Reefer Madness Returns to Texas with Dan Patrick’s THC Ban

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Marijuana prohibition is a Texas tradition. Unless Governor Greg Abbott vetoes Senate Bill 3, the state’s new ban on THC, the state is about to suddenly and drastically renew its commitment to that tradition—at a potential cost of thousands of jobs, billions of dollars in lost taxable revenue, and countless lives broken in the prison system. 

“We have to look at a long history in Texas,” said Austin Zamhariri, executive director of the Texas Cannabis Collective. “The modern enforcement of marijuana prohibition that exists today, that system began in Texas in 1915 in El Paso. It was the very first city in the entire country that prohibited marijuana.”

Zamhariri offered this historical perspective by way of explaining why our state is so eager to close the legal loophole that accidentally created a booming market for THC products about six years ago. “These systems have existed for 110 years,” he said. 

After becoming pioneers in prohibition, it’s perhaps not surprising that Texas has lagged behind the rest of the country on marijauna legalization. Almost half the country—24 states and Washington, D.C.—have some form of legal recreational marijuana. The Texas government never intended to become one of those states, but hemp legalization changed all that. 

Following a federal agriculture bill that allowed for commercial production of hemp, Texas enacted a law that legalized hemp in 2019, intending to open up a new agricultural market and the many potential uses of the plant for food, fiber, and construction materials. Hemp is legally defined as a form of the cannabis plant that contains less than 0.3 percent of THC, well below the threshold to make a person feel high. But that rigid definition failed to account for human ingenuity when it comes to getting stoned. 

By the time the Legislature convened this year, the state was flooded with largely unregulated THC products, many of which are functionally almost identical to marijuana but technically legal. Their usage has been normalized in our state, where many residents now see cannabis consumption as an alternative to alcohol or prescription drugs.

One of Lieutenant Governor Dan Patrick’s top priorities for the 89th legislative session included a total ban on these THC products. That draconian push—which Patrick framed as a necessity to protect kids—for prohibition took many people by surprise. 

“There’s not a place in Texas where cannabis has not become normalized through this,” Zamhariri said. “People just kind of assumed this is a thing, you know, we finally actually have access.”

For the hemp industry and Texas cannabis consumers, the past five months and change have been full of dashed hopes, as they first fought (unsuccessfully) to stop the Senate from passing a total ban bill back in March and then tried to influence the details of the Texas House’s more moderate version that sought to restrict and regulate the industry rather than ban it outright. Then, in the final days of the session, when the House took up its version of SB 3 on the floor, a majority of Republicans voted to approve an amendment by state Representative Tom Oliverson—an ally to the lieutenant governor—that brought the bill back in line with the Senate’s total ban.

Oliverson, who is an anesthesiologist, insisted the extreme move was necessary to protect Texans. “In pain management, self-medication is the first step in treatment failure, and the unregulated hemp market is a hazard to these Texas patients,” he told the Texas Tribune

The effects will be far-reaching. The state hemp industry economic study estimates that the ban could cost over 50,000 jobs and about $5.5 billion in annual sales revenue. SB 3 bans popular products like THC-infused gummies, joints, vapes, and beverages, but industry experts worry that even products that have been commonplace and legal in Texas for years, like CBD oil or even edible hemp seeds (neither of which cause mind-altering effects), could still be caught up in the ban because of minute amounts of THC. 

Sarah Todd, a former cannabis business owner, broke down in tears as she described the impact not just to operations like hers but to Texans who she says have greatly benefited from the easy availability of cannabis. 

“I’m so devastated because this rolls back so many years of social acceptance, even here in Texas, where we have been so far behind on changing cannabis policy,” Todd told the Texas Observer.

Like so many other stakeholders, Todd spent many hours throughout the legislative session at the Capitol, meeting with lawmakers, testifying, and advocating for a more moderate version of the bill that would ban some (admittedly profitable) products like vapes while retaining recreational (but highly regulated) access to gummies, beverages, and other edibles.

“There was a huge, huge turnout from the hemp industry. Even though the regulations weren’t great, they were workable,” Todd said of the provisions in the earlier House version. 

