Dan Patrick (00:02):
Looks like you're going to be back here in another few weeks, right? Thought you were going to go on vacation? Thank you all for coming. Let's make no mistake that we just had the most conservative and most productive session in history. And the governor and the speaker and I worked well together. In fact, better than the Senate and the House has ever worked together. In fact, on SB3 between the two chambers, there are 108 Republicans, and I think the count is 105 voted for SB3, 105. Virtually every police department in the state of Texas wrote a letter to the governor and asked him to not veto SB3. They gave every reason, by the way, to every pushback by the Hemp industry.
(01:07)
The Pediatric Association came out in favor of SB3. Texas Medical Association came out in favor of SB3. This is not a Dan Patrick Bill. This is a bill that reasonable people in professions that know best from medicine to law enforcement to education said they all support, and 105 members, mostly all Republicans. But in the Senate we had a number of Democrats who voted for it. It puzzles me why my friend Greg Abbott, Governor Abbott, would at the last minute, at about 22 minutes after 11, decide to veto this bill. I know he gave the reasons and his proclamation, but our team simply doesn't agree with those reasons, and we'll talk through that. In reading the proclamation, one can only come to this conclusion, which surprises me. The governor of the state of Texas wants to legalize recreational marijuana in Texas. That's the headline folks because that's what his proclamation does.
(02:21)
Now, whether it's unintentional and he didn't think through it or whether it's intentional, that's the result of the veto. I'm very concerned that we go through this period of time that these shops may stay open continuing to spew out their poison, because even if his proposed bill passed, as he suggests, it would take a lot of time for them to get up to speed, to have manufacturing testing, to test it at all levels, to go through all of the issues that he lays out. And during that time, they would still be operating as they are.
(03:09)
Let's remember in 2019, marijuana was not legal In Texas. We passed the Hemp bill and then new technology came out on Delta 10, and bad actors. He called them bad actors. He calls them bad actors as I have. Went around that and they sold products that destroyed families, destroyed families. And make no mistake, what they're selling is illegal today. This past Tuesday, or I guess it was this past Tuesday, today is a few days from then we had a bust, a drug bust by the Allen Police Chief and the Department of Enforcement for Drugs, DEA. They confiscated 34 tons of products including 7 million in cash, jewelry, cars, and they have seized that place 34 tons. A few weeks ago, Prosper Graduation Ceremony sent seven kids to the hospital who would induce these gummies or some type of THC product.
(04:40)
And then as he notes in his proclamation, a 15-year-old shot his mother three times after having gummies, and we had this testimony from… That's who I feel badly for. Someone texted me this morning and said, "Dan, I feel badly for you." I said, "Don't feel badly for me. I'm used to tough political fights." The governor and I will work together in the future and we'll disagree from time to time, but this is a fight that didn't need to be. Aubrey Adams came in and testified. She said, "The veto demonstrates that the interest of the Hemp THC industry are prioritized over the safety of Texas children and the well-being of Texas schools." Again, what Governor Abbott proposes is for us to legalize marijuana in Texas by regulating it.
(05:40)
Let me walk through a couple of notes from his proclamation. He says, "Texans on each side of Senate Bill 3 debate raise serious concerns. But one thing is clear to ensure the highest level of safety for minors as well as for adults who obtain a product more dangerous than what they expect. Texas must strongly regulate Hemp and do so immediately. The best way to protect the adults and the children is to ban the product. Is to ban the product. You cannot regulate eight to 9,000 locations. We do not have enough law enforcement to do so, and they'll continue to sell it skirting the law. And actually what will they be selling if the governor is correct in his proclamation? He says, "Senate Bill 3 is well-intentioned, but it would never go into effect because valid constitutional challenges, litigation challenging. The bill has already been filed."
