Texas’ Hemp THC Crackdown is Now in Effect: What Businesses Need to Know

As of Jul. 31st, Texas is enforcing tough new restrictions on hemp-derived THC products, and it’s changing the game for manufacturers, distributors, and retailers across the state. This isn’t one new law; it’s the Texas Department of State Health Services’ (DSHS) messy revival of dormant 2021 rules after a Texas Supreme Court ruling, on top of separate consumable-hemp regulations that kicked in earlier this year and are still being fought over in court. Bottom line: the rules have shifted more than once in 2026, and businesses need a clear picture of what’s banned, what’s still fine, and what’s still up in the air.

How We Got Here

Under the 2019 Texas hemp law, products were legal as long as they had no more than 0.3% Delta-9 THC by dry weight. But lab tests only measured Delta-9 THC, not other cannabinoids, so that left an opening: THCA flower and Delta-8, Delta-10, and THCP products could be sold legally, even though a lot of these are chemically converted from hemp-derived CBD.

DSHS tried to modify this business practice back in 2021 with rules classifying Delta-8 and similar cannabinoids as Schedule I controlled substances. A hemp retailer sued right away and obtained an injunction, which was held for about five years. That changed this year when the Texas Supreme Court ruled in Texas Department of State Health Services v. Sky Marketing Corp., d/b/a Hometown Hero, No. 23-0887, holding that manufactured/synthetic Delta-8 THC is a controlled substance and exempting only trace, naturally occurring amounts. The Court’s mandate dissolved the injunction, and DSHS announced that it would bring back its 2021 definitions. Texas law requires a 21-day runway after these rules get published in the Texas Register, which puts the effective date at Jul. 31st.

Separately, and on its own timeline, DSHS also adopted consumable hemp product rules that took effect Mar. 31st. Those rules count THCA toward “total THC,” raise licensing fees, and clamp down on most smokable hemp flower. A Travis County judge blocked enforcement in April, but the Fifteenth Court of Appeals reversed that in May, so the smokable-flower restrictions are back in force. That litigation is still ongoing, and its resolution will cause further opacity in the Texas hemp market once litigation has concluded.

What’s Banned Now

As of Jul. 31st, these cannabinoids are Schedule I controlled substances under Texas law, with only trace, naturally occurring amounts in compliant hemp exempt:

• Delta-8 THC
• Delta-10 THC
• Delta-6 THC
• THCP
• Other non-Delta-9 THC isomers, including anything produced by chemically converting CBD.

DSHS has been blunt (pun intended) about how narrow the exemption is: it only covers cannabinoid content that’s naturally in compliant hemp, not anything formulated or processed to meet consumer market demands. No commercially made Delta-8 product on shelves today qualifies.

What’s Still Legal, and What’s Still Up in the Air

Hemp-derived Delta-9 THC products are still legal in Texas, as long as they stay under the 0.3% dry-weight threshold and meet other requirements. Compliant CBD products are also unaffected by the Jul. 31st change.

THCA flower is much trickier. THCA itself isn’t on the controlled-substances list, but whether it’s legal in practice depends on the separate “total THC” testing rule from the March 2026 consumable hemp regulations, the one that counts THCA toward the THC threshold, and that’s exactly what’s being fought over in court right now. If your business sells THCA flower, pre-rolls, vapes, or concentrates, treat this as an open risk, not a settled question, and keep an eye on how the litigation and any further appeals play out.

Out-of-state and online sales are another open question. Federal law lets hemp at or below 0.3% Delta-9 THC move across state lines, and the Jul. 31st Texas rules are aimed at in-state retail sales and the specific banned isomers, not at Texas consumers buying compliant hemp from out-of-state online sellers. That said, this area of law is moving fast, so if your business is leaning on interstate shipping as a workaround, double-check current guidance and keep certificates of analysis on hand for every shipment.

Finally, as if Texas state regulatory control isn’t enough, a federal hemp redefinition is set to take effect Nov. 12th, 2026. Although Congressional efforts are underway to address the looming federal hemp ban, any compliance measures should account for that date too, not just Jul. 31st.

Enforcement Risk

DSHS can now use its civil enforcement tools, including license revocation, against products containing these scheduled substances. On top of that, criminal exposure for THC (think synthetics, derivatives, and isomers) exists separately under state law. Some local law enforcement agencies have already threatened that possession of newly scheduled products like Delta-8 could face felony charges. Don’t assume a product still being on the shelf, or simply not having finished an inventory review yet, will count as a defense once enforcement efforts ramp up.

What to Do Right Now

At this point, Texas hemp product manufacturers must collaborate with their attorneys to determine their exposure and liability.  This compliance review will involve SKU-by-SKU compliance checks, review of business-to-business supply chain relationships, and diligent foundational support for all Texas hemp products moving forward.

As the Texas hemp legal landscape evolves, Texas companies will need to stay on the leading edge of these changes in the law in order to prevent being the bleeding edge. 

This alert is meant to give you the general picture in a fast-changing area of law; it isn’t legal advice for any specific product or situation. Given how quickly this keeps shifting, if your business has hemp or THC operations in Texas, it’s worth checking in with counsel soon to see where you actually stand.

Clark Hill’s Cannabis Industry Group has been tracking these changes in Texas and advising clients on compliance. Our attorneys work with cannabis businesses, investors, and ancillary companies on licensing, regulatory compliance, tax strategy, corporate transactions, and the shifting federal-state legal landscape.

Whether you’re trying to understand what the Jul. 31st changes mean for your business or want help getting ahead of what’s next, Clark Hill is ready to help you plan with confidence.

Contact Clark Hill’s Cannabis Industry Group today to talk through how these changes could affect your business.

This publication is intended for general informational purposes only and does not constitute legal advice or a solicitation to provide legal services. The information in this publication is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this information without seeking professional legal counsel. The views and opinions expressed herein represent those of the individual author(s) only and are not necessarily the views of Clark Hill PLC or Clark Hill Solicitors LLP. Although we attempt to ensure that postings on our website are complete, accurate, and up to date, we assume no responsibility for their completeness, accuracy, or timeliness.