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The Texas Fifteenth Court of Appeals has cleared the way for new Department of State Health Services rules governing hemp products to take effect again, including higher fees for businesses and limits on the sale of THCA flower and concentrates. But DSHS says they're still considering how to proceed.
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A Texas Supreme Court order took effect May 28 that allows state health officials to again treat manufactured Delta-8 THC as a Schedule I controlled substance, a legal category that includes peyote and Ecstasy.
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Hemp businesses also want to block a new rule that raises licensing fees by thousands of dollars.
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New state rules change how THC levels are calculated and raise fees on hemp businesses by as much as 4,000%
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Attorneys for hemp businesses say the raids have hurt their revenue and reputation, while police said they’re necessary to root out products with illegal levels of THC.
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The Texas Department of Public Safety has issued provisional licenses to nine new medical marijuana operators while existing ones have started opening new manufacturing and cultivating facilities.
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Justices will have to decide who has the final say on whether delta-8 THC is legal: the Texas Legislature or the Texas Department of State Health Services.
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Hemp advocates say raising annual licensing fees for retailers from $150 to $20,000 and for manufacturers from $250 to $25,000 would shutter small businesses.
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Texas' highest civil court is set to hear and rule on cases dealing with several hot-button issues, including hemp, gender-affirming care and the state's ban on abortions after detection of cardiac activity.
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The Department of State Health Services is considering new rules for the Texas hemp industry that would require child-resistant packaging, stronger warning labels, sharply higher fees and effectively ban smokeable flower and extracts.