(06:37)
Since when did we care who sued us when we passed a bill? "Oh, someone's already sued us. Oh, going to stop." I'm sure if they haven't already, they're going to sue us on School Choice and the 10 amendments, and they're going to file a bill on the prayer bill. We deal with lawsuits all the time, so that shouldn't be a surprise. He says, "If we were to allow Senate Bill 3 to become law, its enforcement would be enjoined for years." How does he know that? How does he know that and how does he know what he proposes? Well, there won't be a lawsuit filed and enjoined for years. The federal law says this, "Nothing in the federal law preempts or limits any law of a state that regulates the production of Hemp and is more stringent than the federal law." That's what the federal law says. We can ban, we can regulate and be more stringent than federal law. How do I know we can ban? Because there are already a number of courts that have said so. The Fourth Circuit, the Seventh Circuit. California, Gavin Newsom of all people banned THC. They've got a big drug program out there, but they banned THC because it was too dangerous. So is Colorado and they've got a big drug program because of its danger. So the governor's whole proclamation is built around, and he told me this on Sunday. I talked to him yesterday. He said, "It's the Arkansas case." This was a lowly district judge in Arkansas, and has been going through the courts.
(08:19)
We believe the Eighth Circuit will stand with Arkansas. And so if that happens while we're going through this charade, then what's the governor going to say, "Oh, I guess I was wrong about Arkansas." But even if Arkansas loses, it doesn't matter, Arkansas does not impact Texas. So the idea that we can't ban the product has already been upheld by the higher courts on multiple occasions. There's no justification saying that we can't ban it. He goes on to say, "My conclusion or the conclusion is not speculative." Really, so
Dan Patrick (09:00):
… perfect. He's not wrong. He's absolutely sure this bill would be thrown out. When you look at the law again, what the federal law says, we can ban it. The only thing we can't do is stop transportation through the state. He actually mentions that in his proclamation. He mentions that one of the problems with this bill is about stopping transportation, but he didn't write the entire sentence. He's the lawyer, not me. It says you can't pass a bill to ban transportation through a state. That's not what he wrote. The TCUP Program. He signed that bill. That's worthless now. Here we pass maybe the best TCUP Program, Texas for Compassionate Use, to address those with PTSD, cancer, Crohn's disease we added. Who's going to go there now when they can go to any smoke shop and get what they want? That's why no one grew their licenses before.
(10:13)
So at the end of the day, what puzzled me was the last time I talked to the governor in the Capitol before session, he said, "Don't worry about the bill." He said, "Your bill is fine." That's what he told me in front of witnesses. In fact, he asked a couple of lawyers of my staff, he said, "Can you give me some answers I can give because when I sign this, I need some answers to give?" So what happened? Who convinced him on his staff, from the outside, to kill Senate Bill Three?
(10:53)
And look, we'll work with the governor. We'll see what happens in the special session. But where has he been all session? Where's he been? I mean, we get this proclamation from him last night after midnight and he parachutes in at the last moment with arguments that we do not think are valid. I mean, he talks about the takings, for example. "Well, we can't have a takings here. It's one of the reasons I have to veto this bill." But yet in his own proclamation, one of the things he lists is we will not allow hemp and vape shops near schools or churches. So he's going to take them? He's going to tear up their lease? Tell them they've got to move? I think that's the takings. I think he might be sued over that.
(11:48)
He talks about basically that we have to leave the status quo where it is. In other words, if we regulate this, and what do you regulate? You regulate things that are legal. And that's why I said, and I'm stunned. I'm stunned that he wants to legalize marijuana in the state of Texas. So I'm not having a bad day, Texas is having a bad day. Because if we become Washington State or Oregon or Colorado on products that we cannot possibly test in 8,000 or 9,000 locations with the small law enforcement we have doing their best. You can hit one here, one there. He's going to allow them to sell above the 0.3%, which is in federal law. That's what his proclamation says. So why doesn't he just come out? I hope he'll make a statement today and say, "Yes, the lieutenant governor is right. I am for legalizing marijuana for adults in the state of Texas." Because that's news to me. It was news to me when he changed his position on casino gambling. It was news to me when he changed his position on sports betting. Which don't have the votes in legislature either. Who are we as a state? We think we're going to attract business here if we've got a bunch of people high on marijuana at very high levels? Is that who wants to come here and build their plant here, open up a business, move their family here? We're not Colorado and we're not Oregon and we're not Washington State. We're Texas. And I will not sign a bill that legalizes marijuana in Texas.
