AustinNews.org

Texas will outlaw manufactured Delta-8 and similar cannabinoids starting July 31

July 30, 2026

  • What: The state is banning Delta-8 THC and a broad group of non-Delta-9 THC compounds beginning July 31.
  • Who: The rule affects hemp retailers, manufacturers, and consumers; Austin police say they will treat possession as a state jail felony.
  • Where: The change applies statewide in Texas, with local retailers in Austin already removing Delta-8 products from shelves.
  • Why it matters: Possession of manufactured Delta-8 will carry felony penalties that are harsher than penalties for small amounts of marijuana, and thousands of registered retailers sell hemp products in Texas.

State health regulators have placed manufactured Delta-8 and a wide class of other non-Delta-9 THCs on Texas Schedule I, a change that takes effect July 31. The rule targets THCs other than Delta-9 and synthetic equivalents, rather than listing specific product names.

The ban does not cover edible or beverage products made from Delta-9 THC, the primary psychoactive compound in cannabis. Regulators said the distinction rests on chemical differences, and how many products are created.

Delta-8 does occur naturally in the cannabis plant, but only in minimal concentrations. Most Delta-8 sold in retail outlets is produced by chemically converting CBD, a nonintoxicating compound derived from hemp. That manufacturing process was central to litigation over whether such products fall under state controlled substance laws.

Hometown Hero, the Austin company that brought the challenge, secured a temporary injunction in November 2021 that temporarily blocked enforcement. In May, the Texas Supreme Court lifted that injunction, enabling the Department of State Health Services to reinstate the rule while the underlying case continues.

Local retailers have already felt the change. An employee at an Austin smoke shop said staffers could not find any Delta-8 items on the shelf and that the store has shifted inventory toward products with legal amounts of naturally occurring Delta-9. The employee described Delta-8 as generally milder in effect than Delta-9 and suggested consumers use smaller Delta-9 doses to approximate those effects.

The revived rule places manufactured Delta-8 alongside drugs such as heroin, LSD, DMT, MDMA, peyote and psilocybin on Schedule I. Austin police have said they will treat possession of Delta-8 as a state jail felony, which carries a sentence of 180 days to two years in jail and fines up to $10,000.

That classification differs from the citys approach to small amounts of marijuana, which is a misdemeanor and typically does not lead to arrest in Austin. The police department has not explained how officers will determine the specific THC form in individual items like gummies, whether arrests will be pursued immediately, or when enforcement will begin. Prosecutors will make final charging decisions.

State records show more than 14,000 locations are registered to sell hemp products in Texas. Austin has 974 registered retailers, and Travis County plus the six counties that border it list 1,842 registered outlets. Retailers affected include smoke shops, convenience stores, restaurants, bars and other sellers.

The Hometown Hero co founder said the company is weighing whether to continue its legal challenge, noting the litigation has been costly and that other firms may also sue over the rule. The co founder also said Delta-8 represented a small share of the companys sales compared with Delta-9 products.

Sources

  • Department of State Health Services notice
  • Texas Supreme Court decision
  • Court filings in Hometown Hero lawsuit
  • Austin Police Department statement
  • Interview with store employee at Austin Vape and Smoke
  • DSHS retailer registration spreadsheet
  • Local news reporting (KUT)