New emergency rules for hemp products containing THC

Emergency rules for hemp products with THC

Commissioners with TABC passed emergency regulations to restrict the sale of hemp products that contain THC. The action is in response to the executive order issued by Gov. Abbott earlier this month.

AUSTIN, Texas - Commissioners with TABC passed emergency regulations to restrict the sale of hemp products that contain THC.

The action is in response to the executive order issued by Gov. Abbott earlier this month. 

Emergency regulations in effect

What they're saying:

On Tuesday morning, members of the Texas Alcoholic Beverage Commission created a set of new emergency rules for hemp products that contain THC: No sales to anyone under 21 and mandatory age verification. 

The vote signals a big victory in a long-running political fight.

"Amazing, this is great. We've been fighting for an age-gate for six years. The original bill, HB 1325, didn't have an age-gate, so the fact that TABC just put one in and really legitimized and gave our industry a sustainable path forward is amazing," said Lukas Gilkey, the CEO of Hometown Hero.

Abbott bans sale of hemp products to minors

Gov. Abbott issued an executive order that banned the sale of hemp products to minors. But he is also allowing sales for adults under new regulations.

The TABC emergency rules are in response to an executive order by Governor Greg Abbott. Enforcement starts October 1, but the emergency rules expire in six months. Agency officials are expected to spend that time finalizing permanent regulations.

"This is a good first step in an effective regulatory scheme," said Heather Fazio, with the Texas Cannabis Policy Center.

The next step for Fazio is to modify the zero-tolerance policy for violators.

"This is something, of course. We want that level of accountability from businesses that they are held to a standard, but an automatic cancellation with no warning, with no fees or fines, no suspension period, this is a big concern for us," said Fazio.

Dig deeper:

The new rules also have an enforcement gap. They only apply to those businesses with a TABC license or permit. Places like liquor stores, convenience stores, grocery stores as well as bars and restaurants.

"These rules fall short of the big picture regulations that we're going to need to see implemented down the line," said Fazio.

A big regulation hole involves hemp stores and smoke shops. They're not regulated by TABC.

"These would be folks that are regulated by the Department of State Health Services, and they are left without a requirement that prohibits sales to minors. So, we need to see action from DSHS, the Department Of State Health services, enacting rules similar to TABC," said Fazio.  

Texas will regulate hemp products containing THC

Texas will regulate and not ban the sale of hemp products that contain THC. Gov. Abbott made that decision with an executive order.

A spokesperson for DSHS said a public hearing on the proposed rules is not expected until October. 

Betsy Jones with Texans for Safe and Drug Free Youth was among the few people to testify before the TABC Tuesday morning. She came with a warning.

"The age restrictions alone don’t solve the problem," said Jones.

 Later, while speaking with reporters, Jones said her organization plans to take part in the ongoing rule-making process.

"Ultimately, if we're going to go down this road, we need to have very strong protections in place for the community so that we're protecting both people who use the products and people who don't use the product from the dangers of cannabis and excessive use and impaired driving," said Jones.

TABC's statement

"TABC has a statutory responsibility to ensure its license holders do not impede the general welfare, health, and safety of Texas communities," TABC Executive Director Thomas Graham said. "The commission’s actions today are a reasonable measure within its authority to help protect children across this state. As TABC works to enforce these new rules, we’ll be providing the alcoholic beverage industry with education and resources to help them comply and conduct responsible sales of consumable hemp products."

What's next:

There are several significant issues on the regulatory to-do list. Online sales and a proximity rule need to be addressed. 

Currently, sales are not prohibited near schools, churches and substance abuse clinics. 

Package labeling and marketing rules are also expected to be considered, as well as providing funding for the extra manpower needed to enforce the new hemp rules.