Texas expands THC crackdown: Delta-8, other hemp products face July 31 ban

The Texas Department of State Health Services (DSHS) is set to reclassify Delta-8 THC and other intoxicating hemp-derived cannabinoids as Schedule I controlled substances effective July 31. This move follows a Texas Supreme Court ruling that lifted a long-standing injunction, allowing state regulators to enforce definitions that effectively remove these products from the legal hemp market. The shift represents a significant regulatory blow to the state's hemp industry, which has relied on the sale of these isomers since the passage of House Bill 1325.

The reclassification stems from a multi-year legal battle over the interpretation of House Bill 1325, which legalized industrial hemp containing no more than 0.3% Delta-9 THC. While retailers argued that isomers like Delta-8 and Delta-10 were legal because they were derived from compliant hemp, DSHS amended state definitions in 2021 to clarify that these compounds remained controlled substances. After hemp businesses successfully secured a temporary injunction to keep products on shelves, the Texas Supreme Court reversed that decision in May, ruling that DSHS acted within its authority.

Under the reinstated definitions published in the July 10 Texas Register, the state's reach extends beyond Delta-8 to include a broad range of tetrahydrocannabinol isomers and variants with psychoactive properties. This regulatory shift is compounded by new laboratory testing standards that measure total THC rather than just Delta-9. By accounting for the conversion of THCA into Delta-9 THC during testing, many hemp flower and smokable products that were previously considered compliant will now exceed the legal threshold and be deemed illegal.

Beyond the product bans, the DSHS is implementing stricter operational requirements for the industry, including child-resistant packaging, increased licensing fees, and more rigorous labeling and bookkeeping mandates. These administrative hurdles arrive as Texas lawmakers signal an even more aggressive stance for the upcoming legislative session. State Senator Charles Perry and the Senate Health and Human Services Committee are already exploring a total ban on all consumable hemp products containing THC, a move supported by Governor Greg Abbott’s calls for tighter regulation of the sector.