Texas 2021 - 87th Regular

Texas House Bill HB3948 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: King of Uvalde, et al. (Senate Sponsor - Perry) H.B. No. 3948
2		-	(In the Senate - Received from the House May 5, 2021;
3		-	May 13, 2021, read first time and referred to Committee on Business &
4		-	Commerce; May 14, 2021, rereferred to Committee on Water,
5		-	Agriculture & Rural Affairs; May 21, 2021, reported adversely,
6		-	with favorable Committee Substitute by the following vote: Yeas 8,
7		-	Nays 0; May 21, 2021, sent to printer.)
8		-	Click here to see the committee vote
9		-	COMMITTEE SUBSTITUTE FOR H.B. No. 3948 By: Perry
	1	+	By: King of Uvalde, Guillen, H.B. No. 3948
	2	+	Morales of Maverick, Israel, et al.
10	3
11	4
12	5		A BILL TO BE ENTITLED
13	6		AN ACT
14	7		relating to the production and regulation of hemp and consumable
15		-	hemp products; providing administrative penalties; creating a
16		-	criminal offense.
	8	+	hemp products; authorizing a fee.
17	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
18		-	SECTION 1. Section 122.001(5), Agriculture Code, is amended
19		-	to read as follows:
20		-	(5) "Institution of higher education" and "private or
21		-	independent institution of higher education" have [has] the
22		-	meanings [meaning] assigned by Section 61.003, Education Code.
23		-	SECTION 2. Section 121.003, Agriculture Code, is amended by
	10	+	SECTION 1. Section 121.003, Agriculture Code, is amended by
24	11		adding Subsection (e) to read as follows:
25		-	(e) Not later than the ~~120th~~ day after the date a change to a
	12	+	(e) Not later than the 90th day after the date a change to a
26	13		state statute, federal statute, or federal regulation takes effect,
27	14		the department shall submit to the secretary of the United States
28	15		Department of Agriculture any amendments to the state plan
29	16		necessary to incorporate and implement the change.
30		-	SECTION 3. Subchapter A, Chapter 122, Agriculture Code, is
	17	+	SECTION 2. Subchapter A, Chapter 122, Agriculture Code, is
31	18		amended by adding Section 122.005 to read as follows:
32	19		Sec. 122.005. HEMP RESEARCH BY INSTITUTIONS OF HIGHER
33	20		EDUCATION. (a) The department shall issue a license to an
34		-	institution of higher education or private or independent
35	21		institution of higher education in this state that requests the
36	22		license.
37	23		(b) Notwithstanding any provision of this chapter or
38		-	department rule other than Subsection (c):
39		-	(1) an institution of higher education conducting
40		-	research involving hemp is not required to pay a fee collected by
41		-	the department under this chapter; and
42		-	(2) an institution of higher education or private or
43		-	independent institution of higher education conducting research
44		-	involving hemp:
45		-	(A) is not required to obtain from the department
46		-	a lot crop permit or other permit for each location where hemp is
47		-	grown;
48		-	(B) is not required to obtain preharvest testing
49		-	under Section 122.153 before harvesting plants, except as provided
50		-	by Subsection (c);
51		-	(C) may cultivate and handle varieties of hemp
52		-	seed and plants that are not certified or approved under Section
53		-	122.252;
54		-	(D) may collect and research feral hemp; and
55		-	(E) is not subject to Section 122.403(c) or (d).
56		-	(c) An institution of higher education or private or
57		-	independent institution of higher education may not sell or
	24	+	department rule other than Subsection (c), an institution of higher
	25	+	education conducting research involving hemp:
	26	+	(1) is not required to pay a fee collected by the
	27	+	department under this chapter;
	28	+	(2) is not required to obtain from the department a lot
	29	+	crop permit or other permit for each location where hemp is grown;
	30	+	(3) is not required to obtain preharvest testing under
	31	+	Section 122.153 before harvesting plants, except as provided by
	32	+	Subsection (c);
	33	+	(4) may use hemp seed and cultivate and handle plants
	34	+	grown from seed that is not certified or approved under Section
	35	+	122.252; and
	36	+	(5) is not subject to Section 122.403(c) or (d).
