The Fifteenth Court of Appeals on June 5 lifted an administrative stay in ongoing litigation over Texas hemp regulations adopted in March 2026, allowing regulatory enforcement activity to resume while the case moves forward.
The court denied a request from hemp industry plaintiffs to continue temporary appellate relief during the State’s appeal of a lower court ruling.
“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 hemp business trade association participating in the litigation.
The case challenges a set of hemp regulations adopted by Texas regulators in March. Hemp businesses and industry organizations argue that the rules exceed statutory authority and violate constitutional protections.
According to Sergi, the next major development in the case will occur at a trial scheduled for July 27.
“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,” said Sergi of Sergi & Associates in San Marcos, Texas.
The appeals court did not address the underlying legal claims in its June 5 order. The court did not rule on whether the regulations comply with state law, whether state agencies exceeded their authority when adopting the rules or whether the regulations violate the Texas Constitution. The district court will consider those issues as litigation continues.
The appeal stems from a May 1 ruling by the Travis County District Court, which granted a temporary injunction blocking enforcement of certain provisions of the hemp regulations. After the State appealed that ruling, the injunction lost effect under Texas appellate procedures.
On May 7, the Court of Appeals granted temporary relief that restored protections for hemp businesses while judges considered the parties’ arguments. The June 5 order removed those protections and lifted the administrative stay.
As a result, state regulators may resume enforcement of the challenged rules before the courts resolve the case.
Industry attorneys said hemp businesses should review their operations, inventory and manufacturing practices to assess compliance risks while the litigation remains pending.
Legal teams representing industry stakeholders continue to monitor proceedings in both the Fifteenth Court of Appeals and Travis County District Court. Additional court hearings and rulings are expected in the coming weeks as the challenge to the Texas hemp regulations moves forward.
