Texas 2019 - 86th Regular

Texas Senate Bill SB116 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R2945 TSR-F
2	2	By: Menéndez S.B. No. 116
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to industrial hemp; requiring an occupational license;
8	8	authorizing fees.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 61.001(1), Agriculture Code, is amended
11	11	to read as follows:
12	12	(1) "Agricultural seed" includes the seed of any
13	13	grass, forage, cereal, or fiber crop, any other kind of seed
14	14	commonly recognized in this state as agricultural or field seed,
15	15	and any mixture of those seeds. The term includes the seed of
16	16	industrial hemp, as that term is defined by Section 112.001.
17	17	SECTION 2. The heading to Subtitle E, Title 5, Agriculture
18	18	Code, is amended to read as follows:
19	19	SUBTITLE E. PRODUCTION, PROCESSING, AND SALE OF FIBER PRODUCTS
20	20	SECTION 3. Subtitle E, Title 5, Agriculture Code, is
21	21	amended by adding Chapter 112 to read as follows:
22	22	CHAPTER 112. PRODUCTION OF INDUSTRIAL HEMP
23	23	SUBCHAPTER A. GENERAL PROVISIONS
24	24	Sec. 112.001. DEFINITIONS. In this chapter:
25	25	(1) "Collective yield" means a hammer milled,
26	26	pulverized, or ground sample of a whole plant, including roots,
27	27	stalks, leaves, flowers, and seeds.
28	28	(2) "Compliant use" means the use or recommended use
29	29	of a hemp-derived product with a delta-9 tetrahydrocannabinol
30	30	concentration of not more than 0.3 percent for any purpose,
31	31	including food for human consumption, human application, feed for
32	32	animal consumption, animal application, fiber production, or
33	33	product manufacturing.
34	34	(3) "Hemp-derived product" includes:
35	35	(A) a plant segment; and
36	36	(B) an end product derived from an industrial
37	37	hemp plant or a plant segment, including extract, oil, grain, cake,
38	38	meal, flower, resin, fiber, or hurd.
39	39	(4) "Industrial hemp" means a plant or any part of a
40	40	plant, whether growing or not, of the species Cannabis sativa L.
41	41	with a delta-9 tetrahydrocannabinol concentration of not more than
42	42	0.3 percent on a dry weight basis.
43	43	(5) "Institution of higher education" has the meaning
44	44	assigned by 20 U.S.C. Section 1001.
45	45	(6) "License" means an industrial hemp producer's
46	46	license issued under this chapter.
47	47	(7) "License holder" means a person who holds a
48	48	license.
49	49	(8) "Plant segment" means an individual segment of a
50	50	plant, including the roots, stalks, leaves, flowers, or seeds of a
51	51	plant.
52	52	(9) "THC compliance threshold" means a delta-9
53	53	tetrahydrocannabinol concentration of not more than 0.3 percent:
54	54	(A) on a dry weight basis for industrial hemp; or
55	55	(B) in a hemp-derived product.
56	56	Sec. 112.002. COMPLIANCE WITH FEDERAL LAW. Notwithstanding
57	57	any other provision of this chapter, a person may grow or cultivate
58	58	industrial hemp under this chapter only to the extent allowed by
59	59	federal law.
60	60	Sec. 112.003. INDUSTRIAL HEMP RESEARCH. (a) The
61	61	department, in cooperation with selected institutions of higher
62	62	education with expertise in agricultural research, shall promote
63	63	the research and development of industrial hemp and commercial
64	64	markets for industrial hemp and hemp-derived products.
65	65	(b) The department shall research industrial hemp
66	66	production through the establishment and oversight of an industrial
67	67	hemp research program lasting at least five years. The department
68	68	shall select an institution of higher education to manage the
69	69	research program. The research program must consist primarily of
70	70	demonstration plots planted and cultivated in this state by
71	71	selected license holders.
72	72	(c) The department shall obtain any federal permit or waiver
73	73	necessary to conduct the industrial hemp research program from the
74	74	United States Drug Enforcement Administration or the appropriate
75	75	federal agency.