	37	+	(c) An institution of higher education may not sell or
58	38		transfer hemp to another person unless the institution complies
59	39		with the requirements of Sections 122.153 and 122.356.
60		-	(d) An institution of higher education or private or
61		-	independent institution of higher education may conduct research
62		-	involving hemp in conjunction with a license holder at a facility
63		-	designated by the license holder for research use only.
64		-	(e) Subsections (b)(2) and (c) apply to a license holder and
65		-	facility described by Subsection (d).
66		-	SECTION 4. Section 122.051, Agriculture Code, is amended by
	40	+	SECTION 3. Section 122.051, Agriculture Code, is amended by
67	41		adding Subsection (c) to read as follows:
68	42		(c) Not later than the 90th day after the date a change to
69	43		this chapter, a federal statute, or a federal regulation takes
70	44		effect, the department shall propose any rules necessary to
71	45		incorporate and implement the change.
72		-	SECTION 5. Section 122.055, Agriculture Code, is amended by
73		-	adding Subsection (c-1) to read as follows:
74		-	(c-1) The department by rule may adopt a different shipping
75		-	certificate, cargo manifest, or other requirement for the shipment
76		-	or transportation of a sample of hemp to:
77		-	(1) a testing laboratory; or
78		-	(2) another destination if the sample contains not
79		-	more than 15 grams of hemp and is accompanied by the results of a
80		-	laboratory test indicating the delta-9 tetrahydrocannabinol
81		-	concentration of the lot or plot from which the sample was taken.
82		-	SECTION 6. Section 122.151, Agriculture Code, is amended by
	46	+	SECTION 4. Section 122.151, Agriculture Code, is amended by
83	47		adding Subsection (g) to read as follows:
84	48		(g) A laboratory that performs testing required by this
85	49		chapter shall report the delta-9 tetrahydrocannabinol
86	50		concentration, the total tetrahydrocannabinol concentration, and
87	51		the concentration of any other federally regulated cannabinoid of
88	52		the sample on a dry weight basis and the measurement of uncertainty
89	53		in the test result. The measurement of uncertainty must comply with
90	54		International Organization for Standardization ISO/IEC 17025 or a
91		-	comparable or successor standard and any provisions of federal law
92		-	governing the measurement of uncertainty. For purposes of this
93		-	chapter, the delta-9 tetrahydrocannabinol concentration of the
94		-	sample is the lowest possible value given that measurement of
95		-	uncertainty.
96		-	SECTION 7. Section 122.201(a), Agriculture Code, is amended
	55	+	comparable or successor standard. For purposes of this chapter,
	56	+	the delta-9 tetrahydrocannabinol concentration of the sample is the
	57	+	lowest possible value given that measurement of uncertainty.
	58	+	SECTION 5. Section 122.201(a), Agriculture Code, is amended
97	59		to read as follows:
98	60		(a) A license holder shall harvest the plants from a plot
99	61		not later than the 30th [20th] day after the date a preharvest
100	62		sample is collected under Section 122.154 unless field conditions
101	63		delay harvesting or the department authorizes the license holder to
102	64		delay harvesting. This subsection does not prohibit the license
103	65		holder from harvesting the plants immediately after the preharvest
104	66		sample is collected.
105		-	SECTION 8. Section 122.202, Agriculture Code, is amended by
106		-	adding Subsection (c) to read as follows:
107		-	(c) The delta-9 tetrahydrocannabinol concentration shall be
108		-	determined as provided by Section 122.151(g).
109		-	SECTION 9. Subchapter E, Chapter 122, Agriculture Code, is
	67	+	SECTION 6. Subchapter E, Chapter 122, Agriculture Code, is
110	68		amended by adding Section 122.203 to read as follows:
111	69		Sec. 122.203. HARVEST WHILE LICENSE SUSPENDED OR REVOKED.
