Texas hemp industry groups filed suit in Travis County this week to try to stop new state regulations aimed at smokeable, hemp-derived THC products. The plaintiffs asked the court for a temporary restraining order against the Texas Department of State Health Services and the Texas Health and Human Services Commission, saying the agencies moved beyond their authority when they adopted rules that eliminate some natural smokeable hemp products and raise fees for businesses.
The lawsuit was filed Tuesday by the Texas Hemp Business Council, Hemp Industry & Farmers of America, and several Texas-based dispensaries and manufacturers, according to the complaint and related reporting. The plaintiffs’ argument centers on what Texas law already defines as “hemp,” and on whether the health agencies can reinterpret those definitions through regulation.
At the core of the dispute is the state’s 2019 decision to legalize hemp alongside a THC threshold. Under Texas law, hemp is defined by a delta-9 THC concentration of not more than 0.3%, the lawsuit said, and companies have since marketed and sold “natural” smokeable hemp products by cultivating hemp plants that contain THCA—an ingredient the plaintiffs say can produce an intoxicating high when ignited.
A key trigger for tighter oversight came last year, when lawmakers voted to ban smokeable hemp-derived THC products out of concern that the products were getting into the hands of children. Gov. Greg Abbott vetoed that effort last summer, and instead directed regulators—including the state health agencies—to increase oversight of the industry.
The state regulations at issue took effect March 31. The rules include child-resistant packaging, new labeling, testing and bookkeeping requirements, and they also codify an age of 21 for purchasing, according to the reporting. Under the new approach, laboratories test products based on the total amount of THC, with the industry arguing that products can be deemed noncompliant if the measured THC exceeds the 0.3% threshold even when the THC is activated upon being smoked.
Because of that testing standard, the plaintiffs said, some popular hemp products have been targeted for elimination from sale. The report said that hemp businesses that sell noncompliant products could face penalties including license revocation and up to $10,000 in violation fees for each day the products were sold.
In court, the hemp coalition has argued that the agencies are attempting to make new law through regulation rather than enforcing the existing statutory framework. David Sergi, an attorney for the hemp coalition, said in a press release that “Under current Texas law, hemp is defined by its delta-9 THC concentration of not more than 0.3%,” and argued that state officials are “clearly attempting to create new law in direct contradiction to what the Texas legislature intended.” The lawsuit also states that “The Texas Constitution vests legislative power in the Legislature, not administrative agencies,” and describes the rules as an improper substitution of agency policy judgment for constitutional lawmaking.
The new rules also substantially increase the cost of operating in the hemp-derived THC market. The reporting said licensing fees for manufacturers rise from $258 to $10,000 per facility, and retail registrations increase from $155 to $5,000. Sergi said the hemp business community supports some requirements the state implemented, but the lawsuit seeks to stop rules that he said would effectively end in-state production and sales of hemp products the Legislature chose not to ban.
The agencies’ position, as described in the reporting, draws from safety concerns raised by lawmakers about high-THC products and youth. While the earlier, proposed outright ban did not survive, lawmakers did succeed in banning vape pens containing THC and other hemp-derived intoxicating chemicals.
The dispute also references changes in poison center calls after hemp-derived THC was legalized at the federal level. Data provided from the Texas Poison Center Network showed cannabis-related poisoning calls rising from 923 in 2019 to a 10-year high of 2,592 in 2024, and the calls climbed to 2,669 last year. The report said most of those calls involved suspected poisoning of children under 5 and teenagers, while drug policy experts cautioned that the numbers alone do not establish causation and may require additional context because poisoning calls can rise as drugs become legalized.
After the lawsuit was filed, Jennifer Ruffcorn, a spokesperson for the Texas Health and Human Services Commission, directed questions about the case and what it means for the new hemp regulations to the Department of State Health Services. Lara Anton, a spokesperson for DSHS, declined to comment on the pending litigation.
The case is also part of a longer fight over hemp-derived THC rules in Texas. The hemp industry’s battle began in 2021, after the state classified delta-8 THC—another intoxicating hemp compound—made naturally and regulated by the industry as illegal, prompting litigation that has since moved through the courts. The Texas Supreme Court is expected to consider that delta-8 case this year, and the reporting said its outcome could affect the court’s handling of the current challenge to the smokeable hemp regulations because both lawsuits argue the authority of health agencies to reshape the market without legislative approval.