Texas Hemp Under Attack: What the New DSHS Rules Mean And What Elevated Is Doing Next

⚡ Quick Summary

Texas has adopted new hemp rules that take effect March 31, 2026.
These rules will remove THCA flower and smokable hemp from the Texas market.
Licensing fees jumping to $5,000 (retail) and $10,000 (manufacturing).
Texas hemp industry is preparing a lawsuit to fight back and seek an injunction.
Elevated will stop THCA flower sales after March 31, 2026.
Elevated will ship all THCA flower orders placed within the month of March 2026.
Elevated will mark all THCA flower "out of stock" on April 1, 2026.

Elevated will continue selling complaint edibles / products as we learn more.

Elevated is actively supporting the fight to protect hemp with THBC.

Elevated will be exploring all options for the future, including potential relocation if necessary.

👉 Read below for the full breakdown (3 minute read).

Another Major Challenge For The Texas Hemp Industry

Over the past several years, thousands of small businesses across Texas have built companies under the legal framework created by Agriculture Improvement Act of 2018 and the Texas House Bill 1325, which legalized hemp products containing less than 0.3% delta-9 THC, which is the legal definition of hemp. That law created an entirely new legal market that now serves millions of customers across the state looking for hemp-derived products.

But now, state regulators are once again attempting to move the goalposts as the Texas state agency DSHS has decided to overstep their power and change the definition of hemp.

The Texas Department of State Health Services (DSHS) recently adopted new hemp rules scheduled to take effect on March 31, 2026. These rules significantly change how hemp products are evaluated for compliance and will effectively remove all smokable hemp products, including THCA flower, from Texas shelves.

For businesses, customers, and the broader hemp community, this is a major moment for the future of the hemp industry in Texas.

What The New DSHS Rules Do

The newly adopted rules change how THC is defined and calculated in hemp products by using a “total THC” measurement, which includes THCA in compliance calculations.

This matters because THCA converts into THC when heated. Under this interpretation, many hemp flower products that businesses have legally sold for years will suddenly be considered non-compliant.

In practical terms, this change will remove THCA flower and smokable hemp products from the Texas market once the rules take effect.

The rules also introduce additional regulatory changes, including:

Increased licensing fees for hemp businesses, 21+ age requirement

$10,000 per year for manufacturers / processors / distributors

$5,000 per year per retail location
Expanded testing requirements and record keeping, inspections from TABC
Stricter compliance standards for products sold in Texas

For many small businesses across the state, these changes create serious legal issues, financial challenges, and uncertainty about the future of the hemp industry.

Why The Hemp Industry Is Fighting Back

Many hemp businesses and industry leaders believe these rules go far beyond normal regulatory oversight. DSHS has authority to make rules that help enforce laws, they do not have the authority to change the definition of current laws.

Under Texas administrative law:

Agencies such as DSHS can interpret and enforce laws
Agencies cannot rewrite or expand laws

The concern is that the Texas Department of State Health Services is effectively attempting to reshape the hemp market through administrative rules rather than through legislation passed by the Texas Legislature.

That is why the Texas Hemp Business Council (THBC) has announced plans to challenge these rules in court, among various other businesses within the state.

Industry leaders are preparing a lawsuit that will argue the agency exceeded its authority by implementing regulatory changes that could dramatically alter the hemp market in Texas. The goal of this legal challenge will likely be to obtain an injunction that pauses the new rules while the courts review whether they are legally valid.

If successful, an injunction could allow the industry to continue operating under the existing legal framework while the legal process unfolds.

For Texas hemp businesses, this lawsuit could become one of the most important legal battles the industry has faced since hemp was legalized.

What This Means for Elevated

At Elevated, transparency with our customers has always been important to us.

Because we operate within the state of Texas, we will comply with the new rules as they currently stand. That means THCA flower sales will end on March 31, 2026 once the DSHS rules take effect. As of now, Elevated will mark all THCA flower as "out of stock" on April 1st, 2026. We will continue to sell compliant edibles and other products for the time being, until we learn more. All orders for THCA flower and/or concentrates that are placed before April 1st will be shipped out accordingly.

This is not a decision we make lightly. Flower has been a pivotal part of our business and a product many of our customers from all walks of life have come to rely on.

We also know this is not the first time our industry has faced major regulatory challenges. Just last year, Texas businesses were hit hard by the statewide crackdown on hemp-derived vape cartridges and disposables, which were banned overnight on September 1st, 2025. Now flower is facing similar pressure.

Despite these challenges, please know that Elevated will put up a fight.

We will continue to operate within the law and will continue offering edible hemp products under our brand while we closely monitor how the legal battle over these new rules unfolds.

Looking Ahead

At the same time, we are not standing on the sidelines.

Elevated plans to support the industry’s legal challenge and remain actively engaged in the fight to protect hemp businesses and the customers who rely on these products day to day!

We remain hopeful that the upcoming lawsuit will result in an injunction that allows the courts to fully review the legality of these new rules, but there is sadly no guarantee. As we all know, common sense and practicality aren't apart of the hemp ban conversation. Our industry is constantly under attack through lies, propaganda, and the lobbying of big alcohol and big pharma.

If that does not happen, we will continue evaluating all available options for the future of Elevated Hemp Co., including the possibility of relocating operations to another compliant state that supports small businesses and provides a stable regulatory environment for the hemp industry.

Millions of Americans rely on hemp-derived flower and products. This is not a fringe market, it is a legitimate industry serving real people from every age bracket across the entire country.

Thank You For Standing With Us

Since day one, this industry has been an uphill battle.

From sudden overnight bans and constant regulatory shifts, being called terrorists, told we are killing children, to lawsuits, to standing at the Texas Capitol and speaking in front of House of Representatives just to defend a natural plant, we’ve never stopped fighting. Alex and Stephen have shown up, spoken out, and pushed forward every step of the way.

Along the journey, we’ve shared our story through 15+ local and state news interviews and countless conversations, all with one goal: to protect this plant, the hemp industry, and most importantly, the people who rely on these products every single day.

And through it all, you’ve stood with us.

To every single person who has supported Elevated over the years, truly, thank you. Your support means more than we can put into words, especially during moments like this.

This isn’t just about a product. This is about small businesses, hardworking teams, and millions of people who rely on access to hemp-derived products every single day. Together, we’ve helped build something real in Texas, and we’re not done fighting for it.

If you’d like to stand with us in this next chapter, we encourage you to support the legal effort defending Texas hemp by becoming a member or contributing to the Texas Hemp Business Council: Click Here!

We’re still here. And we’re not backing down.

#StayElevated