Texas hemp businesses filed a federal lawsuit to block new state rules that reclassify delta-8 and delta-10 THC as controlled substances. Store owners say the change could destroy the industry and cost billions.
The Texas Department of State Health Services issued guidance that took effect Friday, making it illegal for most businesses to sell products containing those compounds. The shift follows a May state Supreme Court decision that allowed the agency to override a 2021 injunction and enforce the reclassification.
Delta-9 THC remains legal under the new rules
The lawsuit, filed on behalf of three hemp companies, argues the state’s action conflicts with federal law. Delta-9 THC—the most common THC product sold in Texas—will remain legal under the new guidance.
Mark Bordas, a representative of the Texas Hemp Business Council, said the rules threaten the state’s $11 billion hemp sector. Businesses now face criminal charges, license revocations, and felony penalties for manufacturing or distributing the newly banned substances.
Possession of delta-8 or delta-10 products can result in a state jail felony, punishable by up to two years in prison and fines of $10,000. The lawsuit seeks an immediate injunction to halt enforcement, claiming the rules violate due process and federal statutes.
Industry warns of regression
Sarah Todd, a media representative at the Texas Cannabis Policy Center, said the change recriminalizes products that have been legal for years. “It’s a pretty big blow, and it’s recriminalizing a lot of cannabis products that have been completely legal and allowable in the state for many years, so we’re taking steps backward toward prohibition,” Todd told the Tribune.
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The legal challenge arrives as hemp businesses handle conflicting state and federal regulations. The 2018 Farm Bill legalized hemp-derived cannabinoids nationally, but the lawsuit claims the state’s rescheduling of delta-8 and delta-10 conflicts with federal law.
If the lawsuit fails, businesses may need to shift to delta-9 products or leave the market. Some could relocate to states with looser laws, but that would mean abandoning supply chains and customers. Others might continue selling the banned compounds, risking raids and legal consequences.
Bordas called the rule change an overreach by unelected officials. “When unelected bureaucrats decide to create their own law,” he said, “it’s time to challenge it.” The lawsuit asks a federal judge to intervene before the industry suffers more harm.
The case reveals tensions in cannabis policy. While delta-8 occupies a legal gray area nationally, the outcome depends on whether courts view the reclassification as a valid regulatory move or an unconstitutional action.
The agency has not responded to the lawsuit. Its guidance remains in effect during the legal process.
Store owners worry about the impact on summer safety events that often partner with hemp businesses for public education campaigns.
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