Smokable hemp products can once again be sold in Texas, thanks to a temporary restraining order issued by a Travis County judge. This ruling, determined on Friday, halts the enforcement of recent state regulations concerning hemp that were put into effect on March 31.
The Texas Department of State Health Services (DSHS) had introduced rules that recalibrated how THC levels are measured, effectively banning smokable hemp products such as flower and concentrates. These products are vital to the Texas hemp market, accounting for a significant portion of hemp sales in the state, according to industry experts.
In addition to the THC level changes, the DSHS regulations imposed a steep increase in annual fees for hemp retailers, jumping from $150 per location to $5,000. For manufacturers, the hike was even more dramatic, escalating from $250 to $10,000 per facility. This sudden financial burden raised concerns among businesses and advocacy groups, prompting a lawsuit filed by the Texas Hemp Business Council and several other entities on Tuesday. They claimed that the DSHS had overstepped its authority, with rules that could potentially shutter hundreds of businesses across the state.
During a virtual hearing on Friday, Judge Maya Guerra Gamble ruled to block the DSHS regulations against the sale of smokable hemp but did not address the increased fee structure. Currently, over 13,000 stores in Texas are registered to sell hemp products, alongside nearly 800 licensed manufacturers.
Plaintiffs’ attorney Jason Snell expressed concern that the implementation of these rules was already imposing irreparable harm on businesses, likening the situation to a “wave rolling into a beach that gets bigger.” The lawsuit, however, does not seek to overturn numerous other regulations pertaining to child-resistant packaging, detailed product labels, and recall procedures but rather focuses on the problematic changes regarding THC calculations, elevated fees, and increasing penalties for non-compliance.
In defense of the regulations, Zachary Berg with the Texas Attorney General’s Office argued that the DSHS rules were merely clarifying existing legislation. The temporary restraining order will remain in effect for two weeks, during which a hearing is set for April 23 at 9 a.m. to consider whether the rules should be suspended for a longer duration while the case is adjudicated.
