The Department of State Health Services (DSHS) new hemp rules are barred from going into effect until at least late July.
Travis County District Court Judge Daniella Deseta Lyttle gave the Texas Hemp industry more time in the form of a temporary injunction extending a previously issued temporary restraining order against DHSH.
The new injunction, in effect until at least the end of July, bars DHSH from changing the definition of total Delta-9 THC to include the amount of THC Acid (THCA) that can be converted to Delta-9 THC with heat; banning the transport of hemp across state lines; dramatically increasing licensing fees for manufacturers, growers and retailers; and treating each day of DSHS rule violations as a unique violation.
Following three days of hearings, the hemp industry specifically has concerns over the total THC definition change and the increased fees, which would raise the annual fee per retailer from $155 to $5,000, and claimed the new THC definition would ban intoxicating smokable hemp products, which they say make up a majority of the industry’s sales.
While the Travis County ruling was a major victory for the industry, it coincided with a separate, opposing ruling from the Texas Supreme Court on the same day. The Texas Supreme Court ruled in a different case that DSHS has broad authority to regulate substances and allowed a ban on Delta-8 THC to stand – so long as the legislature did not expressly disapprove of the move. While the court overturned the injunction on separate grounds, they also commented on the scope of the injunction, saying it applied to all members of the Texas consumable hemp industry. – not just those in the lawsuit.
While hemp industry attorneys argue that the cases differ (focusing on Delta-9/ THCA vs. Delta-8), legal analysts suggest the state will likely appeal the Travis County injunction, which could be influenced by the Supreme Court's pushback on broad, sweeping injunctions.