The Texas Alcoholic Beverage Commission has drafted new definitions for two phrases at the center of its rule against consuming consumable hemp products at package stores, convenience stores and other alcohol retailers licensed only for off-premise consumption. The proposal would define "reasonable care" and "reasonable steps" in 16 TAC Section 35.7, giving licensees more explanation of the standard TABC uses when deciding whether a violation occurred.
TABC's September 22 agenda listed the amendment as a vote on whether to publish the proposal for public comment, not a vote on final adoption. The agency's meeting page now includes the archived recording, but minutes and a written action summary had not been posted when this article was published.
What the Amendment Would Change
The underlying rule already prohibits a TABC permittee or licensee from authorizing or allowing a person to consume a consumable hemp product on premises covered by four off-premise license or permit types. A violation can occur when the business knew, or in the exercise of reasonable care should have known, about the consumption or the likelihood that it would happen and then failed to take reasonable steps to prevent it.
The amendment would add two definitions:
- Reasonable Care would mean the degree of care a prudent and competent licensee or permittee would exercise under similar circumstances.
- Reasonable Steps would mean the actions a prudent and competent licensee or permittee would have taken under similar circumstances to prevent the consumption.
That is a circumstances-based test, not a fixed checklist. The draft does not say that posting a sign, giving an employee one training session or taking any other single action automatically satisfies the rule. It also does not list a mandatory set of steps for every store. What was prudent would depend on what the business knew or should have known and what was happening at the premises.
The Ban and Penalty Are Not New
TABC adopted Section 35.7 in June, and the rule took effect June 22. The existing rule applies to premises covered by a Wine and Malt Beverage Retailer's Off-Premise Permit (BQ), Retail Dealer's Off-Premise License (BF), Package Store Permit (P) or Wine-Only Package Store Permit (Q). TABC says a violation carries a $250 base penalty.
The proposed definitions would not expand that list, create a general statewide ban on possessing consumable hemp products or regulate every hemp retailer. TABC regulates its own alcohol licensees and permittees. A business still needs any separate authorization required by the Texas Department of State Health Services to participate in the consumable-hemp market.
The proposal also does not rewrite the $250 base penalty, legalize on-site sampling at covered off-premise locations or change TABC's separate age-verification rules for consumable hemp products.
Why TABC Is Adding Definitions Now
When TABC adopted the consumption rule, one commenter asked for more guidance on the constructive-knowledge standard. The agency answered that the "reasonable care" language was drawn almost word for word from a place-or-manner rule that TABC had used for more than 25 years. TABC nevertheless said it planned to provide clarifying guidance in a later rulemaking, consistent with recommendations from the Texas Regulatory Efficiency Office.
TABC presented the definitions at an August 6 stakeholder meeting. The September proposal says they are based on the negligence-law standard for reasonable or due care and mirror definitions proposed at the same time for a separate TABC place-or-manner rule.
What the Draft Means for Store Operations
The new language is clearer about the comparison TABC intends to make: how a prudent and competent licensee in similar circumstances would have behaved. But it leaves the most important compliance question fact-specific. A store's layout, employee visibility, prior incidents, customer behavior and response after staff notices consumption could all affect how the standard is applied.
Common preventive measures may include a written policy, staff training, visible notices, routine observation of the premises, prompt intervention and documentation of incidents. Those are practical risk-management examples, not requirements listed in the proposed text, and none should be treated as an automatic defense. Businesses making compliance decisions should review the final published language and obtain legal advice tailored to their operations.
The Rulemaking Timeline
TABC's September 22 agenda described the commission's action as consideration of publication. Under the agency's rulemaking process, publication opens a formal comment period; the commission would vote on adoption only after comments and a public hearing.
The draft in the commission packet identifies a public hearing for October 29 at 10 a.m. Central and a written-comment deadline of November 9 at 5 p.m. Central. It directs written comments to Rules@TABC.Texas.Gov or TABC's Office of General Counsel. Because the Texas Register notice had not yet been posted when this article was published, interested businesses should confirm those dates against the published notice before relying on them.
The Bottom Line
TABC is not proposing a new hemp-consumption ban. It is trying to explain the existing duty attached to that ban: covered off-premise alcohol retailers must exercise the care a prudent and competent licensee would use and take the preventive actions that such a licensee would take in similar circumstances. The definitions offer a clearer legal standard, but they do not turn compliance into a box-checking exercise.