TX
Texas House Bill HB3587

Texas 2017 - 85th Regular

Texas House Bill HB3587 Compare Versions

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1-85R24437 BEF-F
2- By: Zedler, Lozano, Sheffield, et al. H.B. No. 3587
3- Substitute the following for H.B. No. 3587:
4- By: González of El Paso C.S.H.B. No. 3587
1+85R13094 BEF-F
2+ By: Zedler H.B. No. 3587
53
64
75 A BILL TO BE ENTITLED
86 AN ACT
97 relating to industrial hemp; requiring an occupational license;
108 authorizing fees.
119 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1210 SECTION 1. Section 61.001(1), Agriculture Code, is amended
1311 to read as follows:
1412 (1) "Agricultural seed" includes the seed of any
1513 grass, forage, cereal, or fiber crop, any other kind of seed
1614 commonly recognized in this state as agricultural or field seed,
1715 and any mixture of those seeds. The term includes the seed of
1816 industrial hemp, as that term is defined by Section 112.001.
1917 SECTION 2. The heading to Subtitle E, Title 5, Agriculture
2018 Code, is amended to read as follows:
2119 SUBTITLE E. PRODUCTION, PROCESSING, AND SALE OF FIBER PRODUCTS
2220 SECTION 3. Subtitle E, Title 5, Agriculture Code, is
2321 amended by adding Chapter 112 to read as follows:
2422 CHAPTER 112. PRODUCTION OF INDUSTRIAL HEMP
2523 SUBCHAPTER A. GENERAL PROVISIONS
2624 Sec. 112.001. DEFINITIONS. In this chapter:
2725 (1) "Collective yield" means a hammer milled,
2826 pulverized, or ground sample of a whole plant, including roots,
2927 stalks, leaves, flowers, and seeds.
3028 (2) "Compliant use" means the use or recommended use
3129 of a hemp-derived product with a delta-9 tetrahydrocannabinol
3230 concentration of not more than 0.3 percent for any purpose,
3331 including food for human consumption, human application, feed for
3432 animal consumption, animal application, fiber production, or
3533 product manufacturing.
3634 (3) "Hemp-derived product" includes:
3735 (A) a plant segment; and
3836 (B) an end product derived from an industrial
3937 hemp plant or a plant segment, including extract, oil, grain, cake,
4038 meal, flower, resin, fiber, or hurd.
4139 (4) "Industrial hemp" means a plant or any part of a
4240 plant, whether growing or not, of the species Cannabis sativa L.
4341 with a delta-9 tetrahydrocannabinol concentration of not more than
4442 0.3 percent on a dry weight basis.
4543 (5) "Institution of higher education" has the meaning
4644 assigned by 20 U.S.C. Section 1001.
4745 (6) "License" means an industrial hemp producer's
4846 license issued under this chapter.
4947 (7) "License holder" means a person who holds a
5048 license.
5149 (8) "Plant segment" means an individual segment of a
5250 plant, including the roots, stalks, leaves, flowers, or seeds of a
5351 plant.
5452 (9) "THC compliance threshold" means a delta-9
5553 tetrahydrocannabinol concentration of not more than 0.3 percent:
5654 (A) on a dry weight basis for industrial hemp; or
5755 (B) in a hemp-derived product.
58- Sec. 112.0015. COMPLIANCE WITH FEDERAL LAW.
59- Notwithstanding any other provision of this chapter, a person may
60- grow or cultivate industrial hemp under this chapter only to the
61- extent allowed by federal law.
62- Sec. 112.002. INDUSTRIAL HEMP RESEARCH. (a) The
63- department, in cooperation with selected institutions of higher
64- education with expertise in agricultural research, shall promote
65- the research and development of industrial hemp and commercial
66- markets for industrial hemp and hemp-derived products.
67- (b) The department shall research industrial hemp
68- production through the establishment and oversight of an industrial
69- hemp research program lasting at least five years. The department
70- shall select an institution of higher education to manage the
71- research program. The research program must consist primarily of
72- demonstration plots planted and cultivated in this state by
73- selected license holders.