76	76	(d) As part of the industrial hemp research program, the
77	77	department shall, through the institution of higher education
78	78	selected under Subsection (b) and other research partners:
79	79	(1) oversee and analyze the growth of industrial hemp
80	80	by license holders for agronomy research, including analysis of
81	81	required soils, growing conditions, and harvest methods for
82	82	industrial hemp varieties that may be suitable for the production
83	83	of commercial hemp products;
84	84	(2) conduct seed research on various types of
85	85	industrial hemp that are best suited to be grown in this state,
86	86	including seed availability, creation of Texas hybrid types,
87	87	in-the-ground variety trials and seed production, and the
88	88	feasibility of a program to recognize certain industrial hemp seed
89	89	as being Texas heritage hemp seed;
90	90	(3) study the economic feasibility of developing an
91	91	industrial hemp market for various types of industrial hemp that
92	92	can be grown in this state;
93	93	(4) report on the estimated value-added benefits,
94	94	including environmental benefits, to businesses in this state of
95	95	creating a market for industrial hemp produced in this state;
96	96	(5) study the agronomy research being conducted
97	97	worldwide relating to industrial hemp varieties, production, and
98	98	utilization;
99	99	(6) research and promote industrial hemp and hemp seed
100	100	on the world market that can be produced in this state; and
101	101	(7) study the feasibility of attracting federal and
102	102	private funding for the research program under this section.
103	103	(e) In addition to the research and analysis under
104	104	Subsection (d), the department shall:
105	105	(1) coordinate with an institution of higher education
106	106	to study the use of industrial hemp in new energy technologies,
107	107	including:
108	108	(A) an evaluation of the use of industrial hemp
109	109	to generate electricity and to produce biofuels and other forms of
110	110	energy resources;
111	111	(B) the growth of industrial hemp on reclaimed
112	112	oil and gas lands, mine sites, and wind farms;
113	113	(C) the use of hemp seed oil in the production of
114	114	fuels; and
115	115	(D) an assessment of the production costs,
116	116	environmental issues, and costs and benefits involved with the use
117	117	of industrial hemp for energy; and
118	118	(2) promote awareness of the financial incentives that
119	119	may be available to agribusiness and manufacturing companies that
120	120	manufacture industrial hemp into hemp-derived products in order to
121	121	diversify the agricultural economy of this state, attract new
122	122	businesses to this state, create new job opportunities for
123	123	residents of this state, and create a commercial market for
124	124	industrial hemp.
125	125	(f) The department may solicit and accept gifts, grants, and
126	126	donations from public and private sources to implement the research
127	127	program under this section.
128	128	(g) Not later than December 31 of each year, the department
129	129	shall report on the status and progress of the research program
130	130	under this section to the governor and the legislature.
131	131	Sec. 112.004. LEGISLATIVE INTENT REGARDING COMPLIANCE
132	132	RESPONSIBILITIES. It is the intent of the legislature that:
133	133	(1) license holders be responsible for growing and
134	134	cultivating department-approved certified industrial hemp seed,
135	135	cultivars, and clones that meet the THC compliance threshold and
136	136	are in compliance with other applicable laws;
137	137	(2) manufacturers of hemp-derived products for human
138	138	consumption be responsible for meeting the THC compliance threshold
139	139	and complying with applicable food manufacturing laws;
140	140	(3) manufacturers of hemp-derived products not for
141	141	human consumption be responsible for meeting the THC compliance
142	142	threshold and complying with other applicable laws; and
143	143	(4) wholesalers, retailers, and consumers of
144	144	hemp-derived products not be responsible for unknowingly buying or
145	145	selling products that do not meet the THC compliance threshold,
146	146	unless the person intentionally or knowingly adulterates the
147	147	product.
