The Texas Alcoholic Beverage Commission (TABC) has proposed new rules implementing Governor Abbott’s Executive Order GA-56, which requires age verification and prohibits sales of consumable hemp products (CHPs) to minors. These rules apply only to businesses holding a TABC license or permit. DSHS will separately regulate businesses with consumable hemp licenses.

Key Improvements from Emergency Rules

The proposed rules represent significant improvements over the emergency rules adopted in September 2025:

  • Suspension options added: Businesses now have the opportunity for license suspension rather than automatic cancellation for many violations
  • 40+ age exception: No ID check required when the customer is clearly 40 years or older
  • Clearer ineligibility periods: Specific timeframes for reapplication after cancellation (5 years for sales to minors, 1 year for ID violations)

What the Rules Require

Age Restrictions (§35.5)

  • Minimum age: 21 years for all CHP purchases
  • Prohibition applies to selling, offering for sale, serving, or delivering CHPs to anyone under 21
  • Covers retail sales, deliveries, and samples
  • Does not apply to business-to-business transactions between manufacturers, wholesalers, and retailers

ID Verification Requirements (§35.6)

You must verify age by inspecting government-issued ID that includes:

  • Physical description and photograph consistent with the person’s appearance
  • Proof the person is 21 years or older
  • Valid and unexpired

Exception: No ID check required if the customer is clearly 40 years of age or older

Liability and Protections

Strict Liability Standard

License holders are responsible for employee or agent violations, even without proof of intent or negligence.

Safe Harbor Defense (§35.5(f))

You are protected from liability for selling to a minor if ALL of these conditions are met:

  1. The minor presented apparently valid ID complying with §35.6(a)
  2. You properly inspected the ID as required by §35.6(b)
  3. You reasonably believed the person was 21 years or older

This is a significant protection for businesses that follow proper procedures.

Penalties

For Sales to Minors (§35.5)

  • 1st violation: Suspension (minimum 30 days) OR cancellation
  • 2nd violation: Suspension (minimum 60 days) OR cancellation
  • 3rd+ violation: Cancellation
  • If cancelled: 5-year ineligibility for new TABC license

Note: TABC may still cancel on first or second violation if the nature and seriousness warrant it

For ID Check Failures (§35.6)

  • 1st violation: Suspension (minimum 7 days)
  • 2nd violation: Suspension (minimum 14 days)
  • 3rd violation: Suspension (minimum 30 days)
  • 4th+ violation: Cancellation
  • If cancelled: 1-year ineligibility for new TABC license

Important Penalty Provisions

  • No civil penalty option: You cannot pay a fine instead of suspension or cancellation
  • Violations are classified as drug-related under Alcoholic Beverage Code §11.64(a)
  • Ineligibility applies to the license holder, interest holders, and certain associated persons

Timeline and Next Steps

  • Public comment deadline: January 4, 2026 at 5:00 PM CT
  • Public hearing: December 11, 2025 at 10:00 AM
  • How to comment: Email [email protected] or mail to TABC Office of General Counsel

If adopted, these rules will replace the emergency rules currently in effect.

What This Means for Your Business

If you hold a TABC license and sell CHPs:

  1. Implement strict age verification procedures for all CHP sales
  2. Train all employees on proper ID inspection techniques
  3. Document your procedures to demonstrate compliance
  4. Consider point-of-sale reminders to ensure consistent ID checks
  5. Use the 40+ exception judiciously – when in doubt, check ID

Best practices:

  • Treat CHP age verification with the same seriousness as alcohol sales
  • Keep records of employee training
  • Post clear signage about 21+ requirement
  • Consider additional internal safeguards beyond minimum requirements

Looking Ahead

DSHS is expected to propose similar rules for consumable hemp license holders in the near future. We will continue monitoring both TABC and DSHS rulemaking processes and provide updates as they develop.

Questions? Contact the Texas Hemp Business Council at [email protected]