74- (c) The department shall obtain any federal permit or waiver
75- necessary to conduct the industrial hemp research program from the
76- United States Drug Enforcement Agency or the appropriate federal
77- agency.
78- (d) As part of the industrial hemp research program, the
79- department shall, through the institution of higher education
80- selected under Subsection (b) and other research partners:
81- (1) oversee and analyze the growth of industrial hemp
82- by license holders for agronomy research, including analysis of
83- required soils, growing conditions, and harvest methods for
84- industrial hemp varieties that may be suitable for the production
85- of commercial hemp products;
86- (2) conduct seed research on various types of
87- industrial hemp that are best suited to be grown in this state,
88- including seed availability, creation of Texas hybrid types,
89- in-the-ground variety trials and seed production, and the
90- feasibility of a program to recognize certain industrial hemp seed
91- as being Texas heritage hemp seed;
92- (3) study the economic feasibility of developing an
93- industrial hemp market for various types of industrial hemp that
94- can be grown in this state;
95- (4) report on the estimated value-added benefits,
96- including environmental benefits, to businesses in this state of
97- creating a market for industrial hemp produced in this state;
98- (5) study the agronomy research being conducted
99- worldwide relating to industrial hemp varieties, production, and
100- utilization;
101- (6) research and promote industrial hemp and hemp seed
102- on the world market that can be produced in this state; and
103- (7) study the feasibility of attracting federal and
104- private funding for the research program under this section.
105- (e) In addition to the research and analysis under
106- Subsection (d), the department shall:
107- (1) coordinate with an institution of higher education
108- to study the use of industrial hemp in new energy technologies,
109- including:
110- (A) an evaluation of the use of industrial hemp
111- to generate electricity and to produce biofuels and other forms of
112- energy resources;
113- (B) the growth of industrial hemp on reclaimed
114- oil and gas lands, mine sites, and wind farms;
115- (C) the use of hemp seed oil in the production of
116- fuels; and
117- (D) an assessment of the production costs,
118- environmental issues, and costs and benefits involved with the use
119- of industrial hemp for energy; and
120- (2) promote awareness of the financial incentives that
121- may be available to agribusiness and manufacturing companies that
122- manufacture industrial hemp into hemp-derived products in order to
123- diversify the agricultural economy of this state, attract new
124- businesses to this state, create new job opportunities for
125- residents of this state, and create a commercial market for
126- industrial hemp.
127- (f) The department may solicit and accept gifts, grants, and
128- donations from public and private sources to implement the research
129- program under this section.
130- (g) Not later than December 31 of each year, the department
131- shall report on the status and progress of the research program
132- under this section to the governor and the legislature.
56+ Sec. 112.002. INDUSTRIAL HEMP RESEARCH. The department or
57+ an institution of higher education may research the cultivation of
58+ industrial hemp using certified or noncertified seed, cultivars,
59+ and clones.
13360 Sec. 112.003. LEGISLATIVE INTENT REGARDING COMPLIANCE
13461 RESPONSIBILITIES. It is the intent of the legislature that:
13562 (1) license holders be responsible for growing and
13663 cultivating department-approved, certified industrial hemp seed,
13764 cultivars, and clones that meet the THC compliance threshold and
13865 are in compliance with other applicable laws;
13966 (2) manufacturers of hemp-derived products for human
14067 consumption be responsible for meeting the THC compliance threshold
14168 and complying with applicable food manufacturing laws;
14269 (3) manufacturers of hemp-derived products not for
14370 human consumption be responsible for meeting the THC compliance
14471 threshold and complying with other applicable laws; and
14572 (4) wholesalers, retailers, and consumers of
14673 hemp-derived products not be responsible for unknowingly buying or
14774 selling products that do not meet the THC compliance threshold,
14875 unless the person intentionally or knowingly adulterates the
14976 product.