(13:39)
I will not gavel it down. Because that's what he's asking the legislature to do. And here's the box he's put us in, folks. This is the box. So when he says he just came to it, he told me, "Well, I just made the decision Saturday and this came late again." Again, where was his staff and where was he? If he'd have worked with us through the session, maybe we could have addressed some of his issues and maybe we could have answered some of his questions. But he made a decision to veto this bill very late without even giving us the courtesy of a call to say, "Hey, can you clarify this for me?"
(14:14)
So I just need to let you all know that here's the box he created. If we don't pass a bill, if we don't pass a bill that regulates hemp and marijuana, then the status quo continues in those 8,000 shops and they keep selling all this poison and kids keep getting sick and parents keep losing their children and people walk out in front of trains and people shoot somebody. And by the way, if that happens, I'm sorry governor, it's not on us, we'd abandon. So if we don't pass a bill, if we don't pass a bill, the status quo continues. And the bad actors, as he calls them, the people running those three warehouses up there with 34 tons of illegal products, they get to continue operating as they are near our schools. But if we pass the bill, as he recommends, then we're legalizing marijuana. So he's put the legislature in a very bad position.
(15:26)
Like I said, politics can be hardball. I respect the governor. I'm not a lawyer, he's a Supreme Court judge, former attorney general. But his argument is flawed. Other courts, circuit courts, have ruled we can ban the product in states. And other courts have ruled, the Supreme Court has ruled it's not a taking if you take something illegal from someone. He worries about the hemp farmers. Our bill doesn't even mention the hemp farmers. We deal with consumable products and he throws in healthcare products in those. Ours dealt with drugs and food primarily. So there's nothing in his proclamation to me that makes any sense. It contradicts itself. And it looks like someone on his staff just lifted the TABC Code, Texas Alcoholic and Beverage Commission, and put it into his proclamation. It says stores will be closed on Sundays. Stores can only be open 10:00 to 9:00. That's right out of the TABC Code on liquor stores, packaged goods stores.
(16:45)
He says, "We will regulate it that you are limited to your purchases. You can only buy so many products." Wait for that lawsuit from someone. Are we going to start limiting how many bottles of Jack Daniels you can buy or how many six-packs you can buy? None of his proclamation makes sense, to me and to my legal team. Questions.
Speaker 1 (17:12):
Do you see any middle ground between you and the governor or you guys are polar opposite?
Dan Patrick (17:19):
We have lots of agreements and disagreements of time of session. We usually find common ground. But this veto this late after he told me he was going to sign it and, "Your bill's fine." And he told me yesterday, "Well, after I looked at it, there's some problems here." Problems that we answered all the questions and he still vetoed the bill. So I didn't start this. I did my work, we did our legal work, we talked to lawyers, we made sure this was constitutionally sound. We didn't have anyone that we talked to in the legal profession that said this was not
Dan Patrick (18:00):
… constitutionally sound.
Speaker 2 (18:01):
Is this an outlier or has a similar issue that you were totally invested in been vetoed by the governor?
Dan Patrick (18:08):
Well, last session, we had the homestead exemption and the two special sessions. And it wasn't a veto, but he didn't like the $100,000 homestead exemption, and so he refused to put it on the call. You can look it up. He didn't put it on the first call. He didn't put it on the second call. And finally the former speaker and myself said, "We're going to pass it," and I don't know if he signed it or let it become law. So different, but that was one of those things where I was surprised too, because everybody wanted the $100,000 homestead exemption except the governor, and now it's 200,000 for seniors. He didn't say anything this year and it's 140 for everybody else. So, this is simpler, but that wasn't a veto.
(18:53)
But in that case, last year, he never said to me he was with me on it. So, that was his right. Look, he can do anything he wants. He's the governor. Again, we'll work together in the future. And there's no personal hard feelings here, but I got to stand up for the people of Texas and the people of Texas do not want us to legalize marijuana.
Speaker 3 (19:14):
So, are you saying you're going to refuse to regulate it?
Dan Patrick (19:17):
The only way you can regulate it is for him to say that no product could be sold with more than 3% and that it would be taxed very heavily because that would put them all out of business, because they're not interested in selling products under 3%. They're interested in selling products sky-high in THC.
Speaker 3 (19:40):
Could you support that kind of bill? The bill that's going to come out of the city?
