The Fifteenth Court of Appeals ruled September 17 that the Texas Department of State Health Services acted within its statutory authority when it adopted 2026 consumable-hemp rules measuring total THC and raising registration fees, rejecting the Texas Hemp Business Council's argument that DSHS exceeded the authority the Legislature gave it. The ruling addresses the merits of the case, a step beyond the temporary-relief fight that produced a rehearing denial in June.
The Fifteenth Court of Appeals issued its merits ruling September 17. DSHS's consumable-hemp rules, including total-THC testing and current fee schedules, remain in effect statewide. The Texas Hemp Business Council has 45 days from the ruling to file a petition for review with the Texas Supreme Court and says it intends to do so.
What the Court Decided
DSHS adopted its current Consumable-Hemp Program Rules effective March 31, applying a total-THC measurement standard rather than a delta-9-only test and raising registration and testing fees on hemp manufacturers and retailers. The Texas Hemp Business Council and other industry plaintiffs sued, arguing the total-THC approach and fee increases went beyond what the Texas Legislature authorized DSHS to regulate. A trial court initially granted temporary relief, the state appealed and won a stay of that injunction, and the plaintiffs' subsequent rehearing request was denied in June, leaving the rules in effect while the case proceeded to a decision on the merits.
In its September 17 opinion, the Fifteenth Court of Appeals found that the enabling statute gives DSHS reasonably broad authority to define testing methodology and set fees for the consumable-hemp program, and that the agency's total-THC standard and fee schedule fell within that authority. The court did not reach every claim the plaintiffs raised; some narrower procedural arguments were remanded to the trial court for further proceedings.
The Texas Hemp Business Council said in a statement posted to its website that it disagrees with the ruling's interpretation of the agency's authority and will petition the Texas Supreme Court to review the case, a discretionary review the court is not required to grant.
Why It Matters
For hemp retailers and manufacturers, the ruling means the current DSHS framework, including total-THC testing and existing fees, stays in effect statewide for the foreseeable future, regardless of the pending Supreme Court petition. A petition for review does not pause the rules on its own, and the Texas Supreme Court could decline to hear the case entirely, which would leave the Fifteenth Court of Appeals's ruling as the final word. Retailers should not treat the pending petition as a reason to stop following current labeling, testing, licensing or fee requirements.
The case also illustrates how much of Texas's hemp regulatory fight has moved from the Legislature to the courts and to DSHS rulemaking. CannaWize has tracked this dispute since DSHS's rules took effect; our earlier coverage of the June Rehearing Denial and our explainer on What the July 31 Smokeable-Hemp Deadline Actually Means cover the procedural history in more detail.
What Retailers and Shoppers Should Do
Operators should keep complying with the DSHS rules currently in effect, including total-THC testing, labeling and fee requirements, and should not rely on the pending Supreme Court petition as grounds to change compliance practices. Shoppers can review our guide to Which Texas Hemp Products Are Affected by Current Rules and our reporting on What's Still on Texas Hemp Shop Shelves for a practical look at how the rules have played out at retail so far.
The Bottom Line
The Fifteenth Court of Appeals sided with DSHS on the merits September 17, upholding the agency's total-THC testing standard and fee schedule for consumable hemp. The Texas Hemp Business Council plans to petition the Texas Supreme Court, but that petition does not pause the current rules, which remain in effect statewide while the case's next chapter plays out.