Bill Text: TX SB116 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to industrial hemp; requiring an occupational license; authorizing fees.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced) 2019-02-01 - Referred to Business & Commerce [SB116 Detail]

Download: Texas-2019-SB116-Introduced.html
  86R2945 TSR-F
 
  By: Menéndez S.B. No. 116
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to industrial hemp; requiring an occupational license;
  authorizing fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 61.001(1), Agriculture Code, is amended
  to read as follows:
               (1)  "Agricultural seed" includes the seed of any
  grass, forage, cereal, or fiber crop, any other kind of seed
  commonly recognized in this state as agricultural or field seed,
  and any mixture of those seeds. The term includes the seed of
  industrial hemp, as that term is defined by Section 112.001.
         SECTION 2.  The heading to Subtitle E, Title 5, Agriculture
  Code, is amended to read as follows:
  SUBTITLE E.  PRODUCTION, PROCESSING, AND SALE OF FIBER PRODUCTS
         SECTION 3.  Subtitle E, Title 5, Agriculture Code, is
  amended by adding Chapter 112 to read as follows:
  CHAPTER 112. PRODUCTION OF INDUSTRIAL HEMP
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 112.001.  DEFINITIONS. In this chapter:
               (1)  "Collective yield" means a hammer milled,
  pulverized, or ground sample of a whole plant, including roots,
  stalks, leaves, flowers, and seeds.
               (2)  "Compliant use" means the use or recommended use
  of a hemp-derived product with a delta-9 tetrahydrocannabinol
  concentration of not more than 0.3 percent for any purpose,
  including food for human consumption, human application, feed for
  animal consumption, animal application, fiber production, or
  product manufacturing.
               (3)  "Hemp-derived product" includes:
                     (A)  a plant segment; and
                     (B)  an end product derived from an industrial
  hemp plant or a plant segment, including extract, oil, grain, cake,
  meal, flower, resin, fiber, or hurd.
               (4)  "Industrial hemp" means a plant or any part of a
  plant, whether growing or not, of the species Cannabis sativa L.
  with a delta-9 tetrahydrocannabinol concentration of not more than
  0.3 percent on a dry weight basis.
               (5)  "Institution of higher education" has the meaning
  assigned by 20 U.S.C. Section 1001.
               (6)  "License" means an industrial hemp producer's
  license issued under this chapter.
               (7)  "License holder" means a person who holds a
  license.
               (8)  "Plant segment" means an individual segment of a
  plant, including the roots, stalks, leaves, flowers, or seeds of a
  plant.
               (9)  "THC compliance threshold" means a delta-9
  tetrahydrocannabinol concentration of not more than 0.3 percent:
                     (A)  on a dry weight basis for industrial hemp; or
                     (B)  in a hemp-derived product.
         Sec. 112.002.  COMPLIANCE WITH FEDERAL LAW.  Notwithstanding
  any other provision of this chapter, a person may grow or cultivate
  industrial hemp under this chapter only to the extent allowed by
  federal law.
         Sec. 112.003.  INDUSTRIAL HEMP RESEARCH. (a)  The
  department, in cooperation with selected institutions of higher
  education with expertise in agricultural research, shall promote
  the research and development of industrial hemp and commercial
  markets for industrial hemp and hemp-derived products.
         (b)  The department shall research industrial hemp
  production through the establishment and oversight of an industrial
  hemp research program lasting at least five years. The department
  shall select an institution of higher education to manage the
  research program. The research program must consist primarily of
  demonstration plots planted and cultivated in this state by
  selected license holders.
         (c)  The department shall obtain any federal permit or waiver
  necessary to conduct the industrial hemp research program from the
  United States Drug Enforcement Administration or the appropriate
  federal agency.
         (d)  As part of the industrial hemp research program, the
  department shall, through the institution of higher education
  selected under Subsection (b) and other research partners:
               (1)  oversee and analyze the growth of industrial hemp
  by license holders for agronomy research, including analysis of
  required soils, growing conditions, and harvest methods for
  industrial hemp varieties that may be suitable for the production
  of commercial hemp products;
               (2)  conduct seed research on various types of
  industrial hemp that are best suited to be grown in this state,
  including seed availability, creation of Texas hybrid types,
  in-the-ground variety trials and seed production, and the
  feasibility of a program to recognize certain industrial hemp seed
  as being Texas heritage hemp seed;
               (3)  study the economic feasibility of developing an
  industrial hemp market for various types of industrial hemp that
  can be grown in this state;
               (4)  report on the estimated value-added benefits,
  including environmental benefits, to businesses in this state of
  creating a market for industrial hemp produced in this state;
               (5)  study the agronomy research being conducted
  worldwide relating to industrial hemp varieties, production, and
  utilization;
               (6)  research and promote industrial hemp and hemp seed
  on the world market that can be produced in this state; and
               (7)  study the feasibility of attracting federal and
  private funding for the research program under this section.
