THC in Texas: Business owners challenge new state rule

TEXAS - A new state rule scheduling Delta-8 and other hemp derivatives as controlled substances could turn Texas shop owners into felons overnight, prompting business advocates to challenge the ban in federal court.

The backstory:

Following a Texas Supreme Court ruling, the Department of State Health Services reinstated a rule classifying popular hemp-derived THCs as Schedule I controlled substances, placing them in the same legal category as heroin.

Under the updated enforcement, retailers selling these products face state jail felony charges, thousands of dollars in fines, and the potential loss of their business licenses.

"It's pretty amazing that you can turn people into criminals — I mean, grandmothers into criminals — from one day to the next, a felony for possession of Delta-8 products," said Cynthia Cabrera, president of the Texas Hemp Business Council.

The state’s hemp industry had been operating under a state court injunction for nearly five years before the order was dissolved on procedural grounds in May. The Department of State Health Services published the updated definitions on July 10, with enforcement taking effect July 31.

"The Department of Health has created a situation where no one knows what’s going on, no one knows what’s legal — and I think including them," Cabrera said.

In response, Texas retailers and out-of-state manufacturers filed a federal lawsuit in Galveston. The suit claims the state’s rule directly conflicts with the 2018 federal Farm Bill and Texas' own 2019 hemp legislation, both of which legalized hemp products containing less than 0.3% Delta-9 THC.

"For example, they say Delta-8 and any other THCs that are not Delta-9 [are banned]," Cabrera said. "But they also allow that trace amounts are permitted, but they don't define what trace amounts are."

Hemp advocates warn the ban will cause severe economic fallout. However, lawmakers such as state Sen. Charles Perry argue that protecting public health and preventing youth access to the products outweigh potential losses in tax revenue.

Plaintiffs in the lawsuit have filed an emergency motion for a temporary restraining order to pause enforcement while the case moves through federal court.