Bill Text: TX HB1325 | 2019-2020 | 86th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the production and regulation of hemp; requiring occupational licenses; authorizing fees; creating criminal offenses; providing civil and administrative penalties.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-10 - Effective immediately [HB1325 Detail]
Download: Texas-2019-HB1325-Comm_Sub.html
Bill Title: Relating to the production and regulation of hemp; requiring occupational licenses; authorizing fees; creating criminal offenses; providing civil and administrative penalties.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-10 - Effective immediately [HB1325 Detail]
Download: Texas-2019-HB1325-Comm_Sub.html
By: King of Uvalde, et al. | H.B. No. 1325 | |
(Senate Sponsor - Perry, et al.) | ||
(In the Senate - Received from the House April 24, 2019; | ||
May 1, 2019, read first time and referred to Committee on | ||
Agriculture; May 13, 2019, reported adversely, with favorable | ||
Committee Substitute by the following vote: Yeas 4, Nays 0; | ||
May 13, 2019, sent to printer.) | ||
COMMITTEE SUBSTITUTE FOR H.B. No. 1325 | By: Perry |
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relating to the production and regulation of hemp; requiring | |||||
occupational licenses; authorizing fees; creating criminal | |||||
offenses; providing civil and administrative penalties. | |||||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |||||
SECTION 1. Section 12.020(c), Agriculture Code, is amended | |||||
to read as follows: | |||||
(c) The provisions of law subject to this section and the | |||||
applicable penalty amounts are as follows: | |||||
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SECTION 2. Title 5, Agriculture Code, is amended by adding | |||||
Subtitle F to read as follows: | |||||
SUBTITLE F. HEMP | |||||
CHAPTER 121. STATE HEMP PRODUCTION PLAN | |||||
Sec. 121.001. DEFINITION. In this chapter, "hemp" means | |||||
the plant Cannabis sativa L. and any part of that plant, including | |||||
the seeds of the plant and all derivatives, extracts, cannabinoids, | |||||
isomers, acids, salts, and salts of isomers, whether growing or | |||||
not, with a delta-9 tetrahydrocannabinol concentration of not more | |||||
than 0.3 percent on a dry weight basis. | |||||
Sec. 121.002. LEGISLATIVE INTENT. It is the intent of the | |||||
legislature that this state have primary regulatory authority over | |||||
the production of hemp in this state. | |||||
Sec. 121.003. STATE PLAN. (a) The department, after | |||||
consulting with the governor and attorney general, shall develop a | |||||
state plan to monitor and regulate the production of hemp in this | |||||
state. The plan must comply with: | |||||
(1) 7 U.S.C. Section 1639p; | |||||
(2) Chapter 122; and | |||||
(3) Chapter 443, Health and Safety Code. | |||||
(b) The department shall submit the plan developed under | |||||
Subsection (a) to the secretary of the United States Department of | |||||
Agriculture as this state's plan for monitoring and regulating the | |||||
production of hemp as provided by 7 U.S.C. Section 1639p. | |||||
(c) If a plan submitted under Subsection (b) is disapproved | |||||
by the secretary of the United States Department of Agriculture, | |||||
the department, after consulting with the governor and attorney | |||||
general, shall amend the plan as needed to obtain approval and | |||||
submit an amended plan. | |||||
(d) The department shall, as necessary, seek technical | |||||
assistance from the secretary of the United States Department of | |||||
Agriculture and other state agencies in developing the plan under | |||||
this section. | |||||
Sec. 121.004. RULES. The department may adopt any rules | |||||
necessary to implement and administer the state plan under Section | |||||
121.003. | |||||
CHAPTER 122. CULTIVATION OF HEMP | |||||
SUBCHAPTER A. GENERAL PROVISIONS | |||||
Sec. 122.001. DEFINITIONS. In this chapter: | |||||
(1) "Cultivate" means to plant, irrigate, cultivate, | |||||
or harvest a hemp plant. | |||||
(2) "Governing person" has the meaning assigned by | |||||
Section 1.002, Business Organizations Code. | |||||
(3) "Handle" means to possess or store a hemp plant: | |||||
(A) on premises owned, operated, or controlled by | |||||
a license holder for any period of time; or | |||||
(B) in a vehicle for any period of time other than | |||||
during the actual transport of the plant from a premises owned, | |||||
operated, or controlled by a license holder to: | |||||
(i) a premises owned, operated, or | |||||
controlled by another license holder; or | |||||
(ii) a person licensed under Chapter 443, | |||||
Health and Safety Code. | |||||
(4) "Hemp" has the meaning assigned by Section | |||||
121.001. | |||||
(5) "Institution of higher education" has the meaning | |||||
assigned by Section 61.003, Education Code. | |||||
(6) "License" means a hemp grower's license issued | |||||
under Subchapter C. | |||||
(7) "License holder" means an individual or business | |||||
entity holding a license. | |||||
(8) "Nonconsumable hemp product" means a product that | |||||
contains hemp, other than a consumable hemp product as defined by | |||||
Section 443.001, Health and Safety Code. The term includes cloth, | |||||
cordage, fiber, fuel, paint, paper, particleboard, and plastics | |||||
derived from hemp. | |||||
(9) "Plot" means a contiguous area in a field, | |||||
greenhouse, or indoor growing structure containing the same variety | |||||
or cultivar of hemp throughout the area. | |||||
Sec. 122.002. LOCAL REGULATION PROHIBITED. A municipality, | |||||
county, or other political subdivision of this state may not enact, | |||||
adopt, or enforce a rule, ordinance, order, resolution, or other | |||||
regulation that prohibits the cultivation, handling, | |||||
transportation, or sale of hemp as authorized by this chapter. | |||||
Sec. 122.003. STATE HEMP PRODUCTION ACCOUNT. (a) The state | |||||
hemp production account is an account in the general revenue fund | |||||
administered by the department. | |||||
(b) The account consists of: | |||||
(1) appropriations of money to the account by the | |||||
legislature; | |||||
(2) public or private gifts, grants, or donations, | |||||
including federal funds, received for the account; | |||||
(3) fees received under Section 122.052; | |||||
(4) interest and income earned on the investment of | |||||
money in the account; | |||||
(5) penalties collected under this chapter other than | |||||
a civil penalty collected under Subchapter H; and | |||||
(6) funds from any other source deposited in the | |||||
account. | |||||
(c) The department may accept appropriations and gifts, | |||||
grants, or donations from any source to administer and enforce this | |||||
subtitle. Money received under this subsection shall be deposited | |||||
in the account. | |||||
(d) Money in the account may be appropriated only to the | |||||
department for the administration and enforcement of this subtitle. | |||||
Sec. 122.004. SEVERABILITY. (a) A provision of this | |||||
chapter or its application to any person or circumstance is invalid | |||||
if the secretary of the United States Department of Agriculture | |||||
determines that the provision or application conflicts with 7 | |||||
U.S.C. Chapter 38, Subchapter VII, and prevents the approval of the | |||||
state plan submitted under Chapter 121. | |||||
(b) The invalidity of a provision or application under | |||||
Subsection (a) does not affect the other provisions or applications | |||||
of this chapter that can be given effect without the invalid | |||||
provision or application, and to this end the provisions of this | |||||
chapter are declared to be severable. | |||||
SUBCHAPTER B. POWERS AND DUTIES OF DEPARTMENT | |||||
