Plaintiffs Seek Immediate Court Order Blocking Enforcement
AUSTIN, Texas – In case you missed it, Hemp Industry of Farmers of America (HIFA) along with the Texas Hemp Business Council (THBC) and other Texas hemp manufacturers and retailers, 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 rulemaking authority, imposed unconstitutional occupation taxes, violated due process protections, and adopted the rules without the economic analysis required by the Texas Administrative Procedure Act. HIFA, THBC, and Texas hemp businesses are seeking a temporary restraining order and injunctive relief to block enforcement of the rules, which took effect on March 31, 2026.
In the complaint, we explain 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.
“Texas farmers and processors built their businesses around the law as written,” said Brian Swensen of HIFA. “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.
A copy of THBC’s lawsuit can be accessed here.
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