By: King of Uvalde, Guillen, H.B. No. 3948
Morales of Maverick, Israel, et al.
A BILL TO BE ENTITLED
AN ACT
relating to the production and regulation of hemp and consumable
hemp products; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 121.003, Agriculture Code, is amended by
adding Subsection (e) to read as follows:
(e) Not later than the 90th day after the date a change to a
state statute, federal statute, or federal regulation takes effect,
the department shall submit to the secretary of the United States
Department of Agriculture any amendments to the state plan
necessary to incorporate and implement the change.
SECTION 2. Subchapter A, Chapter 122, Agriculture Code, is
amended by adding Section 122.005 to read as follows:
Sec. 122.005. HEMP RESEARCH BY INSTITUTIONS OF HIGHER
EDUCATION. (a) The department shall issue a license to an
institution of higher education in this state that requests the
license.
(b) Notwithstanding any provision of this chapter or
department rule other than Subsection (c), an institution of higher
education conducting research involving hemp:
(1) is not required to pay a fee collected by the
department under this chapter;
(2) is not required to obtain from the department a lot
crop permit or other permit for each location where hemp is grown;
(3) is not required to obtain preharvest testing under
Section 122.153 before harvesting plants, except as provided by
Subsection (c);
(4) may use hemp seed and cultivate and handle plants
grown from seed that is not certified or approved under Section
122.252; and
(5) is not subject to Section 122.403(c) or (d).
(c) An institution of higher education may not sell or
transfer hemp to another person unless the institution complies
with the requirements of Sections 122.153 and 122.356.
SECTION 3. Section 122.051, Agriculture Code, is amended by
adding Subsection (c) to read as follows:
(c) Not later than the 90th day after the date a change to
this chapter, a federal statute, or a federal regulation takes
effect, the department shall propose any rules necessary to
incorporate and implement the change.
SECTION 4. Section 122.151, Agriculture Code, is amended by
adding Subsection (g) to read as follows:
(g) A laboratory that performs testing required by this
chapter shall report the delta-9 tetrahydrocannabinol
concentration, the total tetrahydrocannabinol concentration, and
the concentration of any other federally regulated cannabinoid of
the sample on a dry weight basis and the measurement of uncertainty
in the test result. The measurement of uncertainty must comply with
International Organization for Standardization ISO/IEC 17025 or a
comparable or successor standard. For purposes of this chapter,
the delta-9 tetrahydrocannabinol concentration of the sample is the
lowest possible value given that measurement of uncertainty.
SECTION 5. Section 122.201(a), Agriculture Code, is amended
to read as follows:
(a) A license holder shall harvest the plants from a plot
not later than the 30th [20th] day after the date a preharvest
sample is collected under Section 122.154 unless field conditions
delay harvesting or the department authorizes the license holder to
delay harvesting. This subsection does not prohibit the license
holder from harvesting the plants immediately after the preharvest
sample is collected.
SECTION 6. Subchapter E, Chapter 122, Agriculture Code, is
amended by adding Section 122.203 to read as follows:
Sec. 122.203. HARVEST WHILE LICENSE SUSPENDED OR REVOKED.
(a) A person whose license is suspended or revoked after planting
hemp plants may obtain preharvest or postharvest testing under
Subchapter D and may harvest the plants under Section 122.201 in the
same manner as a license holder.
(b) While a person's license is suspended or revoked, the
department may:
(1) prohibit the person from selling or using plants
harvested under Subsection (a); or
(2) if the delta-9 tetrahydrocannabinol concentration
of the plants is not more than 0.3 percent on a dry weight basis,
allow the person to sell or use plants harvested under Subsection
(a) in the same manner as a license holder under Section 122.202.
(c) A person whose license is reinstated may sell or use
plants harvested under Subsection (a) as provided by Section
122.202.
SECTION 7. The heading to Subchapter F, Chapter 122,
Agriculture Code, is amended to read as follows:
SUBCHAPTER F. HEMP SEED AND PLANTS
SECTION 8. Section 122.252, Agriculture Code, is amended to
read as follows:
Sec. 122.252. CERTIFICATION OR APPROVAL OF SEED AND PLANT
VARIETIES. (a) The department or an entity authorized to certify
seed and plants under Chapter 62 shall identify and certify or
approve varieties of seed and plants confirmed to produce hemp.
(b) The department or entity may not certify or approve a
variety of hemp seed or plant if the variety [seed] is tested and
confirmed to produce a plant that has delta-9 tetrahydrocannabinol
concentration of more than 0.3 percent on a dry weight basis. For
purposes of this subsection, the department may partner with a
private entity or an institution of higher education to test seed
and plant varieties for the purpose of certification or approval
under this section.