Sec. 122.051. DEPARTMENT RULES AND PROCEDURES. (a) The | |||||
department shall adopt rules and procedures necessary to implement, | |||||
administer, and enforce this chapter. | |||||
(b) Rules adopted under Subsection (a) must: | |||||
(1) prescribe sampling, inspection, and testing | |||||
procedures, including standards and procedures for the calibration | |||||
of laboratory equipment, to ensure that the delta-9 | |||||
tetrahydrocannabinol concentration of hemp plants cultivated in | |||||
this state is not more than 0.3 percent on a dry weight basis; and | |||||
(2) provide due process consistent with Chapter 2001, | |||||
Government Code, including an appeals process, to protect license | |||||
holders from the consequences of imperfect test results. | |||||
Sec. 122.052. FEES. (a) The department shall set and | |||||
collect: | |||||
(1) an application fee for an initial license in an | |||||
amount not to exceed $100; | |||||
(2) a license renewal fee in an amount not to exceed | |||||
$100; | |||||
(3) a participation fee for each location described by | |||||
Section 122.103(a)(1) and each location added after the application | |||||
is submitted in an amount not to exceed $100; | |||||
(4) a site modification fee for each change to a | |||||
location described by Section 122.103(a)(1) in an amount not to | |||||
exceed $500; and | |||||
(5) a collection and testing fee for each preharvest | |||||
test or postharvest test if performed by the department in an amount | |||||
not to exceed $300. | |||||
(b) A fee set by the department under this section may not | |||||
exceed the amount necessary to administer this chapter. The | |||||
comptroller may authorize the department to collect a fee described | |||||
by Subsection (a) in an amount greater than the maximum amount | |||||
provided by that subsection if necessary to cover the department's | |||||
costs of administering this chapter. | |||||
(c) The department may not set or collect a fee associated | |||||
with the cultivation of hemp that is not listed in Subsection (a), | |||||
other than: | |||||
(1) a fee for the organic certification of hemp under | |||||
Chapter 18 or for participation in another optional marketing | |||||
program; or | |||||
(2) a fee for the certification of seed or plants under | |||||
Chapter 62. | |||||
(d) Fees collected by the department under this chapter are | |||||
not refundable and may be appropriated only to the department for | |||||
the purpose of administering this chapter. | |||||
Sec. 122.053. INSPECTIONS. (a) The department may | |||||
randomly inspect land where hemp is grown to determine whether hemp | |||||
is being cultivated in compliance with this chapter. | |||||
(b) The department may enter onto land described by Section | |||||
122.103(a)(1), conduct inspections, and collect and test plant | |||||
samples. | |||||
(c) Using participation fees set and collected under | |||||
Section 122.052(a)(3), the department shall pay the cost of | |||||
inspections under this section. | |||||
(d) The Department of Public Safety may inspect, collect | |||||
samples from, or test plants from any portion of a plot to ensure | |||||
compliance with this chapter. A license holder shall allow the | |||||
Department of Public Safety access to the plot and the property on | |||||
which the plot is located for purposes of this subsection. | |||||
(e) If, after conducting an inspection or performing | |||||
testing under this section, the department or the Department of | |||||
Public Safety determines any portion of a plot is not compliant with | |||||
this chapter, the department or the Department of Public Safety may | |||||
report the license holder to the other department or to the attorney | |||||
general. | |||||
Sec. 122.054. SAMPLE COLLECTION AND TESTING. The | |||||
department may collect samples and perform testing or contract with | |||||
a laboratory for the performance of that collection and testing on | |||||
behalf of the department. A test performed by a laboratory on behalf | |||||
of the department is considered to be performed by the department | |||||
for purposes of this chapter. | |||||
Sec. 122.055. SHIPPING CERTIFICATE OR CARGO MANIFEST. (a) | |||||
The department shall develop a shipping certificate or cargo | |||||
manifest which the department shall issue to a license holder in | |||||
connection with the transportation of a shipment of hemp plant | |||||
material originating in this state, other than sterilized seeds | |||||
that are incapable of beginning germination. | |||||
(b) A certificate or manifest developed under Subsection | |||||
(a) must include a unique identifying number for the shipment and | |||||
the department's contact information to allow law enforcement | |||||
during a roadside inspection of a motor vehicle transporting the | |||||
shipment to verify that the shipment consists of hemp cultivated in | |||||
compliance with this chapter. | |||||
(c) A person commits an offense if the person, with intent | |||||
to deceive law enforcement, forges, falsifies, or alters a shipping | |||||
certificate or cargo manifest issued under this section. An | |||||
offense under this subsection is a third degree felony. | |||||
SUBCHAPTER C. HEMP GROWER'S LICENSE | |||||
Sec. 122.101. LICENSE REQUIRED; EXCEPTIONS. (a) Except as | |||||
provided by Subsection (b), a person or the person's agent may not | |||||
cultivate or handle hemp in this state or transport hemp outside of | |||||
this state unless the person holds a license under this subchapter. | |||||
(b) A person is not required to hold a license under this | |||||
subchapter to manufacture a consumable hemp product in accordance | |||||
with Subtitle A, Title 6, Health and Safety Code. | |||||
Sec. 122.102. LICENSE INELIGIBILITY. (a) An individual | |||||
who is or has been convicted of a felony relating to a controlled | |||||
substance under federal law or the law of any state may not, before | |||||
the 10th anniversary of the date of the conviction: | |||||
(1) hold a license under this subchapter; or | |||||
(2) be a governing person of a business entity that | |||||
holds a license under this subchapter. | |||||
(b) The department may not issue a license under this | |||||
subchapter to a person who materially falsifies any information | |||||
contained in an application submitted to the department under | |||||
Section 122.103. | |||||
Sec. 122.103. APPLICATION; ISSUANCE. (a) A person may | |||||
apply for a license under this subchapter by submitting an | |||||
application to the department on a form and in the manner prescribed | |||||
by the department. The application must be accompanied by: | |||||
(1) a legal description of each location where the | |||||
applicant intends to cultivate or handle hemp and the global | |||||
positioning system coordinates for the perimeter of each location; | |||||
(2) written consent from the applicant or the property | |||||
owner if the applicant is not the property owner allowing the | |||||
department, the Department of Public Safety, and any other state or | |||||
local law enforcement agency to enter onto all premises where hemp | |||||
is cultivated or handled to conduct a physical inspection or to | |||||
ensure compliance with this chapter and rules adopted under this | |||||
chapter; | |||||
(3) the application fee; and | |||||
(4) any other information required by department rule. | |||||
(b) Except as provided by Subsection (c), the department | |||||
shall issue a license to a qualified applicant not later than the | |||||
60th day after the date the department receives the completed | |||||
application and the required application fees. | |||||
(c) A qualified applicant who along with the application | |||||
submits proof to the department that the applicant holds a license | |||||
