A coalition of Texas hemp industry leaders and advocacy organizations has initiated a lawsuit against state officials over new regulations that restrict access to hemp-derived products, particularly smokable THCA flower. The lawsuit, filed by the Texas Hemp Business Council (THBC), Hemp Industry & Farmers of America (HIFA), and several businesses, claims that the Department of State Health Services (DSHS) and the Health and Human Services Commission (HHSC) have unlawfully bypassed legislative authority to impede the sale and manufacture of consumable hemp products.
Definitions and Legislative Intent
The crux of the dispute revolves around the definition of hemp. State law, as enacted by the legislature and governor in 2019, stipulates that cannabis products are legal if they contain a delta-9 THC concentration of no more than 0.3 percent. However, DSHS and HHSC have recently adopted a controversial “total delta-9 THC” limit calculated using a post-decarboxylation formula that includes tetrahydrocannabinolic acid (THCA).
“These Texas officials and state agencies are clearly attempting to create new law in direct contradiction to what the Texas legislature intended,” stated David Sergi, the attorney leading the case. He emphasized that the Texas hemp business community does not oppose regulations related to age verification or consumer protections, but they seek to block rules that could effectively eliminate the in-state production of hemp products that were not banned by the Legislature in recent sessions.
Impact on Business Licensing
The lawsuit also addresses significant increases in business licensing fees imposed by the new regulations. Under the revised rules, the fee for a manufacturer license has surged from $250 to $10,000 per facility, while the fee for retailer registration has jumped from $150 to $5,000 per location. The lawsuit argues that these changes not only contradict legislative intent but also undermine the state’s established legal frameworks for the hemp industry.
Legal Context and Community Sentiment
The suit notes that the constitutional lawmaking process, which included the legislative passage of Senate Bill 3 and subsequent gubernatorial veto, clearly resulted in no new laws regarding hemp. Texas law does not allow agencies to override this outcome through rulemaking.
The complaint highlights Texas’s commitment to regulatory stability and economic growth, asserting that the state has established a comprehensive framework for the regulation of consumable hemp products as authorized by the Legislature in 2019. The plaintiffs argue for immediate judicial relief to prevent enforcement of the new rules while also supporting the regulatory framework designed to ensure the safe and lawful production of hemp products.
Broader Implications and Voter Sentiment
In a broader context, Texas lawmakers introduced legislation in 2025 to heavily restrict hemp products, but it was vetoed by Governor Greg Abbott. The recent hemp industry lawsuit also names Attorney General Ken Paxton as a defendant.
Public opinion appears to be shifting as well. A statewide poll from February indicated that most Texas voters disapprove of how state leaders have managed marijuana and THC policy. The sentiment for reform is echoed in other surveys showing a desire for less stringent marijuana laws.
Additionally, the state has recently approved new medical marijuana business licenses as part of an initiative to expand the cannabis program, a move that coincided with growing voter support for marijuana legalization.
As Texas continues to navigate the complexities of hemp and cannabis regulation, the outcome of this lawsuit may have significant implications for the industry and its stakeholders.