The big picture
The five-member commission voted at a Nov. 18 meeting to publish the proposed permanent rules in the Texas Register, launching a public comment period that ends Jan. 4. The proposal is similar to emergency rules adopted Sept. 23, which are currently in effect and prohibit Texas alcohol retailers from selling intoxicating THC products to minors.
As proposed, the permanent rules would require that:
- Texas retailers with TABC licenses do not sell, offer to sell, serve or deliver consumable THC products to minors.
- TABC license holders verify that a customer has “an apparently valid, unexpired proof of identification” and is at least 21 years old before selling them THC products.
The proposal would also retract a “one strike” provision that is currently in effect, which states that an alcohol retailer will immediately lose their license if they violate the rules by selling THC products to minors or failing to check customers’ IDs. Under the permanent proposal, the commission could suspend a business’s license for initial offenses and revoke a license after more than two violations.
John Lutz, vice president of fuel and marketing for the multistate convenience store chain Toot'n Totum, told the commission he supported removing the “one strike” policy, which he said could put retailers out of business for a single mistake.
“Canceling a TABC business license for a one-time employee violation could significantly impact that location’s ability to remain competitive across our products in a crowded marketplace [and have] devastating effects ... on responsible business operators,” Lutz said Nov. 18.
The proposed rules would apply only to Texas retailers that sell alcohol, such as bars, restaurants, liquor stores, grocery stores and some convenience stores. The Texas Department of State Health Services adopted emergency rules barring all consumable hemp retailers from selling to minors in October, although the health department had not announced a plan for permanent rulemaking as of press time.
How we got here
The existing and proposed THC rules are the result of a September executive order by Gov. Greg Abbott, who called for age restrictions on THC sales and tighter guardrails on the multibillion-dollar industry.
Abbott issued the order after the Texas Legislature spent months debating how to best rein in the state’s consumable hemp industry and shield minors from accessing the products. State lawmakers voted to ban all hemp-derived THC products in May, but Abbott later vetoed the legislation, which he said had “undeniable” legal defects.
Lawmakers remained at an impasse on THC regulations after two special legislative sessions this summer, Community Impact previously reported.
More recently, federal lawmakers approved a ban on most consumable THC products, which is set to take effect in November 2026. The ban is part of a federal funding package that became law Nov. 12, ending a 43-day federal government shutdown.
The hemp provisions in the funding bill seek to undo a portion of a 2018 federal farm bill, which legalized hemp sales. State lawmakers previously said the federal farm bill and subsequent Texas legislation created a “loophole” allowing for the sale of intoxicating THC products.
Under this month’s federal funding bill, hemp-derived products containing more than 0.4 milligrams of THC, a psychoactive substance, will be banned next November, one year after the funding package became law.
During the Nov. 18 TABC meeting, Shaun Salvaje, a cannabis policy consultant and U.S. Air Force veteran, said she believed federal hemp rules might change within the next year.
“What we understand is that this is still a conversation that's happening at [the federal] level,” Salvaje told commissioners. “The rules that have been made might actually overstep what Congress can do, so that'll be litigated.”
Next steps
The TABC will accept input on the proposed THC rules during a Dec. 11 public hearing on Zoom. Texans can also submit written comments through Jan. 4 by:
- Email to [email protected]
- Mail to the Office of the General Counsel, Texas Alcoholic Beverage Commission, P.O. Box 13127, Austin, Texas 78711-3127
