Bill Text: TX HB4439 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the production, sale, distribution, delivery, and regulation of consumable hemp products; creating a criminal offense.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-21 - Referred to Public Health [HB4439 Detail]
Download: Texas-2023-HB4439-Introduced.html
88R8983 MP-F | ||
By: Moody | H.B. No. 4439 |
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relating to the production, sale, distribution, delivery, and | ||
regulation of consumable hemp products; creating a criminal | ||
offense. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 443, Health and Safety | ||
Code, is amended by adding Section 443.005 to read as follows: | ||
Sec. 443.005. CONSUMABLE HEMP PRODUCTS ACCOUNT. (a) The | ||
consumable hemp products 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 collected under this chapter or under Chapter | ||
431 as it applies to consumable hemp products; | ||
(4) interest and income earned on the investment of | ||
money in the account; | ||
(5) penalties for violations of this chapter or | ||
Chapter 431 as it applies to consumable hemp products; 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 and Chapter 431 as it applies to consumable hemp products. | ||
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 chapter | ||
and Chapter 431 as it applies to consumable hemp products. | ||
SECTION 2. Section 443.103, Health and Safety Code, is | ||
amended to read as follows: | ||
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) the physical address [ |
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location where the applicant intends to process hemp or manufacture | ||
consumable hemp products [ |
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(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. | ||
SECTION 3. Subchapter C, Chapter 443, Health and Safety | ||
Code, is amended by adding Section 443.106 to read as follows: | ||
Sec. 443.106. EXPEDITED LICENSING PROCESS. The department | ||
by rule may provide an expedited licensing process for the | ||
purchaser of a business that requires a license. | ||
SECTION 4. Section 443.151(c), Health and Safety Code, is | ||
amended to read as follows: | ||
(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; [ |
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(B) any synthetic cannabinoid; and | ||
(C) any other substance prescribed by the | ||
department. | ||
SECTION 5. Section 443.152, Health and Safety Code, is | ||
amended by adding Subsection (d) to read as follows: | ||
(d) The executive commissioner by rule may exclude a | ||
substance that is generally recognized as having no risk of | ||
contaminating a finished consumable hemp product, including a | ||
microorganism or other substance that is inevitably destroyed or | ||
removed while processing or manufacturing the product, from the | ||
testing required under Section 443.151. | ||
SECTION 6. Section 443.201, Health and Safety Code, is | ||
amended by adding Subsection (c) to read as follows: | ||
(c) A person may transport and deliver a consumable hemp | ||
product to a consumer who purchased the product in compliance with | ||
this chapter. The person transporting and delivering the | ||
consumable hemp product shall maintain at all times while the | ||
consumable hemp product is in the person's possession a record | ||
sufficient to demonstrate that the transaction complies with this | ||
chapter. The person transporting and delivering the consumable | ||
hemp product is not required to: | ||
(1) obtain a license under Section 443.101, unless the | ||
person processes or manufactures the product delivered; or | ||
(2) register under Section 443.2025, unless the person | ||
sells the product delivered. | ||
SECTION 7. Section 443.2025, Health and Safety Code, is | ||
amended by amending Subsections (b), (d), and (f) and adding | ||
Subsection (d-1) to read as follows: | ||
(b) A person may not sell or distribute consumable hemp | ||
products [ |
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than products generally recognized as safe by the United States | ||
Food and Drug Administration, 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). | ||
(d) Except as provided by Subsection (d-1), a [ |
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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 to consumers [ |
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(d-1) A person is required to register with the department | ||