According to the lieutenant governor, unsafe products are being marketed and sold to children by shady vendors at gas stations and smoke shops alike, and only a total ban can protect Texans. “We are not going to allow these retailers to circumvent the law and put Texans’ lives in danger,” Patrick told CBS in December.

Cannabis advocates like Heather Fazio, director of the Texas Cannabis Policy Center, argued that there are thousands of responsible hemp vendors in the state that have policies in place to prevent selling to underage buyers. In one widely publicized incident, a THC store employee refused to sell to Patrick himself without an ID. It’s a practice already commonplace in the industry, especially in upscale dispensary-style stores.

Fazio emphasized, “We have 8,000 retailers selling hemp products to mostly adult consumers, by choice.” Still, in the unregulated Texas THC market, there is no age restriction for purchasing THC products, and industry representatives at the Capitol were quick to acknowledge the need to establish clear rules that stop sales to minors, regulate currently unregulated products, and otherwise push out bad actors. “[The lack of an age restriction] is what has driven so much of the concern for change recently, as well as synthetic products that have made their way on the market.”

While the state’s nascent hemp industry broadly agrees on the need for regulation, many differ on where to draw the line.

“This industry has really grown and is starting to achieve some maturity, and there’s so many good actors and quality products on the market that this [ban] is going to devastate them,” Fazio said. “This is going to devastate their livelihood.”

Rather than eliminate demand, Fazio said that buyers would instead turn to the black market. “These products are legal, either cannabis or hemp, in all 49 other states so there’s no shortage of supply. So now what you’ve done is shift the demand from the legal market to the illegal market,” she said. “Who loves this the most are criminals and the cartels, because all the profit just got put right into their pockets.”

The backlash to the Patrick-led THC ban has come from across the spectrum—including, perhaps unexpectedly for the lieutenant governor, from many on the MAGA right. 

Since SB 3’s passage, the hemp industry and other THC advocates have been in a media war with Patrick as they each try to influence Governor Abbott, who has the power to sign the ban into law or veto it by June 22. Near the end of the session, Patrick held an impromptu press conference in which he laid out an array of THC treats on a table, spewed misinformation about some of the products, challenged press members to eat any of them (tossing a bag at the crowd), and lashed out at a Houston Chronicle reporter. Patrick said the ban was necessary to “save an entire generation” from “being hooked on drugs.”

Calls and letters from hemp industry advocates as well as military veterans’ groups have flooded the governor’s phone lines and offices urging Abbott to veto the bill. 

There’s some precedent for Abbott to use his veto pen on this. In June 2024, Florida Governor Ron DeSantis vetoed a similar bill that banned or restricted THC products. In a message accompanying the veto, DeSantis stated that the bill would “impose debilitating regulatory burdens on small businesses and almost certainly fail to achieve its purposes.” As governors of two red mega-states (both without legal recreational weed), Abbott and DeSantis have repeatedly sought to outdo each other on right-wing issues du jour

Lawsuits to block implementation of the bill are also likely. An injunction issued in a lawsuit in 2021 managed to block implementation of a statewide policy that would have banned sale of smokable hemp products, giving some hope for a similar outcome with the THC ban, especially since SB 3 varies so dramatically from federal laws around hemp. 

João Mitchell, general manager of ATX Organics, which operates a pair of Austin dispensaries selling hemp-based THC and CBD products, admitted that they would struggle to remain in business under the new law. Currently, they employ 15 people, all of whom make at least $20 per hour, he said. Mitchell said he is going to “hope and pray that the lawsuit goes through,” otherwise they would be forced to move the business, or worse. 

“Honestly, we’re probably more likely to shut down than we are to stay here in Texas and operate under [SB 3],” he told the Observer.

Aaron Owens, owner and lead farmer of Tejas Tonic, which makes low-dose THC beverages, said they were determined to adapt to the new law, even if it means changing their recipe and business model. He believes that the natural terpenes (flavor compounds) and essential oils in hemp can still benefit consumers, even with THC cut out of the picture.

