Hemp Industry Wins Temporary Injunction

Texas Hemp Industry Wins Temporary Restraining Order: Smokeable THC Products Can Resume Sales Until April 23, 2026

On April 10, 2026, Travis County District Judge Maya Guerra Gamble granted a temporary restraining order (TRO) in a high-stakes lawsuit filed by the Texas hemp industry against state health agencies. The ruling temporarily blocks key provisions of new regulations from the Texas Department of State Health Services (DSHS) that had effectively banned most natural smokeable hemp products, such as flower buds and pre-rolled joints.

This decision provides immediate relief to Texas hemp businesses, farmers, manufacturers, and retailers, allowing them to resume or continue sales of these products — including interstate shipments — while the court considers a longer-term injunction. A follow-up hearing on the temporary injunction is scheduled for April 23, 2026. The judge deferred ruling on the challenged licensing fee increases to that date.

Background: The New DSHS Rules That Sparked the Lawsuit

The dispute centers on regulations adopted by DSHS and the Texas Health and Human Services Commission (HHSC) that took effect on March 31, 2026. These rules targeted the state's consumable hemp program (established under 2019's HB 1325 following the federal 2018 Farm Bill).

Key changes included:

  • A new "total THC" testing standard: Labs must now calculate total delta-9 THC using the formula (0.877 × THCA) + delta-9 THC. Products exceeding 0.3% under this metric are deemed non-compliant — effectively banning most natural smokeable hemp (THCA flower, pre-rolls, and certain concentrates), even though they comply with the statutory delta-9 THC limit of 0.3% on a dry-weight basis.
  • Sharp licensing fee hikes: Manufacturer fees jumped from about $258 to $10,000 per facility; retail registrations rose from $155 to $5,000 per location.
  • Additional requirements like child-resistant packaging, detailed labeling, record-keeping, and prohibitions on selling to out-of-state customers.

The industry argued these changes went far beyond implementing existing law and rewrote the statutory definition of hemp set by lawmakers. DSHS cited public health concerns, including rising cannabis-related poisoning calls (from 923 in 2019 to over 2,669 in 2025, many involving youth), but the plaintiffs said the agencies lacked authority after the Legislature and Governor Abbott declined to enact a full ban via bills like SB 3 (vetoed in 2025) or special sessions.

The Lawsuit: Texas Hemp Business Council et al. v. DSHS et al.

On April 7, 2026, the Texas Hemp Business Council (THBC), Hemp Industry & Farmers of America (HIFA), and multiple Texas-based hemp businesses (including retailers and manufacturers in cities like Longview, Dickinson, Houston, Terrell, and Lewisville) filed suit in Travis County District Court.

The 330-page Verified Original Petition claims the rules are ultra vires (beyond agency authority), violate the Texas Constitution (separation of powers, due process, excessive fines, and unlawful occupation taxes), and conflict with the Administrative Procedure Act. They do not challenge consumer safety measures like age verification, which the industry supports.

Plaintiffs requested an expedited temporary restraining order to halt enforcement of the testing threshold, transport restrictions, fees, and penalties to prevent "irreparable harm" — including business closures, lost inventory, job losses, and an estimated multi-billion-dollar economic hit to the industry.

Full lawsuit petition (PDF):
https://texashempbusinesscouncil.com/wp-content/uploads/2026/04/2026.04.07-THBC-Original-Petition-and-Application-for-TRO-Injunction-FILED.pdf

Court documents folder (including exhibits):
https://drive.google.com/drive/folders/17nbA3fcOvw6E-K23ZxTI8HAy8ZDFQ19W

What the TRO Means for Texas Hemp Businesses and Consumers

  • Smokeable products are back (for now): Natural hemp flower, pre-rolls, and similar items that were pulled from shelves can return to Texas stores.
  • Interstate sales unblocked temporarily.
  • Fees and other rules still in play: The licensing fee increases were not addressed in the TRO and remain in effect pending the April 23 hearing.

The order preserves the status quo under the 2019 statutory framework until the court rules further. It does not resolve the underlying case — only prevents immediate shutdowns while litigation proceeds.

DSHS and HHSC have declined to comment on pending litigation. The outcome could set a precedent for agency rulemaking limits in Texas, especially after legislative inaction on hemp policy.

Why This Matters

Texas's hemp-derived THC market has grown rapidly into an estimated multi-billion-dollar industry serving adults seeking legal alternatives to marijuana (still illegal recreationally in the state). The TRO buys time for businesses amid ongoing debates over youth access, public safety, and economic impacts. Supporters of the rules emphasize child protection; opponents argue the changes amount to an unelected "ban" that drives consumers to unregulated markets.

The case highlights tensions between state agencies, the Legislature, and industry following Governor Abbott's Executive Order GA-56, which directed targeted regulations without new legislation.

Next Steps and How to Follow Developments

  • April 23, 2026 hearing: Expected to address the temporary injunction and possibly fees.
  • Monitor Travis County District Court records or updates from the Texas Hemp Business Council.

For background on the original rules:
https://www.texastribune.org/2026/03/24/texas-hemp-thc-smokeable-flower-joints-regulations/

Full Texas Tribune coverage (updated with ruling details):
https://www.texastribune.org/2026/04/08/texas-hemp-smokeable-ban-joints-lawsuit/

Note: This article is based on publicly available court filings, news reports, and official statements as of April 10, 2026. The situation is fluid — check primary sources for the latest. This is not legal advice.

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