Texas Judge Halts Smokable Hemp Ban, Saving Austin Shops

AUSTIN, Texas — Travis County Judge Daniella DeSeta Lyttle on Friday extended a temporary injunction against the Texas Department of State Health Services' (DSHS) March 31 regulations, which capped total THC in smokable hemp products at 0.3% and effectively banned THCA flower, pre-rolled joints and other smokeables that comprised over 50% of many stores' inventories. The ruling, granted to the Texas Hemp Business Council, Hemp Industry & Farmers of America and several dispensaries, also pauses a 3,000% licensing fee hike — from $150 to $5,000 for retailers and $250 to $10,000 for manufacturers — plus new record-keeping mandates for production runs and complaints. Shops across Texas, including in Austin and Houston, can continue sales through July 27, despite an earlier state Supreme Court decision.

The rules stemmed from Gov. Greg Abbott's directive after he vetoed a full THC ban last summer, tasking DSHS and the Texas Alcoholic Beverage Commission with oversight. Previously, state law allowed hemp with less than 0.3% delta-9 THC, creating a loophole for THCA products that convert to THC when heated. DSHS aligned with pending federal changes measuring total THC (including THCA) by dry weight, aiming to curb youth access to intoxicating items lawmakers feared mimicked marijuana. The hemp sector, supporting tens of thousands of jobs and $4.3 billion in annual revenue, argued the changes would drive 50% of the market underground, per Texas Cannabis Policy Center director Heather Fazio.

Industry leaders in cities like Dallas and San Antonio warn of closures without smokeables, their top sellers, while non-smokable gummies and beverages remain unregulated by DSHS. Attorney Zachary Berg of the Texas Attorney General's Office defended the preemptive federal compliance, noting it precedes a November 2026 deadline. The pause buys time for appeals, leaving Texas hemp businesses in limbo as litigation unfolds.