112	70		(a) A person whose license is suspended or revoked after planting
113	71		hemp plants may obtain preharvest or postharvest testing under
114	72		Subchapter D and may harvest the plants under Section 122.201 in the
115	73		same manner as a license holder.
116		-	(b) The department by rule shall establish fair and
117		-	objective standards for determining whether a person whose license
118		-	is suspended or revoked may use or sell plants harvested under
119		-	Subsection (a), based on the circumstances of the suspension or
120		-	revocation. Based on those rules, the department shall:
121		-	(1) prohibit a person from selling or using plants
122		-	harvested under Subsection (a) while the person's license is
123		-	suspended or revoked; or
	74	+	(b) While a person's license is suspended or revoked, the
	75	+	department may:
	76	+	(1) prohibit the person from selling or using plants
	77	+	harvested under Subsection (a); or
124	78		(2) if the delta-9 tetrahydrocannabinol concentration
125	79		of the plants is not more than 0.3 percent on a dry weight basis,
126		-	allow a person to sell or use plants harvested under Subsection (a)
127		-	in the same manner as a license holder under Section 122.202 while
128		-	the person's license is suspended or revoked.
	80	+	allow the person to sell or use plants harvested under Subsection
	81	+	(a) in the same manner as a license holder under Section 122.202.
129	82		(c) A person whose license is reinstated may sell or use
130	83		plants harvested under Subsection (a) as provided by Section
131	84		122.202.
132		-	SECTION 10. The heading to Subchapter F, Chapter 122,
	85	+	SECTION 7. The heading to Subchapter F, Chapter 122,
133	86		Agriculture Code, is amended to read as follows:
134	87		SUBCHAPTER F. HEMP SEED AND PLANTS
135		-	SECTION 11. Section 122.252, Agriculture Code, is amended
136		-	to read as follows:
	88	+	SECTION 8. Section 122.252, Agriculture Code, is amended to
	89	+	read as follows:
137	90		Sec. 122.252. CERTIFICATION OR APPROVAL OF SEED AND PLANT
138		-	VARIETIES. (a) Subject to Subsection (b), the [The] department or
139		-	an entity authorized to certify seed and plants under Chapter 62
140		-	shall identify and certify or approve varieties of seed and plants
141		-	confirmed to produce hemp.
	91	+	VARIETIES. (a) The department or an entity authorized to certify
	92	+	seed and plants under Chapter 62 shall identify and certify or
	93	+	approve varieties of seed and plants confirmed to produce hemp.
142	94		(b) The department or entity may not certify or approve a
143	95		variety of hemp seed or plant if the variety [seed] is tested and
144	96		confirmed to produce a plant that has delta-9 tetrahydrocannabinol
145	97		concentration of more than 0.3 percent on a dry weight basis. For
146	98		purposes of this subsection, the department may partner with a
147	99		private entity or an institution of higher education to test seed
148	100		and plant varieties for the purpose of certification or approval
149	101		under this section.
150	102		(c) The department may authorize the importation of hemp
151	103		seed and plant varieties certified in accordance with the law of
152	104		another state or jurisdiction that requires as a condition of
153	105		certification that hemp be produced in compliance with:
154	106		(1) that state or jurisdiction's plan approved by the
155	107		United States Department of Agriculture under 7 U.S.C. Section
156	108		1639p; or
157	109		(2) a plan established under 7 U.S.C. Section 1639q if
158	110		that plan applies in the state or jurisdiction.
159	111		(d) The department shall maintain and make available to
160	112		license holders a list of hemp seed and plant varieties [seeds]
161	113		certified or approved under this section.
162		-	SECTION 12. Subchapter F, Chapter 122, Agriculture Code, is
	114	+	SECTION 9. Subchapter F, Chapter 122, Agriculture Code, is
163	115		amended by adding Section 122.254 to read as follows:
164	116		Sec. 122.254. SEEDLINGS AND OTHER IMMATURE PLANTS. (a) In
165	117		this section, "immature plant" means a hemp seedling, clone, or
166		-	cutting that ~~is not flowering and~~ requires substantial cultivation
167		-	~~and further growth~~ before the beginning of the period under Section
168		-	~~122.201(a) when~~ the plant may be harvested.