under Chapter 487, Health and Safety Code, is not required to pay an | |||||
application fee, and the department shall issue the license to the | |||||
applicant within the time prescribed by Subsection (b). | |||||
Sec. 122.104. TERM; RENEWAL. (a) A license is valid for | |||||
one year and may be renewed as provided by this section. | |||||
(b) The department shall renew a license if the license | |||||
holder: | |||||
(1) is not ineligible to hold the license under | |||||
Section 122.102; | |||||
(2) submits to the department the license renewal fee; | |||||
and | |||||
(3) does not owe any outstanding fee described by | |||||
Section 122.052. | |||||
Sec. 122.105. REVOCATION. The department shall revoke a | |||||
license if the license holder is convicted of a felony relating to a | |||||
controlled substance under federal law or the law of any state. | |||||
SUBCHAPTER D. TESTING | |||||
Sec. 122.151. TESTING LABORATORIES. (a) Subject to | |||||
Subsection (b), testing under this subchapter or Section 122.053 | |||||
must be performed by: | |||||
(1) the department; | |||||
(2) an institution of higher education; or | |||||
(3) an independent testing laboratory registered | |||||
under Section 122.152. | |||||
(b) To perform testing under this chapter, a laboratory | |||||
described by Subsection (a) must be accredited by an independent | |||||
accreditation body in accordance with International Organization | |||||
for Standardization ISO/IEC 17025 or a comparable or successor | |||||
standard. | |||||
(c) A license holder shall select a laboratory described by | |||||
Subsection (a) to perform preharvest or postharvest testing of a | |||||
sample taken from the license holder's plot. A license holder may | |||||
not select an independent testing laboratory under Subsection | |||||
(a)(3) unless the license holder has: | |||||
(1) no ownership interest in the laboratory; or | |||||
(2) less than a 10 percent ownership interest in the | |||||
laboratory if the laboratory is a publicly traded company. | |||||
(d) A license holder must pay the costs of preharvest or | |||||
postharvest sample collection and testing in the amount prescribed | |||||
by the laboratory selected by the license holder. | |||||
(e) The department shall recognize and accept the results of | |||||
a test performed by an institution of higher education or an | |||||
independent testing laboratory described by Subsection (a). The | |||||
department shall require that a copy of the test results be sent by | |||||
the institution of higher education or independent testing | |||||
laboratory directly to the department and the license holder. | |||||
(f) The department shall notify the license holder of the | |||||
results of the test not later than the 14th day after the date the | |||||
sample was collected under Section 122.154 or the date the | |||||
department receives test results under Subsection (e). | |||||
Sec. 122.152. REGISTRATION OF INDEPENDENT TESTING | |||||
LABORATORIES. (a) The department shall register independent | |||||
testing laboratories authorized to conduct testing under Section | |||||
122.151(a)(3). | |||||
(b) A laboratory is eligible for registration if the | |||||
laboratory submits to the department proof of accreditation by an | |||||
independent accreditation body in accordance with International | |||||
Organization for Standardization ISO/IEC 17025 or a comparable or | |||||
successor standard and any required fee. | |||||
(c) The department shall annually prepare a registry of all | |||||
independent testing laboratories registered by the department and | |||||
make the registry available to license holders. | |||||
(d) The department may charge a registration fee to recover | |||||
the costs of administering this section. | |||||
Sec. 122.153. PREHARVEST TESTING REQUIRED. (a) A license | |||||
holder may not harvest a hemp plant or plant intended or believed to | |||||
be hemp unless a representative sample of plants from the plot where | |||||
the plant is grown is collected before harvest and subsequently | |||||
tested using post-decarboxylation, high-performance liquid | |||||
chromatography, or another similarly reliable method to determine | |||||
the delta-9 tetrahydrocannabinol concentration of the sample in the | |||||
manner required by this subchapter. | |||||
(b) For purposes of Subsection (a), a representative sample | |||||
of plants from a plot consists of cuttings taken from at least five | |||||
plants throughout the plot. The department by rule shall prescribe | |||||
the minimum distance between plants from which cuttings may be | |||||
taken based on the size of the plot. | |||||
(c) A laboratory performing preharvest testing under this | |||||
section shall homogenize all the cuttings in the sample and test the | |||||
delta-9 tetrahydrocannabinol concentration of a random sample of | |||||
the homogenized material. | |||||
(d) This section does not prohibit a license holder from | |||||
harvesting plants immediately after a preharvest sample is | |||||
collected. | |||||
Sec. 122.154. PREHARVEST SAMPLE COLLECTION. (a) A license | |||||
holder shall notify the department at least 20 days before the date | |||||
the license holder expects to harvest plants from a plot in the | |||||
manner prescribed by department rule. | |||||
(b) A sample must be collected by the department or another | |||||
entity described by Section 122.151(a) for purposes of preharvest | |||||
testing under Section 122.153. | |||||
(c) The department by rule may prescribe reasonable | |||||
procedures for submitting a preharvest sample collected under this | |||||
section to a testing laboratory selected by the license holder. | |||||
Sec. 122.155. OPTIONAL POSTHARVEST TESTING. (a) The | |||||
department by rule shall allow a license holder to have a single | |||||
postharvest test performed on a representative sample of plants | |||||
from a plot if the results of the preharvest test representing the | |||||
plot show a delta-9 tetrahydrocannabinol concentration of more than | |||||
0.3 percent on a dry weight basis. | |||||
(b) The department by rule shall prescribe the requirements | |||||
for a representative sample and for sample collection under this | |||||
section. | |||||
(c) If a license holder fails to request postharvest testing | |||||
on or before the 15th day after the date the license holder is | |||||
notified of the results of the preharvest test, the results of the | |||||
preharvest test are final. | |||||
Sec. 122.156. SHIPPING DOCUMENTATION FOR TEST SAMPLES. The | |||||
department shall issue documentation to an entity authorized to | |||||
collect samples of plants for testing that authorizes the | |||||
transportation of those samples from the place of collection to a | |||||
testing laboratory described by Section 122.151(a). | |||||
Sec. 122.157. FALSE LABORATORY REPORT; CRIMINAL OFFENSE. | |||||
(a) A person commits an offense if the person, with the intent to | |||||
deceive, forges, falsifies, or alters the results of a laboratory | |||||
test required or authorized under this chapter. | |||||
(b) An offense under Subsection (a) is a third degree | |||||
felony. | |||||
SUBCHAPTER E. HARVEST AND USE OR DISPOSAL OF PLANTS | |||||
Sec. 122.201. HARVEST. (a) A license holder shall harvest | |||||
the plants from a plot not later than the 20th day after the date a | |||||
preharvest sample is collected under Section 122.154 unless field | |||||
conditions delay harvesting or the department authorizes the | |||||
license holder to delay harvesting. This subsection does not | |||||
prohibit the license holder from harvesting the plants immediately | |||||
after the preharvest sample is collected. | |||||
(b) A license holder may not sell or use harvested plants | |||||
