AUSTIN, Texas, April 08, 2026 (GLOBE NEWSWIRE) -- The Texas Hemp Business Council (THBC) today announced that it, along with the Hemp Industry Farmers of America and Texas hemp manufacturers and retailers, has filed suit in Travis County District Court challenging new rules adopted by the Texas Department of State Health Services (DSHS) and the Texas Health and Human Services Commission (HHSC) governing consumable hemp products.
The lawsuit asserts that the agencies exceeded their legal authority by adopting sweeping regulations governing consumable hemp products that conflict with Texas law and the Texas Constitution. Plaintiffs are seeking a temporary restraining order and injunctive relief to block enforcement of the rules, which took effect on March 31, 2026.
“This case is about protecting the integrity of Texas law,” said Cynthia Cabrera, president of the Texas Hemp Business Council. “Lawmakers carefully debated hemp policy and chose not to change the statutory THC standard during the 89th Legislature in 2025. State agencies cannot override the decision by regulation. Our members support reasonable, lawful regulation, but regulation must follow the Constitution and the statutes the Legislature enacted.”
According to the complaint, the new rules:
- Replace the Legislature’s delta‑9 THC standard with a non‑statutory “total THC” formula that converts THCA into THC equivalents, rendering many lawful products unlawful.
- Prohibit the transport of hemp plants and materials into Texas for processing, disrupting lawful interstate commerce and in‑state manufacturing.
- Impose extreme fee increases, including raising manufacturer license fees from $250 to $10,000 per facility and retail registration fees from $150 to $5,000 per location.
- Establish escalating daily penalties that undermine statutory notice‑and‑cure protections and expose businesses to disproportionate enforcement risk.
Plaintiffs contend that these measures exceed the agencies’ rulemaking authority, impose unconstitutional occupation taxes, violate due process protections and were adopted without the economic analysis required by the Texas Administrative Procedure Act. The lawsuit asks the court to:
- Immediately block enforcement of the challenged rules;
- Declare the unlawful provisions invalid and unenforceable; and
- Restore the regulatory framework enacted by the Legislature in 2019.
“Texas farmers and processors built their businesses around the law as written,” said Brian Swenson of the Hemp Industry Farmers of America. “These rules upend that framework by substituting an agency-created THC standard and blocking the lawful movement of hemp for processing. When agencies cut off the farm-to-market pipeline without legislative approval, it puts entire operations at risk.”
While DSHS’ new rules leave certain consumer safety measures intact, the lawsuit challenges provisions that go beyond implementation and alter Texas hemp law. The suit asks the court to pause enforcement while the case proceeds, arguing that once businesses are cut off from lawful supply chains or priced out of compliance, the harm cannot be undone.
“These fees are not about regulation, they are barriers to entry,” said Todd Harris, a Texas hemp retailer participating in the lawsuit. “Raising licensing and registration fees by forty- or fifty-fold overnight goes far beyond cost recovery and threatens the survival of small, compliant businesses across Texas. Products that were previously legal under state law are now subject to new regulatory requirements, and supply and transport restrictions make it more difficult to stock and sell these products effectively.”
A copy of THBC’s lawsuit can be accessed here.
Background on Hemp in Texas
In 2019, Texas enacted a comprehensive framework legalizing and regulating hemp and consumable hemp products under HB 1325, establishing a 0.3% delta-9 THC standard. In 2025, lawmakers debated proposals to significantly restrict hemp products. Although the Texas Legislature passed Senate Bill 3, Governor Greg Abbott vetoed the bill, and two subsequent special legislative sessions failed to enact any new hemp legislation. Governor Abbott later issued Executive Order GA‑56 directing agencies to adopt limited public safety measures within existing law, while preserving the Texas Legislature’s authority over substantive policy changes. Despite these limits, DSHS and HHSC adopted new rules that went into effect on March 31, 2026.
Since legalization in 2019, the Texas hemp industry has grown into a significant economic driver, generating an estimated $10 billion in annual economic activity and supporting more than 53,000 jobs statewide. From family farms and rural producers to manufacturers, distributors and retail storefronts, the industry has created new revenue streams, revitalized local economies, supported veteran‑owned and small businesses and contributed tax revenue and investment to communities across Texas.
About the Texas Hemp Business Council
The Texas Hemp Business Council is an industry organization dedicated to promoting the hemp-based cannabinoid industry in Texas, while advocating for consumer safety, education and stakeholder engagement. More information is available at http://www.texashempbusinesscouncil.com.
Media Contact:
George Medici/Natalie Mu
PondelWilkinson Inc.
gmedici@pondel.com or nmu@pondel.com
310-279-5980
