Bill Text: TX HB1325 | 2019-2020 | 86th Legislature | Engrossed
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-Engrossed.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-Engrossed.html
By: King of Uvalde, Larson, Gutierrez, | H.B. No. 1325 | |
Rodriguez, Burrows, et al. |
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relating to the production and regulation of hemp and products made | |||||
from hemp; requiring authorization to produce hemp; authorizing | |||||
penalties; authorizing fees. | |||||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |||||
SECTION 1. This Act may be cited as the Hemp Farming Act. | |||||
SECTION 2. (a) It is the policy of this state that hemp is a | |||||
viable agricultural crop and an agricultural commodity in this | |||||
state. | |||||
(b) It is the purpose of this Act to: | |||||
(1) promote cultivating and processing hemp and | |||||
develop new commercial markets for farmers and businesses through | |||||
the sale of hemp products; | |||||
(2) promote the expansion of this state's hemp | |||||
industry to the maximum extent permitted by law allowing farmers | |||||
and businesses to cultivate, handle, and process hemp and sell hemp | |||||
products for commercial purposes; | |||||
(3) encourage and empower research into hemp | |||||
production and hemp products at institutions of higher education | |||||
and in the private sector; and | |||||
(4) move this state and its citizens to the forefront | |||||
of the hemp industry. | |||||
SECTION 3. 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 4. 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. DEPARTMENT RULES. (a) The department, after | |||||
consulting with the governor, attorney general, and Department of | |||||
State Health Services, shall adopt rules consistent with Chapter | |||||
122 providing: | |||||
(1) a practice to maintain relevant information | |||||
regarding land on which hemp is produced in this state, including a | |||||
legal description of the land, for a period of at least three | |||||
calendar years; | |||||
(2) a procedure for testing, using | |||||
post-decarboxylation, high-performance liquid chromatography, or | |||||
another similarly reliable method, the delta-9 | |||||
tetrahydrocannabinol concentration of hemp produced in this state; | |||||
(3) a procedure for the effective disposal of plants, | |||||
whether growing or not, that are produced in violation of 7 U.S.C. | |||||
Chapter 38, Subchapter VII, and products derived from those plants; | |||||
(4) a procedure to comply with the enforcement | |||||
procedures described by 7 U.S.C. Section 1639p(e); | |||||
(5) a procedure for conducting annual inspections of, | |||||
at a minimum, a random sample of hemp producers to verify that hemp | |||||
is not produced in violation of 7 U.S.C. Chapter 38, Subchapter VII; | |||||
(6) a procedure for submitting the information | |||||
described in 7 U.S.C. Section 1639q(d)(2), as applicable, to the | |||||
secretary of the United States Department of Agriculture not later | |||||
than the 30th day after the date the information is received; and | |||||
(7) standards for certifying that this state has the | |||||
resources and personnel to carry out the practices and procedures | |||||
described by Subdivisions (1) through (6). | |||||
(b) The department shall adopt rules under Subsection (a) | |||||
that will, in substance, meet the requirements for approval as a | |||||
state plan under 7 U.S.C. Section 1639p. | |||||
Sec. 121.004. MEMORANDUM OF UNDERSTANDING WITH DEPARTMENT | |||||
OF STATE HEALTH SERVICES. The department and the Department of | |||||
State Health Services shall enter into a memorandum of | |||||
understanding that: | |||||
(1) recognizes the primary jurisdiction of the | |||||
Department of State Health Services over the processing, | |||||
manufacturing, packaging, transportation, sale, and use of | |||||
consumable hemp products in this state; and | |||||
(2) requires the department and the Department of | |||||
State Health Services to cooperate in the development of the state | |||||
hemp production plan required under this chapter. | |||||
Sec. 121.005. SUBMISSION OF STATE PLAN. (a) The | |||||
department, after consulting with the governor, attorney general, | |||||
and Department of State Health Services shall submit to the | |||||
