Judge Halts Enforcement of State’s Smokable Hemp Ban
Texas retailers can again sell smokable hemp products following a recent judicial decision. A Travis County judge has issued a temporary restraining order that halts the enforcement of specific state hemp regulations established on March 31.
Background on Texas Hemp Regulations
The Department of State Health Services (DSHS) implemented new rules affecting the calculation of THC levels. These changes effectively banned the sale of smokable hemp products, including flower and concentrates, which represent the majority of hemp sales in Texas.
Significance of Smokable Hemp
Data from the industry and economists indicate that smokable hemp products are crucial for Texas’s hemp market. Before the regulations, over 13,000 stores were authorized to sell hemp products in the state. Furthermore, nearly 800 companies held licenses for manufacturing hemp.
Legal Challenge Against DSHS
A coalition of businesses, supported by the Texas Hemp Business Council, initiated legal action against the DSHS after these regulations were enacted. They argue that the DSHS overstepped its legal authority, potentially forcing many businesses into closure. The lawsuit addresses issues such as:
- The new “total THC” calculation method.
- Significantly increased fees for retailers and manufacturers.
- Imposing rapid fines for compliance failures.
Financial Implications of New Rules
The revised DSHS regulations significantly raised annual fees. Retailers now face fees of $5,000 per location, up from a previous cost of $150. Manufacturers are required to pay as much as $10,000 per facility, a steep increase from the former fee of $250.
Judicial Proceedings
During a virtual court hearing, attorney Jason Snell emphasized the immediate negative impact of these regulations, claiming that businesses are already experiencing “irreparable harm.” In contrast, the Texas Attorney General’s Office maintains that the new rules simply clarify existing laws.
Next Steps in Legal Proceedings
The temporary restraining order from Judge Maya Guerra Gamble is set to last for two weeks. A hearing to discuss the potential long-term suspension of the new DSHS rules is scheduled for April 23 at 9 a.m. The upcoming proceedings will determine the ongoing fate of smokable hemp sales in Texas.