         (e)  In addition to the research and analysis under
  Subsection (d), the department shall:
               (1)  coordinate with an institution of higher education
  to study the use of industrial hemp in new energy technologies,
  including:
                     (A)  an evaluation of the use of industrial hemp
  to generate electricity and to produce biofuels and other forms of
  energy resources;
                     (B)  the growth of industrial hemp on reclaimed
  oil and gas lands, mine sites, and wind farms;
                     (C)  the use of hemp seed oil in the production of
  fuels; and
                     (D)  an assessment of the production costs,
  environmental issues, and costs and benefits involved with the use
  of industrial hemp for energy; and
               (2)  promote awareness of the financial incentives that
  may be available to agribusiness and manufacturing companies that
  manufacture industrial hemp into hemp-derived products in order to
  diversify the agricultural economy of this state, attract new
  businesses to this state, create new job opportunities for
  residents of this state, and create a commercial market for
  industrial hemp.
         (f)  The department may solicit and accept gifts, grants, and
  donations from public and private sources to implement the research
  program under this section.
         (g)  Not later than December 31 of each year, the department
  shall report on the status and progress of the research program
  under this section to the governor and the legislature.
         Sec. 112.004.  LEGISLATIVE INTENT REGARDING COMPLIANCE
  RESPONSIBILITIES. It is the intent of the legislature that:
               (1)  license holders be responsible for growing and
  cultivating department-approved certified industrial hemp seed,
  cultivars, and clones that meet the THC compliance threshold and
  are in compliance with other applicable laws;
               (2)  manufacturers of hemp-derived products for human
  consumption be responsible for meeting the THC compliance threshold
  and complying with applicable food manufacturing laws;
               (3)  manufacturers of hemp-derived products not for
  human consumption be responsible for meeting the THC compliance
  threshold and complying with other applicable laws; and
               (4)  wholesalers, retailers, and consumers of
  hemp-derived products not be responsible for unknowingly buying or
  selling products that do not meet the THC compliance threshold,
  unless the person intentionally or knowingly adulterates the
  product.
  SUBCHAPTER B. POWERS AND DUTIES OF DEPARTMENT
         Sec. 112.051.  RULES. (a) The department shall adopt rules
  to regulate industrial hemp production in this state, including:
               (1)  license application and renewal procedures;
               (2)  requirements for license applicants and license
  holders to provide global positioning system coordinates for each
  location where the person grows or cultivates, or intends to grow or
  cultivate, industrial hemp;
               (3)  plant inspection requirements;
               (4)  procedures to notify law enforcement officials of
  the licensed growth or cultivation of industrial hemp;
               (5)  requirements for license holders to post notice of
  industrial hemp cultivation; and
               (6)  provisions governing acquisition of certified
  seed, cultivars, and clones by license holders and institutions of
  higher education.
         (b)  Rules adopted under this chapter must be comparable to
  similar rules governing the production of other crops.
         Sec. 112.052.  FEES. (a) The department shall prescribe
  reasonable license application and renewal fees, inspection fees,
  and plant sample testing fees in amounts comparable to fees
  associated with the production of other crops.
         (b)  Fees collected under this chapter may be appropriated
  only to the department for the purpose of administering this
  chapter.
         Sec. 112.053.  INSPECTIONS. (a) The department may inspect
  plants grown or cultivated by a license holder to determine whether
  the plants meet the THC compliance threshold and are being grown or
  cultivated in compliance with department rules.
         (b)  Inspections and testing under this chapter shall be
  conducted according to best practices established by the department
  and institutions of higher education.
  SUBCHAPTER C. INDUSTRIAL HEMP PRODUCER'S LICENSE
         Sec. 112.101.  LICENSE REQUIRED. A person may not grow or
  cultivate industrial hemp in this state unless the person is a
  license holder.
         Sec. 112.102.  ISSUANCE OF LICENSE. (a) An applicant for a
  license must apply to the department and pay the required
  application fee.