15077 SUBCHAPTER B. POWERS AND DUTIES OF DEPARTMENT
15178 Sec. 112.051. RULES. (a) The department shall adopt rules
15279 to regulate industrial hemp production in this state, including:
15380 (1) license application and renewal procedures;
15481 (2) requirements for license applicants and license
15582 holders to provide global positioning system coordinates for each
15683 location where the person grows or cultivates, or intends to grow or
15784 cultivate, industrial hemp;
15885 (3) plant inspection requirements;
15986 (4) procedures to notify law enforcement officials of
16087 the licensed growth or cultivation of industrial hemp;
16188 (5) requirements for license holders to post notice of
16289 industrial hemp cultivation; and
16390 (6) provisions governing acquisition of certified
16491 seed, cultivars, and clones by license holders and institutions of
16592 higher education.
16693 (b) Rules adopted under this chapter must be comparable to
16794 similar rules governing the production of other crops.
16895 Sec. 112.052. FEES. (a) The department shall prescribe
16996 reasonable license application and renewal fees, inspection fees,
17097 and plant sample testing fees in amounts comparable to fees
17198 associated with the production of other crops.
17299 (b) Fees collected under this chapter may be appropriated
173100 only to the department for the purpose of administering this
174101 chapter.
175102 Sec. 112.053. INSPECTIONS. (a) The department may inspect
176103 plants grown or cultivated by a license holder to determine whether
177104 the plants meet the THC compliance threshold and are being grown or
178105 cultivated in compliance with department rules.
179106 (b) Inspections and testing under this chapter shall be
180107 conducted according to best practices established by the department
181108 and institutions of higher education.
182109 SUBCHAPTER C. INDUSTRIAL HEMP PRODUCER'S LICENSE
183110 Sec. 112.101. LICENSE REQUIRED. A person may not grow or
184111 cultivate industrial hemp in this state unless the person is a
185112 license holder.
186113 Sec. 112.102. ISSUANCE OF LICENSE. (a) An applicant for a
187114 license must apply to the department and pay the required
188115 application fee.
189116 (b) The application must:
190117 (1) be notarized to affirm the applicant's identity;
191118 (2) include the global positioning system coordinates
192119 of each location where the applicant will grow or cultivate
193120 industrial hemp; and
194121 (3) include the contact information, including an
195122 electronic mail address if available, of the sheriff for each
196123 county where the applicant will grow or cultivate industrial hemp.
197124 (c) The department shall issue a license to a qualified
198125 applicant not later than the 60th day after the date the department
199126 receives the completed application and the required fee.
200127 (d) The department shall send a copy of each license issued
201128 under this chapter to the sheriff for each county where the license
202129 holder will grow or cultivate industrial hemp, including the global
203130 positioning system coordinates of each location where the license
204131 holder will grow or cultivate industrial hemp.
205132 Sec. 112.103. LICENSE TERM. A license is valid for one year
206133 and may be renewed as provided by department rule.
207134 Sec. 112.104. REVOCATION. The department shall revoke a
208135 license if the department finds that the license holder violated
209- this chapter or a rule adopted under this chapter, or is
136+ this chapter, a rule adopted under this chapter, or is
210137 intentionally or knowingly growing plants with the intent to
211138 produce marihuana.
212139 SUBCHAPTER D. INDUSTRIAL HEMP SEED, CULTIVARS, AND CLONES
213140 Sec. 112.151. SEED, CULTIVAR, AND CLONE CERTIFICATION. (a)
214141 The department or the State Seed and Plant Board may certify under
215142 Chapter 61 or 62 industrial hemp seed and industrial hemp plants,
216143 cultivars, and clones.
217144 (b) The department or the State Seed and Plant Board may
218145 adopt rules necessary to implement this section.
219146 Sec. 112.152. ACQUISITION OF SEEDS AND PLANTS. (a) A
220147 license holder, the department, or an institution of higher
221148 education may transport and use industrial hemp plants, industrial
222149 hemp plant clones, and other industrial hemp cultivars from states
223150 that allow the cultivation of industrial hemp in compliance with
224151 federal law.
