New regulations governing the consumable hemp industry in Texas were approved Tuesday by the Texas Alcoholic Beverage Commission (TABC), marking the end of a yearlong effort to increase oversight of these products.
New Rules, Familiar Landscape
The approved rules largely maintain the status quo for the $5 billion industry, replacing temporary emergency rules implemented in September. Key provisions include prohibiting sales of consumable hemp products to individuals under 21 and requiring identification checks for all purchases. These regulations apply to approximately 60,000 TABC license holders, encompassing businesses like convenience stores, restaurants, and liquor stores.
TABC Chair Robert Eckels explained the rationale behind the age restriction, stating, “It’s much like alcohol…you need a level of maturity to use these products or it can be very harmful to the kids and the community.”
A Step Back From Stricter Measures
The permanent rules represent a softening of the initial emergency regulations. A “one strike” provision, which would have allowed the TABC to revoke a license for a single violation – such as selling to a minor – has been removed. Instead, the agency will now issue temporary license suspensions for less severe infractions. This change came after industry representatives argued the “one strike” rule posed an existential threat to businesses.
The TABC has also entered into a memorandum of understanding with the Department of State Health Services (DSHS) to share enforcement responsibilities. The agencies are currently finalizing an inter-agency contract to formalize this agreement.
Ongoing Debate and Future Outlook
While the TABC rules are now finalized, the debate surrounding consumable hemp products in Texas is far from over. Opponents of the industry advocated for an outright ban or a higher minimum purchase age – between 25 and 30 – during the public comment period. Aubree Adams, director of Citizens for a Safe and Healthy Texas, characterized hemp products as “addictive and harmful at any age.”
TABC Commissioner Deborah Gray Marino acknowledged the concerns raised by opponents, while TABC Chair Eckels indicated that this vote is not the final word. He anticipates the Texas Legislature will revisit the issue during the 2027 session.
Meanwhile, DSHS is developing its own regulations for retailers not covered by the TABC, including a proposed 13,000% increase in licensing fees to fund increased oversight. Public comment on these proposed rules is open until January 26.
These actions by both TABC and DSHS stem from an executive order issued by Gov. Greg Abbott after previous legislative attempts to regulate or ban consumable hemp products failed. The governor’s decision has reportedly created friction with Lt. Gov. Dan Patrick, a vocal proponent of a ban.
However, a potential federal ban on nearly all consumable hemp products, scheduled to take effect in November, could ultimately supersede state-level regulations. Industry representatives have stated their intention to lobby against this federal provision.
Frequently Asked Questions
What is the primary change implemented by the new TABC regulations?
The primary change is the formalization of rules requiring TABC license holders to verify the age of purchasers and prohibiting sales to anyone under 21. These rules replace temporary emergency measures.
How are the TABC and DSHS coordinating their regulatory efforts?
The TABC and DSHS have entered into a memorandum of understanding to share enforcement responsibilities, as neither agency has jurisdiction over all retailers selling consumable hemp products. They are currently negotiating a contract to finalize the terms of this agreement.
Could these new regulations be overturned by the Texas Legislature?
TABC Chair Robert Eckels expects the Legislature to revisit the issue during the 2027 session, suggesting that further legislative action could alter the current regulatory landscape.
How will the evolving regulatory environment impact the future of the consumable hemp industry in Texas?
