A Texas judge last week temporarily halted the enforcement of new state regulations that effectively banned the sale of smokable hemp products, such as so-called THCA flower.
The April 10 decision provides a temporary reprieve for hemp businesses dealing with sweeping changes recently introduced by state agencies, according to KUT 90.5.
It’s the second state-level ban on hemp THC products to stumble in court. Last week, an Ohio judge also sided with hemp businesses and imposed a temporary restraining order on a new state law restricting hemp THC products to licensed dispensaries.
Fee hikes add financial strain on hemp businesses
The Texas rules, which took effect on March 31, redefined how THC levels are calculated, effectively outlawing smokable hemp products such as flower and concentrates.
The regulations also imposed steep fee increases, raising annual costs for hemp retailers from $150 to $5,000 per location and for manufacturers from $250 to $10,000 per facility.
According to KUT, Judge Maya Guerra Gamble’s ruling temporarily blocks the ban on smokable hemp sales but allows the increased fees to remain in effect.
The restraining order will last for two weeks, with a hearing on a potential longer-term injunction scheduled for April 23.
The lawsuit, filed by a coalition of businesses and industry groups including the Texas Hemp Business Council, argued that DSHS exceeded its authority and implemented rules that could force hundreds of businesses to close.
Plaintiffs warn of ‘irreparable harm’ to hemp industry
During a virtual hearing on Friday, plaintiffs’ attorney Jason Snell said the rules were forcing some of the state’s more than 13,000 hemp retailers and 800 licensed manufacturers to close.
“This is actually irreparable harm that is already occurring and is exponentially multiplying like a wave rolling into a beach that gets bigger,” Snell said, according to KUT.
The DSHS defended the rules, saying they provide clarity and align with existing laws.
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But the plaintiffs contend that the new total THC formula and other measures are overly restrictive and detrimental to the industry.
The lawsuit does not challenge regulations requiring child-resistant packing, detailed labeling or recall procedures, according to KUT.
Texas lawmakers likely will attempt to regulate the hemp-derived THC industry rather than ban products when the Legislature meets again in 2027.
