Texas Judge Halts Smokeable Hemp THC Ban, Shops Stay Open

Travis County District Judge Daniella DeSeta Lyttle ruled Friday to continue pausing the Texas Department of State Health Services' (DSHS) ban on smokeable hemp THC products, granting a temporary injunction to the Texas Hemp Business Council, Hemp Industry & Farmers of America, and several Texas dispensaries and manufacturers. The decision preserves sales of natural smokeable hemp like flower buds and rolled joints, which faced elimination under new DSHS testing rules imposing a 0.3% total THC threshold—down from the federal hemp definition allowing up to 0.3% delta-9 THC. Lyttle emphasized the injunction's role 'to preserve the last, actual, peaceable, non-contested status that preceded the controversy.'

The ruling also blocks a massive 3,000% jump in retailer licensing fees—from about $250 to $10,000 in some cases—and lifts restrictions on out-of-state sales of smokeable hemp, providing immediate relief to Texas businesses. DSHS enacted these regulations on March 31, 2026, requiring child-resistant packaging and strict THC testing that hemp advocates say rewrites 2019 state law legalizing hemp products. Earlier this month, Judge Maya Guerra Gamble issued a temporary restraining order, now extended by Lyttle's order until at least July 27, when the next hearing is scheduled.

The legal clash stems from DSHS adding delta-8 THC to the controlled substances list in 2021, upheld by the Texas Supreme Court, granting the agency broad authority over such products. Hemp lawyers argue DSHS overstepped by redefining hemp, while experts like Katharine Neill Harris of Rice University’s Baker Institute note the agency lacks unlimited power to ban substances without legislative say. Industry groups hailed the ruling as a win against regulatory overreach, but the state could appeal, leaving Texas smoke shops—from Austin strip malls to Houston boutiques—in limbo as the fight continues.