	118	+	cutting that requires substantial cultivation and further growth
	119	+	before the beginning of the period under Section 122.201(a) when
	120	+	the plant may be harvested.
169	121		(b) A person may transport into this state, and a license
170	122		holder may obtain and cultivate, immature plants propagated outside
171	123		this state if the plants are accompanied by shipping documentation
172	124		that:
173	125		(1) complies with any requirements of the state of
174	126		origin;
175	127		(2) indicates the grower of the immature plants is
176	128		licensed by the state of origin;
177	129		(3) lists the recipient license holder in this state
178	130		and the recipient's license number; and
179	131		(4) shows that the variety of the immature plants is
180	132		certified or approved under Section 122.252.
181	133		(c) A license holder may obtain and cultivate immature
182	134		plants propagated in this state by another license holder if the
183	135		plants are accompanied by the shipping certificate or cargo
184	136		manifest required by Section 122.055 that shows that the variety of
185	137		the immature plants is certified or approved under Section 122.252.
186	138		The immature plants are not subject to preharvest testing under
187		-	Section 122.153. The license holder shall maintain records, as
188		-	required by the department, that match the lot crop permit number
189		-	issued by the department for the location where the immature plants
190		-	were propagated with the lot crop number for the location where the
191		-	plants were cultivated.
	139	+	Section 122.153.
192	140		(d) A license holder may transplant immature plants
193	141		propagated by the license holder from one plot to another plot
194	142		controlled by the license holder. The department by rule shall
195	143		waive the requirement that a license holder obtain a lot crop permit
196	144		for and may not require a license holder to pay any fee for a
197	145		greenhouse or other location used to propagate immature plants if
198	146		the plants are transplanted to another plot controlled by the
199	147		license holder and are not sold or transferred to another person.
200	148		The department by rule may waive the requirement that a person
201	149		obtain a shipping certificate or cargo manifest to transplant
202	150		immature plants from one plot to another plot operated by the
203	151		license holder.
204		-	SECTION 13. Section 122.403, Agriculture Code, is amended
205		-	by amending Subsection (a) and adding Subsection (e) to read as
206		-	follows:
207		-	(a) If the department determines that a license holder
208		-	negligently violated this chapter or a rule adopted under this
209		-	chapter, the department shall enforce the violation in the manner
210		-	provided by 7 U.S.C. Section 1639p(e) and 7 C.F.R. Section 990.6.
211		-	(e) A license holder is not subject to more than one
212		-	negligent violation related to cultivation per calendar year.
213		-	SECTION 14. Subchapter I, Chapter 122, Agriculture Code, is
214		-	amended by adding Section 122.4035 to read as follows:
215		-	Sec. 122.4035. PENALTIES FOR CULTIVATING HEMP WITHOUT A
216		-	LICENSE; CRIMINAL OFFENSE. (a) On determining that a person
217		-	violated Section 122.101, the department may:
218		-	(1) if the person has not previously received a
219		-	penalty under this section:
220		-	(A) issue a written warning to the person;
221		-	(B) impose an administrative penalty in the
222		-	amount of $500;
223		-	(C) require the person to obtain a license; and
224		-	(D) allow the person to continue to cultivate or
225		-	handle the hemp plants that are the subject of the violation,
226		-	harvest those plants, and, after obtaining the license, sell or use
227		-	those plants as provided by Section 122.202;
228		-	(2) if the person has received a penalty under
229		-	Subdivision (1) for a previous violation but has not previously
230		-	received a penalty under this subdivision:
231		-	(A) issue a second written warning to the person;
232		-	(B) impose an administrative penalty in the
233		-	amount of $500;
234		-	(C) require the person to obtain a license;
235		-	(D) seize and dispose of the hemp plants that are
236		-	the subject of the violation; and
237		-	(E) require the person to reimburse the
238		-	department for reasonable costs of disposal under Paragraph (D);
239		-	and
240		-	(3) if the person has received a penalty under
241		-	Subdivision (2) or this subdivision for a previous violation:
242		-	(A) refer the matter to the appropriate
243		-	prosecuting attorney for criminal prosecution under Subsection
244		-	(b);
245		-	(B) seize and dispose of the hemp plants that are
246		-	the subject of the violation; and
247		-	(C) require the person to reimburse the
248		-	department for reasonable costs of disposal under Paragraph (B).