225152 (b) The department shall acquire any necessary permits from
226153 the United States Drug Enforcement Administration to acquire
227154 industrial hemp seed from domestic and foreign sources.
228155 Sec. 112.153. INDUSTRIAL HEMP EXCEEDING THC COMPLIANCE
229156 THRESHOLD. (a) The department shall suspend the certification of
230157 certified industrial hemp seed, cultivars, or clones if the
231158 collective yield and average samplings from seed, cultivar, or
232159 clone inspections exceed the THC compliance threshold.
233160 (b) Seed, cultivars, or clones for which the collective
234161 yield and average samplings exceed the THC compliance threshold
235162 shall be destroyed at the license holder's expense according to
236163 department rules.
237164 SUBCHAPTER E. EXCEPTIONS FROM MARIHUANA LAWS FOR INDUSTRIAL HEMP
238165 Sec. 112.201. APPLICABILITY OF OTHER LAW. (a) The term
239166 "marihuana," as defined by Section 481.002, Health and Safety Code,
240167 does not include:
241168 (1) industrial hemp grown or cultivated by the
242169 department, an institution of higher education, or a license
243170 holder; or
244171 (2) a hemp-derived product that meets the THC
245172 compliance threshold.
246173 (b) Except as provided by Subsection (c), a person does not
247174 violate Section 481.120, 481.121, 481.122, or 481.125, Health and
248175 Safety Code, if the person:
249176 (1) manufactures, delivers, or possesses a
250177 hemp-derived product for a compliant use;
251178 (2) manufactures, delivers, or possesses equipment
252179 used for the manufacture or processing of a hemp-derived product
253180 for a compliant use;
254181 (3) grows industrial hemp, without intent, as the
255182 result of the natural spread of seeds onto property owned or
256183 controlled by the person; or
257184 (4) is the department, an institution of higher
258185 education, or a license holder and:
259186 (A) grows, cultivates, manufactures, delivers,
260187 or possesses industrial hemp;
261188 (B) manufactures, delivers, or possesses
262189 equipment used for the cultivation or processing of industrial
263190 hemp; or
264191 (C) without intent, grows or cultivates a plant
265192 from a department-approved, certified seed, cultivar, or clone that
266193 on inspection is found to exceed the THC compliance threshold if the
267194 person destroys the plant in accordance with department rules as
268195 soon as practicable after learning the plant exceeds the THC
269196 compliance threshold.
270197 (c) Subsection (b) does not apply to a person who
271198 intentionally or knowingly grows a plant or produces a product with
272199 the intent to produce marihuana.
273200 SECTION 4. Section 481.002(26), Health and Safety Code, is
274201 amended to read as follows:
275202 (26) "Marihuana" means the plant Cannabis sativa L.,
276203 whether growing or not, the seeds of that plant, and every compound,
277204 manufacture, salt, derivative, mixture, or preparation of that
278205 plant or its seeds. The term does not include:
279206 (A) the resin extracted from a part of the plant
280207 or a compound, manufacture, salt, derivative, mixture, or
281208 preparation of the resin;
282209 (B) the mature stalks of the plant or fiber
283210 produced from the stalks;
284211 (C) oil or cake made from the seeds of the plant;
285212 (D) a compound, manufacture, salt, derivative,
286213 mixture, or preparation of the mature stalks, fiber, oil, or cake;
287214 [or]
288215 (E) the sterilized seeds of the plant that are
289216 incapable of beginning germination; or
290217 (F) an item described by Section 112.201(a),
291218 Agriculture Code.
292219 SECTION 5. Not later than January 1, 2018, the Department of
293220 Agriculture shall adopt rules necessary to implement Chapter 112,
294221 Agriculture Code, as added by this Act.
295222 SECTION 6. This Act takes effect September 1, 2017.