One of Texas's most consequential hemp lawsuits is heading into 2027 with a different set of judges. The state's 15th Court of Appeals has cancelled its December 8 oral argument in a case challenging Texas's consumable hemp regulations, just days after voters replaced all three members of the court. The hearing will be rescheduled, but the delay does not change the rules currently governing Texas hemp businesses. The state's total-THC testing requirements, increased licensing fees and transportation restrictions remain enforceable.
A December 8 Hearing Disappears From the Calendar
On Thursday, November 5, 2026, Michael A. Cruz, clerk of Texas's 15th Court of Appeals, issued a letter cancelling the scheduled oral argument in DSHS v. Texas Hemp Business Council, Case No. 15-26-00099-CV.
The letter stated:
"You are hereby notified that submission and oral argument, previously set for Tuesday, December 8, 2026, is this date cancelled. The cause will be reset for submission at a later date."
No replacement hearing date has been announced.
The case involves an appeal by the State of Texas challenging a temporary injunction against portions of the Department of State Health Services' revised consumable hemp regulations.
The cancellation does not resolve the lawsuit or change the status of the disputed regulations.
Instead, it moves the case into a new judicial term following an election that changed the court's entire membership.
Voters Removed Every Justice Who Was Set to Hear the Case
On November 3, 2026, Texas voters ousted all three Republican members of the 15th Court of Appeals.
Chief Justice Scott Brister and Justices Scott Field and April Farris lost their seats, with three Democrats scheduled to take office in early January 2027.
The timing created a practical problem for cases awaiting oral argument.
According to Bloomberg Law, in reporting carried by the Texas Tribune, outgoing Justice Scott Field explained the decision:
"We know we can't get the opinion out for cases orally argued before the end of the year so we don't want to waste the lawyers' time with an argument if there's a chance the new court will also want to hear argument."
The court also cancelled December 8 and 9 arguments in three other cases.
The cancellation leaves the appeal pending for the incoming court, which is expected to take over the case after the new justices assume office in January 2027. A replacement argument date has not been announced.
The case itself remains pending, and the new justices have not yet issued a ruling.
The Fight Began With a New Formula for Measuring THC
At the center of the lawsuit is Texas's revised approach to determining whether consumable hemp products comply with state THC limits.
In 2019, Texas legalized hemp through House Bill 1325, establishing a statutory standard based on actual delta-9 THC.
The Department of State Health Services later adopted amendments to 25 Texas Administrative Code Chapter 300 that introduced a total-THC testing standard.
The amended rules measure THC after decarboxylation, including the potential delta-9 THC contributed by THCA. For total delta-9 THC, the calculation is:
Total delta-9 THC = (0.877 × THCA) + delta-9 THC
The rules also separately define total THC to account for other THC isomers. The applicable threshold is 0.3% on a dry-weight basis.
This calculation accounts for THCA, the cannabinoid precursor that can convert into delta-9 THC.
In practice, the revised standard makes virtually all smokable THCA flower and pre-rolls non-compliant.
The hemp industry argues that the agency exceeded the authority granted by the Legislature when it replaced the statutory actual-delta-9 standard with the total-THC calculation.
On May 1, 2026, Judge Daniella DeSeta Lyttle of Travis County's 455th District Court found that portions of the rules likely exceeded the statutory standard.
That finding was part of a temporary injunction, not a final judgment on the legality of the regulations.
Licensing Fees Jumped From Hundreds to Thousands
The lawsuit challenges more than THC testing.
Under the Chapter 300 amendments, the state's licensing fees increased substantially.
For manufacturers, the fee rose from $258 to $10,000 per facility.
For retailers, the fee increased from $155 to $5,000 per location.
The challenged provisions also include restrictions on transporting hemp materials exceeding the revised THC standard.
Another disputed provision allows penalties to accumulate by treating each day as a separate violation, without a notice-and-cure opportunity.
The trial court also found likely defects in the administrative procedures used to adopt portions of the regulations.
The plaintiffs include the Texas Hemp Business Council, Hemp Industry & Farmers of America and Texas retailers.
Amanda Taylor of Butler Snow LLP serves as lead counsel.
Defendants include the Texas Department of State Health Services, the Health and Human Services Commission and Attorney General Ken Paxton.
The underlying case was filed in Travis County under Cause No. D-1-GN-26-002511.
The Industry Won an Injunction, but the Rules Came Back
The legal dispute has moved through several stages since April 2026.
The industry filed its lawsuit on April 7, challenging the Chapter 300 amendments that had taken effect March 31.
On April 10, the trial court issued a temporary restraining order.
Judge Lyttle followed with a temporary injunction on May 1, blocking portions of the disputed regulations.
The State appealed on May 5.
