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Texas Supreme Court on Delta-8 THC

Texas High Court Set for a Delta 8 THC Battle

Texas has struggled with what to do with THC products, especially Delta-8 THC, ever since Texas followed the federal governmentโ€™s lead when the 2018 Farm Bill Act was passed. The changes in legislation distinguished hemp and marijuana. It defined hemp as cannabis containing no more than 0.3% delta-9 THC, the primary psychoactive compound in marijuana. This change meant that THC that was 1) not specifically delta-9 THC and 2) less than .3% delta-9 THC was not illegal. This opened the door for a variety of products to be sold without limitation, including delta-8 THC, THCA, and substances with less than .3% delta-9 THC . Most of the discussion around the proliferation of these products has centered around delta-8 THC. In this article, we will discuss the take of the Texas Supreme Court on Delta-8 THC.

The Delta-8 Loophole

The Farm Bill focused on delta-9 THC, but left a loophole for other cannabinoids like delta-8 THC. Delta-8 occurs naturally in cannabis in small quantities, but it can also be synthesized from CBD. This synthetic delta-8 produces effects similar to, but generally milder than, delta-9 THC.

As Delta-8 products became popular, they fell into a gray area. Some argued that since delta-8 was derived from legal hemp, it should be legal. Others believed that since itโ€™s psychoactive, it should be regulated like marijuana.

Prosecution Challenges

Prosecutors across the state faced issues dealing with Delta-8 cases. In the beginning, state labs couldnโ€™t distinguish between delta-9 THC and other THC types. Millions were spent on equipment and new testing procedures, but the backlog of cases remained, and testing was expensive. To complicate things further, THC is often found in liquids like vape cartridges, yet the law defines THC concentration by dry weight. Many prosecutors began dropping these cases to avoid the high cost of testing.

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Texas Tried to Nip Delta-8 THC in the Bud

In October 2021, the Texas Department of State Health Services (DSHS) updated its website to classify delta-8 THC as a Schedule I controlled substance, effectively making it illegal in the state.

Civil Lawsuit Begins

A group of hemp businesses, led by Sky Marketing Corp. (doing business as Hometown Hero), sued DSHS, claiming it overstepped its authority by classifying delta-8 as illegal without following the proper procedures.

The Legal Battle

In November 2021, a Travis County court granted a temporary injunction against the delta-8 ban. This decision was upheld in September 2023 by the Third Court of Appeals. Now, DSHS has appealed to the Texas Supreme Court, which will decide the legal status of delta-8 THC in Texas.

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Key Issues Before the Texas Supreme Court

Standing and Enforcement Authority

One key argument is whether the plaintiffs have the right (standing) to bring the lawsuit. DSHS argues it doesnโ€™t have the authority to enforce criminal penalties, which lies with local law enforcement. The plaintiffs counter that they face civil penalties under the stateโ€™s hemp licensing scheme, which DSHS does enforce.

Ultra Vires Actions and Sovereign Immunity

The plaintiffs also argue that DSHS overstepped its authority by classifying delta-8 as illegal without following proper procedures. DSHS, on the other hand, claims its actions were within its authority, and that sovereign immunity protects it from the lawsuit.

Administrative Procedure Act (APA) Violations

The plaintiffs accuse DSHS of violating the APA by failing to follow rule-making procedures when it declared delta-8 illegal on its website. DSHS contends the website update was informational and not subject to APA requirements.

Irreparable Harm and Public Interest

The court must weigh the potential harms to both sides. The plaintiffs argue that banning delta-8 will harm their businesses, while DSHS points to the public health risks of unregulated delta-8 products, including contaminants and negative health effects.

Broader Implications of the Case

The outcome of this case could impact more than just Texas. If DSHS wins, other states might follow Texasโ€™s lead in cracking down on delta-8. If the plaintiffs win, it could create legal precedents that favor hemp businesses nationwide.

The Cannabis Industry Watches Closely

The cannabis industry, including hemp farmers and CBD manufacturers, is closely watching this case. Supporters of delta-8 believe it offers a milder alternative to delta-9 THC, while critics are concerned about the lack of regulation in delta-8 production.

The Road Ahead

The Texas Supreme Court must now navigate complex laws and regulations. Regardless of the outcome, this case highlights the challenges of regulating the rapidly evolving cannabis industry. As new products emerge, lawmakers must find a balance between innovation and public health concerns.

Conclusion

All eyes are on the Texas Supreme Court as it prepares to rule on this contentious issue. The courtโ€™s decision could shape cannabis laws in Texas and potentially across the United States for years to come.

Benson Varghese

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Benson Varghese is the founder and managing partner of Varghese Summersett, where he has built a distinguished career championing the underdog in personal injury, wrongful death, and criminal defense cases. With over 100 jury trials in Texas state and federal courts, he brings exceptional courtroom experience and a proven record with Texas juries to every case.

Under his leadership, Varghese Summersett has grown into a powerhouse firm with dedicated teams across three core practice areas: criminal defense, family law, and personal injury. Beyond his legal practice, Benson is recognized as a legal tech entrepreneur as the founder of Lawft and a thought leader in legal technology.

Benson is also the author of Tapped In, the definitive guide to law firm growth that has become essential reading for attorneys looking to scale their practices.

Benson serves as an adjunct faculty at Baylor Law School.

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