The Texas Alcoholic Beverage Commission on Tuesday advanced plans to more tightly regulate the sale of consumable hemp products, even as the future of the $8 billion industry is thrown into doubt by new federal restrictions approved by Congress last week.
Tucked into the U.S. Department of Agriculture funding bill that ended the longest government shutdown in U.S. history is a provision undoing part of the 2018 farm bill that helped Texas’ hemp market flourish. The measure bans the sale of hemp-derived products containing more than 0.4 milligrams of THC — a limit that would make nearly all consumable hemp products illegal nationwide when it takes effect next November. Texas’ laws will directly conflict with the new federal standard.
Despite the looming crackdown, TABC commissioners said they plan to adopt permanent rules to replace emergency regulations issued in September that bar sales of THC products to anyone under 21. Industry advocates who testified Tuesday said they don’t believe the federal restrictions will be the final word.
The state’s regulatory push follows a September executive order by Gov. Greg Abbott directing TABC and the Department of State Health Services to adopt stricter rules, including mandatory ID checks and age limits for hemp sales. Abbott issued the order after vetoing a legislative ban in June and as lawmakers failed to reach agreement during two special sessions.
DSHS adopted its own emergency rules in October requiring sellers to verify that customers are at least 21, with violations potentially leading to license revocation.
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