1. (a) Definitions. In this section and §35.6 of this chapter:

   1. (1) "Consumable hemp product" has the meaning assigned by 25 TAC §300.101 or a successor rule adopted by the Department of State Health Services;
   2. (2) "Licensee" and "permittee" have the meaning assigned by Alcoholic Beverage Code §1.04; and
   3. (3) "Minor" means a person under 21 years of age.
2. (b) A licensee or permittee violates Alcoholic Beverage Code §§11.61(b)(7) or 61.71(a)(16), as applicable, if the licensee or permittee sells, offers to sell, serves, or delivers a consumable hemp product to a minor.

3. (c) Notwithstanding Chapter 34 of this title, the commission shall impose the following sanctions for a violation of subsection (b) of this section:

   1. (1) suspend for no less than 30 days or cancel the license or permit for a first violation;
   2. (2) suspend for no less than 60 days or cancel the license or permit for a second violation; and
   3. (3) cancel the license or permit for any subsequent violation.
4. (d) The licensee or permittee does not have the option to pay a civil penalty in lieu of suspension or cancellation under subsection (c) of this section.

5. (e) If a license or permit was cancelled under subsection (c) of this section, the following persons are not eligible to apply for, and may not be issued, any TABC-issued original license or permit for a period of five years after cancellation:

   1. (1) the license or permit holder;
   2. (2) a person who held an interest in the license or permit;
   3. (3) if the cancelled license or permit holder is a corporation or other legal entity, a person who held a 50 percent or more ownership interest, directly or indirectly, in the corporation or entity;
   4. (4) a corporation or other legal entity, if a person holding a 50 percent or more ownership interest, directly or indirectly, in the corporation or entity is disqualified from obtaining a license or permit under this subsection; and
   5. (5) a person who resides with a person who is disqualified from obtaining a license or permit under this subsection.
6. (f) A licensee or permittee that sells, offers to sell, serves, or delivers a consumable hemp product to a minor does not violate subsection (b) of this section if the minor falsely claims to be 21 years of age or older, the permittee or licensee otherwise complies with §35.6 of this chapter, and the permittee or licensee reasonably believes the minor is actually 21 years of age or older.

Source Note:The provisions of this §35.5 adopted to be effective January 21, 2026, 51 TexReg 705.