{"id":242005,"date":"2026-04-09T13:24:09","date_gmt":"2026-04-09T13:24:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/242005\/"},"modified":"2026-04-09T13:24:09","modified_gmt":"2026-04-09T13:24:09","slug":"texas-hemp-industry-files-lawsuit-challenging-new-state-rules-that-rewrite-hemp-law-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/242005\/","title":{"rendered":"Texas Hemp Industry files lawsuit challenging new state rules that rewrite hemp law"},"content":{"rendered":"

<\/p>\n

The Texas Hemp Business Council (THBC) has announced that it, along with the Hemp Industry Farmers of America and Texas hemp manufacturers and retailers, has filed suit in Travis County District Court challenging new rules adopted by the Texas Department of State Health Services (DSHS) and the Texas Health and Human Services Commission (HHSC) governing consumable hemp products.<\/p>\n

The lawsuit asserts that the agencies exceeded their legal authority by adopting sweeping regulations governing consumable hemp products that conflict with Texas law and the Texas Constitution. Plaintiffs are seeking a temporary restraining order and injunctive relief to block enforcement of the rules, which took effect on March 31, 2026.<\/p>\n

“This case is about protecting the integrity of Texas law,” said Cynthia Cabrera, president of the Texas Hemp Business Council. “Lawmakers carefully debated hemp policy and chose not to change the statutory THC standard during the 89th Legislature in 2025. State agencies cannot override the decision by regulation. Our members support reasonable, lawful regulation, but regulation must follow the Constitution and the statutes the Legislature enacted.”<\/p>\n

According to the complaint, the new rules:<\/p>\n

Replace the Legislature’s delta\u20119 THC standard with a non\u2011statutory “total THC” formula that converts THCA into THC equivalents, rendering many lawful products unlawful. Prohibit the transport of hemp plants and materials into Texas for processing, disrupting lawful interstate commerce and in\u2011state manufacturing. Impose extreme fee increases, including raising manufacturer license fees from $250 to $10,000 per facility and retail registration fees from $150 to $5,000 per location. Establish escalating daily penalties that undermine statutory notice\u2011and\u2011cure protections and expose businesses to disproportionate enforcement risk. <\/p>\n

Plaintiffs contend that these measures exceed the agencies’ rulemaking authority, impose unconstitutional occupation taxes, violate due process protections and were adopted without the economic analysis required by the Texas Administrative Procedure Act. The lawsuit asks the court to:<\/p>\n

Immediately block enforcement of the challenged rules; Declare the unlawful provisions invalid and unenforceable; and Restore the regulatory framework enacted by the Legislature in 2019. <\/p>\n

“Texas farmers and processors built their businesses around the law as written,” said Brian Swenson of the Hemp Industry Farmers of America. “These rules upend that framework by substituting an agency-created THC standard and blocking the lawful movement of hemp for processing. When agencies cut off the farm-to-market pipeline without legislative approval, it puts entire operations at risk.”<\/p>\n

While DSHS’ new rules leave certain consumer safety measures intact, the lawsuit challenges provisions that go beyond implementation and alter Texas hemp law. The suit asks the court to pause enforcement while the case proceeds, arguing that once businesses are cut off from lawful supply chains or priced out of compliance, the harm cannot be undone.<\/p>\n

“These fees are not about regulation, they are barriers to entry,” said Todd Harris, a Texas hemp retailer participating in the lawsuit. “Raising licensing and registration fees by forty- or fifty-fold overnight goes far beyond cost recovery and threatens the survival of small, compliant businesses across Texas. Products that were previously legal under state law are now subject to new regulatory requirements, and supply and transport restrictions make it more difficult to stock and sell these products effectively.”<\/p>\n

A copy of THBC’s lawsuit can be accessed here<\/a>.<\/p>\n

For more information:\"\"
Texas Hemp Business Council
(512) 576-7210
Email: [email\u00a0protected]<\/a>
texashempbusinesscouncil.com<\/a><\/p>\n

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