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We recently advised you about Texas Governor Abbott's executive order GA-56, which mandated the Texas Alcoholic Beverage Commission (TABC), the Department of State Health Services (DSHS) and the Department of Public Safety (DPS) to promulgate new regulations governing the sale of consumable hemp THC products (CHPs) in Texas.
On September 23, 2025, TABC published two emergency rules that: (1) bar any business with a TABC license from selling CHPs to customers under 21; and (2) require all TABC licensees to verify government-issued IDs for purchasing customers. TABC began enforcing these new rules on October 1, 2025. A violation of either TABC emergency rule will result in the cancellation of the holder's TABC permit or license. The license or permit holder will not be allowed to serve a suspension or pay a civil fine in lieu of the license or permit cancellation.
Additionally, DSHS published two rules that will begin being enforced on October 17, 2025, that bar anyone from selling CHPs to a person under 21 and require that sellers must verify ID before selling. Businesses found in violation of the rules may have their Consumable Hemp License or Retail Hemp Registration permit revoked. The DSHS emergency rules can be found in the Texas Register at Rule §300.701 and Rule §300.702.
The reason that two agencies are issuing similar rules is that TABC only regulates retailers that sell alcohol, such as liquor stores and certain convenience and grocery stores. However, DSHS has jurisdiction over smoke shops and other places that sell hemp products but not alcohol.
On Thursday, October 9, TABC held a public hearing regarding the two new emergency rules to obtain stakeholder feedback as TABC moves to codify the rules per Gov. Greg Abbott's executive order regarding CHPs. The emergency policy is already in effect but is set to expire within months. The draft rules will be presented to the TABC on November 18, 2025.
The TABC public hearing covered a number of matters, and there were general concerns raised by stakeholders from both the hemp and liquor industries about the speed at which the new rules are being adopted and the draconian penalties for sale of consumable hemp products to consumers under the age of 21.
Below are the key topical outcomes of the hearing:
New Rules on CHPs
- Intended to keep intoxicating CHPs out of the hands of minors.
- Stakeholders suggest further clarification on this matter.
- Focus of enforcement is on age restrictions and verification requirements.
- Sales, service, or delivery of CHPs to anyone under 21 by TABC license/permit holders is prohibited.
- Retailers must inspect consumers' ID and verify they are 21+ before completing any CHP sale, service, or delivery.
Draconian Penalties/Due Process
- A major concern raised by stakeholders is the draconian penalties for selling to persons under 21.
- Mark Borda executive director of the Hemp Business Council, expressed concerns "about compliance and market impact—specifically the chilling effect or de facto ban, the heavy-handed treatment with license revocation." He further noted "[o]ne-and-done would seem to really give people cause to pause in carrying these products. I don't know if that's intended or not," he said.
- TABC indicated under the proposed permanent rules, violations of hemp age restrictions will follow the same due process as alcohol violations, ensuring fairness and consistency. This means that any suspension or cancellation will proceed through TABC's established enforcement process, giving businesses proper notice, an opportunity to respond, and the right to appeal.
Open Comment Period
- TABC invited stakeholders and the public to provide written feedback by November 3, which will allow TABC staff to share the input with the commissioners prior to the November 18 meeting.
- Should you wish to submit comments to TABC, please contact us, and we would be happy to assist your business.
We anticipate DSHS will hold a similar stakeholder meeting in the coming weeks and will advise you once we learn more. We will continue to monitor the regulatory status and enforcement actions of CHPs in Texas.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
