developments or media narratives. Our operations are driven by facts, evidence, and current applicable law. Our focus remains to work in partnership with the community to prevent, reduce, and solve crimes.”

— Sydney McBride, Spokesperson, Temple Police Department (sacurrent.com)

“So we have to keep diffusing that talk and focus on the real issues.”

— Drew Darby, State Representative (sacurrent.com)

“The raids in Dallas were hard for us. We decided to keep that mini binder that had excerpts highlighted, like what is the law in regards to flower? What is the law regarding the .3%? Just to be prepared.”

— Martha Velez, Hemp Retail Store Owner (sacurrent.com)

What’s next

Steel expects that once the state finalizes new regulations on THC products, there will be another spike in raids on hemp stores. She encouraged businesses to mitigate risk from future raids and regulatory changes by keeping inventory small and being ready to pivot quickly.

The takeaway

These raids by law enforcement have created a climate of uncertainty and fear in the Texas hemp industry, as businesses struggle to navigate a complex regulatory landscape and protect themselves from potential crackdowns. The industry is caught in a political storm, with some lawmakers pushing for a ban on hemp-derived THC products while others advocate for a more balanced approach that keeps these products legal and safe.