A court case in Austin could decide the fate of hemp products in Texas. Currently, cannabis flower, pre-rolls, and concentrates are still available, thanks to a temporary order that lasts until Friday at 5 p.m. However, Texas businesses are pushing for a longer hold on new rules while their legal battle against state health officials unfolds.
The plaintiffs, including seven businesses and two trade associations, argue the new rules threaten a booming market worth billions and could shut down smaller retailers. The state claims these regulations clarify how THC is measured, aiming to keep more potent products off the shelves.
During the hearing, which started Tuesday, the Texas Attorney General’s Office sought to prevent KUT News from recording the proceedings, but Judge Daniella DeSeta Lyttle denied that request. She emphasized that court proceedings should be public.
A crucial issue in the hearings revolves around THCA, a compound found in hemp that converts to Delta-9 THC when heated. Under Texas law, hemp can contain no more than 0.3% Delta-9 THC. The state’s new rules include THCA in total THC calculations, which could effectively ban popular hemp products.
According to Robin Goldstein, director of the Cannabis Economics Group at UC Davis, smokable products represent over half the market in Texas. The Attorney General’s Office argues that the new rules align with agriculture regulations that require THC testing before harvest.
The hemp industry also opposes the significant increase in licensing fees—up from $150 to $5,000 for retail licenses, and from $250 to $10,000 for manufacturing licenses. Beau Whitney, an economist defending the plaintiffs, criticized the state’s economic analysis as superficial and lacking depth, asserting that the Texas hemp market supports nearly 49,000 jobs and has an economic impact close to $10 billion.
There’s a broader concern that these rules extend beyond just flower and concentrates. Lauren Bridges, a salon owner creating THCA-infused products, testified that the regulations could devastate her business and livelihood.
Interestingly, a licensed medical marijuana company, Texas Original Compassionate Cultivation, has sided with the state. They argue that hemp businesses might be misrepresenting high-potency products as hemp to sidestep regulations.
The hearing is expected to conclude Thursday, with closing arguments from both sides. Judge Lyttle will then decide on the temporary injunction. The outcome will significantly impact the Texas hemp industry and consumer access to cannabis products.
For updates on cannabis laws, check out the latest from KUT News and the Cannabis Economics Group.
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