secretary of the United States Department of Agriculture a state | |||||
plan for monitoring and regulating the production of hemp in this | |||||
state as provided by 7 U.S.C. Section 1639p. | |||||
(b) If the state plan submitted by the department is | |||||
disapproved by the secretary of the United States Department of | |||||
Agriculture, the department, after consulting with the governor, | |||||
attorney general, and Department of State Health Services, shall | |||||
amend the state plan as needed to obtain approval and submit an | |||||
amended plan. | |||||
(c) The department shall, as necessary, seek technical | |||||
assistance from the secretary of the United States Department of | |||||
Agriculture in developing the state plan. | |||||
CHAPTER 122. PRODUCTION OF HEMP | |||||
SUBCHAPTER A. GENERAL PROVISIONS | |||||
Sec. 122.001. DEFINITIONS. In this chapter: | |||||
(1) "Commercial sale" means the sale of a product in | |||||
the stream of commerce at retail, at wholesale, or on the Internet. | |||||
(2) "Consumable hemp product" means a hemp product | |||||
that is: | |||||
(A) marketed or intended to be: | |||||
(i) ingested as a food intended for human | |||||
consumption; or | |||||
(ii) applied topically to the body, | |||||
including a cosmetic or personal care product; or | |||||
(B) similar to a product listed under Paragraph | |||||
(A) and that contains one or more hemp-derived cannabinoids, | |||||
including cannabidiol. | |||||
(3) "Cultivate" means to plant, irrigate, grow, or | |||||
harvest a plant or crop. | |||||
(4) "Federally defined THC level for hemp" means a | |||||
delta-9 tetrahydrocannabinol concentration of not more than 0.3 | |||||
percent: | |||||
(A) on a dry weight basis for hemp; or | |||||
(B) in a hemp product. | |||||
(5) "Handle" means to possess or store a hemp plant: | |||||
(A) on premises owned, operated, or controlled by | |||||
a hemp producer 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 hemp producer to a premises owned, | |||||
operated, or controlled by another hemp producer. | |||||
(6) "Hemp" has the meaning assigned by Section | |||||
121.001. | |||||
(7) "Hemp producer" means a person authorized by the | |||||
department to cultivate, handle, or process hemp in this state. | |||||
(8) "Hemp product" means a finished product that does | |||||
not exceed the federally defined THC level for hemp, that is derived | |||||
from or made by processing a hemp plant or plant part, and that is | |||||
prepared in a form available for commercial sale. The term includes | |||||
cosmetics, personal care products, food intended for human | |||||
consumption, cloth, cordage, fiber, fuel, paint, paper, | |||||
particleboard, plastics, and any product containing one or more | |||||
hemp-derived cannabinoids, including cannabidiol. | |||||
(9) "Independent testing laboratory" means a | |||||
laboratory certified by this state and accredited by an | |||||
accreditation body, including the American Association for | |||||
Laboratory Accreditation (A2LA) and Assured Calibration and | |||||
Laboratory Accreditation Select Services (ACLASS), in accordance | |||||
with International Organization for Standardization ISO/IEC 17025 | |||||
or a comparable or successor standard. | |||||
(10) "Institution of higher education" has the meaning | |||||
assigned by Section 61.003, Education Code. | |||||
(11) "Plot" means a contiguous area in a field, | |||||
greenhouse, or indoor growing structure containing the same variety | |||||
or cultivar of hemp throughout the area. | |||||
(12) "Process" means to convert hemp into a marketable | |||||
form. | |||||
(13) "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. | |||||
(14) "Smoking" means burning or igniting a substance | |||||
and inhaling the smoke. | |||||
Sec. 122.002. DEPARTMENT RULES AND PROCEDURES. The | |||||
department shall adopt rules and administrative procedures | |||||
necessary to implement this chapter. | |||||
Sec. 122.003. STATE HEMP PROGRAM ACCOUNT. (a) The state | |||||
hemp program 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 122.053; | |||||
(4) interest and income earned on the investment of | |||||
money in the account; | |||||
(5) penalties collected under this chapter; 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 | |||||