under Subsection (b) if the person, as an employee or independent | ||
contractor of a person located outside this state who is not a | ||
registrant, sells or distributes products covered by Subsection (b) | ||
in this state. | ||
(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 [ |
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(2) multiple locations at which consumable hemp | ||
products [ |
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registration. | ||
SECTION 8. Section 443.204, Health and Safety Code, is | ||
amended to read as follows: | ||
Sec. 443.204. RULES RELATED TO SALE OF CONSUMABLE HEMP | ||
PRODUCTS. (a) 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. | ||
(b) The department shall propose any rules necessary to | ||
incorporate and implement a change to this chapter, a federal | ||
statute, or a federal regulation not later than the 90th day after | ||
the effective date of the change. The department may also adopt the | ||
proposed rules as emergency rules. If a change to this chapter, a | ||
federal statute, or a federal regulation creates a conflict with | ||
department rules, the amended chapter, statute, or regulation | ||
controls until the department's rules incorporating and | ||
implementing the change take effect. | ||
SECTION 9. Section 443.205(a), Health and Safety Code, is | ||
amended to read as follows: | ||
(a) Before a consumable hemp product, including hemp plant | ||
material, that contains or is marketed as containing hemp-derived | ||
[ |
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sold, the product must be: | ||
(1) labeled in the manner provided by this subchapter, | ||
including [ |
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(A) [ |
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(B) [ |
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(C) [ |
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(D) [ |
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provides or links to a certificate of analysis for the product or | ||
each hemp-derived ingredient of the product; | ||
(E) [ |
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manufacturer; and | ||
(F) [ |
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tetrahydrocannabinol concentration of the product or each | ||
hemp-derived ingredient of the product is not more than 0.3 | ||
percent; and | ||
(2) prepackaged or placed at the time of sale in | ||
packaging or a container that is: | ||
(A) tamper-evident; | ||
(B) child-resistant; and | ||
(C) if the product contains multiple servings or | ||
consists of multiple products purchased in one transaction, | ||
resealable in a manner that allows the child-resistant mechanism to | ||
remain intact. | ||
SECTION 10. Subchapter E, Chapter 443, Health and Safety | ||
Code, is amended by adding Sections 443.2055, 443.2056, 443.208, | ||
443.209, and 443.210 to read as follows: | ||
Sec. 443.2055. CONSUMABLE HEMP PRODUCT AND PACKAGING THAT | ||
IS ATTRACTIVE TO CHILDREN PROHIBITED. (a) An edible consumable | ||
hemp product that contains or is marketed as containing | ||
hemp-derived cannabinoids may not be in the shape of a human, | ||
animal, fruit, or cartoon or in another shape that is attractive to | ||
children. | ||
(b) The packaging of an edible consumable hemp product that | ||
contains or is marketed as containing hemp-derived cannabinoids may | ||
not: | ||
(1) be in the shape of a human, animal, fruit, or | ||
cartoon or in another shape that is attractive to children; or | ||
(2) depict an image of a human, animal, fruit, or | ||
cartoon or another image that is attractive to children. | ||
(c) In this section, a cartoon includes a depiction of an | ||
object, person, animal, creature, or any similar caricature that: | ||
(1) uses comically exaggerated features and | ||
attributes; | ||
(2) assigns human characteristics to animals, plants, | ||
or other objects; or | ||
(3) has unnatural or extra-human abilities, such as | ||
imperviousness to pain or injury, x-ray vision, tunneling at very | ||
high speeds, or transformation. | ||
Sec. 443.2056. PACKAGING THAT IS MISLEADING PROHIBITED. | ||
The packaging and labeling of consumable hemp products, including | ||
hemp plant material, that contain or are marketed as containing | ||
hemp-derived cannabinoids may not depict any statement, artwork, or | ||
design that would likely mislead a person to believe the package | ||
does not contain a hemp-derived cannabinoid. | ||