before the results of a preharvest and, if applicable, postharvest | |||||
test performed on a sample representing the plants are received. If | |||||
the test results are not received before the plants are harvested, | |||||
the license holder shall dry and store the harvested plants until | |||||
the results are received. | |||||
(c) A license holder may not commingle harvested plants | |||||
represented by one sample with plants represented by another sample | |||||
until the results of the tests are received. | |||||
Sec. 122.202. USE OR DISPOSAL OF HARVESTED PLANTS. (a) If | |||||
the results of a preharvest or postharvest test performed on a | |||||
sample show a delta-9 tetrahydrocannabinol concentration of not | |||||
more than 0.3 percent on a dry weight basis, the license holder may | |||||
sell or use the plants represented by the sample for any purpose | |||||
allowed by law. | |||||
(b) If the results of a preharvest and, if applicable, | |||||
postharvest test performed on a sample show a delta-9 | |||||
tetrahydrocannabinol concentration of more than 0.3 percent on a | |||||
dry weight basis: | |||||
(1) the license holder shall dispose of or destroy all | |||||
plants represented by the sample: | |||||
(A) in the manner prescribed by federal law; or | |||||
(B) in a manner approved by the department that | |||||
does not conflict with federal law; or | |||||
(2) if the department determines the plants | |||||
represented by the sample reached that concentration solely as a | |||||
result of negligence, the license holder is subject to Section | |||||
122.403(c) and may: | |||||
(A) trim the plants until the delta-9 | |||||
tetrahydrocannabinol concentration of the plants is not more than | |||||
0.3 percent on a dry weight basis and dispose of the noncompliant | |||||
parts of the plants in a manner approved by the department; | |||||
(B) process the plants into fiber with a delta-9 | |||||
tetrahydrocannabinol concentration of not more than 0.3 percent on | |||||
a dry weight basis and dispose of any remaining parts of the plants | |||||
in a manner approved by the department; or | |||||
(C) take any other corrective action consistent | |||||
with federal regulations adopted under 7 U.S.C. Chapter 38, | |||||
Subchapter VII. | |||||
SUBCHAPTER F. HEMP SEED | |||||
Sec. 122.251. APPLICABILITY OF SUBCHAPTER. This subchapter | |||||
does not apply to sterilized seeds that are incapable of beginning | |||||
germination. | |||||
Sec. 122.252. CERTIFICATION OR APPROVAL. (a) The | |||||
department or an entity authorized to certify seed under Chapter 62 | |||||
shall identify and certify or approve seed confirmed to produce | |||||
hemp. | |||||
(b) The department or entity may not certify or approve a | |||||
variety of hemp seed if the seed is tested and confirmed to produce | |||||
a plant that has delta-9 tetrahydrocannabinol concentration of more | |||||
than 0.3 percent on a dry weight basis. For purposes of this | |||||
subsection, the department may partner with a private entity or an | |||||
institution of higher education to test seed for the purpose of | |||||
certification or approval under this section. | |||||
(c) The department may authorize the importation of hemp | |||||
seed certified in accordance with the law of another state or | |||||
jurisdiction that requires as a condition of certification that | |||||
hemp be produced in compliance with: | |||||
(1) that state or jurisdiction's plan approved by the | |||||
United States Department of Agriculture under 7 U.S.C. Section | |||||
1639p; or | |||||
(2) a plan established under 7 U.S.C. Section 1639q if | |||||
that plan applies in the state or jurisdiction. | |||||
(d) The department shall maintain and make available to | |||||
license holders a list of hemp seeds certified or approved under | |||||
this section. | |||||
Sec. 122.253. PROHIBITED USE OF CERTAIN HEMP SEED. A person | |||||
may not sell, offer for sale, distribute, or use hemp seed in this | |||||
state unless the seed is certified or approved under Section | |||||
122.252. | |||||
SUBCHAPTER G. NONCONSUMABLE HEMP PRODUCTS | |||||
Sec. 122.301. MANUFACTURE. (a) Except as provided by | |||||
Subsection (b), a state agency may not prohibit a person who | |||||
manufactures a product regulated by the agency, other than an | |||||
article regulated under Chapter 431, Health and Safety Code, from | |||||
applying for or obtaining a permit or other authorization to | |||||
manufacture the product solely on the basis that the person intends | |||||
to manufacture the product as a nonconsumable hemp product. | |||||
(b) A state agency may not authorize a person to manufacture | |||||
a product containing hemp for smoking, as defined by Section | |||||
443.001, Health and Safety Code. | |||||
Sec. 122.302. POSSESSION, TRANSPORTATION, AND SALE. (a) | |||||
Notwithstanding any other law, a person may possess, transport, | |||||
sell, and purchase legally produced nonconsumable hemp products in | |||||
this state. | |||||
(b) The department by rule must provide to a retailer of | |||||
nonconsumable hemp products fair notice of a potential violation | |||||
concerning hemp products sold by the retailer and an opportunity to | |||||
cure a violation made unintentionally or negligently. | |||||
Sec. 122.303. RETAIL SALE OF OUT-OF-STATE PRODUCTS. (a) | |||||
Retail sales of nonconsumable hemp products manufactured outside of | |||||
this state may be made in this state when the hemp used in the | |||||
products was cultivated legally in another state or jurisdiction in | |||||
compliance with: | |||||
(1) that state or jurisdiction's plan approved by the | |||||
United States Department of Agriculture under 7 U.S.C. Section | |||||
1639p; or | |||||
(2) a plan established under 7 U.S.C. Section 1639q if | |||||
that plan applies to the state or jurisdiction. | |||||
(b) The department shall maintain a list of states or other | |||||
jurisdictions in which hemp may be cultivated legally as described | |||||
by Subsection (a). | |||||
Sec. 122.304. TRANSPORTATION AND EXPORTATION OUT OF STATE. | |||||
Nonconsumable hemp products may be legally transported across state | |||||
lines and exported to foreign jurisdictions in a manner that is | |||||
consistent with federal law and the laws of respective foreign | |||||
jurisdictions. | |||||
SUBCHAPTER H. TRANSPORTATION REQUIREMENTS | |||||
Sec. 122.351. DEFINITION. In this subchapter, "peace | |||||
officer" has the meaning assigned by Article 2.12, Code of Criminal | |||||
Procedure. | |||||
Sec. 122.352. POLICY. It is the policy of this state to not | |||||
interfere with the interstate commerce of hemp or the transshipment | |||||
of hemp through this state. | |||||
Sec. 122.353. INTERSTATE TRANSPORTATION. To the extent of | |||||
a conflict between a provision of this chapter and a provision of | |||||
federal law involving interstate transportation of hemp, including | |||||
a United States Department of Agriculture regulation, federal law | |||||
controls and conflicting provisions of this chapter do not apply. | |||||
Sec. 122.354. DEPARTMENT RULES. The department, in | |||||
consultation with the Department of Public Safety, shall adopt | |||||
rules regulating the transportation of hemp in this state to ensure | |||||
that illegal marihuana is not transported into or through this | |||||
state disguised as legal hemp. | |||||
Sec. 122.355. HEMP TRANSPORTATION ACCOUNT. (a) The hemp | |||||
transportation account is a dedicated account in the general | |||||
revenue fund administered by the department. The account consists | |||||
of: | |||||
(1) civil penalties collected under this subchapter; | |||||
and | |||||
(2) interest and income earned on the investment of | |||||
money in the account. | |||||
