Texas THC rule remains blocked for now despite state Supreme Court ruling

FILE – Emergency rules for hemp products with THC

Commissioners with TABC passed emergency regulations to restrict the sale of hemp products that contain THC. The action is in response to the executive order issued by Gov. Abbott earlier this month.

AUSTIN, Texas - Smokable hemp products can continue to be sold in Texas until at least July after an injunction blocking enforcement of new state regulations was extended Friday.

What's new:

A District Court judge in Travis County heard arguments about the so-called "Total THC" rule this week and found that the regulations likely exceed the statutory authority of the Department of State Health Services and dramatically increased licensing fees likely constitute an illegal tax.

The District Court ruling came just hours after a ruling by the Texas Supreme Court in a separate case that found DSHS has broad authority to regulate substances such as THC, while also limiting legal claims brought in that case.

The backstory:

The so-called "Total THC" rule at the heart of the battle took center stage this week as both the state and members of the state’s hemp industry made their cases to the lower court judge that issued the temporary restraining order.

DSHS enacted regulations on consumable hemp-derived products March 31. The rule required child-resistant packaging and testing. It also set a 0.3% THC limit for consumable hemp products, and hiked licensing fees for retailers from about $250 to $10,000 in some cases.

View of hemp flowers at Empire Standard, a hemp extract processing and distribution plant, on April 13, 2021 in Binghamton, New York. (Photo by ANGELA WEISS/AFP via Getty Images)

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What they're saying:

Advocates for the hemp industry say the rules would essentially force them to discard a large amount of inventory, and run them out of business. They also argue that the increased fees essentially amount to an "unconstitutional occupation tax."

Attorneys for the state argue that the rule is a public safety necessity. They call THC-A, a non-intoxicating compound found in most smokable hemp products, "marijuana in waiting" since it converts to an intoxicating form of THC called Delta-9 when heated.