Texas House Bill HB4238

Texas 2023 - 88th Regular

• Filed: 3/8/23

Caption

Relating to the production, sale, distribution, delivery, and regulation of consumable hemp products.

Impact

The impact of HB 4238 on existing state laws would be significant as it aims to centralize the regulation of hemp products under the Health and Safety Code by introducing a comprehensive framework. The bill facilitates an expedited licensing process for businesses while imposing strict labeling requirements. For instance, sellers are required to provide batch identification details and ensure clear communication regarding the product's THC concentration. The establishment of a specific account for managing funds related to hemp regulation indicates a move towards supporting this growing industry, thereby enhancing economic opportunities while ensuring compliance and safety.

Summary

House Bill 4238 aims to regulate the production, sale, distribution, and regulation of consumable hemp products in Texas. The bill specifically addresses various aspects of the hemp industry including licensing of producers and sellers, labeling requirements, and restrictions on tetrahydrocannabinol (THC) levels in the products. One of the notable stipulations in this bill includes a mandate that consumable hemp products containing THC must not exceed a concentration of 0.3 percent, aligning with federal regulations. Additionally, the bill seeks to establish a consumable hemp products account to manage funds generated from licensing fees and other sources to ensure proper regulatory oversight.

Sentiment

Overall sentiment around HB 4238 is somewhat supportive, particularly among those who recognize the potential economic benefits of an organized hemp industry. Advocates argue that this regulation will bolster local hemp production and create a safer environment for consumers by ensuring product integrity and transparency. However, there are also concerns regarding the overregulation of hemp products, which could deter small businesses from entering the market. This reflects a broader conversation about balancing economic growth with effective consumer protection in emerging industries.

Contention

Notable points of contention during discussions around HB 4238 focus on the implications of stringent regulatory measures on small businesses and local producers. Some stakeholders fear that the licensing fees and extensive compliance requirements may serve as barriers to entry for new entities in the hemp market. Additionally, there are worries that the specificity of labeling and distribution rules could disproportionately affect smaller sellers. The tension between regulatory oversight for consumer safety and the desire for a thriving local industry encapsulates a critical debate that remains to be resolved as the bill progresses through the legislative process.

Texas Constitutional Statutes Affected

Health And Safety Code

• Chapter 443. Manufacture, Distribution, And Sale Of Consumable Hemp Products
  • Section: New Section
  • Section: 2025