Texas Judge Denies Temporary Restraining Order in Hemp Industry Lawsuit, Injunction Hearing Set for October 30

A Texas judge has denied hemp businesses’ request for a temporary restraining order seeking to halt enforcement of a new THC standard targeting hemp products, while scheduling an October 30 hearing on their request for a temporary injunction.

The temporary injunction hearing will be held at 9 a.m. before Judge Maria Cantu Hexsel of the 53rd District Court at the Travis County Civil and Family Courts Facility in Austin.

The denial of the temporary restraining order leaves the state’s current enforcement approach in place for now, but it does not resolve the underlying lawsuit or determine whether the challenged DSHS policies are lawful.

“While we are disappointed not to have received the temporary restraining order, we look forward to the hearing date for the temporary injunction,” said David Sergi of Sergi and Associates, an attorney representing the plaintiffs. “In similar cases, even when a TRO has been denied, the temporary and permanent injunction has been granted.”

Sergi said the plaintiffs intend to argue that Texas Department of State Health Services  (DSHS) has exceeded its authority.

“This is a unique case that will require a comprehensive hearing,” he said.

The lawsuit, Cause No. D-1-GN-26-007113, was filed in the 459th Judicial District Court of Travis County by SS Distro USA LLC, Topps Distro LLC doing business as KingPin Kush, Jason Moreno doing business as My City Hemp, and Trevor Kocaoglan.

The defendants include DSHS, Interim Commissioner Imelda Garcia and Division Director Glenn Hargett.

As previously reported by The Marijuana Herald, the plaintiffs are challenging what they describe as DSHS’ post-July implementation and enforcement standard for hemp products.

The businesses specifically dispute the agency’s use of what they call an undefined “trace amount” standard following a July 31 scheduling action. They argue the standard is not defined by statute, agency rule or another lawfully adopted standard and therefore cannot be enforced in its current form.

The lawsuit asks the court to find that if DSHS wants to establish and enforce such a standard, it must do so through the formal rulemaking process.

The plaintiffs also argue that Texas lawmakers established the state’s legal definition of hemp through House Bill 1325 in 2019, which generally defines hemp based on a delta-9 THC concentration of no more than 0.3% on a dry-weight basis. They contend DSHS cannot effectively rewrite that framework through administrative enforcement.

The lawsuit additionally challenges annual fees of $10,000 for manufacturers and $5,000 for retailers and alleges violations of the Texas Administrative Procedure Act and the state constitution’s separation-of-powers provisions.

The hemp businesses contend the enforcement approach threatens a substantial industry in Texas. An economic analysis submitted in connection with the lawsuit estimates the state’s consumable hemp industry generates approximately $5.1 billion in annual business revenue and supports nearly 48,900 jobs.

The October 30 hearing will determine whether the businesses receive a temporary injunction blocking the challenged enforcement practices while the broader case moves forward.