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Texas Hemp Ban Takes Effect, Igniting Legal Battles Over State Authority and Interstate Commerce

Source: Politics – Houston Public Media6 min read

Key Takeaways

  • Texas DSHS new rules ban retail and manufacturing sales of smokable hemp by redefining 'total THC,' making most products illegal.
  • State law maintains the legality of possessing smokable hemp, creating a disconnect between sales prohibition and personal use.
  • DSHS claims the ban extends to out-of-state mail orders, but cannabis attorneys argue federal law (2018 Farm Bill) protects interstate hemp commerce.
  • Businesses face significantly increased annual fees (e.g., retailers from $150 to $5,000) and strict compliance timelines, leading to substantial economic impact.
  • The hemp industry plans immediate legal challenges, seeking temporary restraining orders and injunctions against the DSHS regulations, citing regulatory overreach and economic harm.
Picture this: you're in Texas, and suddenly, the smokable hemp products you used to buy are off limits. That's the reality for many now that new state rules have kicked in, banning the sale of hemp flower, extracts, and other consumable forms you'd typically smoke. This change dropped less than a month after the Department of State Health Services (DSHS) adopted some pretty big regulations for Texas’s booming hemp scene. Now, here's where it gets interesting from a legal standpoint: these new rules target retailers and manufacturers. The actual state law hasn't changed. That means having smokable hemp products is still legal. Your local police in Austin, for example, have even said their approach hasn't shifted one bit. They're not going to arrest you just for possessing it. So, if Texas stores can't sell these products, can you still order them online from other states? This is a huge question for consumers, and it's where the legal waters get really murky. DSHS says no way. They claim any product 'introduced into commerce in this state' – including stuff mailed directly to your door – has to follow their rules. But cannabis lawyers? They're shaking their heads, saying, "Hold on a minute." They acknowledge it's a legal gray area, but they doubt the state can actually enforce this on out-of-state companies. Susan Hays, a cannabis attorney and lobbyist, put it bluntly: "Whether anyone can be criminally prosecuted for buying products from out of state is still going be doubtful and difficult." She believes many prosecutors and cops are just over trying to criminalize a plant. So, why this ban on smokable cannabis sales anyway? It all comes down to how Texas defines what's legal hemp versus illegal marijuana. Hemp is legally distinct because it has less than 0.3% Delta-9 THC, which is the main compound that gets you high. Anything above that? That's marijuana. The trick here is that cannabis plants have other mind-altering compounds. One of them is THCA, which is present in much higher amounts and turns into Delta-9 THC when you heat or smoke it. The new DSHS rules redefine how THC is calculated. They now count THCA as 88% Delta-9 THC. This new 'total THC' calculation practically wipes out most smokable hemp products, which industry insiders say made up about half of the Texas market. Adding another layer of complexity is federal law. The 2018 Farm Bill made hemp legal across the country. It also specifically states that states can't interfere with the transportation or shipment of hemp. This is where the legal challenge over interstate commerce comes in. Can Texas truly block a legal product shipped from a state where it's perfectly fine to sell? Andrea Steel, an attorney with The Banks Law Firm in Houston, figures that if you want to order a product that now falls outside Texas's new rules, you'll probably still find an out-of-state company willing to ship it to you. While smokable hemp is in hot water, hemp edibles and drinks are still legal in Texas. They weigh more, so it's much easier for them to stay under that 0.3% Delta-9 THC limit. What about police in Texas? Austin Police Department says their enforcement hasn't changed. Lt. Patrick Eastlick, who runs APD’s Tactical Intelligence Division, points out that it’s almost impossible for anyone – even trained officers – to tell the difference between legal hemp and illegal marijuana just by looking at the plant material. Because of this, officers usually rely on product packaging to tell them if something is legal hemp with under 0.3% Delta-9 THC. If you have that packaging, you can keep your product. If not, they might confiscate it. But even with marijuana, Austin police aren't typically filing charges for small amounts unless other serious crimes are involved. Eastlick noted that if they can't determine if it's hemp or marijuana, they'll just seize and dispose of it following their procedures. For businesses, these new regulations hit hard and fast. DSHS sent out notice about the new rules on March 11th, giving businesses only 20 days before they took effect. This tight timeline left many businesses scrambling. Every business selling consumable hemp, even bars serving THC drinks, now faces much higher costs. Annual fees for retailers have skyrocketed from $150 to $5,000 per location. Manufacturers are seeing their fees jump from $250 to a hefty $10,000 per year. To put that in perspective, alcohol distillers pay the Texas Alcoholic Beverage Commission $3,000 every two years. The new hemp rules also demand stricter testing, require products to be sold in child-resistant, resealable packaging with detailed labels, and mandate written recall procedures and consumer complaint tracking. Brandon Tijerina, who owns ATX Organics, a business that both makes and sells hemp products, said smokable flower and concentrates made up about 75% of his sales. He's frustrated that this business will now just go to other states. "Taxpayer money, all of our economic money that we’ve used to grow this industry is just going to be funneled into other states, which is just ridiculous," Tijerina said. "You’re killing jobs. You’re destroying industries. It’s a lot of damage, very detrimental." Not surprisingly, the industry isn't taking this lying down. They're planning to fight back in court. They had to wait until the rules actually took effect to file a lawsuit because, as Texas Hemp Business Council president Cynthia Cabrera explained, "We have to be able to show harm." The Texas Hemp Business Council is aiming for an immediate court-ordered pause on these regulations, hoping for a temporary restraining order within 48 hours. That would give them a few weeks to build their case for a longer-term temporary injunction while the entire issue moves through the Texas court system. This isn't the first time the DSHS has faced such legal challenges. Hometown Hero, an Austin-based hemp company, successfully got a temporary injunction in 2021 to stop DSHS from trying to ban Delta-8 by reclassifying it. That injunction is still active. Cabrera, who also works as a legal strategist for Hometown Hero, indicated that their legal challenge will cover a lot of ground: the high fees, the impossible paperwork deadlines, the redefinition of 'total THC,' the interstate commerce implications, and the interference with manufacturing. This is a complex legal battle with big implications for Texas businesses and consumer freedoms.