148	148	SUBCHAPTER B. POWERS AND DUTIES OF DEPARTMENT
149	149	Sec. 112.051. RULES. (a) The department shall adopt rules
150	150	to regulate industrial hemp production in this state, including:
151	151	(1) license application and renewal procedures;
152	152	(2) requirements for license applicants and license
153	153	holders to provide global positioning system coordinates for each
154	154	location where the person grows or cultivates, or intends to grow or
155	155	cultivate, industrial hemp;
156	156	(3) plant inspection requirements;
157	157	(4) procedures to notify law enforcement officials of
158	158	the licensed growth or cultivation of industrial hemp;
159	159	(5) requirements for license holders to post notice of
160	160	industrial hemp cultivation; and
161	161	(6) provisions governing acquisition of certified
162	162	seed, cultivars, and clones by license holders and institutions of
163	163	higher education.
164	164	(b) Rules adopted under this chapter must be comparable to
165	165	similar rules governing the production of other crops.
166	166	Sec. 112.052. FEES. (a) The department shall prescribe
167	167	reasonable license application and renewal fees, inspection fees,
168	168	and plant sample testing fees in amounts comparable to fees
169	169	associated with the production of other crops.
170	170	(b) Fees collected under this chapter may be appropriated
171	171	only to the department for the purpose of administering this
172	172	chapter.
173	173	Sec. 112.053. INSPECTIONS. (a) The department may inspect
174	174	plants grown or cultivated by a license holder to determine whether
175	175	the plants meet the THC compliance threshold and are being grown or
176	176	cultivated in compliance with department rules.
177	177	(b) Inspections and testing under this chapter shall be
178	178	conducted according to best practices established by the department
179	179	and institutions of higher education.
180	180	SUBCHAPTER C. INDUSTRIAL HEMP PRODUCER'S LICENSE
181	181	Sec. 112.101. LICENSE REQUIRED. A person may not grow or
182	182	cultivate industrial hemp in this state unless the person is a
183	183	license holder.
184	184	Sec. 112.102. ISSUANCE OF LICENSE. (a) An applicant for a
185	185	license must apply to the department and pay the required
186	186	application fee.
187	187	(b) The application must:
188	188	(1) be notarized to affirm the applicant's identity;
189	189	(2) include the global positioning system coordinates
190	190	of each location where the applicant will grow or cultivate
191	191	industrial hemp; and
192	192	(3) include the contact information, including an
193	193	electronic mail address if available, of the sheriff for each
194	194	county where the applicant will grow or cultivate industrial hemp.
195	195	(c) The department shall issue a license to a qualified
196	196	applicant not later than the 60th day after the date the department
197	197	receives the completed application and the required fee.
198	198	(d) The department shall send a copy of each license issued
199	199	under this chapter to the sheriff for each county where the license
200	200	holder will grow or cultivate industrial hemp, including the global
201	201	positioning system coordinates of each location where the license
202	202	holder will grow or cultivate industrial hemp.
203	203	Sec. 112.103. LICENSE TERM. A license is valid for one year
204	204	and may be renewed as provided by department rule.
205	205	Sec. 112.104. REVOCATION. The department shall revoke a
206	206	license if the department finds that the license holder violated
207	207	this chapter or a rule adopted under this chapter, or is
208	208	intentionally or knowingly growing plants with the intent to
209	209	produce marihuana.
210	210	SUBCHAPTER D. INDUSTRIAL HEMP SEED, CULTIVARS, AND CLONES
211	211	Sec. 112.151. SEED, CULTIVAR, AND CLONE CERTIFICATION. (a)
212	212	The department or the State Seed and Plant Board may certify under
213	213	Chapter 61 or 62 industrial hemp seed and industrial hemp plants,
214	214	cultivars, and clones.
215	215	(b) The department or the State Seed and Plant Board may
216	216	adopt rules necessary to implement this section.
217	217	Sec. 112.152. ACQUISITION OF SEEDS AND PLANTS. (a) A
218	218	license holder, the department, or an institution of higher
219	219	education may transport and use industrial hemp plants, cultivars,
220	220	and clones from states that allow the cultivation of industrial
221	221	hemp in compliance with federal law.
