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Texas Hemp Industry Fights State Agencies Over New Cannabis Rules, Citing Constitutional Overreach

Key Takeaways

  • Texas hemp businesses allege state agencies violated the Texas Constitution by rewriting statutory definitions of hemp.
  • The lawsuit challenges new rules reducing total THC content (including THCA) to 0.3% and increasing licensing fees from $258 to $10,000 for manufacturers.
  • Industry leaders argue agencies are creating new law, directly contradicting the Legislature's 2019 intent to legalize hemp.
  • The case hinges on the constitutional principle that legislative power rests with the Legislature, not administrative bodies.
Big news for anyone following Texas cannabis laws: hemp businesses and advocacy groups are suing the state. They want to stop new rules that would essentially ban natural smokeable hemp products and skyrocket licensing fees. This isn't just a business spat; it's a fight over who gets to make the law in Texas. Here’s the deal: groups like the Texas Hemp Business Council and several dispensaries have filed for a temporary restraining order. They're going up against the Texas Department of State Health Services (DSHS) and the Texas Health and Human Services Commission. Their main argument? These agencies, they say, are overstepping their constitutional bounds. They’re acting like lawmakers, changing what the Legislature already defined for hemp back in 2019. You see, Texas law is pretty clear: hemp is defined by having no more than 0.3% Delta-9 THC. That's the intoxicating part of cannabis. David Sergi, an attorney for the hemp groups, puts it bluntly: state officials are trying to create new laws that directly contradict what the Texas Legislature intended. Attorney General Ken Paxton and DSHS haven’t commented yet on the lawsuit. These new DSHS rules, which kicked in on March 31, include stuff like child-resistant packaging and new labeling. The industry actually supports those, along with the legal purchasing age of 21, which became an emergency rule last year. Those make sense for consumer safety, and the industry agrees it’s within the agency’s power. But here’s where the legal challenge hits hard: two specific new rules. First, they drastically reduce the *total* THC content allowed in products to 0.3%. This is a huge change because it includes THCA, which doesn't get you high until you heat it up, like by smoking it. Under this rule, popular products like THCA flower and pre-rolled joints become illegal. Poof. Gone. Second, licensing fees for manufacturers of hemp-derived THC are jumping from a modest $258 to a whopping $10,000 per facility. Retail registrations? They’re going from $155 to $5,000. That’s a massive increase, and it could put a lot of businesses out of commission. Remember, while Texas bans marijuana, lawmakers legalized hemp in 2019. But manufacturers found a way to work with THCA, creating products that could give you a high when smoked. This led some lawmakers to call it a "legal loophole" and worry about kids getting access. The Legislature even tried to ban these products, but Governor Greg Abbott vetoed that bill last summer. Instead, he told state agencies like TABC and DSHS to amp up regulations. But the lawsuit says there’s a line. An administrative agency can't just swap its own policy ideas for the laws passed by elected officials. The Texas Constitution clearly states that legislative power belongs to the Legislature, not to state agencies. This case isn't just about hemp; it’s about the separation of powers and how much authority state agencies really have to interpret — or rewrite — laws.