249		-	(b) A person commits an offense if the person:
250		-	(1) violates Section 122.101; and
251		-	(2) has received a penalty under Subsection (a)(2) for
252		-	a previous violation.
253		-	(c) An offense under Subsection (b) is a Class B
254		-	misdemeanor.
255		-	SECTION 15. Subchapter A, Chapter 443, Health and Safety
256		-	Code, is amended by adding Sections 443.005 and 443.006 to read as
257		-	follows:
	152	+	SECTION 10. Section 122.301, Agriculture Code, is amended
	153	+	by adding Subsection (c) to read as follows:
	154	+	(c) Notwithstanding Subsection (b), a person may
	155	+	manufacture products described by that subsection in this state if:
	156	+	(1) the products are sold only to persons located
	157	+	outside this state; and
	158	+	(2) the person was manufacturing or processing
	159	+	consumable hemp products, as those terms are defined by Section
	160	+	443.001, Health and Safety Code, in this state on May 22, 2019.
	161	+	SECTION 11. Subchapter A, Chapter 443, Health and Safety
	162	+	Code, is amended by adding Section 443.005 to read as follows:
258	163		Sec. 443.005. CONSUMABLE HEMP PRODUCTS ACCOUNT. (a) The
259	164		consumable hemp products account is an account in the general
260	165		revenue fund administered by the department.
261	166		(b) The account consists of:
262	167		(1) appropriations of money to the account by the
263	168		legislature;
264	169		(2) public or private gifts, grants, or donations,
265	170		including federal funds, received for the account;
266	171		(3) fees collected under this chapter or under Chapter
267	172		431 as it applies to consumable hemp products;
268	173		(4) interest and income earned on the investment of
269	174		money in the account;
270	175		(5) penalties for violations of this chapter or
271	176		Chapter 431 as it applies to consumable hemp products; and
272	177		(6) funds from any other source deposited in the
273	178		account.
274	179		(c) The department may accept appropriations and gifts,
275	180		grants, or donations from any source to administer and enforce this
276	181		chapter and Chapter 431 as it applies to consumable hemp products.
277	182		Money received under this subsection shall be deposited in the
278	183		account.
279	184		(d) Money in the account may be appropriated only to the
280	185		department for the administration and enforcement of this chapter
281	186		and Chapter 431 as it applies to consumable hemp products.
282		-	Sec. 443.006. TETRAHYDROCANNABINOL CONTENT. (a)
283		-	Notwithstanding any other law, a person may not manufacture, sell,
284		-	or purchase a consumable hemp product in this state:
285		-	(1) that has a delta-9 tetrahydrocannabinol
286		-	concentration of more than 0.3 percent on a dry weight basis;
287		-	(2) that contains synthetically derived
288		-	tetrahydrocannabinols, as defined by department rule, including
289		-	synthetically derived acids, isomers, or salts of
290		-	tetrahydrocannabinol;
291		-	(3) that, in the form and quantity as packaged for
292		-	consumer use, is reasonably determined by the department to have an
293		-	intoxicating effect;
294		-	(4) that exceeds any federal limit for
295		-	tetrahydrocannabinol; or
296		-	(5) if additional tetrahydrocannabinol in a
297		-	concentration greater than 0.3 percent on a dry weight basis has
298		-	been applied to the product.
299		-	(b) Chapter 481 prevails to the extent of any conflict with
300		-	this section.
