Many Texas retailers can no longer sell THC to customers under 21

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The Texas Alcoholic Beverage Commission on Tuesday approved an emergency rule to ban liquor license holders from selling THC products to anyone under the age of 21, the agency’s first step toward fulfilling an executive order by Gov. Greg Abbott that called for stricter regulation of the products.

The emergency rule, which also requires retailers to verify IDs at the point of sale and only applies to those that also sell alcohol, takes effect as soon as it is posted to the Texas Register, expected later Tuesday. The agency does not intend to begin enforcement until Oct. 1 to give it enough time to relay the age limit to retailers. TABC license holders found to be violating the rule after Oct. 1 will have their license revoked, according to the rule.

The commission approved the rule just hours after releasing its text to the public, and less than two weeks after Gov. Greg Abbott ordered TABC and the Texas Department of State Health Services to ban sales of THC “to minors” and to require verification of ID of all customers attempting to buy the products. The Tuesday morning meeting was the first public step toward fulfilling the governor’s directive by either agency.

However, the TABC’s rule does not encompass the entire landscape of retailers that sell the products. TABC license holders like restaurants and liquor stores can’t sell THC to people under 21 under the new rule, but the rule wouldn’t apply to smoke shops, gas stations and online retailers that do not sell liquor and presumably do not have a liquor license with TABC. TABC communications director Chris Porter said the Department of State Health Services will be tasked with drafting its own rule for the remaining retailers, and enforcement may eventually be moved over to TABC.

TABC rules approved on an emergency basis are only in effect for up to 180 days, suggesting that the agency will formally adopt the 21 age limit and other regulations by then. The formal rulemaking process includes further public meetings and testimony and is expected to begin at the commission’s next meeting on Nov. 18. Conversations between TABC and DSHS to further determine regulatory duties for each agency are ongoing, Porter said.

TABC, which primarily regulates the sale of alcohol in the state, pointed to potential harms to minors as the justification for the emergency rule.

“TABC has learned that many of its licensed alcoholic beverage businesses engage in the retail sale of [THC products] of varying types and potency, and many of those businesses allow minors to purchase those products,” the agency wrote in the text of the rule.

The executive order came after the Texas Legislature spent the better part of the year debating a total ban or stricter regulations for the industry. A total ban approved by both the House of Representatives and the Senate was vetoed in June by Abbott. The governor then put THC regulation on the agenda for two consecutive special sessions over the summer, but lawmakers were unable to find a compromise before the end of the second session early this month.

Rather than call a third special session, Abbott issued his executive order, bypassing the Legislature. The decision has put Abbott at odds with Lt. Gov. Dan Patrick, who said the Senate will not accept anything short of a total ban.

After months of uncertainty over the Legislature’s consideration of a total ban, THC industry representatives largely celebrated Abbott’s order at the time, saying it would allow THC to further establish itself as a legitimate industry in the state. Owners and managers of smoke shops interviewed by the Texas Tribune said an age limit of 21 to purchase THC products is already being enforced by most distributors, so the regulations are not expected to be overly arduous.

This is a developing story. Check back for updates.

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