Full Breakdown
Texas Hemp Industry Challenges New Delta-8 Ban
8/3/2026, 9:02:37 PM
Core Event: Lawsuit to Block Texas’ Delta-8 Reclassification
The Texas Department of State Health Services (DSHS) issued revised guidance that reclassifies delta-8 and delta-10 THC as controlled substances, rendering their sale illegal as of the Friday the rule took effect. The rule also subjects possession of these products to a “state jail felony” with penalties of up to two years in prison and fines of up to $10,000. In response, three hemp-related businesses have filed a federal lawsuit seeking an immediate temporary restraining order and an expedited preliminary injunction, arguing that the reclassification violates due-process rights, conflicts with federal law, and threatens multi-state operations.
Background & Context
The change follows a Texas Supreme Court decision in May that affirmed DSHS’s authority to reclassify any hemp-derived THC product, effectively overturning a 2021 injunction that had barred the agency from enforcing such a categorization. Prior to the new guidance, delta-8 products had been sold legally under the state’s hemp framework, while delta-9 THC remains permitted.
Official Statements & Responses
Mark Bordas, executive director of the Texas Hemp Business Council, warned that the rule could cause “widespread, irreparable damage” to an industry he estimates generates $11 billion annually. He characterized the agency’s action as “unelected bureaucrats” creating law without legislative authority. Austinite Cannabis Co. owner Estella Castro said the sudden enforcement forces her to cease sales by July 31 and may compel her to close the North Austin location. Sarah Todd of the Texas Cannabis Policy Center described the reclassification as “a pretty big blow” that “recriminalizes” products previously deemed legal.
Verbatim Quotes
- “There’s going to be widespread, irreparable damage done to an $11 billion-a-year industry,” — Mark Bordas, executive director of the Texas Hemp Business Council
- “Now it’s like, this is actually happening. We have to stop selling on the 31st,” — Estella Castro, owner of Austinite Cannabis Co
- “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,” — Sarah Todd
- “When unelected bureaucrats decide to create their own law,” — Mark Bordas, executive director of the Texas Hemp Business Council
What’s Next
A scheduled review on July 31 will determine which THC-containing products remain legal under the new DSHS guidance.
