Texas Hemp Industry Litigation Continues as Appellate Court Lifts Stay
Case Moves Toward Full Trial and is Scheduled for July 27, 2026
On June 5, 2026, the Fifteenth Court of Appeals lifted a stay in ongoing litigation challenging several of the Texas hemp rules adopted in March 2026. The order denied a request for continued temporary appellate relief and removed a previous administrative stay that had protected the hemp industry while the State’s appeal is pending.
“The decision was not unanimous; Justice Field noted that he would have granted the industry’s motion to continue the protections,” said David Sergi, attorney for Harwin Union Council, a business/trade association that is participating in the case.
“The July 27 trial will be an important moment for the Texas hemp industry. The district court will consider the claims—including allegations that the rules were adopted in violation of the Administrative Procedure Act—and determine if permanent relief for the industry is appropriate,” continued Sergi of Sergi & Associates in San Marcos, TX.
This case involves a comprehensive challenge to the hemp rules adopted by the State of Texas in March 2026. Hemp industry leaders and businesses allege that the regulations exceed statutory authority and violate constitutional protections.
The Court of Appeals did not rule on the merits of the case. The order does not address whether the challenged rules are lawful, whether the Department exceeded its statutory authority, or whether the rules violate the Texas Constitution. These critical issues remain and will be argued in court.
The revocation of the administrative stay means that regulatory enforcement activity may resume while the litigation continues. Hemp businesses across Texas are advised to evaluate their current operations, inventory, and manufacturing processes.
The appeal concerns a May 1, 2026, ruling by the Travis County District Court that granted a temporary injunction barring enforcement of certain provisions of the new hemp regulations. While the State’s subsequent appeal initially suspended the injunction, the Court of Appeals granted temporary relief on May 7, 2026, effectively reinstating the industry’s protections during the period of deliberation.
Because individual circumstances vary, businesses with specific compliance concerns regarding products, transportation, or licensing are strongly encouraged to consult with legal counsel.
Legal teams continue to monitor developments in both the Fifteenth Court of Appeals and the Travis County District Court to provide updates and guidance as this case progresses.
For media interviews with David Sergi, Attorney, please contact Kevin Lampe at (312) 617-7280 or kevin@kurthlampe.com.
