I'm at Travis County district court for a hearing over the new Texas hemp regulations. Hemp...

I'm at Travis County district court for a hearing over the new Texas hemp regulations. Hemp businesses are asking for a temporary injunction to keep blocking parts of the rules while their lawsuit plays out.

I'll be posting some updates below.

KUT News filed a motion requesting permission to record the hearing. The motion had been granted.

The Texas Attorney General's Office asked the judge to deny permission to record.

Judge Daniella DeSeta Lyttle denied the motion.

"A trial is public event," she said in part.

Some background on the hemp rules: Some background on the lawsuit: A story about a temporary restraining order that paused some of the rules:

Plaintiffs attorney says they will bring witnesses explaining why these rules "will cause disruption."

"We have dramatically increased fees ... 3,000% and more. ... These are draconian when applied to a small business."

Texas Attorney General lawyer asks entire matter be dismissed, saying this court doesn't have jurisdiction. "Sovereign immunity protects the state, state officials from suit except in very limited circumstances. It is plaintiffs' burden to express that immunity has been waived."

Lunch break over. Plaintiffs call as a witness Beau Whitney of Whitney Economics, which has done economic reports on the size of the Texas hemp industry, including this one: (requires you email address to view)

Whitney says total hemp sales declined in Texas since his last report in 2025.

Whitney says he relies on state regulators and business surveys for data.

He estimated the Texas hemp retail industry brings in state sales tax revenue (not including local sales tax) of $267,659,698.

Whitney says he estimated state regulations would have a negative economic impact of almost $7.2 billion.

He estimated a reduction in retail revenue of ~$3 billion and used an economic multiplier calculation to reach $7.2 billion.

Whitney says new regulations would have a "devastating effect" on the Texas hemp industry, putting people out of business, limiting access to consumers, reducing tax revenues and increasing expenditures for regulatory enforcement.

Texas AG's office cross examining Whitney now, asking about his analysis that the regulations have already resulted in shrinking of the market.

AG attorney: You didn't provide any details of how you reached that conclusion did you?

Whitney: "That's correct."

AG attorney: You didn't do an analysis of how many people will be unemployed based on these rules. Whitney: No, I did. AG attorney: You didn't do an analysis of how many would be unemployed for an extended period of time. [suggesting they may find other employment]

Plaintiffs call next witness: Lauren Bridges of Longview, Texas. Lifelong East Texan. She's a hair stylist with her own salon. In 2020, she studied cannabis science at operations at St. Louis University, a professional certificate program.

"When I learned about hemp, I wanted to learn more about the science behind it." She had health problems and had been signed up for the state's medical marijuana program. "It was expensive and if you wanted gummies that were sugar free, there just wasn't a lot of options."

Bridges started selling hemp products out of her salon around 2020. Still in business today. She obtained a Texas hemp retail license for about $155/year. The price now is $5,000/year. "We would probably close that location. It's not big enough for that."

Bridges has a second retail location on the town square in Longview. Plaintiff attorney: "This is not some hippie dippie Austin square." This is a good old East Texas square. Bridges: "Definitely."

Plaintiff attorney: Could you tell the judge why you have a manufacturing license? Bridges: I wanted the community to come in and see the plants being grown and made into oils — I do solventless extraction — and then made into a product they could purchase.

Plaintiff attorney: If the judge doesn't issue a temporary injunction, and rules go back into effect, what happens to your business? Bridges: Probably close. She has two full time, two part time employees. Alchemy TX is the name of the business. Plaintiff in the lawsuit.

Plaintiff attorney: If the judge doesn't issue a temporary injunction, and rules go back into effect, what happens to your business? Bridges: Probably close. She has two full time, two part time employees. Alchemy TX is the name of the business. Plaintiff in the lawsuit.

Bridges: "The drinks are our biggest sector at the moment. We have a lot of people coming in who don't want to drink alcohol." She says lots of people in downtown Longview would rather have a THC beverage than a beer.

Bridges says Longview police told her to give customers a receipt and ask them to maintain original packaging so law enforcement can know the product is legal. "I just feel people like it's safer and not black market."

Texas AG attorney now cross-examining: What is the THCA content of your hemp flower? Bridges: Don't know right now, but it would be included in the [certificate of analysis] AG: So the requirement to test for THCA would not be new for you? Bridges: I test for everything

Texas AG: Do you educate your customers that if they burn THCA it would turn to Delta-9 THC? Bridges: That's not something I have to tell them about

Bridges has two kids ages 2 and 16. Plaintiff attorney: If these rules take effect, would they be economically devastating for your family? Bridges: Yes

Bridges is done. 15 minute break

Here's audio of part three of the hearing: https://t.co/qUMgJFv3Qq

Apologies for not live tweeting every moment. I also have to write and be edited during this. But hopefully the mp3 files can provide a full enough picture.