In May, the city’s police department warned some hemp shops that they were selling products with illegal levels of delta-9 THC, the main psychoactive component in cannabis that gets users high. As of 2019 in Texas, cannabis with 0.3% delta-9 THC or less is considered legal hemp. Cannabis with more than 0.3% delta-9 THC is considered illegal marijuana.
If the shops didn’t remove the products with illegal levels of THC, they could stand to lose their certificates of occupancy to do business in the city. This most recent notice, which was sent out in late June, is a bit more chilling to local business owners.
It said, in part, “Allen is holding a hearing that will determine whether you may lose your rights to continue using your property for its current business use.”
This hearing will be before the city’s planning and zoning commission at 7 p.m., July 16, at Allen City Hall. Some Allen hemp shop owners are worried what this could mean for them moving forward.
The notice says the hearing will be “to determine proposed amendment that would provide a definition for a new CBD shop use and would further provide regulation to separate development and operational standards for CBD shops in order to mitigate the negative impacts associated with the consumption of these products.”
CBD is also found in cannabis but doesn’t get users high. People generally use it for therapeutic purposes, such as reducing anxiety and pain relief.
Chris James, the owner of Modern CBD and Wellness in Allen, told the Observer he was worried for the future of his business in light of the recent notice from the city. “If they, for whatever reason, reclassify the building use and they say that CBD is not allowed, I mean, they’re going to pull my [certificate of occupancy] and I’m going to have to close my store,” James said. “Allen’s the only city that’s getting out of control like this.”
He said he has three other stores in other cities and has no issues.
We reached out to the city of Allen about the notice and heard back from its police department. Officer Sam Rippamonti told us the city is considering an ordinance to set distance requirements between CBD shops. He said this would only apply to new shops, but that’s not at all what the recent letter said.
“Allen’s the only city that’s getting out of control like this.” – Chris James, Modern CBD and Wellness
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When we asked Rippamonti for clarification, he insisted that he was told this ordinance would only apply to new shops.
It’s all worrisome to Maria McReynolds, the owner of Leafy Wellness Co., a hemp shop in Allen that sells CBD and hemp-derived THC products.
“As a small business owner, clearly I was really concerned, especially since this is my personal livelihood,” McReynolds, who has been in business for about five and a half years, told the Observer. “The other thing that also worried me about the situation was my customers.”
She said a lot of people may be using hemp-derived THC products recreationally, but others, like many of her customers, use them for therapeutic purposes. McReynolds said her business serves a lot of seniors and veterans. “So, that was one of my biggest concerns with this was that they’re taking something away from people that are using it for medical purposes,” she said.
Asked how she would feel if the notice pertained only to new CBD shops, as Rippamonti maintains, McReynolds said it was a tough question. “I don’t want to saturate the city with hemp shops, but I also do feel that people should be given the opportunity to come into the industry,” she said.
Between the letter and what we were told by Rippamonti, it's difficult to tell exactly what the city of Allen is trying to do with CBD shops. The agenda for the meeting will be posted on July 12, but there could be more information provided by then.
Regardless, James is worried what kind of precedent this could set for the future.
“It’s definitely concerning because then what happens if Allen is successful in shutting down CBD stores all throughout their community?” he asked. “What’s going to stop others in other cities from trying to do the same thing? You know, it takes one.”
