Texas hemp lawsuit explained by lawyer who sued

Texas hemp businesses are asking a Travis County judge to block new state rules that took effect March 31, arguing the regulations adopted by the Department of State Health Services (DSHS) effectively wiped out a huge part of the legal cannabis market.

The lawsuit targets regulations that now prevent stores from selling smokable hemp products like flower and concentrates. It also challenges steep new fees and regulatory requirements that businesses say could force many to shut down.

At the center of the case is a relatively simple question with sweeping consequences: What counts as legal hemp in Texas and who gets to decide?

The Texas Hemp Business Council, which is leading the lawsuit, says it has long supported many of the safety rules in the new regulations.

That includes age limits, child-resistant packaging, clear labeling and a ban on selling products near schools.

The council says it opposes policies that function as bans or make it too expensive to operate, pushing consumers towards the unregulated market.

In this interview, I speak with one of the many attorneys involved in the lawsuit, Andrea Steel of The Banks Law Firm in Houston.

Read more: https://www.kut.org/business/2026-04-08/austin-tx-texas-hemp-ban-cannabis-lawsuit-thca-businesses

Read the lawsuit: https://texashempbusinesscouncil.com/wp-content/uploads/2026/04/2026.04.07-THBC-Original-Petition-and-Application-for-TRO-Injunction-FILED.pdf

Alternate link for lawsuit: https://www.documentcloud.org/documents/28029794-texas-hemp-business-council-lawsuit-over-state-regulations-april-7-2026/#document/p1