The following day, the industry filed an emergency motion under Texas Rule of Appellate Procedure 29.3, seeking relief while the appeal proceeded.
On May 7, the 15th Court of Appeals issued an administrative stay.
On June 5, the appellate court denied the industry's emergency request under Rule 29.3 and lifted its May 7 administrative stay, ending the temporary appellate protection that had kept the trial court's injunction operative. The challenged rules consequently became enforceable again while the appeal continued. The court did not decide whether the regulations were ultimately lawful.
Justice Scott Field would have granted the motion.
The court subsequently denied rehearing on June 26.
The cancellation of December's oral argument does not reinstate the injunction.
What Texas Hemp Retailers Can Legally Sell Right Now
Despite the pending litigation, Texas hemp businesses must continue complying with the full Chapter 300 regulatory framework.
That includes the total-THC testing standard, the increased licensing fees, transportation restrictions and the requirement that consumable hemp products be sold only to adults 21 and older.
DSHS continues enforcing the regulations.
Consumable hemp products must comply with the applicable THC limits and all other state requirements, including licensing, labeling, age verification and restrictions affecting particular cannabinoids and product types. Meeting the THC threshold alone does not establish that a product is lawful to sell.
However, smokable THCA flower and pre-rolls that exceed the total-THC threshold remain non-compliant.
The court's scheduling change provides no new exemption or temporary relief for businesses affected by the rules.
Until the legal status changes, retailers remain subject to the existing requirements.
How Texas Reached This Point After Abbott's Veto
The dispute follows several years of changes in Texas hemp policy.
House Bill 1325 legalized hemp in 2019 using an actual delta-9 THC standard.
In 2025, the Texas Legislature passed Senate Bill 3, which would have imposed a near-total ban on THC products.
Governor Greg Abbott vetoed the legislation on June 22, 2025.
On September 10, Abbott issued Executive Order GA-56, directing DSHS to revise its hemp testing, labeling and fee regulations while prohibiting sales to minors.
Emergency rules restricting sales to people 21 and older took effect October 2, 2025.
DSHS proposed its broader Chapter 300 overhaul on December 26, 2025.
The proposal drew more than 1,400 public comments before the agency adopted the amendments in March 2026.
The new regulations took effect March 31, prompting the industry's April 7 lawsuit.
The current appeal is therefore part of a longer dispute over how far state regulators can go when implementing hemp restrictions under existing Texas law.
The New Court Will Inherit an Unfinished Hemp Fight
The cancellation leaves both sides waiting for a new hearing date.
As of November 7, 2026, neither the Texas Hemp Business Council nor DSHS had posted a statement about the cancellation on their websites.
The Council's website still promoted the original December 8 hearing.
The incoming justices are expected to take office in early January 2027, and the court is then expected to determine the next steps in the case.
The appeal will determine whether the temporary injunction against the challenged regulations should stand, not necessarily deliver a final resolution of every underlying legal issue.
Until further court action, the state's current hemp regulations remain enforceable.
Texas's hemp industry entered 2026 facing a regulatory overhaul that changed how THC is measured, increased licensing costs and restricted the transportation of products exceeding the new standard.
The industry challenged those changes, obtained temporary relief in May and then lost the practical benefit of that injunction during the appellate proceedings in June.
Now, the appeal is being pushed into 2027 because voters replaced the entire court that had been scheduled to hear it.
The new justices will inherit a dispute over the boundary between legislative hemp law and regulatory authority.
For Texas hemp businesses, the immediate reality remains unchanged: the total-THC standard, licensing fees, transportation limits and age restrictions are still enforceable.
The hearing has been cancelled. The regulations have not.
Sources
Texas Fifteenth Court of Appeals. “Submission Cancelled.” Clerk's letter, DSHS v. Texas Hemp Business Council, No. 15-26-00099-CV. November 5, 2026. Link
Texas Fifteenth Court of Appeals. Per Curiam Order Denying Appellees' Emergency Motion for Temporary Order Under Rule 29.3 and Lifting Administrative Stay. June 5, 2026. Link
Temporary Injunction Order. Texas Hemp Business Council et al. v. Texas Department of State Health Services et al., Cause No. D-1-GN-26-002511, 455th District Court, Travis County. May 1, 2026. Link
Texas Tribune. “Texas Court Cancels Arguments in Case Challenging Hemp Rules after Democratic Justices Win Election.” November 6, 2026. Republished by Marijuana Moment. Link
Office of the Governor of Texas. Executive Order GA-56. September 10, 2025. Link
Texas Department of State Health Services. Consumable Hemp Products Rules, 25 Texas Administrative Code Chapter 300. Texas Register, adopted March 2026, effective March 31, 2026. Link
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