Bill Text: TX HB1325 | 2019-2020 | 86th Legislature | Enrolled


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: (Enrolled) 2019-05-23 - Reported enrolled [HB1325 Detail]

Download: Texas-2019-HB1325-Enrolled.html
 
 
  H.B. No. 1325
 
 
 
 
AN ACT
  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:
 
 
Provision Amount of Penalty  
 
 
Chapters 13, 14A, 17, 18, 19, 41, 46, 61, 72, 73, 74, 76, 94, 95, 101, 102, 103,  125, 132,    
 
Chapters 13, 14A, 17, 18, 19, 41, 46, 61, 72, 73, 74, 76, 94, 95, 101, 102, 103,  125, 132,    
 
Chapters 13, 14A, 17, 18, 19, 41, 46, 61, 72, 73, 74, 76, 94, 95, 101, 102, 103, 122, 125, 132,    
 
and 134 not more than $5,000
 
 
 
 
Subchapters A, B, and C, Chapter 71 not more than $5,000
 
Chapter 14 not more than $10,000
 
Chapter 1951, Occupations Code not more than $5,000
 
Chapter 153, Natural Resources    
 
Code not more than $5,000
 
Section 91.009 not more than $5,000.
         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)  The department may coordinate with the Department of
  Public Safety to determine whether information included on a
  certificate or manifest issued under Subsection (a), including the
  unique identifying number, may be made available to law enforcement
  personnel through the Texas Law Enforcement Telecommunications
  System or a successor system of telecommunication used by law
  enforcement agencies and operated by the Department of Public
  Safety. 
         (d)  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
  nonconsumable hemp product manufactured outside of this state may
  be sold at retail in this state unless:
               (1)  the hemp used to manufacture the product was
  cultivated illegally; or
               (2)  the retail sale of the product in this state
  violates federal law.
         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:
               (1)  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; and
               (2)  by an appropriate laboratory to determine that the
  product does not contain a substance described by Subsection (b) or
  (c) in a quantity prohibited for purposes of those subsections.
         (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:
                     (A)  Subsections (b) and (c); or
                     (B)  Subsection (d); 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.  REGISTRATION 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 consumable hemp products
  containing cannabidiol at retail in this state unless the person
  registers with the department each location owned, operated, or
  controlled by the person at which those products are sold. A person
  is not required to register a location associated with an employee
  or independent contractor described by Subsection (d).
         (c)  The department may issue a single registration under
  Subsection (b) covering multiple locations owned, operated, or
  controlled by a person.
         (d)  A person is not required to register with the department
  under Subsection (b) if the person is:
               (1)  an employee of a registrant; or
               (2)  an independent contractor of a registrant who
  sells the registrant's products at retail.
         (e)  A registration is valid for one year and may be renewed
  as prescribed by department rule.
         (f)  The department by rule may adopt a registration fee
  schedule that establishes reasonable fee amounts for the
  registration of:
               (1)  a single location at which consumable hemp
  products containing cannabidiol are sold; and
               (2)  multiple locations at which consumable hemp
  products containing cannabidiol are sold under a single
  registration.
         (g)  The department shall adopt rules 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.  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 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;
               (2)  a plan established under 7 U.S.C. Section 1639q if
  that plan applies to the state or jurisdiction; or
               (3)  the laws of that state or jurisdiction if the
  products are tested in accordance with, or in a manner similar to,
  Section 443.151.
         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;
  [or]
                     (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 becomes part of
  the retailer's inventory before rules under Section 443.051, Health
  and Safety Code, as added by this Act, become effective unless the
  product:
               (1)  is unsafe for consumption based on the presence or
  quantity of heavy metals, pesticides, harmful microorganisms, or
  residual solvents; or
               (2)  has a delta-9 tetrahydrocannabinol concentration
  of more than 0.3 percent.
         SECTION 12.  Notwithstanding Section 443.2025, Health and
  Safety Code, as added by this Act, a person is not required to
  register a location to sell a consumable hemp product containing
  cannabidiol at retail in this state before the 60th day after the
  date the Department of State Health Services begins issuing
  registrations.
         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.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1325 was passed by the House on April
  24, 2019, by the following vote:  Yeas 144, Nays 0, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 1325 on May 22, 2019, by the following vote:  Yeas 140, Nays 3,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1325 was passed by the Senate, with
  amendments, on May 15, 2019, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor       
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