Dan Patrick (19:44):
I have no idea. I'm staying with the band because we can't … Rudy, we cannot regulate. And even if you go to 3%, there will be bad actors. You cannot regulate 8,000 stores. Law enforcement knows that. So, you can't regulate it. And we talked about it during session, can't do it. And the members decided the only way we can address this is to ban it. So-
Speaker 4 (20:09):
Yeah, but we regulate alcohol. We keep the high levels of alcohol.
Dan Patrick (20:14):
Yeah, and you know what? It's a great point. I'm glad you brought that up because one of the things that someone on the TABC told me, "Thank goodness you're doing this because we couldn't possibly inspect it because we don't inspect liquor. We don't go and open a bottle of Jack Daniel's and see if it's the real deal. We don't take a taste test or some kind of test on Crown Royal to see if it's the real deal."
Speaker 4 (20:36):
Based on the thousands of [inaudible 00:20:37]-
Dan Patrick (20:38):
And so, excuse me one second. I haven't finished. Excuse me one second. Excuse me one second. Because they don't do it because these are corporations, major companies, they know if they don't make sound products, they'll be sued if they caused any injury or death. They follow their regulations. We don't know who's making any of this. We don't know where it's coming from. Nobody knows what's in the packages. So, the idea that somehow we're going to have this new testing and they're all going to be responsible for their own factories to test the products. And he also says in here, "It can't look like anything that would attract a child." Well, that's in the eye of the beholder. So, now we're going to get into telling you, "Well, that package, I'm sorry, got to take that off the shelf." I mean, it's ridiculous to think that even the state of Texas with 80,000 law enforcement officers, that we can inspect 8-9,000 shops. It's not possible.
Speaker 5 (21:32):
[inaudible 00:21:31] Governor-
Dan Patrick (21:33):
Yes, sir.
Speaker 5 (21:33):
Speaking of special sessions, there's been reports of push from the Trump administration to have a special session for redistricting here. You've been in DC a lot recently. Have you had a chance to talk with anyone from the administration about that push?
Dan Patrick (21:48):
I'll just say that if we can pick up Republican seats in Texas to make Congress stronger after what the Democrats did to our country in the last four years and what they're still doing, criticizing the President of the United States, want to impeach him for protecting American lives by taking out an Iranian nuclear threat to the world. I want more Republican congressmen.
Speaker 6 (22:13):
Governor, you said that, "It was news to me when Governor Abbott changed his position on casinos."
Dan Patrick (22:17):
Yeah.
Speaker 6 (22:18):
Can you expand on that a little bit?
Dan Patrick (22:20):
Well, when we ran in '15, he said, "I'm not for expanding gambling and I'm not for legalizing marijuana." And I sit here now, he came out and said, "If they pass the bill on casinos, I'll look at it." Which is very clever. This session, he started by saying, "I think we should have a vote on sports betting." And now, he's … I mean, if I'm wrong, Governor, and you're watching, then please put out a statement that you do not want to legalize marijuana for adults in the state of Texas. Because that's what, either by default, you're doing or on purpose, you're doing, and I-
Speaker 7 (22:58):
[inaudible 00:22:58]
Speaker 8 (22:58):
[inaudible 00:22:58] I'm asking [inaudible 00:23:00] do you think any other recent polling influenced the governor on this decision?
Dan Patrick (23:04):
Look, the polling from the … the other side has done a great job, a great job of manufacturing all kinds of people to fight for their illegal business. I'm telling you again, folks, everything or virtually everything they're selling in these shops is illegal today. If I can get a couple of state troopers and go down to a store today, we will find illegal products. That's what they found up in the warehouse. Everything they tested in the warehouse was illegal and they took 34 tons of it.
Speaker 9 (23:35):
How would the veto affect the 34 tons that they have?
Dan Patrick (23:35):
It doesn't. It doesn't impact that. They broke the law up there or allegedly. It will have to go to court. It doesn't change. It was illegal Tuesday. It's illegal today. It will be illegal next week under federal law. Under federal law, it's illegal. So, I really … I don't know what else you can do. 105 out of 108 Republicans vote. I think the governor should give the benefit of the doubt to the legislature and to law enforcement and to everyone in medicine and everyone in education. He's the only guy that didn't want this bill to pass, except the people in the business making a fortune off poisoning our kids.
