A coalition of Texas hemp businesses and advocacy groups filed a lawsuit Tuesday in Travis County district court seeking to block state regulations that ban smokeable hemp products and sharply increase licensing fees for hemp companies.
The Texas Hemp Business Council, Hemp Industry & Farmers of America, and several Texas-based dispensaries and manufacturers named the Texas Department of State Health Services and the Health and Human Services Commission as defendants. The groups are seeking a temporary restraining order against rules that took effect March 31.
What the New Rules Do
The challenged regulations eliminate natural smokeable hemp products, including THCA flower and pre-rolled joints. They also overhaul how the state measures THC content, switching from Delta-9 THC alone to total THC — a change that pushes many previously compliant products over the legal 0.3 percent threshold.
Licensing fees jumped dramatically under the new framework. Manufacturer licenses rose from $258 to $10,000, while retail licenses went from $155 to $5,000. Companies that fail to comply face license revocation and daily violation penalties of up to $10,000.
Industry Says Agencies Overstepped
Attorneys for the plaintiffs argue state agencies went beyond their authority by rewriting definitions the Texas legislature established in its 2019 hemp law. “These Texas officials and state agencies are clearly attempting to create new law in direct contradiction to what the Texas legislature intended,” the industry’s legal team stated.
A separate case pending before the Texas Supreme Court, which challenges DSHS authority over delta-8 THC regulation, could influence the outcome. Both cases center on whether agencies exceeded their rulemaking power.
Part of a Broader National Pattern
Texas is not alone in tightening hemp rules. Pennsylvania, Rhode Island, and Ohio are also moving to restrict hemp products ahead of a federal ban on intoxicating hemp consumables set for November 2026. That provision, enacted through agriculture appropriations last year, would prohibit hemp-derived consumables containing more than 0.4 milligrams total THC per container — a threshold the US Hemp Roundtable estimates would eliminate 95 percent of products currently on the market.
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Sources: KSAT San Antonio, Texas Tribune