chapter. Money received under this subsection shall be deposited | |||||
in the account. | |||||
(d) Money in the account may be appropriated only for the | |||||
administration and enforcement of this subtitle. | |||||
Sec. 122.004. INTERSTATE COMMERCE. 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. | |||||
SUBCHAPTER B. STATE HEMP PROGRAM | |||||
Sec. 122.051. APPLICABILITY OF SUBCHAPTER TO HEMP PRODUCTS. | |||||
This subchapter does not apply to the possession, transportation, | |||||
or sale of hemp products or extracts, including products or | |||||
extracts containing one or more hemp-derived cannabinoids, | |||||
including cannabidiol. | |||||
Sec. 122.052. PROGRAM RULES. (a) The department shall | |||||
adopt rules to establish a state hemp program that: | |||||
(1) promotes the cultivating and processing of hemp | |||||
and the commercial sale of hemp products; and | |||||
(2) regulates hemp production in this state. | |||||
(b) In adopting rules under Subsection (a), the department | |||||
shall consult with: | |||||
(1) relevant public agencies; and | |||||
(2) private, nonprofit associations in the hemp | |||||
industry that promote standards, best practices, and | |||||
self-regulation in the production of hemp. | |||||
(c) Rules adopted under Subsection (a) must: | |||||
(1) establish requirements by which the department | |||||
authorizes an individual or business entity to participate in the | |||||
state hemp program as a hemp producer; | |||||
(2) prescribe the manner in which an institution of | |||||
higher education may participate in or be affiliated with the | |||||
program; | |||||
(3) prescribe sampling, inspection, certification, | |||||
and testing procedures to ensure that hemp plants cultivated, | |||||
handled, or processed in this state, and hemp products processed in | |||||
this state, do not exceed the federally defined THC level for hemp; | |||||
(4) provide due process consistent with Chapter 2001, | |||||
Government Code, including an appeals process, to protect hemp | |||||
producers from the consequences of imperfect test results; and | |||||
(5) prescribe enforcement procedures that are | |||||
consistent with 7 U.S.C. Section 1639p(e). | |||||
Sec. 122.053. FEES. (a) The department by rule shall set | |||||
and collect fees in amounts that are reasonable and necessary to | |||||
cover the costs of administering and enforcing the state hemp | |||||
program. | |||||
(b) Fees prescribed by the department under this section are | |||||
not refundable. | |||||
(c) Fees collected under this section shall be deposited in | |||||
the state hemp program account under Section 122.003. | |||||
Sec. 122.054. DEPARTMENT AUTHORIZATION REQUIRED. (a) | |||||
Except as provided by this chapter, a person or the person's agent | |||||
may not cultivate, handle, or process hemp in this state or | |||||
transport hemp outside of this state unless the person is | |||||
authorized by the department under this section to participate in | |||||
the state hemp program as a hemp producer. | |||||
(b) A person seeking to participate in the state hemp | |||||
program as a hemp producer must apply 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 | |||||
person intends to cultivate or process 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, processed, handled, or stored 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. | |||||
(c) If the department determines that a person who submits | |||||
an application under this section meets the state hemp program | |||||
participation requirements prescribed by department rule, the | |||||
department shall authorize the person to participate in the program | |||||
as a hemp producer in the manner provided by department rule. | |||||
Sec. 122.055. LIMITATION ON PROGRAM PARTICIPATION. (a) A | |||||
person who is or has been convicted of a felony relating to a | |||||
controlled substance under state or federal law may not participate | |||||
in the state hemp program established under this subchapter or | |||||
produce hemp in this state under any other law for a period of at | |||||
least 10 years after the date of the person's conviction. | |||||
(b) A person who materially falsifies any information | |||||
contained in an application submitted to the department under | |||||
Section 122.054 may not participate in the state hemp program. | |||||
