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
 
 
  By: King of Uvalde, Larson, Gutierrez, H.B. No. 1325
      Rodriguez, Burrows, et al.
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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:
 
 
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 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;
  [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 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.
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