What's Happening?
The Texas Alcoholic Beverage Commission (TABC) has approved new regulations for the consumable hemp industry, concluding a yearlong effort to regulate these products more tightly. The new rules replace temporary emergency measures and apply to 60,000
TABC license holders, including convenience stores, restaurants, and liquor stores. These regulations prohibit the sale of consumable hemp products to individuals under 21 and require ID checks for all sales. The rules also modify previous provisions, such as removing a 'one strike' rule that allowed for license cancellation if a business sold to minors. Instead, licenses can now be temporarily suspended for less severe violations. The TABC has partnered with the Department of State Health Services (DSHS) to enforce these regulations, with DSHS working on its own rules for smoke shops and other retailers not covered by TABC.
Why It's Important?
The approval of these regulations is significant as it represents a step towards more structured oversight of the hemp industry in Texas, a sector valued at $5 billion. By setting age restrictions and requiring ID checks, the regulations aim to protect young consumers and ensure responsible sales practices. The collaboration between TABC and DSHS highlights a coordinated effort to manage the industry comprehensively. However, the regulations have sparked debate, with some advocating for stricter measures or outright bans due to concerns about the products' impact on young adults. The outcome of these regulations could influence future legislative actions and set a precedent for other states considering similar measures.
What's Next?
The TABC and DSHS will continue to refine their regulatory frameworks, with DSHS accepting public comments on its proposed rules until January 26. The Texas Legislature may revisit hemp regulation in its 2027 session, potentially leading to new laws. Additionally, a congressional ban on most consumable hemp products is set to take effect in November, which could override state regulations. Industry representatives plan to lobby for the repeal of this federal provision, indicating ongoing legal and political battles over hemp regulation.