Sec. 443.208. SALE OF CONSUMABLE HEMP PRODUCTS TO PERSONS | ||
YOUNGER THAN 21 YEARS OF AGE PROHIBITED; PROOF OF AGE REQUIRED. (a) | ||
A person commits an offense if the person, with criminal | ||
negligence, sells a consumable hemp product, including hemp plant | ||
material, that contains or is marketed as containing hemp-derived | ||
cannabinoids, to a person who is younger than 21 years of age. | ||
(b) An employee of the owner of a store in which consumable | ||
hemp products, including hemp plant material, that contain or are | ||
marketed as containing hemp-derived cannabinoids, are sold at | ||
retail is criminally responsible and subject to prosecution for an | ||
offense under this section that occurs in connection with a sale by | ||
the employee. | ||
(c) An offense under this section is a Class C misdemeanor. | ||
(d) It is a defense to prosecution under Subsection (a) that | ||
the person to whom the consumable hemp product was sold presented to | ||
the defendant apparently valid proof of identification. | ||
(e) A proof of identification satisfies the requirements of | ||
Subsection (d) if it contains a physical description and photograph | ||
consistent with the person's appearance, purports to establish that | ||
the person is 21 years of age or older, and was issued by a | ||
governmental agency. The proof of identification may include a | ||
driver's license issued by this state or another state, a passport, | ||
or an identification card issued by a state or the federal | ||
government. | ||
(f) It is an exception to the application of Subsection (a) | ||
that the person to whom the consumable hemp product was sold is at | ||
least 18 years of age and presented at the time of purchase a valid | ||
military identification card of the United States military forces | ||
or the state military forces. | ||
(g) A person who owns, manages, or operates an Internet | ||
website that contains an e-commerce platform on which consumable | ||
hemp products, including hemp plant material, that contain or are | ||
marketed as containing hemp-derived cannabinoids are sold at retail | ||
or offered for retail sale must: | ||
(1) require a consumer accessing the e-commerce | ||
platform to state affirmatively that the person is at least 21 years | ||
of age; and | ||
(2) prior to completing a purchase on the e-commerce | ||
platform, verify a consumer's age by: | ||
(A) using a reliable online age verification | ||
service; or | ||
(B) obtaining and examining a copy of a valid | ||
government-issued identification. | ||
Sec. 443.209. SALE OF CERTAIN CONSUMABLE HEMP PRODUCTS TO | ||
PERSONS YOUNGER THAN 21 YEARS OF AGE. (a) The department by rule | ||
shall adopt a list of hemp-derived cannabinoids that are exempt | ||
from the requirements of Sections 443.205(a)(2), 443.2055, and | ||
443.208. | ||
(b) The list adopted under Subsection (a): | ||
(1) must include cannabidiol; and | ||
(2) may include cannabinoid quantity thresholds. | ||
(c) Notwithstanding Subsection (a), Sections | ||
443.205(a)(2), 443.2055, and 443.208 apply to any consumable hemp | ||
product that contains: | ||
(1) a hemp-derived cannabinoid not included on the | ||
list adopted under Subsection (a); or | ||
(2) a quantity of a hemp-derived cannabinoid that | ||
exceeds the applicable threshold established under Subsection | ||
(b)(2). | ||
Sec. 443.210. APPLICABILITY OF PENALTIES TO CERTAIN | ||
RETAILERS. Notwithstanding another provision of this subchapter, a | ||
retailer of consumable hemp products is not liable for a penalty | ||
under this subchapter if the retailer proves by a preponderance of | ||
the evidence that the violation was unintentional and due to the | ||
retailer's good faith reliance on a representation made by a | ||
manufacturer, processor, or distributor of consumable hemp | ||
products. | ||
SECTION 11. Notwithstanding any other law, a retailer may | ||
possess, transport, or sell a consumable hemp product that becomes | ||
part of the retailer's inventory before rules required to implement | ||
the changes in law made 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 | ||
that exceeds the concentration allowed by federal law for hemp. | ||
SECTION 12. Not later than December 1, 2023, the Department | ||
of State Health Services shall adopt the list of hemp-derived | ||
cannabinoids that may be sold to persons younger than 21 years of | ||
age as required by Section 443.209, Health and Safety Code, as added | ||
by this Act. | ||
SECTION 13. This Act takes effect September 1, 2023. |