TEXAS — As of Tuesday, smokable forms of hemp, including flower and extracts, are no longer allowed to be sold in Texas following new regulations from the Department of State Health Services (DSHS). The rules only affect retailers and manufacturers; possession of smokable hemp remains legal, and Austin police say their enforcement approach has not changed.
The regulations redefine THCA as 88% Delta-9 THC, a “total THC” calculation that effectively bans most smokable hemp products, which make up roughly half of the state’s hemp market. Hemp edibles and drinks remain legal, as they more easily stay under the 0.3% Delta-9 THC limit.
State regulators say mail orders are prohibited, but cannabis attorneys note this is a legal gray area, and enforcement of out-of-state shipments may be difficult.
Businesses face steep compliance costs under the new rules. Retailer fees jumped from $150 to $5,000 per location annually, and manufacturer fees increased from $250 to $10,000. Stricter testing standards, child-resistant packaging, detailed labels, recall procedures, and complaint tracking are also required.
Industry leaders warn the rules could drive sales out of state, impacting jobs and local businesses. ATX Organics, which relies on smokable hemp for 75% of its sales, called the changes “very detrimental.”
Legal challenges are expected. The Texas Hemp Business Council plans to seek a temporary restraining order to pause the regulations, citing high fees, paperwork burdens, the redefinition of total THC, and interstate commerce concerns. Previous cases, such as Hometown Hero’s Delta-8 injunction, indicate the industry may successfully challenge aspects of the new rules in court.
This regulatory shift comes less than a month after DSHS announced the rules, leaving businesses scrambling to comply while the legal battle looms.