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During the 89th Texas Legislature, lawmakers debated how best to regulate the growing market for hemp-derived intoxicants such as Delta-8 and Delta-10 THC. The Senate, led by Lt. Gov. Dan Patrick (R), advanced Senate Bill 3, which sought to ban nearly all consumable THC products outright. The measure passed both chambers, but Governor Greg Abbott (R) vetoed it in June 2025, citing concerns over its scope and economic impact.
Abbott’s veto left Texas without a clear regulatory framework. In September, he issued Executive Order GA-56, instructing multiple state agencies, including the Texas Alcoholic Beverage Commission (TABC) and the Department of State Health Services (DSHS), to use existing statutory authority to prevent minors from purchasing or consuming these products.
Two weeks later, TABC responded with a pair of emergency rules.
The Emergency Rules and Their Enforcement
On September 23, 2025, TABC adopted new Chapter 51 rules under the Texas Administrative Code: one related to the prohibited sales of consumable hemp products to minors, and the other to mandatory age verification for consumable hemp product sales.
These rules prohibit the sale, service, or delivery of any consumable hemp product (CHP) to individuals under 21 and require retailers to verify age using valid government-issued photo identification. Businesses found in violation face automatic license or permit cancellation, a severe penalty with no option to pay a fine or serve a suspension instead.
TABC justified the move by citing an “imminent peril to public health, safety, or welfare,” referencing studies linking adolescent THC exposure to neurological harm and psychiatric risk.
Although the rules took immediate effect, TABC delayed enforcement until October 1 to give licensees time to comply.
Legal Authority and Justification
The agency grounded its action under the Alcoholic Beverage Code, which authorizes regulation of licensees “in matters affecting the public welfare.” It also relied on the Government Code, which allows emergency rulemaking when imminent peril exists.
TABC argued that numerous alcohol-licensed businesses were already selling consumable hemp products and that unrestricted access by minors posed an urgent risk to public health. By acting through existing authority, the agency sought to close what it viewed as a regulatory gap until the Legislature could revisit the issue.
The Public Health Rationale
TABC’s published justification pointed to a range of studies and testimony from medical professionals highlighting the potential harms of youth exposure to cannabinoids. These included references to the Centers for Disease Control and Prevention, the National Academies of Sciences, and peer-reviewed medical literature documenting associations between adolescent THC use and mental-health disorders.
The agency also noted concerns about mislabeling and contamination in unregulated Delta-8 products and cited the FDA’s 2022 consumer update, which warned that such products have not been evaluated for safety.
In TABC’s view, this body of evidence justified swift emergency action to protect minors from exposure while longer-term policy solutions remained unresolved.
Lt. Gov. Dan Patrick’s Response
Lt. Gov. Dan Patrick (R), who championed Senate Bill 3, publicly criticized the governor’s executive order. In a detailed statement, Patrick argued that the order “legitimizes the THC industry” by allowing the continued sale of products he considers dangerous. He warned that many Delta-8 and Delta-10 items remain on store shelves, often near schools, and asserted that only a complete prohibition could protect Texas youth.
Patrick’s comments reflect the ongoing policy split among Texas leaders, with the governor preferring targeted restrictions and the Senate leadership advocating for an outright ban.
Impact on Businesses and Enforcement Landscape
For TABC-licensed retailers, including bars, restaurants, and liquor stores, the emergency rules have introduced new compliance requirements. Businesses selling hemp-infused drinks or edibles must now verify customer age and maintain documentation. Consumer delivery services are also bound by the new standards, with violations carrying the same risk of license cancellation.
The new rules have also highlighted overlapping jurisdiction between TABC and DSHS, the latter of which continues to regulate manufacturers and retailers without alcohol permits. This bifurcated system has created uncertainty among businesses and underscores the need for a uniform statewide framework.
Temporary Rules with Long-Term Consequences
Under Texas law, emergency rules can remain effective for up to 180 days, with a possible 60-day extension. TABC has indicated it plans to pursue formal rulemaking to make these restrictions permanent through the standard notice-and-comment process.
Even so, the agency’s action effectively implements key elements of the policy the governor vetoed earlier in the year. That sequence, a legislative ban followed by an executive veto and then agency-driven restrictions, illustrates how Texas’s fragmented approach to hemp policy has relied increasingly on administrative improvisation rather than legislative resolution.
Economic research underscores the scale of what’s at stake in these decisions. According to a policy brief by Ginn Economic Consulting, hemp-derived cannabinoids generate an estimated $5.5 billion in annual sales, $10.2 billion in statewide economic activity, $268 million in tax revenue, and support 53,000 jobs across Texas. The report warns that prohibition would erase these gains, enrich illicit markets, and increase enforcement costs for taxpayers, while “light-touch regulation”, focused on age limits, labeling, and testing, better protects consumers and preserves economic freedom.
That context adds weight to the policy challenge facing lawmakers: how to balance legitimate safety concerns with the economic vitality and personal liberty of Texans who work in and rely on this growing industry.
Conclusion: An Urgent Response Amid Ongoing Uncertainty
The TABC’s emergency rules represent Texas’s most assertive regulatory action on hemp-derived THC since the governor’s veto of Senate Bill 3. They aim to restrict youth access while stopping short of an outright prohibition, reflecting a middle-ground approach driven more by executive urgency than by legislative consensus.
While the rules achieve the governor’s stated goal of limiting sales to minors, they also demonstrate the limitations of policymaking through emergency rulemaking. Absent a comprehensive framework enacted by the Legislature, Texas’s hemp industry remains subject to shifting directives that leave businesses uncertain and consumers confused.
In the long run, Texas would benefit from a durable, statutory solution, one that protects minors, ensures product safety, and provides regulatory clarity through the proper legislative process. Until then, the TABC’s emergency rules will define the state’s interim policy, balancing public-health concerns against an unresolved debate over liberty, commerce, and the limits of executive power.
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