Bill Text: TX SB264 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the production, sale, distribution, delivery, and regulation of consumable hemp products.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-02-15 - Referred to Water, Agriculture, & Rural Affairs [SB264 Detail]
Download: Texas-2023-SB264-Introduced.html
88R451 BEF-D | ||
By: Perry | S.B. No. 264 |
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relating to the production, sale, distribution, delivery, and | ||
regulation of consumable hemp products. | ||
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 Sections 443.005 and 443.006 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. | ||
Sec. 443.006. TETRAHYDROCANNABINOL CONTENT. (a) | ||
Notwithstanding any other law, a person may not manufacture, sell, | ||
or purchase a consumable hemp product in this state: | ||
(1) that has a delta-9 tetrahydrocannabinol | ||
concentration of more than 0.3 percent on a dry weight basis; | ||
(2) that contains synthetically derived | ||
tetrahydrocannabinols, as defined by department rule, including | ||
synthetically derived acids, isomers, or salts of | ||
tetrahydrocannabinol; | ||
(3) that exceeds any federal limit for | ||
tetrahydrocannabinol; or | ||
(4) if additional tetrahydrocannabinol in a | ||
concentration greater than 0.3 percent on a dry weight basis has | ||
been applied to the product. | ||
(b) Chapter 481 prevails to the extent of any conflict with | ||
this section. | ||
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 443.152, 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 5. 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 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 6. 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 containing cannabinoids to consumers [ |
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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) A person is not required to register with the department | ||
under Subsection (b) if the person is: | ||
(1) an employee of a registrant; or | ||
(2) an independent contractor of a registrant who | ||
sells the registrant's products 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 containing cannabinoids [ |
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(2) multiple locations at which consumable hemp | ||
products containing cannabinoids [ |
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single registration. | ||
SECTION 7. Section 443.203, Health and Safety Code, is | ||
amended by adding Subsection (c) to read as follows: | ||
(c) A person who sells, offers for sale, or distributes a | ||
consumable hemp product commits a false, misleading, or deceptive | ||
act or practice actionable under Subchapter E, Chapter 17, Business & | ||
Commerce Code, if the person claims the product is made in this | ||
state and less than 75 percent of the hemp contained in the product | ||
was: | ||
(1) grown in this state by a person who holds a license | ||
under Chapter 122, Agriculture Code; and | ||
(2) processed in this state by a person who holds a | ||
license under this chapter. | ||
SECTION 8. 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 more than | ||
trace amounts of cannabinoids may be distributed or sold, the | ||
product must be labeled in the manner provided by this section with | ||
the following information: | ||
(1) batch identification number; | ||
(2) batch date; | ||
(3) product name; | ||
(4) a uniform resource locator (URL) that provides or | ||
links to a certificate of analysis for the product or each | ||
hemp-derived ingredient of the product; | ||
(5) the name of the product's manufacturer; and | ||
(6) a certification that the delta-9 | ||
tetrahydrocannabinol concentration of the product or each | ||
hemp-derived ingredient of the product is not more than 0.3 | ||
percent. | ||
SECTION 9. This Act takes effect September 1, 2023. |