         (b)  The application must:
               (1)  be notarized to affirm the applicant's identity;
               (2)  include the global positioning system coordinates
  of each location where the applicant will grow or cultivate
  industrial hemp; and
               (3)  include the contact information, including an
  electronic mail address if available, of the sheriff for each
  county where the applicant will grow or cultivate industrial hemp.
         (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 fee.
         (d)  The department shall send a copy of each license issued
  under this chapter to the sheriff for each county where the license
  holder will grow or cultivate industrial hemp, including the global
  positioning system coordinates of each location where the license
  holder will grow or cultivate industrial hemp.
         Sec. 112.103.  LICENSE TERM. A license is valid for one year
  and may be renewed as provided by department rule.
         Sec. 112.104.  REVOCATION. The department shall revoke a
  license if the department finds that the license holder violated
  this chapter or a rule adopted under this chapter, or is
  intentionally or knowingly growing plants with the intent to
  produce marihuana.
  SUBCHAPTER D.  INDUSTRIAL HEMP SEED, CULTIVARS, AND CLONES
         Sec. 112.151.  SEED, CULTIVAR, AND CLONE CERTIFICATION. (a)  
  The department or the State Seed and Plant Board may certify under
  Chapter 61 or 62 industrial hemp seed and industrial hemp plants,
  cultivars, and clones.
         (b)  The department or the State Seed and Plant Board may
  adopt rules necessary to implement this section.
         Sec. 112.152.  ACQUISITION OF SEEDS AND PLANTS. (a) A
  license holder, the department, or an institution of higher
  education may transport and use industrial hemp plants, cultivars,
  and clones from states that allow the cultivation of industrial
  hemp in compliance with federal law.
         (b)  The department shall acquire any necessary permits from
  the United States Drug Enforcement Administration to acquire
  industrial hemp seed from domestic and foreign sources.
         Sec. 112.153.  INDUSTRIAL HEMP EXCEEDING THC COMPLIANCE
  THRESHOLD. (a)  The department shall suspend the certification of
  certified industrial hemp seed, cultivars, or clones if the
  collective yield and average samplings from seed, cultivar, or
  clone inspections exceed the THC compliance threshold.
         (b)  Seed, cultivars, or clones for which the collective
  yield and average samplings exceed the THC compliance threshold
  shall be destroyed at the license holder's expense according to
  department rules.
  SUBCHAPTER E. EXCEPTIONS FROM MARIHUANA LAWS FOR INDUSTRIAL HEMP
         Sec. 112.201.  APPLICABILITY OF OTHER LAW. (a) The term
  "marihuana," as defined by Section 481.002, Health and Safety Code,
  does not include:
               (1)  industrial hemp grown or cultivated by the
  department, an institution of higher education, or a license
  holder; or
               (2)  a hemp-derived product that meets the THC
  compliance threshold.
         (b)  Except as provided by Subsection (c), a person does not
  violate Section 481.120, 481.121, 481.122, or 481.125, Health and
  Safety Code, if the person:
               (1)  manufactures, delivers, or possesses a
  hemp-derived product for a compliant use;
               (2)  manufactures, delivers, or possesses equipment
  used for the manufacture or processing of a hemp-derived product
  for a compliant use;
               (3)  grows industrial hemp, without intent, as the
  result of the natural spread of seeds onto property owned or
  controlled by the person; or
               (4)  is the department, an institution of higher
  education, or a license holder and:
                     (A)  grows, cultivates, manufactures, delivers,
  or possesses industrial hemp;
                     (B)  manufactures, delivers, or possesses
  equipment used for the cultivation or processing of industrial
  hemp; or
                     (C)  without intent, grows or cultivates a plant
  from a department-approved certified seed, cultivar, or clone that
  on inspection is found to exceed the THC compliance threshold if the
  person destroys the plant in accordance with department rules as
  soon as practicable after learning the plant exceeds the THC
  compliance threshold.
         (c)  Subsection (b) does not apply to a person who
  intentionally or knowingly grows a plant or produces a product with
  the intent to produce marihuana.
         SECTION 4.  Section 481.002(26), Health and Safety Code, is
  amended to read as follows:
               (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)  an item described by Section 112.201(a),
  Agriculture Code.
         SECTION 5.  Not later than January 1, 2020, the Department of
  Agriculture shall adopt rules necessary to implement Chapter 112,
  Agriculture Code, as added by this Act.
         SECTION 6.  This Act takes effect September 1, 2019.
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