Hemp makers sue the state over a rule that counts THCA toward Texas' THC limit, calling 4,000% fee increases a disguised tax

A hemp industry group and a Tyler company have gone to court to block Texas health rules that they say ban products the Legislature never outlawed.

The Texas Hemp Constitutional Alliance and Green Nation, a hemp product maker and retailer based in Tyler, filed suit Monday, Oct. 19, in Travis County, KXAN reported. They are asking for an injunction against rules written by the Texas Department of State Health Services, which first took effect March 31.

The suit names Stephanie Muth, interim executive director of the Texas Health and Human Services Commission, and Imelda Garcia, the interim commissioner. The commission told KXAN it does not comment on pending litigation.

The THCA question

At the center of the case is how the state measures THC. Texas allows delta-9 THC in hemp products up to set concentrations. The department's rules fold tetrahydrocannabinolic acid, or THCA, into the total delta-9 figure, treating it as potential delta-9 because THCA turns into delta-9 when it is heated.

State law already caps THCA in the hemp plant and requires testing before harvest. The plaintiffs argue the rules add testing that the statutes do not call for, including a pre-retail test on every finished product that would count THCA, which they say effectively redraws the line on which products are legal.

"These rules exceed and even directly contradict the very statutes under which DSHS purports to regulate," the lawsuit says, according to KXAN.

Fees

The suit also targets the fees tied to licensing, testing and labeling. It says those charges rose over the past year by 4,000% for manufacturers and 3,333% for retailers, and calls them a tax imposed without the Legislature's approval, meant to push businesses out of the market.

KXAN described the filing as another legal challenge to the state's hemp rules, following an earlier suit by hemp businesses over the department's product testing standards.

Sources

kxan.com