222	222	(b) The department shall acquire any necessary permits from
223	223	the United States Drug Enforcement Administration to acquire
224	224	industrial hemp seed from domestic and foreign sources.
225	225	Sec. 112.153. INDUSTRIAL HEMP EXCEEDING THC COMPLIANCE
226	226	THRESHOLD. (a) The department shall suspend the certification of
227	227	certified industrial hemp seed, cultivars, or clones if the
228	228	collective yield and average samplings from seed, cultivar, or
229	229	clone inspections exceed the THC compliance threshold.
230	230	(b) Seed, cultivars, or clones for which the collective
231	231	yield and average samplings exceed the THC compliance threshold
232	232	shall be destroyed at the license holder's expense according to
233	233	department rules.
234	234	SUBCHAPTER E. EXCEPTIONS FROM MARIHUANA LAWS FOR INDUSTRIAL HEMP
235	235	Sec. 112.201. APPLICABILITY OF OTHER LAW. (a) The term
236	236	"marihuana," as defined by Section 481.002, Health and Safety Code,
237	237	does not include:
238	238	(1) industrial hemp grown or cultivated by the
239	239	department, an institution of higher education, or a license
240	240	holder; or
241	241	(2) a hemp-derived product that meets the THC
242	242	compliance threshold.
243	243	(b) Except as provided by Subsection (c), a person does not
244	244	violate Section 481.120, 481.121, 481.122, or 481.125, Health and
245	245	Safety Code, if the person:
246	246	(1) manufactures, delivers, or possesses a
247	247	hemp-derived product for a compliant use;
248	248	(2) manufactures, delivers, or possesses equipment
249	249	used for the manufacture or processing of a hemp-derived product
250	250	for a compliant use;
251	251	(3) grows industrial hemp, without intent, as the
252	252	result of the natural spread of seeds onto property owned or
253	253	controlled by the person; or
254	254	(4) is the department, an institution of higher
255	255	education, or a license holder and:
256	256	(A) grows, cultivates, manufactures, delivers,
257	257	or possesses industrial hemp;
258	258	(B) manufactures, delivers, or possesses
259	259	equipment used for the cultivation or processing of industrial
260	260	hemp; or
261	261	(C) without intent, grows or cultivates a plant
262	262	from a department-approved certified seed, cultivar, or clone that
263	263	on inspection is found to exceed the THC compliance threshold if the
264	264	person destroys the plant in accordance with department rules as
265	265	soon as practicable after learning the plant exceeds the THC
266	266	compliance threshold.
267	267	(c) Subsection (b) does not apply to a person who
268	268	intentionally or knowingly grows a plant or produces a product with
269	269	the intent to produce marihuana.
270	270	SECTION 4. Section 481.002(26), Health and Safety Code, is
271	271	amended to read as follows:
272	272	(26) "Marihuana" means the plant Cannabis sativa L.,
273	273	whether growing or not, the seeds of that plant, and every compound,
274	274	manufacture, salt, derivative, mixture, or preparation of that
275	275	plant or its seeds. The term does not include:
276	276	(A) the resin extracted from a part of the plant
277	277	or a compound, manufacture, salt, derivative, mixture, or
278	278	preparation of the resin;
279	279	(B) the mature stalks of the plant or fiber
280	280	produced from the stalks;
281	281	(C) oil or cake made from the seeds of the plant;
282	282	(D) a compound, manufacture, salt, derivative,
283	283	mixture, or preparation of the mature stalks, fiber, oil, or cake;
284	284	[or]
285	285	(E) the sterilized seeds of the plant that are
286	286	incapable of beginning germination; or
287	287	(F) an item described by Section 112.201(a),
288	288	Agriculture Code.
289	289	SECTION 5. Not later than January 1, 2020, the Department of
290	290	Agriculture shall adopt rules necessary to implement Chapter 112,
291	291	Agriculture Code, as added by this Act.
292	292	SECTION 6. This Act takes effect September 1, 2019.