“We’re going to continue to cultivate hemp, which this bill did not ban,” he said. “If we have to adjust our formulas to be compliant, we will continue to do that, and we’ll stay within the law, but we’re going to keep pushing, and we’re going to keep bringing the most effective products that I know how to create.”

Despite supporting a total ban on recreational THC, Patrick also backed HB 46, an expansion to the Texas Compassionate Use Program (often referred to by its initials as “teacup”), which is the state’s existing medical marijuana program.The TCUP expansion bill increases the number of licensed vendors allowed, allows for more pickup locations, and also adds chronic pain to the list of medically qualifying conditions—though that list is still stricter than those in many other states with similar programs. 

Morgan Miller was another frequent visitor to the Capitol this session, testifying about her use of hemp-based THC products to treat side effects of her chronic migraines. Chronic migraine sufferers have at least 15 days with headaches and migraine symptoms per month, and Miller said that hemp products help her calm her body down, stimulate her appetite, and ease bodily inflammation. It’s also helped her replace alcohol, which was hurting her liver alongside her migraine medication, with hemp-based THC drinks. 

“My quality of life is going to be down the drain,” Miller told the Observer. “It’s not only that I want hemp products, but I genuinely need them for my health and for my mental health.”

She said she “can’t really imagine” a world where she can no longer go to her neighborhood dispensary for hemp edibles and drinks. “I’m honestly really afraid of what my life is going to look like moving forward if this ban goes all the way through.”

The post Reefer Madness Returns to Texas with Dan Patrick’s THC Ban appeared first on The Texas Observer.

Disney to pay almost $439 million to take full control of streaming service Hulu

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By MICHELLE CHAPMAN, Associated Press Business Writer

Disney will pay Comcast’s NBCUniversal nearly $439 million for its stake in Hulu, taking full control of the streaming service.

The move closes out an appraisal process that’s dragged on for a few years. Disney said in November 2023 that it was acquiring a 33% stake in Hulu from Comcast for at least $8.6 billion. That amount reflected Hulu’s guaranteed floor value of $27.5 billion, according to a regulatory filing.

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Disney has run Hulu since 2019, when Comcast ceded its authority to Disney and effectively became a silent partner.

Hulu began in 2007 and quickly evolved into as a service backed by entertainment conglomerates who hoped to stave off the internet with an online platform for their own TV shows. Disney joined in 2009, planning to offer shows from ABC, ESPN and the Disney Channel. A decade later, Disney gained majority control of the business when it acquired 21st Century Fox.

Disney said in a regulatory filing on Monday that its appraiser arrived at a valuation below the guaranteed floor value during the initial phase of the appraisal process, while NBCUniversal’s appraiser arrived at a valuation substantially in excess of the guaranteed floor value.

A third appraiser was brought in and concluded that The Walt Disney Co. will pay $438.7 million for the Hulu stake.

“We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck,” Disney CEO Bob Iger said in a statement. “Completing the Hulu acquisition paves the way for a deeper and more seamless integration of Hulu’s general entertainment content with Disney+ and, soon, with ESPN’s direct-to-consumer product, providing an unrivaled value proposition for consumers.”

The transaction is anticipated to close by July 24. It’s not expected to impact Disney’s fiscal 2025 adjusted earnings forecast.

Shares of Disney rose slightly in morning trading on Tuesday.

US stocks are stuck in limbo as Wall Street waits to hear what US-China trade talks will bear

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By STAN CHOE, Associated Press Business Writer

NEW YORK (AP) — U.S. stocks remain in limbo on Tuesday as the wait continues to hear what will come of trade talks underway between the United States and China.

The S&P 500 was edging up by 0.1% in early trading as talks between the world’s two largest economies carried into a second day. The Dow Jones Industrial Average was up 25 points, or 0.1%, as of 9:32 a.m. Eastern time, and the Nasdaq composite was 0.1% higher.

Stocks have largely roared higher since dropping roughly 20% below their record two months ago, when President Donald Trump shocked financial markets with his announcement of stiff, wide-ranging tariffs. Much of the rally was due to hopes that Trump would lower his tariffs after reaching trade deals with countries around the world, and the S&P 500 is back within 2.2% of its all-time high, which was set in February.

