A multi-day hearing began Tuesday in Travis County District Court over new Texas Department of State Health Services rules that effectively ban most smokable hemp products, including flower buds and pre-rolled joints.
Industry groups are asking the court to issue a permanent injunction blocking enforcement of the rule while the lawsuit proceeds, CBS Austin reported.
The rules, which took effect March 31, 2026, changed THC measurement to a “total THC” standard that includes THCA, rendering many previously legal smokable products non-compliant with the state’s 0.3% delta-9 THC definition of hemp. A temporary restraining order issued April 10 by Judge Maya Guerra Gamble has kept products on shelves pending the outcome of this hearing, The Dallas Express reported at the time.
The lawsuit, filed by the Texas Hemp Business Council, Hemp Industry & Farmers of America, and several Texas hemp businesses, argues that DSHS and HHSC exceeded their authority by rewriting the statutory definition of hemp established by the Legislature in 2019 under HB 1325.
In the original complaint, industry attorneys stated: “An administrative agency may not substitute its own policy judgment for the outcome produced by the constitutional lawmaking process.” They further noted that the Legislature debated and declined to enact a broader ban during the 2025 session and special sessions.
The challenged rules also include steep increases in licensing fees — raising manufacturer fees from approximately $258 to $10,000 per facility and retail registration fees from $155 to $5,000 — along with new testing, labeling, and recordkeeping requirements. The industry has said these changes threaten thousands of jobs and small businesses across Texas.
The Dallas Express previously reported on the initial temporary block, noting that the order allowed smokable hemp products back on shelves while deferring decisions on licensing fees.
The Texas Hemp Business Council has emphasized support for reasonable safety regulations while challenging provisions that alter core statutory definitions. The hearing, expected to span multiple days, will determine whether the temporary pause becomes a longer-term injunction.
A decision on extending the block is anticipated soon after arguments conclude. The outcome could significantly affect the Texas hemp industry, which has grown into a multi-billion-dollar economic driver since hemp legalization in 2019.