Speaker 10 (24:25):
Is an override an option in a special? There's some question about whether that's [inaudible 00:24:34].
Dan Patrick (24:34):
I don't know. I don't think that we can in a special, but I don't know. I'd have to check that.
Speaker 10 (24:35):
All right.
Dan Patrick (24:37):
But we could just repeal them. We could just pass the bill to repeal the bill we passed and that would put an end to it.
Speaker 11 (24:53):
Is that a strategy? You just threw that one out there. Do you think that's possible outcome [inaudible 00:24:54] decision in a special session-
Speaker 10 (24:53):
Yeah. What are the options there?
Dan Patrick (24:53):
To ban it.
Speaker 10 (24:55):
Again.
Dan Patrick (24:56):
Look, we had 105 votes-
Speaker 10 (24:57):
Pass another ban. Is it possible-
Dan Patrick (24:58):
Pass another bill. Now, he didn't put that on the call. He said regulation. His words were very careful, deal with the regulation. So, again, I don't want to complicate this. He's talking about getting kids out of it, doing all the things to keep kids away from it, move all the stores. Again, this would be a takings in my view, that he could get sued over. Moving all these stores away from churches and parks and schools to wherever he is going to move them. And, again, you just don't go and tear up a lease. They have these leases. It's the product in the store that's the problem, not where the store is.
Speaker 12 (25:35):
Sir, have you spoken to Governor Abbott since the veto?
Dan Patrick (25:38):
No. No. I thought for sure that after we talked yesterday … and we had a very amiable discussion. Look, I'm not mad at the governor. I'm not mad at the governor, but I'm not going to legalize marijuana in Texas. And if people want to vote me out of office for that, so be it. I'm not going to do it.
Speaker 13 (26:00):
Lieutenant Governor, I spoke with someone in the hemp industry today and they told me that through DHS, they are already regulated, the ingredients are already tested, and what they're offering is legal.
Dan Patrick (26:14):
Yeah, BS. BS on all of it. Then why has every raid that's gone into a store found illegal products and why have they been confiscated and why did DEA come in … And look, here's the other thing. We have no idea who's making this product. Are they terrorists? Is this a terrorist money-laundering scheme in Texas? Is it a cartel money-laundering scheme? Someone told me I better watch my step. That's what someone told me. I better watch my step. Because this whole idea by the industry again saying, "Well, these are mom and pop businesses." No, they're not. There may be a few. This is all orchestrated, as I said,
Dan Patrick (27:00):
Over three or four years, eight to 9,000 shops open up. They all look the same, they all have the same products, they all have the same footprint, they're all built in the same spot around schools, or most of them. Now, that wasn't a coincidence, Rudy. That's organized crime behind it. Very likely. Very likely.
Rudy (27:17):
Are you saying you were threatened? What does that mean?
Dan Patrick (27:19):
When someone tells you to watch your step, you can read that how you want.
Speaker 14 (27:24):
And with that, are you concerned about losing votes, given the very public backlash that the bill got, and these threats? Are you worried that you're not going to have as many votes in a special session for an outright ban?
Speaker 15 (27:35):
Not votes for you, but votes for [inaudible 00:27:37].
Speaker 14 (27:36):
Yeah.
Dan Patrick (27:37):
Look, I'm not sure what the members are going to do. That will be up to them. But they will understand they're casting a vote to legalize marijuana in Texas. I don't know how they'll react. But I'm not. I will not be on the podium if their votes are there, and I always follow the will of the Senate. If the Senate wants to vote for it, that's up to them. It would have to have 15 Republican votes out of 19 members. We're down one now with Kelly Hancock going. It has to meet that threshold on any bill. I don't know if there are 15 who will legalize marijuana. I don't want to do that to my state.
(28:16)
And look, this is what confused me about the governor. He doesn't want to do that either. He makes my argument in his proclamation. Bad actors, the bad things that are happening to kids. And so his answer is, well, we're going to stop the kids. We'll just regulate it. We'll legalize it. I don't think he's ever run on that platform. I doubt if he'd run on it this year when he's running for governor. I'd be surprised, but maybe he will. Maybe I missed a step.
