Texas Hemp Industry Returns to Court as Smokable Product Ban Hangs in the Balance
A Travis County judge is deciding whether the state health agency overstepped its authority when it effectively banned THCA flower and pre-rolled joints through new testing rules.
By CBDWorldNews Editorial Staff | April 30, 2026
The Texas hemp industry returned to court on April 28 for the latest round in its fight against state regulations that banned smokable hemp products and imposed licensing fee increases of up to 4,000%. The hearing before Travis County Judge Maya Guerra Gamble will determine whether a temporary restraining order issued earlier this month gets extended into a longer injunction.
The case pits the Texas Hemp Business Council, Hemp Industry & Farmers of America, and several Texas-based dispensaries against the Texas Department of State Health Services (DSHS). At its core is a question that reaches beyond hemp: can a state health agency remake an entire industry through rulemaking, without approval from lawmakers or the public?
How the Rules Changed the Market Overnight
On March 31, DSHS rolled out new regulations for consumable hemp-derived THC products. The rules looked routine on paper — child-resistant packaging, updated labeling, new testing protocols, bookkeeping requirements. But one change rewired the market entirely.
Under the new testing framework, laboratories measure the total amount of any THC in a product, including THC that only becomes active when heated. This matters because THCA — tetrahydrocannabinolic acid — is non-intoxicating in its raw form but converts to THC when smoked or vaped. Under the old rules, THCA flower tested below the 0.3% THC threshold. Under the new rules, it doesn’t.
The result: some of the most popular hemp products in Texas, including THCA flower and pre-rolled joints, became noncompliant overnight.
Then there are the fees. Licensing costs jumped dramatically, with some businesses reporting increases from a few hundred dollars to several thousand. For small hemp shops operating on thin margins, the fee hikes alone threaten survival.
The Court Steps In
Judge Guerra Gamble granted the initial temporary restraining order on April 10, blocking enforcement of the smokable product ban and the interstate sales restrictions. Hemp shops across Texas returned smokable products to their shelves within days.
“The hemp industry sued because a state health agency shouldn’t be able to wipe out a legal market without legislative authority.” — Texas Hemp Business Council statement
The April 28 hearing focused on whether to convert the temporary restraining order into a temporary injunction, which would keep the block in place for months while the full lawsuit proceeds. The judge deferred the question of licensing fees to a separate track.
The Industry’s Argument
The hemp businesses challenging the rules make two central claims. First, they argue DSHS exceeded its statutory authority. The agency’s job, they say, is to implement regulations within the framework set by the Texas Legislature — not to effectively ban product categories that lawmakers haven’t restricted.
Second, they point to the economic damage. Texas built a hemp industry worth hundreds of millions of dollars based on clear rules. Changing those rules through agency action, without legislative debate or public comment periods, pulled the rug from under businesses that had invested heavily in compliance.
The businesses also highlight the ripple effects. Hemp farmers who grew THCA-dominant cultivars for the Texas market face crop losses. Testing labs that retooled for the new protocols now face an uncertain future. Consumers who relied on these products for wellness have lost access — at least temporarily.
For consumers interested in understanding what lab testing standards mean for the products they buy, the Texas case illustrates how testing methodology directly shapes what’s available on shelves.
What the State Says
DSHS maintains it acted within its authority and that the new testing rules simply align with scientific reality. If a product releases THC when consumed as intended — in this case, by smoking — then its total THC content should reflect that, the agency argues.
The state also frames the regulations as a public health measure. Without total-THC testing, products marketed as low-THC hemp could deliver intoxicating doses of THC to consumers who didn’t expect or want that effect.
Broader Implications
The Texas fight is the latest in a string of state-level battles over hemp regulation that have intensified since early 2026. The outcome could set precedent for how state agencies regulate hemp products nationwide.
It also intersects with the federal timeline. If Section 781 takes effect in November without a congressional fix, the federal definition of hemp will tighten dramatically — potentially making the Texas debate moot for many product categories.
For now, Texas hemp businesses are watching the court closely. The judge’s decision on the temporary injunction will determine whether smokable hemp products stay on shelves through the summer or disappear again while the lawsuit grinds forward.
The Texas Supreme Court is also expected to take up the industry’s broader challenge to the state’s delta-8 THC ban later this year, adding another layer of legal uncertainty for hemp businesses operating in the state.
These statements have not been evaluated by the Food and Drug Administration. CBD products are not intended to diagnose, treat, cure, or prevent any disease.