(b) Money in the account may be appropriated only to the | |||||
department for the administration and enforcement of this | |||||
subchapter. The department may transfer money appropriated under | |||||
this subsection to the Department of Public Safety for the | |||||
administration and enforcement of that department's powers and | |||||
duties under this subchapter, unless prohibited by other law. | |||||
Sec. 122.356. DOCUMENTATION AND OTHER SHIPPING | |||||
REQUIREMENTS. (a) A person may not transport hemp plant material | |||||
in this state unless the hemp: | |||||
(1) is produced in compliance with: | |||||
(A) a state or tribal plan approved by the United | |||||
States Department of Agriculture under 7 U.S.C. Section 1639p; or | |||||
(B) a plan established under 7 U.S.C. Section | |||||
1639q if the hemp was cultivated in an area where that plan applies; | |||||
and | |||||
(2) is accompanied by: | |||||
(A) a shipping certificate or cargo manifest | |||||
issued under Section 122.055 if the hemp originated in this state; | |||||
or | |||||
(B) documentation containing the name and | |||||
address of the place where the hemp was cultivated and a statement | |||||
that the hemp was produced in compliance with 7 U.S.C. Chapter 38, | |||||
Subchapter VII, if the hemp originated outside this state. | |||||
(b) A person transporting hemp plant material in this state: | |||||
(1) may not concurrently transport any cargo that is | |||||
not hemp plant material; and | |||||
(2) shall furnish the documentation required by this | |||||
section to the department or any peace officer on request. | |||||
Sec. 122.357. AGRICULTURAL PESTS AND DISEASES. A person | |||||
may not transport in this state hemp that contains an agricultural | |||||
pest or disease as provided by department rule. | |||||
Sec. 122.358. POWERS AND DUTIES OF PEACE OFFICERS. (a) A | |||||
peace officer may inspect and collect a reasonably sized sample of | |||||
any material from the plant Cannabis sativa L. found in a vehicle to | |||||
determine the delta-9 tetrahydrocannabinol concentration of the | |||||
plant material. Unless a peace officer has probable cause to | |||||
believe the plant material is marihuana, the peace officer may not: | |||||
(1) seize the plant material; or | |||||
(2) arrest the person transporting the plant material. | |||||
(b) A peace officer may detain any hemp being transported in | |||||
this state until the person transporting the hemp provides the | |||||
documentation required by Section 122.356. The peace officer shall | |||||
immediately release the hemp to the person if the person produces | |||||
documentation required by that section. | |||||
(c) If a peace officer has probable cause to believe that a | |||||
person transporting hemp in this state is also transporting | |||||
marihuana or a controlled substance, as defined by Section 481.002, | |||||
Health and Safety Code, or any other illegal substance under state | |||||
or federal law, the peace officer may seize and impound the hemp | |||||
along with the controlled or illegal substance. | |||||
(d) This subchapter does not limit or restrict a peace | |||||
officer from enforcing to the fullest extent the laws of this state | |||||
regulating marihuana and controlled substances, as defined by | |||||
Section 481.002, Health and Safety Code. | |||||
Sec. 122.359. CIVIL PENALTY. (a) A person who violates | |||||
Section 122.356 is liable to this state for a civil penalty in an | |||||
amount not to exceed $500 for each violation. | |||||
(b) The attorney general or any district or county attorney | |||||
may bring an action to recover the civil penalty. | |||||
(c) A civil penalty collected under this section must be | |||||
deposited in the hemp transportation account under Section 122.355. | |||||
Sec. 122.360. CRIMINAL OFFENSE. (a) A person commits an | |||||
offense if the person violates Section 122.356. | |||||
(b) An offense under this section is a misdemeanor | |||||
punishable by a fine of not more than $1,000. | |||||
SUBCHAPTER I. ENFORCEMENT; PENALTIES | |||||
Sec. 122.401. PENALTY SCHEDULE. (a) The department by rule | |||||
shall adopt a schedule of sanctions and penalties for violations of | |||||
this chapter and rules adopted under this chapter that does not | |||||
conflict with 7 U.S.C. Section 1639p(e). | |||||
(b) A penalty collected under this chapter other than a | |||||
civil penalty collected under Subchapter H must be deposited in the | |||||
state hemp production account under Section 122.003. | |||||
Sec. 122.402. ADMINISTRATIVE PENALTY. Except as provided | |||||
by Section 122.403 and to the extent permitted under 7 U.S.C. | |||||
Section 1639p(e), the department may impose an administrative | |||||
penalty or other administrative sanction for a violation of this | |||||
chapter or a rule or order adopted under this chapter, including a | |||||
penalty or sanction under Section 12.020 or 12.0201. | |||||
Sec. 122.403. NEGLIGENT VIOLATIONS BY LICENSE HOLDER. (a) | |||||
If the department determines that a license holder negligently | |||||
violated this chapter or a rule adopted under this chapter, the | |||||
department shall enforce the violation in the manner provided by 7 | |||||
U.S.C. Section 1639p(e). | |||||
(b) A license holder described by Subsection (a) is not | |||||
subject to a civil, criminal, or administrative enforcement action | |||||
other than an enforcement action provided by this chapter. | |||||
(c) A license holder who violates this chapter by | |||||
cultivating plants described by Section 122.202(b)(2): | |||||
(1) must comply with an enhanced testing protocol | |||||
developed by the department; | |||||
(2) shall pay a fee in the amount of $500 for each | |||||
violation to cover the department's costs of administering the | |||||
enhanced testing protocol; and | |||||
(3) shall be included on a list maintained by the | |||||
department of license holders with negligent violations, which is | |||||
public information for purposes of Chapter 552, Government Code. | |||||
(d) A person who negligently violates this chapter three | |||||
times in any five-year period may not cultivate, process, or | |||||
otherwise produce hemp in this state before the fifth anniversary | |||||
of the date of the third violation. The department shall include | |||||
each person subject to this subsection on a list of banned | |||||
producers, which is public information for purposes of Chapter 552, | |||||
Government Code. | |||||
Sec. 122.404. OTHER VIOLATIONS BY LICENSE HOLDER. If the | |||||
department suspects or determines that a license holder violated | |||||
this chapter or a rule adopted under this chapter with a culpable | |||||
mental state greater than negligence, the department shall | |||||
immediately report the license holder to: | |||||
(1) the United States attorney general; and | |||||
(2) the attorney general of this state, who may: | |||||
(A) investigate the violation; | |||||
(B) institute proceedings for injunctive or | |||||
other appropriate relief on behalf of the department; or | |||||
(C) report the matter to the Department of Public | |||||
Safety and any other appropriate law enforcement agency. | |||||
SECTION 3. Subchapter A, Chapter 141, Agriculture Code, is | |||||
amended by adding Section 141.008 to read as follows: | |||||
Sec. 141.008. HEMP IN COMMERCIAL FEED. The service may | |||||
adopt rules authorizing, defining, and controlling the use of hemp | |||||
and hemp products in commercial feed. | |||||
SECTION 4. Subchapter A, Chapter 431, Health and Safety | |||||
Code, is amended by adding Section 431.011 to read as follows: | |||||
Sec. 431.011. APPLICABILITY OF CHAPTER TO CONSUMABLE HEMP | |||||
PRODUCTS AND MANUFACTURERS. (a) This chapter applies to a | |||||