Sec. 122.056. ENFORCEMENT. (a) If the department | |||||
determines that a hemp producer has 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). A hemp producer is not subject to a civil or criminal | |||||
penalty under this subsection. | |||||
(b) If the department determines or suspects that a hemp | |||||
producer has violated this chapter or a rule adopted under this | |||||
chapter with a culpable mental state greater than negligence, | |||||
Subsection (a) does not apply and the department shall report the | |||||
hemp producer immediately to: | |||||
(1) the United States attorney general; and | |||||
(2) the attorney general of this state, who may: | |||||
(A) on behalf of the department, investigate the | |||||
violation and institute proceedings for injunctive or other | |||||
appropriate relief; or | |||||
(B) report the matter to an appropriate law | |||||
enforcement agency. | |||||
Sec. 122.057. SEED CERTIFICATION PROGRAM. (a) The | |||||
department shall establish a program to identify and certify seeds | |||||
confirmed to produce hemp. The department may authorize the | |||||
importation of hemp seed in accordance with state and federal law. | |||||
(b) The department may not certify a variety of hemp seed if | |||||
the seed is tested and confirmed to produce a plant that exceeds the | |||||
federally defined THC level for hemp. 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 under this section. | |||||
(c) The department shall maintain and make available to hemp | |||||
producers a list of hemp seeds certified by the department under | |||||
this section. | |||||
Sec. 122.058. USE OR DISPOSAL OF HARVESTED PLANTS. (a) If | |||||
the results of a test under Subchapter C performed on a sample show | |||||
the sample does not exceed the federally defined THC level for hemp, | |||||
the hemp producer may sell or use the plants represented by the | |||||
sample for any purpose allowed by law. | |||||
(b) If the results of a test under Subchapter C performed on | |||||
a sample show the sample exceeds the federally defined THC level for | |||||
hemp, the hemp producer shall immediately confer with the | |||||
department and in a manner approved by the department: | |||||
(1) have postharvest testing performed as provided by | |||||
Section 122.106 or other retesting provided by department rule; | |||||
(2) dispose of all hemp plants represented by the | |||||
sample; or | |||||
(3) if the department determines the plants | |||||
represented by the sample reached that concentration solely as a | |||||
result of negligence or acts beyond the control of the hemp | |||||
producer: | |||||
(A) trim, extract, or separate the plants until | |||||
the remaining plants or plant parts do not exceed the federally | |||||
defined THC level for hemp and dispose of the noncompliant plants or | |||||
plant parts in a manner approved by the department; | |||||
(B) transfer the plants to a person authorized by | |||||
the department to process into a product that does not exceed the | |||||
federally defined THC level for hemp 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 C. TESTING | |||||
Sec. 122.101. TESTING REQUIRED. (a) The department by rule | |||||
shall establish a program for the random testing of hemp plants to | |||||
determine the delta-9 tetrahydrocannabinol concentration of a | |||||
representative sample of hemp plants from the plot where the plants | |||||
are grown. | |||||
(b) Testing under this subchapter must be conducted using | |||||
post-decarboxylation, high-performance liquid chromatography, or | |||||
another similarly reliable method prescribed by department rule. | |||||
Sec. 122.102. PREHARVEST TESTING REQUIRED. A hemp producer | |||||
may not harvest a hemp plant unless the delta-9 | |||||
tetrahydrocannabinol concentration of a representative sample of | |||||
hemp plants from the plot where the plant is grown is collected and | |||||
tested using post-decarboxylation, high-performance liquid | |||||
chromatography, or another similarly reliable method in the manner | |||||
required by this subchapter. | |||||
Sec. 122.103. REPRESENTATIVE SAMPLE. (a) For purposes of | |||||
Section 122.102, a representative sample of hemp plants from a plot | |||||
consists of cuttings taken from at least five plants throughout the | |||||
plot. | |||||