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It’s getting to be time to see whether such hopes were warranted. The talks with China, which are likely covering a range of disagreements between the two countries, were “going well,” U.S. Commerce Secretary Howard Lutnick said as he arrived Tuesday morning. He expected them to continue all day in London.

Both the United States and China have put many of their tariffs announced against each other on pause as talks continue.

Even though many tariffs are on hold for the moment, they’re still affecting companies and their ability to make profits because of all the uncertainty they’ve created.

Designer Brands, the company behind the DSW shoe stores, became the latest U.S. company to yank its financial forecasts for 2025 because of “uncertainty stemming primarily from global trade policies.”

The company, which also owns the Keds, Jessica Simpson and other shoe brands, reported a larger loss for the start of the year than analysts were expecting, and its revenue also fell short. CEO Doug Howe pointed to ”persistent instability and pressure on consumer discretionary” spending, and the company’s stock tumbled 18.2%.

The uncertainty is moving in both directions, to be sure. A survey released Tuesday of optimism among small U.S. businesses improved a bit in May, for example.

“While the economy will continue to stumble along until the major sources of uncertainty are resolved, owners reported more positive expectations on business conditions and sales growth,” according to Bill Dunkelberg, chief economist at the National Federation of Independent Business.

On Wall Street, J.M. Smucker fell 6.2% even though its results for the latest quarter topped analysts’ expectations. Its revenue fell short of expectations, as did its forecast for profit in the upcoming year.

Tesla helped to offset such losses after rising 1.8%. The electric vehicle company has been recovering a bit since tumbling last week as Elon Musk’s relationship with Trump imploded.

Shares of chipmaking giant Taiwan Semiconductor Manufacturing Co. that trade in the United States rose 2.2% after the company known as TSMC said its revenue jumped in May nearly 40% from the year earlier.

Casey’s General Stores jumped 10.8% after the chain of convenience stores based in Ankeny, Iowa, reported a stronger profit for the latest quarter than analysts expected. It credited strength in sales of hot sandwiches and other items.

In stock markets abroad, indexes were mixed amid mostly modest movements across Europe and Asia.

In the bond market, the yield on the 10-year Treasury eased to 4.44% from 4.49% late Monday.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

A school shooting in the Austrian city of Graz leaves 9 people and the suspected gunman dead

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By PHILIPP JENNE, Associated press

GRAZ, Austria (AP) — A former student opened fire at a school in Austria’s second-biggest city on Tuesday, killing nine people and wounding at least 12 others before taking his own life, authorities said.

There was no immediate information on the motive of the 21-year-old man, who wasn’t previously known to police. He had two weapons, which he appeared to have owned legally, police said.

Special forces were among those sent to the BORG Dreierschützengasse high school, over half a mile from Graz’s historic center, after a call at 10 a.m. At 11.30 a.m., police wrote on social network X that the school had been evacuated and everyone had been taken to a safe meeting point.

Police said they didn’t immediately have information on the man’s motive, but said that he killed himself in a toilet after fatally shooting nine people.

The shooter was a former student at the school who didn’t finish his studies, Austrian Interior Minister Gerhard Karner said at a press conference in Graz.

Austrian Chancellor Christian Stocker said there would be three days of national mourning, with the Austrian flag lowered to half-staff and a national minute of mourning at 10 a.m. Wednesday. He said that it was “a dark day in the history of our country.”

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Photos from the scene showed a large police deployment, including at least one helicopter and emergency vehicles around the school.

President Alexander Van der Bellen said that “this horror cannot be captured in words.”

“These were young people who had their whole lives ahead of them. A teacher who accompanied them on their way,” he said.

“Schools are symbols for youth, hope and the future,” European Commission President Ursula von der Leyen wrote on X. “It is hard to bear when schools become places of death and violence.”

Graz, Austria’s second-biggest city, is located in the southeast of the country and has about 300,000 inhabitants.