consumable hemp product subject to Chapter 443. An article | |||||
regulated under this chapter may not be deemed to be adulterated | |||||
solely on the basis that the article is a consumable hemp product. | |||||
(b) Except as provided by Subsection (c), this chapter | |||||
applies to the conduct of a person who holds a license under Chapter | |||||
443. | |||||
(c) A person who holds a license under Chapter 443 related | |||||
to the processing of hemp or the manufacturing of a consumable hemp | |||||
product regulated under that chapter and is engaging in conduct | |||||
within the scope of that license is not required to hold a license | |||||
as a food manufacturer or food wholesaler under Subchapter J. | |||||
SECTION 5. Section 431.043, Health and Safety Code, is | |||||
amended to read as follows: | |||||
Sec. 431.043. ACCESS TO RECORDS. A person who is required | |||||
to maintain records under this chapter or Section 519 or 520(g) of | |||||
the federal Act or a person who is in charge or custody of those | |||||
records shall, at the request of the department or a health | |||||
authority, permit the department or health authority at all | |||||
reasonable times access to and to copy and verify the records, | |||||
including records that verify that the hemp in a consumable hemp | |||||
product was produced in accordance with Chapter 122, Agriculture | |||||
Code, or 7 U.S.C. Chapter 38, Subchapter VII. | |||||
SECTION 6. Section 431.2211, Health and Safety Code, is | |||||
amended by adding Subsection (a-3) to read as follows: | |||||
(a-3) A person is not required to hold a license under this | |||||
subchapter if the person holds a license under Chapter 443 and is | |||||
engaging in conduct within the scope of that license. | |||||
SECTION 7. Subtitle A, Title 6, Health and Safety Code, is | |||||
amended by adding Chapter 443 to read as follows: | |||||
CHAPTER 443. MANUFACTURE, DISTRIBUTION, AND SALE OF CONSUMABLE | |||||
HEMP PRODUCTS | |||||
SUBCHAPTER A. GENERAL PROVISIONS | |||||
Sec. 443.001. DEFINITIONS. In this chapter: | |||||
(1) "Consumable hemp product" means food, a drug, a | |||||
device, or a cosmetic, as those terms are defined by Section | |||||
431.002, that contains hemp or one or more hemp-derived | |||||
cannabinoids, including cannabidiol. | |||||
(2) "Department" means the Department of State Health | |||||
Services. | |||||
(3) "Establishment" means each location where a person | |||||
processes hemp or manufactures a consumable hemp product. | |||||
(4) "Executive commissioner" means the executive | |||||
commissioner of the Health and Human Services Commission. | |||||
(5) "Hemp" has the meaning assigned by Section | |||||
121.001, Agriculture Code. | |||||
(6) "License" means a consumable hemp product | |||||
manufacturer's license issued under this chapter. | |||||
(7) "License holder" means an individual or business | |||||
entity holding a license. | |||||
(8) "Manufacture" has the meaning assigned by Section | |||||
431.002. | |||||
(9) "Process" means to extract a component of hemp, | |||||
including cannabidiol or another cannabinoid, that is: | |||||
(A) sold as a consumable hemp product; | |||||
(B) offered for sale as a consumable hemp | |||||
product; | |||||
(C) incorporated into a consumable hemp product; | |||||
or | |||||
(D) intended to be incorporated into a consumable | |||||
hemp product. | |||||
(10) "QR code" means a quick response machine-readable | |||||
code that can be read by a camera, consisting of an array of black | |||||
and white squares used for storing information or directing or | |||||
leading a user to additional information. | |||||
(11) "Smoking" means burning or igniting a substance | |||||
and inhaling the smoke or heating a substance and inhaling the | |||||
resulting vapor or aerosol. | |||||
Sec. 443.002. APPLICABILITY OF OTHER LAW. Except as | |||||
provided by Section 431.011(c), Chapter 431 applies to a license | |||||
holder and a consumable hemp product regulated under this chapter. | |||||
Sec. 443.003. LOCAL REGULATION PROHIBITED. A municipality, | |||||
county, or other political subdivision of this state may not enact, | |||||
adopt, or enforce a rule, ordinance, order, resolution, or other | |||||
regulation that prohibits the processing of hemp or the | |||||
manufacturing or sale of a consumable hemp product as authorized by | |||||
this chapter. | |||||
Sec. 443.004. SEVERABILITY. (a) A provision of this | |||||
chapter or its application to any person or circumstance is invalid | |||||
if the secretary of the United States Department of Agriculture | |||||
determines that the provision or application conflicts with 7 | |||||
U.S.C. Chapter 38, Subchapter VII, and prevents the approval of the | |||||
state plan submitted under Chapter 121, Agriculture Code. | |||||
(b) The invalidity of a provision or application under | |||||
Subsection (a) does not affect the other provisions or applications | |||||
of this chapter that can be given effect without the invalid | |||||
provision or application, and to this end the provisions of this | |||||
chapter are declared to be severable. | |||||
SUBCHAPTER B. POWERS AND DUTIES | |||||
Sec. 443.051. RULEMAKING AUTHORITY OF EXECUTIVE | |||||
COMMISSIONER. The executive commissioner shall adopt rules and | |||||
procedures necessary to administer and enforce this chapter. Rules | |||||
and procedures adopted under this section must be consistent with: | |||||
(1) an approved state plan submitted to the United | |||||
States Department of Agriculture under Chapter 121, Agriculture | |||||
Code; and | |||||
(2) 7 U.S.C. Chapter 38, Subchapter VII, and federal | |||||
regulations adopted under that subchapter. | |||||
SUBCHAPTER C. CONSUMABLE HEMP PRODUCT MANUFACTURER LICENSE | |||||
Sec. 443.101. LICENSE REQUIRED; EXCEPTIONS. A person may | |||||
not process hemp or manufacture a consumable hemp product in this | |||||
state unless the person holds a license under this subchapter. | |||||
Sec. 443.102. LICENSE INELIGIBILITY. (a) An individual | |||||
who is or has been convicted of a felony relating to a controlled | |||||
substance under federal law or the law of any state may not, before | |||||
the 10th anniversary of the date of the conviction: | |||||
(1) hold a license under this subchapter; or | |||||
(2) be a governing person of an establishment that | |||||
holds a license under this subchapter. | |||||
(b) The department may not issue a license under this | |||||
subchapter to a person who materially falsifies any information | |||||
contained in an application submitted to the department under | |||||
Section 443.103. | |||||
Sec. 443.103. APPLICATION; ISSUANCE. An individual or | |||||
establishment may apply for a license under this subchapter by | |||||
submitting an application to the department on a form and in the | |||||
manner prescribed by the department. The application must be | |||||
accompanied by: | |||||
(1) a legal description of each location where the | |||||
applicant intends to process hemp or manufacture consumable hemp | |||||
products and the global positioning system coordinates for the | |||||
perimeter of each location; | |||||
(2) written consent from the applicant or the property | |||||
owner if the applicant is not the property owner allowing the | |||||
department, the Department of Public Safety, and any other state or | |||||
local law enforcement agency to enter onto all premises where hemp | |||||
is processed or consumable hemp products are manufactured to | |||||
conduct a physical inspection or to ensure compliance with this | |||||
chapter and rules adopted under this chapter; | |||||
(3) any fees required by the department to be | |||||
submitted with the application; and | |||||