(b) A laboratory performing testing under this subchapter | |||||
shall homogenize all the cuttings in the sample and test the delta-9 | |||||
tetrahydrocannabinol concentration of a random sample of the | |||||
homogenized material. | |||||
Sec. 122.104. SAMPLE COLLECTION. (a) A hemp producer shall | |||||
notify the department at least 20 days before the date the hemp | |||||
producer expects to harvest hemp plants in the manner prescribed by | |||||
department rule. | |||||
(b) A sample must be collected by the department or another | |||||
entity described by Section 122.105(a). | |||||
(c) The department by rule may prescribe reasonable | |||||
procedures for a person who collects a sample to submit the sample | |||||
to the testing laboratory selected by the hemp producer. | |||||
Sec. 122.105. TESTING LABORATORY. (a) Subject to | |||||
Subsection (b), testing required by this subchapter must be | |||||
performed by: | |||||
(1) the department; | |||||
(2) an institution of higher education; or | |||||
(3) an independent testing laboratory. | |||||
(b) To perform the testing required by this subchapter, a | |||||
laboratory described by Subsection (a) must be accredited by an | |||||
accreditation body in accordance with International Organization | |||||
for Standardization ISO/IEC 17025 or a successor standard. | |||||
(c) A hemp producer shall select a laboratory described by | |||||
Subsection (a) to perform preharvest or postharvest testing of a | |||||
sample taken from the hemp producer's plot. A hemp producer shall | |||||
pay the costs of sample collection and testing in the amount | |||||
prescribed by the laboratory selected by the hemp producer. | |||||
(d) 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 hemp producer. | |||||
(e) The department shall notify the hemp producer of the | |||||
results of the test not later than the 14th day after the date the | |||||
sample was collected under Section 122.104 or the date the | |||||
department receives test results under Subsection (d). | |||||
Sec. 122.106. POSTHARVEST TESTING. (a) The department by | |||||
rule shall allow a hemp producer to have postharvest testing | |||||
performed on a representative sample of plants from a plot if the | |||||
results of a preharvest test exceed the federally defined THC level | |||||
for hemp. | |||||
(b) A hemp producer requesting postharvest testing shall | |||||
pay the costs of the testing before a testing laboratory selected by | |||||
the hemp producer under Section 122.105 performs the test. | |||||
(c) If a hemp producer fails to request postharvest testing | |||||
or fails to pay the postharvest testing fee not later than the 15th | |||||
day after the date the hemp producer is notified of the results of | |||||
the preharvest test, the results of the preharvest test are final. | |||||
(d) A hemp producer shall retain control over harvested | |||||
plants until the hemp producer receives: | |||||
(1) written notice of preharvest or postharvest | |||||
testing results indicating the plants do not exceed the federally | |||||
defined THC level for hemp; or | |||||
(2) a shipping certificate or | |||||
cargo manifest by the | |||||
department under Section 122.154. | |||||
Sec. 122.107. 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. | |||||
SUBCHAPTER D. HEMP PRODUCTS | |||||
Sec. 122.151. PROCESSING OR MANUFACTURING HEMP PRODUCTS. | |||||
(a) Except as provided by Subsection (b), a state agency may not | |||||
prohibit a person who processes or manufactures a product regulated | |||||
by the agency from applying for or obtaining a permit or other | |||||
authorization to process or manufacture the product solely on the | |||||
basis that the person intends to process or manufacture the product | |||||
with hemp. | |||||
(b) A state agency may not authorize a person to process or | |||||
manufacture a hemp product for smoking. | |||||
Sec. 122.152. HEMP-DERIVED ADDITIVES. Notwithstanding any | |||||
other law, derivatives of hemp, including hemp-derived | |||||
cannabidiol, may be added to cosmetics, personal care products, and | |||||
products intended for human consumption, and the addition is not | |||||
considered an adulteration of the products. | |||||
Sec. 122.153. 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 packaged and labeled with | |||||
the following information: | |||||
