Texas hemp businesses are preparing to take legal action against newly enacted state regulations that they argue could jeopardize the entire industry. The Texas Hemp Business Council, alongside other advocates, has filed a substantial 330-page lawsuit against the state to contest these administrative rules.
The central issue of the lawsuit revolves around the state’s redefinition of hemp, which the plaintiffs claim exceeds the authority granted to state officials. “People have created businesses over the past six years based on those definitions; and now they’re being told that those definitions don’t count,” stated Cynthia Cabrera, president of the Texas Hemp Business Council.
The new regulations, which came into effect last week, change how delta-9 THC is measured. While a 2019 law established a specific limit for this compound, the recent rules introduce a formula that incorporates other cannabinoids like THCA. Industry leaders contend that this alteration effectively bans products previously deemed legal, severely impacting business revenues. “For some people, flower constitutes 50% or even 90% of sales. So this is devastating,” Cabrera added.
The state defends the new measurement of “total THC,” arguing that it is essential for accurately assessing a product’s potency. Officials claim that a billion-dollar industry has emerged from a legal loophole that they never sanctioned.
Another significant component of the new regulations is the introduction of steep fines and penalties for retailers selling non-compliant products. Retailers risk losing their licenses and could face fines of up to $10,000 for each day they remain in violation. The lawsuit also addresses substantial increases in fees for manufacturers and retailers.
Business owners warn that failing to block these rules could lead to thousands of closures and tens of thousands of job losses. Cabrera expressed concern over the implications, stating, “This industry has been licensed, regulated and legal for six years. So to suddenly decide that people who invested their life savings and quit their jobs to start businesses don’t deserve to keep their businesses is a terrible look for a state that claims to be as business-friendly as Texas does.”
Despite the contention surrounding the new rules, both sides agree on the importance of preventing access to these products by minors. Cabrera noted, “No one argues against things that support consumer safety or limit access to adults. We want to make sure that adults are the ones that get these products, not anybody else.” She acknowledged the merits of child-resistant packaging.
It’s worth noting that the lawsuit does not challenge regulations concerning age verification and child-resistant packaging. As of now, the state has not filed a formal response, but the plaintiffs are seeking an immediate temporary restraining order to suspend the new rules, with a hearing anticipated to take place on Friday.
