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.[2][3][5] 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.[3][5][6] Shops across Texas, including in Austin and Houston, can continue sales through July 27, despite an earlier state Supreme Court decision.[5][9] 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.[2][6] 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.[1][4] 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.[3][4] 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.[2][3] 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.[2][7] Attorney Zachary Berg of the Texas Attorney General's Office defended the preemptive federal compliance, noting it precedes a November 2026 deadline.[4] The pause buys time for appeals, leaving Texas hemp businesses in limbo as litigation unfolds.[1][9]