The Texas Supreme Court ruled Friday a group of hemp retailers were harmed when the Department of State Health Services effectively criminalized delta-8.
But the court lifted a temporary injunction granted against the department — meaning for now, DSHS has the authority to classify delta-8 as a Schedule I controlled substance.
In its finding, justices ruled DSHS is protected by sovereign immunity — a legal principle that generally protects the state and state agencies from most claims — because Texas law gives the agency's commissioner the authority to change the classification.
Schedule I substances are defined at the federal and state level as drugs with no accepted medical use and a high potential for abuse, and possessing or distributing them has criminal consequences.
That's despite the court also ruling the businesses faced loss of sales directly related to the state's reclassification.
So while the court ruled the businesses had standing, it reversed a lower court's pause on its enforcement. It's not clear if the underlying suit will continue after the high court's ruling.
The court also ruled the website notice isn't subject to the Texas Administrative Procedure Act, dismissing the plaintiffs' claim that DSHS didn't follow the proper rulemaking procedures when it issued the notice.
This story is developing and will be updated.
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