(4) any other information required by department rule. | |||||
Sec. 443.104. TERM; RENEWAL. (a) A license is valid for | |||||
one year and may be renewed as provided by this section. | |||||
(b) The department shall renew a license if the license | |||||
holder: | |||||
(1) is not ineligible to hold the license under | |||||
Section 443.102; | |||||
(2) submits to the department any license renewal fee; | |||||
and | |||||
(3) does not owe any outstanding fees to the | |||||
department. | |||||
Sec. 443.105. REVOCATION. The department shall revoke a | |||||
license if the license holder is convicted of a felony relating to a | |||||
controlled substance under federal law or the law of any state. | |||||
SUBCHAPTER D. TESTING OF CONSUMABLE HEMP PRODUCTS | |||||
Sec. 443.151. TESTING REQUIRED. (a) A consumable hemp | |||||
product must be tested as provided by: | |||||
(1) Subsections (b) and (c); or | |||||
(2) Subsection (d). | |||||
(b) Before a hemp plant is processed or otherwise used in | |||||
the manufacture of a consumable hemp product, a sample representing | |||||
the plant must be tested, as required by the executive | |||||
commissioner, to determine: | |||||
(1) the concentration of various cannabinoids; and | |||||
(2) the presence or quantity of heavy metals, | |||||
pesticides, and any other substance prescribed by the department. | |||||
(c) Before material extracted from hemp by processing is | |||||
sold as, offered for sale as, or incorporated into a consumable hemp | |||||
product, the material must be tested, as required by the executive | |||||
commissioner, to determine: | |||||
(1) the presence of harmful microorganisms; and | |||||
(2) the presence or quantity of: | |||||
(A) any residual solvents used in processing, if | |||||
applicable; and | |||||
(B) any other substance prescribed by the | |||||
department. | |||||
(d) Except as otherwise provided by Subsection (e), before a | |||||
consumable hemp product is sold at retail or otherwise introduced | |||||
into commerce in this state, a sample representing the hemp product | |||||
must be tested by a laboratory that is accredited by an | |||||
accreditation body in accordance with International Organization | |||||
for Standardization ISO/IEC 17025 or a comparable or successor | |||||
standard to determine the delta-9 tetrahydrocannabinol | |||||
concentration of the product. | |||||
(e) A consumable hemp product is not required to be tested | |||||
under Subsection (d) if each hemp-derived ingredient of the | |||||
product: | |||||
(1) has been tested in accordance with Subsections (b) | |||||
and (c); and | |||||
(2) does not have a delta-9 tetrahydrocannabinol | |||||
concentration of more than 0.3 percent. | |||||
Sec. 443.152. PROVISIONS RELATED TO TESTING. (a) A | |||||
consumable hemp product that has a delta-9 tetrahydrocannabinol | |||||
concentration of more than 0.3 percent may not be sold at retail or | |||||
otherwise introduced into commerce in this state. | |||||
(b) A person licensed under Chapter 122, Agriculture Code, | |||||
shall provide to a license holder who is processing hemp harvested | |||||
by the person or otherwise using that hemp to manufacture a | |||||
consumable hemp product the results of a test conducted under that | |||||
chapter, if available, as proof that the delta-9 | |||||
tetrahydrocannabinol concentration of the hemp does not exceed 0.3 | |||||
percent, including for purposes of Section 443.151(b)(1). | |||||
(c) A license holder shall make available to a seller of a | |||||
consumable hemp product processed or manufactured by the license | |||||
holder the results of testing required by Section 443.151. The | |||||
results may accompany a shipment to the seller or be made available | |||||
to the seller electronically. If the results are not able to be | |||||
made available, the seller may have the testing required under | |||||
Section 443.151 performed on the product and shall make the results | |||||
available to a consumer. | |||||
SUBCHAPTER E. RETAIL SALE OF CONSUMABLE HEMP PRODUCTS | |||||
Sec. 443.201. POSSESSION, TRANSPORTATION, AND SALE OF | |||||
CONSUMABLE HEMP PRODUCTS. (a) A person may possess, transport, | |||||
sell, or purchase a consumable hemp product processed or | |||||
manufactured in compliance with this chapter. | |||||
(b) The executive commissioner by rule must provide to a | |||||
retailer of consumable hemp products fair notice of a potential | |||||
violation concerning consumable hemp products sold by the retailer | |||||
and an opportunity to cure a violation made unintentionally or | |||||
negligently. | |||||
Sec. 443.202. REGULATION OF CERTAIN CANNABINOID OILS. (a) | |||||
This section does not apply to low-THC cannabis regulated under | |||||
Chapter 487. | |||||
(b) Notwithstanding any other law, a person may not sell, | |||||
offer for sale, possess, distribute, or transport a cannabinoid | |||||
oil, including cannabidiol oil, in this state: | |||||
(1) if the oil contains any material extracted or | |||||
derived from the plant Cannabis sativa L., other than from hemp | |||||
produced in compliance with 7 U.S.C. Chapter 38, Subchapter VII; | |||||
and | |||||
(2) unless a sample representing the oil has been | |||||
tested by a laboratory that is accredited by an independent | |||||
accreditation body in accordance with International Organization | |||||
for Standardization ISO/IEC 17025 or a comparable or successor | |||||
standard and found to have a delta-9 tetrahydrocannabinol | |||||
concentration of not more than 0.3 percent. | |||||
(c) The department and the Department of Public Safety shall | |||||
establish a process for the random testing of cannabinoid oil, | |||||
including cannabidiol oil, at various retail and other | |||||
establishments that sell, offer for sale, distribute, or use the | |||||
oil to ensure that the oil: | |||||
(1) does not contain harmful ingredients; | |||||
(2) is produced in compliance with 7 U.S.C. Chapter | |||||
38, Subchapter VII; and | |||||
(3) has a delta-9 tetrahydrocannabinol concentration | |||||
of not more than 0.3 percent. | |||||
Sec. 443.2025. PERMIT REQUIRED FOR RETAILERS OF CERTAIN | |||||
PRODUCTS. (a) This section does not apply to low-THC cannabis | |||||
regulated under Chapter 487. | |||||
(b) A person may not sell a consumable hemp product | |||||
containing cannabidiol at retail in this state unless the person | |||||
holds a permit issued by the department. | |||||
(c) A person is not required to hold a permit issued by the | |||||
department under Subsection (b) if the person is: | |||||
(1) an employee of a permit holder; or | |||||
(2) a location affiliated with or owned, operated, or | |||||
controlled by the permit holder whose address is maintained in a | |||||
list by the permit holder under Subsection (d). | |||||
(d) A permit holder shall maintain a list of each location | |||||
affiliated with or owned, operated, or controlled by the permit | |||||
holder that sells products described by Subsection (b) at retail in | |||||
this state. The permit holder shall make the list readily available | |||||
to the department on request. | |||||
(e) The department shall adopt rules and may prescribe a | |||||
reasonable permit fee to implement and administer this section. | |||||
Sec. 443.203. DECEPTIVE TRADE PRACTICE. (a) A person who | |||||
sells, offers for sale, or distributes a cannabinoid oil, including | |||||
cannabidiol oil, that the person claims is processed or | |||||
manufactured in compliance with this chapter commits a false, | |||||
misleading, or deceptive act or practice actionable under | |||||
Subchapter E, Chapter 17, Business & Commerce Code, if the oil is | |||||
not processed or manufactured in accordance with this chapter. | |||||
(b) A person who sells, offers for sale, or distributes a | |||||
