84R5841 BEF-D By: Farias H.B. No. 1322 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) "Industrial hemp" means a plant or any part of a plant, whether growing or not, of the genus Cannabis with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry mass basis that is grown from certified seed. (2) "License" means an industrial hemp producer's license issued under this chapter. SUBCHAPTER B. POWERS AND DUTIES OF DEPARTMENT Sec. 112.051. RULES. The department shall adopt rules to regulate industrial hemp production in this state, including license application procedures. Sec. 112.052. FEES. (a) The department shall prescribe inspection fees and fees for the issuance of a license in amounts necessary to cover the costs of administering this chapter. (b) Fees collected under this chapter may be appropriated only to the department for the purpose of administering this chapter. Sec. 112.053. INSPECTIONS. The department may inspect the premises of a license holder and plants grown or cultivated by a license holder to determine whether plants grown or cultivated by the license holder are industrial hemp. 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 holds a license. Sec. 112.102. ISSUANCE OF LICENSE. An applicant for a license must apply to the department and pay the required fee. Sec. 112.103. LICENSE TERM. A license is valid for one year. SUBCHAPTER D. ENFORCEMENT Sec. 112.151. REVOCATION. The department shall revoke a license if the department finds that the license holder is growing or cultivating marihuana. Sec. 112.152. GROWTH OR CULTIVATION WITHOUT LICENSE. The exception provided by Section 481.002(26)(F), Health and Safety Code, does not apply to a person who grows or cultivates industrial hemp without holding a license. 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) except as provided by Section 112.152, Agriculture Code, industrial hemp, as that term is defined by Section 112.001, Agriculture Code. SECTION 5. Not later than January 1, 2016, 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, 2015.