A new state rule scheduling Delta-8 and other hemp derivatives as controlled substances could turn Texas shop owners into felons overnight, prompting business advocates to challenge the ban in federal court.

The backstory: Following a Texas Supreme Court ruling, the Department of State Health Services reinstated a rule classifying popular hemp-derived THCs as Schedule I controlled substances, placing them in the same legal category as heroin.

Under the updated enforcement, retailers selling these products face state jail felony charges, thousands of dollars in fines, and the potential loss of their business licenses.