Rudy (28:46):
Will you support a Senate bill to have a hearing in the Senate, or will you wait for a House bill to come to the Senate?
Dan Patrick (28:53):
Rudy, I won't speculate. We have a ways to go and a lot to do. But I personally, what kind of state do we want? What kind of culture do we want? Do we want everybody high? Everyone will tell you in those other three states, work product has gone down. Everywhere you go, it smells like grass. It's awful. The last time I went to Colorado, I didn't want to go back anymore. I don't want that for Texas. Gaming and sports betting, look, that's a people's choice. Whatever they want to do, if that happens, it happens. But this is life and death. This is life and death, Rudy. This destroys lives. This reaches a whole nother level.
Speaker 18 (29:49):
Last question.
Dan Patrick (29:50):
Yes, last question?
Speaker 16 (29:51):
Do you plan to speak with Governor Abbott, head of the special session on this issue, to make your points and then try to-
Dan Patrick (29:56):
Yeah, look, I want to repeat. I'm not angry with him, but I'm not happy that he vetoed it, how he did it. I would be untruthful if I said, oh, that's fine. To do it at 11:22 at night, I really felt sorry for all those people that came and testified and poured their hearts out. I felt sorry for law enforcement trying to do their job. You have to respect the legislature. If it was a clear argument here, I would say, okay, Governor. Good point.
(30:33)
I'll give you an example. I wasn't with him on the cybersecurity bill he wanted at the end, because he didn't talk about it the whole session, and suddenly he wanted to pass it at the end. And I said, "Governor, I don't know anything about it. Why are we putting it at UTSA? Why are we doing this? Why are we doing that?" I said, "Give me something." I took it home. I read it for the week, and I came back and said, "I'm with you. You made your point."
(30:57)
Where was he on this bill? He could have talked to us at any time. The speaker, myself, members, he didn't ever discuss this. And then to parachute it in at the last moment, over the will of the Senate and the House, with arguments, again, other courts have said you can ban it. Our bill doesn't impact farmers at all because it only deals with drugs and food, consumables. The law before 2019 when we passed the Hemp Bill, marijuana was illegal in the state, it's still illegal in the state, and he now wants to make it legal. By this veto, he has now put us in a box. If we do nothing, the status quo continues for the next two and a half years, three years, to the next session, until you can pass a law, which would be devastating to families. Or we have to capitulate and vote for the lesser of two really bad evils. That's the box we're in.
(31:59)
We will work through it, hopefully. But people can say what they want, it's not the state I want. I don't want my kids and my grandkids growing up where everybody's high. Because his bill, what his bill says, his proclamation, that this will be the high level THC. Because according to him, now that that's already happened, he quotes a case in there that you can't go back and take that back because that would be unfair, in essence. They've already built a business. They're already selling this terrible stuff, so we can't go back and take it from them. It's illegal. Yes, we can.
Speaker 17 (32:41):
You didn't get your film incentive bill passed. Do you have any comment on that?
Dan Patrick (32:44):
Oh.
Speaker 17 (32:44):
Your film incentives bill wasn't-
Dan Patrick (32:46):
And look, we had a great session. The governor and I worked on everything. We passed probably more Senate priority bills than we've ever passed. I'm not arguing with that, but most of those bills… A few did. Most of those bills weren't life and death, and didn't destroy families. This, they did.
Speaker 18 (33:04):
Thanks, everyone. [inaudible 00:33:02] all the time we got.
Dan Patrick (33:04):
Thank you all.
Speaker 18 (33:04):
What about bail reform? Will there be bail reform on the special session.
Dan Patrick (33:06):
Yeah, I'd like to see the bail reform on the special session. Those two bills that didn't pass. Democrats want to allow murderers who have already been charged once, to get out of jail so they can kill again. And they can't stand up from that ruling, or illegal immigrants who have done that like they did to poor Jocelyn Nungaray. I don't understand the humanity of it, quite frankly. Don't understand. We didn't have any problem, Democrats in the Senate voting for it. It's the House Democrats. Thank you all very much. Hey, have a great summer, and we'll see what's next, right? All right. Thank you all. Thank you.
Rudy (33:39):
You want to comment on the Houston trade for Durant?