(c) The department may authorize the importation of hemp
seed and plant varieties certified in accordance with the law of
another state or jurisdiction that requires as a condition of
certification that hemp be produced in compliance with:
(1) that state or jurisdiction's plan approved by the
United States Department of Agriculture under 7 U.S.C. Section
1639p; or
(2) a plan established under 7 U.S.C. Section 1639q if
that plan applies in the state or jurisdiction.
(d) The department shall maintain and make available to
license holders a list of hemp seed and plant varieties [seeds]
certified or approved under this section.
SECTION 9. Subchapter F, Chapter 122, Agriculture Code, is
amended by adding Section 122.254 to read as follows:
Sec. 122.254. SEEDLINGS AND OTHER IMMATURE PLANTS. (a) In
this section, "immature plant" means a hemp seedling, clone, or
cutting that requires substantial cultivation and further growth
before the beginning of the period under Section 122.201(a) when
the plant may be harvested.
(b) A person may transport into this state, and a license
holder may obtain and cultivate, immature plants propagated outside
this state if the plants are accompanied by shipping documentation
that:
(1) complies with any requirements of the state of
origin;
(2) indicates the grower of the immature plants is
licensed by the state of origin;
(3) lists the recipient license holder in this state
and the recipient's license number; and
(4) shows that the variety of the immature plants is
certified or approved under Section 122.252.
(c) A license holder may obtain and cultivate immature
plants propagated in this state by another license holder if the
plants are accompanied by the shipping certificate or cargo
manifest required by Section 122.055 that shows that the variety of
the immature plants is certified or approved under Section 122.252.
The immature plants are not subject to preharvest testing under
Section 122.153.
(d) A license holder may transplant immature plants
propagated by the license holder from one plot to another plot
controlled by the license holder. The department by rule shall
waive the requirement that a license holder obtain a lot crop permit
for and may not require a license holder to pay any fee for a
greenhouse or other location used to propagate immature plants if
the plants are transplanted to another plot controlled by the
license holder and are not sold or transferred to another person.
The department by rule may waive the requirement that a person
obtain a shipping certificate or cargo manifest to transplant
immature plants from one plot to another plot operated by the
license holder.
SECTION 10. Section 122.301, Agriculture Code, is amended
by adding Subsection (c) to read as follows:
(c) Notwithstanding Subsection (b), a person may
manufacture products described by that subsection in this state if:
(1) the products are sold only to persons located
outside this state; and
(2) the person was manufacturing or processing
consumable hemp products, as those terms are defined by Section
443.001, Health and Safety Code, in this state on May 22, 2019.
SECTION 11. Subchapter A, Chapter 443, Health and Safety
Code, is amended by adding Section 443.005 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.
SECTION 12. 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 [a legal description] of each
location where the applicant intends to process hemp or manufacture
consumable hemp products [and the global positioning system
coordinates for the perimeter of each location];
(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 13. Subchapter C, Chapter 443, Health and Safety
Code, is amended by adding Section 443.106 to read as follows:
Sec. 443.106. CHANGE OF OWNERSHIP. The department may
modify a license held by an establishment in the event of a change
in ownership of the establishment if:
(1) the current owner and the new owner apply to the
department for the modification;
(2) the new owner is not ineligible to hold the license
under Section 443.102; and
(3) one party to the transaction submits any license
modification fee to the department.
SECTION 14. 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 15. 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 16. Section 443.204, Health and Safety Code, is
amended to read as follows:
Sec. 443.204. RULES RELATED TO SALE OF CONSUMABLE HEMP
PRODUCTS. (a) Rules adopted by the executive commissioner
regulating the sale of consumable hemp products must to the extent
allowable by federal law reflect the following principles:
(1) hemp-derived cannabinoids, including cannabidiol,
are not considered controlled substances or adulterants;
(2) products containing one or more hemp-derived
cannabinoids, such as cannabidiol, intended for ingestion are
considered foods, not controlled substances or adulterated
products;
(3) consumable hemp products must be packaged and
labeled in the manner provided by Section 443.205; and
(4) the processing or manufacturing of a consumable
hemp product for smoking is prohibited.
(b) Notwithstanding Subsection (a)(4), a person may
manufacture products described by that subsection in this state if:
(1) the products are sold only to persons located
outside this state; and
(2) the person was manufacturing or processing
consumable hemp products in this state on May 22, 2019.
SECTION 17. This Act takes effect September 1, 2021.