HOUSTON, Texas (KTRK) — It has been just over a week since Texas’ ban on smokable hemp took effect, and some business owners say the new rules are already taking a financial toll – while a legal challenge aims to overturn it.<\/p>\n
Joseph Mitchell, owner of Gastronauts Dispensary in Houston’s Third Ward, said smokable hemp products once made up about 80% of his business. Since the ban took effect on March 31, he said his daily sales have dropped dramatically.<\/p>\n
“I’m at $200 days, $30 days. It’s just so up and down because I have to turn customers away,” Mitchell said.<\/p>\n
Mitchell opened his shop in late January after months of preparation, but said the timing of the ban has made it difficult to stay afloat.<\/p>\n
“It impacted me severely,” he said. “I’ve only been open since January 29, and it was kind of difficult getting open.”<\/p>\n
The Texas Department of State Health Services enacted the ban under Governor Greg Abbott’s direction, prohibiting the sale of smokable hemp products. The move followed an unsuccessful push by some state leaders to ban all THC products.<\/p>\n
Now, the hemp industry is pushing back. A lawsuit filed this week in Travis County challenges both the smokable hemp ban and increased licensing fees for businesses.<\/p>\n
Attorneys representing several industry stakeholders argue the state overstepped its authority.<\/p>\n
“This is a very black-and-white separation of powers lawsuit; that the agency went above its authority and overstepped its boundaries,” said Andrea Steel of The Banks Law Firm.<\/p>\n
The lawsuit contends the state’s actions conflict with the 2019 federal Farm Bill, which legalized certain hemp-derived products containing THC.<\/p>\n
Steel said the ban could have widespread consequences.<\/p>\n
“It’s going to shut down the entire industry. It’s going to cause a significant break in the supply chain,” she said.<\/p>\n
Steel confirmed a hearing on a temporary restraining order is scheduled for 2 p.m. Friday in Travis County. Business owners say they are hopeful a judge will grant relief, but acknowledge the outcome remains uncertain.<\/p>\n
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