cannabinoid oil commits a false, misleading, or deceptive act or | |||||
practice actionable under Subchapter E, Chapter 17, Business & | |||||
Commerce Code, if the oil: | |||||
(1) contains harmful ingredients; | |||||
(2) is not produced in compliance with 7 U.S.C. | |||||
Chapter 38, Subchapter VII; or | |||||
(3) has a delta-9 tetrahydrocannabinol concentration | |||||
of more than 0.3 percent. | |||||
Sec. 443.204. RULES RELATED TO SALE OF CONSUMABLE HEMP | |||||
PRODUCTS. Rules adopted by the executive commissioner regulating | |||||
the sale of consumable hemp products must to the extent allowable by | |||||
federal law reflect the following principles: | |||||
(1) hemp-derived cannabinoids, including cannabidiol, | |||||
are not considered controlled substances or adulterants; | |||||
(2) products containing one or more hemp-derived | |||||
cannabinoids, such as cannabidiol, intended for ingestion are | |||||
considered foods, not controlled substances or adulterated | |||||
products; | |||||
(3) consumable hemp products must be packaged and | |||||
labeled in the manner provided by Section 443.205; and | |||||
(4) the processing or manufacturing of a consumable | |||||
hemp product for smoking is prohibited. | |||||
Sec. 443.205. PACKAGING AND LABELING REQUIREMENTS. (a) | |||||
Before a consumable hemp product that contains or is marketed as | |||||
containing more than trace amounts of cannabinoids may be | |||||
distributed or sold, the product must be labeled in the manner | |||||
provided by this section with the following information: | |||||
(1) batch identification number; | |||||
(2) batch date; | |||||
(3) product name; | |||||
(4) a uniform resource locator (URL) that provides or | |||||
links to a certificate of analysis for the product or each | |||||
hemp-derived ingredient of the product; | |||||
(5) the name of the product's manufacturer; and | |||||
(6) a certification that the delta-9 | |||||
tetrahydrocannabinol concentration of the product or each | |||||
hemp-derived ingredient of the product is not more than 0.3 | |||||
percent. | |||||
(b) The label required by Subsection (a) may be in the form | |||||
of: | |||||
(1) a uniform resource locator (URL) for the | |||||
manufacturer's Internet website that provides or links to the | |||||
information required by that subsection; and | |||||
(2) a QR code or other bar code that may be scanned and | |||||
that leads to the information required by that subsection. | |||||
(c) The label required by Subsection (a) must appear on each | |||||
unit of the product intended for individual retail sale. If that | |||||
unit includes inner and outer packaging, the label may appear on any | |||||
of that packaging. | |||||
(d) This section does not apply to sterilized seeds | |||||
incapable of beginning germination. | |||||
Sec. 443.206. RETAIL SALE OF OUT-OF-STATE CONSUMABLE HEMP | |||||
PRODUCTS. (a) Retail sales of consumable hemp products processed or | |||||
manufactured outside of this state may be made in this state when | |||||
the products were processed or manufactured legally in another | |||||
state or jurisdiction in compliance with: | |||||
(1) that state or jurisdiction's plan approved by the | |||||
United States Department of Agriculture under 7 U.S.C. Section | |||||
1639p; or | |||||
(2) a plan established under 7 U.S.C. Section 1639q if | |||||
that plan applies to the state or jurisdiction. | |||||
(b) The department shall maintain a list of states or other | |||||
jurisdictions described by Subsection (a). | |||||
Sec. 443.207. TRANSPORTATION AND EXPORTATION OF CONSUMABLE | |||||
HEMP PRODUCTS OUT OF STATE. Consumable hemp products may be legally | |||||
transported across state lines and exported to foreign | |||||
jurisdictions in a manner that is consistent with federal law and | |||||
the laws of respective foreign jurisdictions. | |||||
SECTION 8. Sections 481.002(5) and (26), Health and Safety | |||||
Code, are amended to read as follows: | |||||
(5) "Controlled substance" means a substance, | |||||
including a drug, an adulterant, and a dilutant, listed in | |||||
Schedules I through V or Penalty Group 1, 1-A, 2, 2-A, 3, or 4. The | |||||
term includes the aggregate weight of any mixture, solution, or | |||||
other substance containing a controlled substance. The term does | |||||
not include hemp, as defined by Section 121.001, Agriculture Code, | |||||
or the tetrahydrocannabinols in hemp. | |||||
(26) "Marihuana" means the plant Cannabis sativa L., | |||||
whether growing or not, the seeds of that plant, and every compound, | |||||
manufacture, salt, derivative, mixture, or preparation of that | |||||
plant or its seeds. The term does not include: | |||||
(A) the resin extracted from a part of the plant | |||||
or a compound, manufacture, salt, derivative, mixture, or | |||||
preparation of the resin; | |||||
(B) the mature stalks of the plant or fiber | |||||
produced from the stalks; | |||||
(C) oil or cake made from the seeds of the plant; | |||||
(D) a compound, manufacture, salt, derivative, | |||||
mixture, or preparation of the mature stalks, fiber, oil, or cake; | |||||
[ |
|||||
(E) the sterilized seeds of the plant that are | |||||
incapable of beginning germination; or | |||||
(F) hemp, as that term is defined by Section | |||||
121.001, Agriculture Code. | |||||
SECTION 9. (a) Not later than the 90th day after the | |||||
effective date of this Act, the Department of Agriculture shall | |||||
submit for approval a state plan to the secretary of the United | |||||
States Department of Agriculture as provided by Section 121.003, | |||||
Agriculture Code, as added by this Act. | |||||
(b) The Department of Agriculture shall submit amended | |||||
state plans as provided by Section 121.003(c), Agriculture Code, as | |||||
added by this Act, as necessary until the plan is approved. | |||||
(c) As soon as practicable after the effective date of this | |||||
Act, the executive commissioner of the Health and Human Services | |||||
Commission shall adopt rules necessary to implement the changes in | |||||
law made by this Act. | |||||
SECTION 10. The Department of Agriculture and the | |||||
Department of State Health Services shall begin implementing the | |||||
state plan approved by the secretary of the United States | |||||
Department of Agriculture not later than the 30th day after the date | |||||
on which the state plan is approved and shall fully implement the | |||||
state plan as soon as practicable after the state plan is approved. | |||||
SECTION 11. Notwithstanding Chapter 443, Health and Safety | |||||
Code, as added by this Act, a retailer may possess, transport, or | |||||
sell a consumable hemp product, as defined by Section 443.001, | |||||
Health and Safety Code, as added by this Act, that is part of the | |||||
retailer's inventory on the effective date of this Act regardless | |||||
of whether the product was processed, manufactured, packaged, or | |||||
labeled in compliance with that chapter. | |||||
SECTION 12. Notwithstanding Section 443.2025, Health and | |||||
Safety Code, as added by this Act, a person is not required to hold a | |||||
permit to sell a consumable hemp product containing cannabidiol at | |||||
retail in this state until the 60th day after the date the | |||||
Department of State Health Services begins accepting applications | |||||
for the permit. | |||||
SECTION 13. This Act takes effect immediately if it | |||||
receives a vote of two-thirds of all the members elected to each | |||||
house, as provided by Section 39, Article III, Texas Constitution. | |||||
If this Act does not receive the vote necessary for immediate | |||||
effect, this Act takes effect September 1, 2019. | |||||
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