New Lawsuit Aims to Challenge Texas DSHS Hemp Rules on Constitutional Grounds

A new lawsuit is being prepared against the Texas Department of State Health Services (DSHS) by the Texas Hemp Constitutional Alliance (THCA) and Green Nation. The attorneys behind the THCA are not hemp lawyers. They are constitutional lawyers, and their case is aimed squarely at government overreach: regulators using their powers to disrupt an industry the Legislature chose to allow.

The Key Points

Why This Case Is Different

The best-known challenge to the DSHS rules is the one brought by the Texas Hemp Business Council (THBC), which remains active. That case did not win a temporary restraining order, the emergency step that would have let the industry keep operating under the prior statute while the rules are litigated. We have covered where it stands in our THBC rehearing update and the Fifteenth Court of Appeals ruling on the DSHS rules.

According to the Chill Country Report hosts, the THCA suit covers similar ground but takes a tighter route. Its argument is that a Texas regulator may regulate, but may not adopt rules that contradict a statute the Legislature already passed. In legal shorthand, an agency acting beyond its authority is acting ultra vires. The hosts say the plan is to file in Travis County with the goal of reaching the Fifteenth Court of Appeals, and to frame the case around the Constitution rather than around whether a judge likes hemp.

Why It Matters

The people behind the video say they believe this is the industry's best shot at protecting both Texas hemp businesses and the broader principle that regulators cannot abuse their powers to disrupt an industry. That is their assessment, and the outcome of any lawsuit is uncertain. Still, a second case with a different legal theory gives the question of DSHS's authority another path through the courts, at a time when TABC is also proposing its own hemp rules and shops are already feeling the shelf impact, and the hosts argued that more well-built lawsuits are better than fewer. They also cautioned that poorly argued cases can lead to poorly written law.

Watch the Discussion

The Chill Country Report's “Hemp Industry Deep Dive | CCR 7” (1 hour, 22 minutes) walks through the origins of the hemp industry, the difference between synthetic THC and natural delta-9 THC, how statutes and agency rules differ, and why the hosts think the THCA lawsuit is the strongest option against DSHS rewriting Texas hemp law.

What Isn't Resolved Yet

The complaint has not been filed, so its exact claims, the relief it will request, and whether it seeks to cover all hemp products or only the plaintiffs and their members are not yet public. CannaWize has not reviewed the filing. We will update this article and publish a full follow-up once it is on the docket.