The lawsuit claims that new DSHS hemp rules threaten Texas retailers with “Total THC” testing and $5,000 fees.

AUSTIN, Texas — An East Texas vape shop is suing the Texas Department of State Health Services (DSHS), challenging new rules for hemp retailers that are set to take effect on March 31.

That lawsuit echoes what many local hemp retailers have felt in recent weeks: that these new rules and fees could devastate the Texas hemp industry.


Background: New DSHS hemp regulations

This stems from new regulations DSHS adopted earlier this month that revise testing and packaging requirements, amend record-keeping standards and tack on much heavier licensing fees.

DSHS implemented these new rules and fees in response to an executive order from Gov. Greg Abbott last year. After bills to ban or regulate hemp products containing THC failed to become law, he directed state agencies to come up with new rules to regulate them to address concerns that some of those products are dangerous and marketed to children.

So DSHS increased licensing fees to $10,000 per year for product manufacturers and $5,000 per year to retailers starting on March 31.


Boomtown Vapor’s lawsuit claims

The retailer that filed the lawsuit claims it’ll make it harder for small businesses to stay open.

In their lawsuit, the retailer “Boomtown Vapor” claims that the new rules contradict a state law passed in 2019 that allowed for hemp containing a low amount of THC to be grown in Texas. That law specifically mentioned testing for Delta 9 THC, and the retailers argue that DSHS’s new rule about testing for Total THC defies that.

The retailers also say the licensing fees will be double from what they were before and are arbitrary.


Arguments: State law conflict, job losses

Boomtown Vapor says the new standards for what kind of products they can sell, on top of hefty fees, will cause thousands of jobs to be lost and businesses to close down. So they want the court to halt the enforcement of these rules.

The suit also claims a separation of powers violation under the Texas Constitution, stating that DSHS usurped legislative authority after lawmakers rejected bans during both the 89th Legislative Session (Senate Bill 3) and subsequent special sessions (Senate Bill 5 and Senate Bill 6).


DSHS response

KVUE reached out to DSHS for comment, but have not heard back at the time of publication.