A coalition of Texas hemp businesses filed an emergency lawsuit this week seeking to block new state regulations that ban sales of smokable hemp products and sharply increase licensing fees, saying the rules will force many shops to close.
The regulations from the Texas Department of State Health Services, which took effect March 31, prohibit intoxicating smokable hemp items such as flower buds and pre-rolled joints — the most popular products at many stores, as reported by The Dallas Express. They also raise manufacturer licensing fees from $258 to $10,000 per facility and retail registration fees from $155 to $5,000, while adding strict requirements for recordkeeping, testing, labeling, and child-resistant packaging.
Candice Stinnett, owner of Emerald Organics in Fort Worth, said the changes have already forced her to furlough more than half her staff.
“It’s been pretty devastating,” she said, CBS News Texas reported. “We had to furlough 16 out of 29 of our employees, so over half. So, my goal right now is to simply keep the lights on.”
Stinnett opened the shop seven years ago after cannabis helped her through blood cancer treatment.
“I was 21 when I was diagnosed with blood cancer, and throughout my treatment, I was introduced to the therapeutic and medicinal benefits of this plant,” she said.
She supports the new recordkeeping requirements aimed at safety but opposes the ban on flower.
“The required recordkeeping for these products to make this industry safe, we’re all on board for that,” Stinnett said. “But it’s the flower. I know what it’s like to go through a sickness and need relief, and so my inspiration is the people who keep going forward.”
“There’s no way we can withstand the cut of flower,” she added.
Employee Mary Ransdell said the impact on staff is visible daily.
“It’s hard seeing it because they’re all stressed and they have to put on this happy face for the customers, and it’s just so hard,” Ransdell said, per CBS.
Stinnett welcomed the lawsuit.
“We’re stoked about it,” she said. “It’s the people that come in here every day, hundreds of people, that looked to the plant for relief, and that’s who I’m standing with.”
The suit argues that state agencies overstepped their authority by imposing rules that lawmakers had declined to approve. State officials say the changes follow direction from Gov. Greg Abbott to prioritize safety and keep the products away from minors.
Hemp was legalized in Texas in 2019 under a federal definition limiting Delta-9 THC to less than 0.3%. Manufacturers later used a loophole with THCA, a non-intoxicating compound that converts to THC when smoked, creating a legal market for smokable products.
The new rules measure total THC content, effectively banning those items. Businesses caught selling noncompliant products face license revocation and fines up to $10,000 per day.
Industry leaders say the fee increases and product restrictions will eliminate much of their inventory and drive smaller retailers, especially in rural areas, out of business.
They support age verification, warning labels, and child-proof packaging, but warn that the broader changes hand market share to illegal operators.
A hearing on the lawsuit is scheduled for Friday.