(1) batch identification number; | |||||
(2) batch size; | |||||
(3) batch date; | |||||
(4) batch number; | |||||
(5) product name; | |||||
(6) total quantity produced; | |||||
(7) an Internet link for downloading a certificate of | |||||
analysis for the product; | |||||
(8) the name of the product's manufacturer; and | |||||
(9) a certification that the product does not exceed | |||||
the federally defined THC level for hemp. | |||||
(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 the information | |||||
required by that subsection; or | |||||
(2) a QR code or other bar code that may be scanned and | |||||
that leads to the information required by that subsection. | |||||
Sec. 122.154. SHIPPING CERTIFICATE OR MANIFEST. (a) The | |||||
department shall develop a shipping certificate or cargo manifest | |||||
that the department may issue to a hemp producer in connection with | |||||
the transportation of hemp or hemp products. | |||||
(b) A certificate or manifest 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 or hemp products produced | |||||
in compliance with this chapter. | |||||
Sec. 122.155. POSSESSION, TRANSPORTATION, AND SALE OF HEMP | |||||
PRODUCTS. (a) Notwithstanding any other law, a person may possess, | |||||
transport, sell, and purchase legally produced hemp products in | |||||
this state. | |||||
(b) The department by rule must provide to a retailer of | |||||
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. 122.156. RULES RELATED TO SALE OF HEMP PRODUCTS. The | |||||
department, in consultation with the Department of State Health | |||||
Services, shall adopt rules to regulate the sale of hemp products | |||||
that 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 to be | |||||
considered foods, not controlled substances or adulterated | |||||
products; | |||||
(3) hemp products must be packaged and labeled in the | |||||
manner provided by Section 122.153; and | |||||
(4) the processing or manufacturing of a hemp product | |||||
for smoking is prohibited. | |||||
Sec. 122.157. RETAIL SALE OF OUT-OF-STATE HEMP PRODUCTS. | |||||
(a) Retail sales of hemp products manufactured or processed | |||||
outside of this state may be made in this state when the products | |||||
and the hemp used in the products were processed and cultivated | |||||
legally in another state or jurisdiction that has the same or | |||||
substantially similar requirements for processing hemp products or | |||||
cultivating hemp as provided by this chapter. | |||||
(b) The department shall maintain a list of states or other | |||||
jurisdictions described by Subsection (a). | |||||
Sec. 122.158. TRANSPORTATION AND EXPORTATION OF HEMP | |||||
PRODUCTS OUT OF STATE. 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 E. ENFORCEMENT; PENALTIES | |||||
Sec. 122.201. 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 must be deposited | |||||
in the state hemp program account under Section 122.003. | |||||
Sec. 122.202. ADMINISTRATIVE PENALTY. 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. | |||||
SECTION 5. 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 6. (a) Not later than the 90th day after the | |||||
effective date of this Act, the Department of Agriculture shall | |||||
adopt rules under Section 121.003, Agriculture Code, as added by | |||||
this Act, and submit for approval a state plan to the secretary of | |||||
the United States Department of Agriculture as provided by Section | |||||
121.005, Agriculture Code, as added by this Act. | |||||
(b) The Department of Agriculture shall submit amended | |||||
state plans as provided by Section 121.005(b), Agriculture Code, as | |||||
added by this Act, as necessary until the plan is approved. | |||||
SECTION 7. (a) Not later than January 1, 2020, the | |||||
Department of Agriculture shall adopt rules and procedures | |||||
necessary to implement Chapter 122, Agriculture Code, as added by | |||||
this Act. | |||||
(b) Not later than the 30th day after the date on which rules | |||||
and procedures are adopted under Subsection (a) of this section, | |||||
the Department of Agriculture shall begin authorizing | |||||
participation in the state hemp program established under Chapter | |||||
122, Agriculture Code, as added by this Act. | |||||
SECTION 8. 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. |