Laws · state-regulation

Texas Appeals Court Extends Injunction Blocking THC Ban Through June 6

The Fifth Court of Appeals reinstated a temporary restraining order, giving hemp retailers another week before enforcement begins.

By Niko Adamou, Hemp & THCA ReporterPublished May 30, 20264 min read
Street view of the iconic Paramount Theatre on Congress Avenue in Austin, TX.

Street view of the iconic Paramount Theatre on Congress Avenue in Austin, TX.

A Texas appeals court on May 30 extended a temporary restraining order blocking the state's hemp-derived THC ban through June 6, granting retailers and manufacturers one more week of legal sales. The Fifth Court of Appeals in Dallas reinstated the pause hours after it briefly lapsed, leaving the industry in limbo as litigation over House Bill 1325's implementing rules continues.

Court Reinstates TRO After Brief Lapse

The Fifth Court of Appeals in Dallas issued an emergency order May 30 reinstating a temporary restraining order that blocks enforcement of Texas's hemp-derived THC ban until at least June 6. The move came hours after a previous TRO expired at midnight May 29. That created a brief window during which the Texas Department of State Health Services could've begun enforcing rules that cap total THC in hemp products at 0.3 percent by weight.

The appellate court's order gives Judge Jan Soifer of Travis County District Court until June 6 to rule on a preliminary injunction motion filed by the Texas Hemp Coalition and several retailers. Judge Soifer had issued the original TRO on May 15. It halted enforcement for 14 days while she considered whether the state's rules exceed statutory authority.

What the Ban Does—and Why It Matters

The contested rules interpret House Bill 1325 to impose a 0.3 percent total THC limit that includes delta-9 THC, THCA, and other isomers on a combined basis. That standard effectively bans products containing high-THCA hemp flower, which converts to delta-9 THC upon heating but remains non-intoxicating in raw form.

The Texas Hemp Coalition argues the rules contradict the 2018 Farm Bill's definition of hemp, which measures only delta-9 THC concentration on a dry-weight basis and allows up to 0.3 percent. THCA—the acidic precursor that hasn't undergone decarboxylation—doesn't appear in the federal statute's calculation. Retailers say the state's total-THC test collapses the distinction between pre-market testing and post-consumption chemistry. No other state applies this standard so strictly.

Texas's $1.2 billion hemp market depends on that distinction. Smokable flower, vapes, and edibles sold in thousands of smoke shops and convenience stores typically contain 15 to 25 percent THCA by weight. Those levels pass federal compliance tests but fail the state's total-THC formula.

Industry Caught in Week-to-Week Uncertainty

Retailers have operated under serial 14-day extensions since mid-May, unable to restock inventory or plan beyond the next court date. Distributors report order cancellations and payment holds as buyers wait for clarity. Some operators have pulled high-THCA SKUs from shelves preemptively. Others are selling down stock while the injunction holds.

Border cities feel the squeeze acutely. Competitors in Louisiana, Oklahoma, and New Mexico face no equivalent total-THC cap. One Houston-area chain told investors it's paused all hemp-derived cannabinoid purchases pending a final ruling, a stance echoed by mid-sized operators across the state's metro markets.

The Legal Question: Rulemaking Authority or Statutory Overreach?

The coalition's lawsuit centers on whether DSHS exceeded its rulemaking authority by redefining hemp more narrowly than the federal statute allows. House Bill 1325, passed in 2019, directed the agency to align Texas law with the Farm Bill's hemp definition. Plaintiffs argue the total-THC standard does the opposite. It creates a state-specific test that conflicts with USDA compliance protocols.

DSHS maintains the rules are a reasonable interpretation of legislative intent to prevent intoxicating products from entering the unregulated hemp channel. The agency points to rising emergency-room visits tied to delta-8 and THCA products as evidence the legislature wanted tighter controls, even if the statute's text doesn't explicitly mandate a total-THC calculation.

Judge Soifer's preliminary-injunction hearing, originally scheduled for late May, has been delayed twice. The June 6 deadline forces a decision: either issue the injunction and keep the ban on hold through trial, or let the TRO expire and allow enforcement to begin.

What Enforcement Would Look Like

If the injunction lapses, DSHS has signaled it'll begin compliance sweeps targeting high-THCA flower and concentrated products first. The agency hasn't published a formal enforcement timeline. But internal guidance obtained by the coalition suggests inspectors would prioritize retailers in the state's five largest metro areas—Houston, Dallas, San Antonio, Austin, and Fort Worth—where the majority of hemp sales occur.

Penalties under the agency's rules include product seizure, administrative fines up to $25,000 per violation, and potential referral to local prosecutors if total THC exceeds levels that trigger felony-weight charges under the Texas Controlled Substances Act. That last scenario remains legally murky. Defense attorneys have argued successfully in several counties that THCA flower is federally lawful hemp, not marijuana, creating a patchwork of enforcement outcomes.

National Implications and the Conversion-Ratio Debate

Texas is the largest state to attempt a total-THC standard, and the case is being watched closely by regulators in Florida, Georgia, and North Carolina, where similar rules are under discussion. The core dispute—whether to count THCA as THC for compliance purposes—remains unsettled in federal guidance. USDA's hemp regulations require total THC testing for pre-harvest compliance, using a conversion formula that assumes 87.7 percent of THCA becomes delta-9 upon decarboxylation. But that formula applies only to cultivators. Not finished consumer products.

The gap has created a legal arbitrage: flower that passes USDA testing as hemp can fail a state total-THC test if the state applies the conversion retroactively to post-harvest products. Industry groups argue the inconsistency is untenable and are pressing USDA and FDA to issue joint guidance clarifying when and how conversion ratios apply. No such guidance has been issued.

For full background on this story, see the CannIntel topic hub on the Texas THC ban legal challenge.

What Happens Next

Judge Soifer has until June 6 to rule on the preliminary injunction. If granted, the ban stays paused until the underlying lawsuit is resolved, a process that could take 12 to 18 months. If denied, enforcement begins immediately and the coalition's only recourse is an emergency appeal to the Fifth Court of Appeals—the same court that just extended the TRO.

Either way, expect enforcement to vary. District attorneys in Travis, Harris, and Bexar counties have already signaled they won't prioritize THCA cases. That creates a de facto safe harbor in the state's three largest cities even if DSHS moves forward. Rural counties are less predictable.

Sources

TexasTHCAhemp regulationHB 1325Fifth Court of Appealstotal THC
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