Several members of the hemp industry are filing an additional lawsuit against the state of Texas alleging the ban on nearly all hemp-derived THC products has led to massive job loss and has created a monopoly for the state’s medical marijuana program.
On Wednesday, four hemp retailers filed a lawsuit in the U.S. District Court for the Western District of Texas against the Texas Department of State Health Services, alleging the agency has engaged in executive overreach by classifying hemp-derived substances as illegal, which violates the 2018 Farm Bill, which removed them from the federal Controlled Substances Act.
“Thousands of small business owners built enterprises, hired workers, and invested capital relying on that law,” said David Sergi, lead counsel for the hemp industry in this case, in a news release. “DSHS does not have the constitutional authority to rewrite statutes or destroy an industry simply because it disagrees with legislative policy.”
The complaint states the hemp industry has already undergone “catastrophic” harm due to DSHS’s regulatory decision, with over 36,000 jobs being lost due to workforce reductions, retail sales dropping by more than 50%, leading to billions of dollars in lost revenue, and inventory being stranded all over Texas.
The lawsuit also alleges that DSHS’s decision to focus only on the hemp industry has unlawfully shut down the market while protecting the state-licensed medical marijuana program known as the Texas Compassionate Use Program or TCUP.
In addition to the complaint, the plaintiffs are also moving for a temporary restraining order and temporary injunction to remove the ban on these THC products.
“We are asking the Court to uphold the Texas Constitution, protect thousands of Texas jobs, and keep policy decisions where they belong—with the elected representatives of the people,” Sergi said.
Earlier this month, three different members of the hemp industry sued the state of Texas for violating commerce protections with a hemp-derived THC ban.
See here for more on that earlier lawsuit. I’ll be honest, I’m not sure what the difference is between these two suits. Probably some wonky thing involving the wording of the 2018 Farm Bill and how DSHS is interpreting it, but if you’re a lawyer and you can tell us, please do. This one is in a different court and a different district, and it isn’t asking for an emergency restraining order, which the first one did without success. We’ll see what happens when they get a hearing. The Current has more.