301		-	SECTION 16. Section 443.103, Health and Safety Code, is
	187	+	SECTION 12. Section 443.103, Health and Safety Code, is
302	188		amended to read as follows:
303	189		Sec. 443.103. APPLICATION; ISSUANCE. An individual or
304	190		establishment may apply for a license under this subchapter by
305	191		submitting an application to the department on a form and in the
306	192		manner prescribed by the department. The application must be
307	193		accompanied by:
308	194		(1) the physical address [a legal description] of each
309	195		location where the applicant intends to process hemp or manufacture
310	196		consumable hemp products [and the global positioning system
311	197		coordinates for the perimeter of each location];
312	198		(2) written consent from the applicant or the property
313	199		owner if the applicant is not the property owner allowing the
314	200		department, the Department of Public Safety, and any other state or
315	201		local law enforcement agency to enter onto all premises where hemp
316	202		is processed or consumable hemp products are manufactured to
317	203		conduct a physical inspection or to ensure compliance with this
318	204		chapter and rules adopted under this chapter;
319	205		(3) any fees required by the department to be
320	206		submitted with the application; and
321	207		(4) any other information required by department rule.
322		-	SECTION 17. Subchapter C, Chapter 443, Health and Safety
	208	+	SECTION 13. Subchapter C, Chapter 443, Health and Safety
323	209		Code, is amended by adding Section 443.106 to read as follows:
324		-	Sec. 443.106. EXPEDITED LICENSING PROCESS. The department
325		-	by rule may provide an expedited licensing process for the
326		-	purchaser of a business that requires a license.
327		-	SECTION 18. Section 443.152, Health and Safety Code, is
	210	+	Sec. 443.106. CHANGE OF OWNERSHIP. The department may
	211	+	modify a license held by an establishment in the event of a change
	212	+	in ownership of the establishment if:
	213	+	(1) the current owner and the new owner apply to the
	214	+	department for the modification;
	215	+	(2) the new owner is not ineligible to hold the license
	216	+	under Section 443.102; and
	217	+	(3) one party to the transaction submits any license
	218	+	modification fee to the department.
	219	+	SECTION 14. Section 443.152, Health and Safety Code, is
328	220		amended by adding Subsection (d) to read as follows:
329	221		(d) The executive commissioner by rule may exclude a
330	222		substance that is generally recognized as having no risk of
331	223		contaminating a finished consumable hemp product, including a
332	224		microorganism or other substance that is inevitably destroyed or
333	225		removed while processing or manufacturing the product, from the
334	226		testing required under Section 443.151.
335		-	SECTION 19. Section 443.201, Health and Safety Code, is
	227	+	SECTION 15. Section 443.201, Health and Safety Code, is
336	228		amended by adding Subsection (c) to read as follows:
337	229		(c) A person may transport and deliver a consumable hemp
338	230		product to a consumer who purchased the product in compliance with
339	231		this chapter. The person transporting and delivering the consumable
340	232		hemp product is not required to:
341	233		(1) obtain a license under Section 443.101, unless the
342	234		person processes or manufactures the product delivered; or
343	235		(2) register under Section 443.2025, unless the person
344	236		sells the product delivered.
345		-	SECTION 20. Section 443.2025, Health and Safety Code, is
346		-	amended by amending Subsections (b), (d), and (f) and adding
347		-	Subsection (d-1) to read as follows:
348		-	(b) A person may not sell or distribute consumable hemp
349		-	products containing cannabinoids to consumers [cannabidiol at
350		-	retail] in this state, other than products generally recognized as
351		-	safe by the United States Food and Drug Administration, unless the
352		-	person registers with the department each location owned, operated,
353		-	or controlled by the person at which those products are sold. A
354		-	person is not required to register a location associated with an
355		-	employee or independent contractor described by Subsection (d).
356		-	(d) A person is not required to register with the department
357		-	under Subsection (b) if the person is:
358		-	(1) an employee of a registrant; or
359		-	(2) an independent contractor of a registrant who
360		-	sells the registrant's products to consumers [at retail].
361		-	(d-1) A person is required to register with the department
362		-	under Subsection (b) if the person, as an employee or independent
363		-	contractor of a person located outside this state who is not a
364		-	registrant, sells or distributes products covered by Subsection (b)
365		-	in this state.
366		-	(f) The department by rule may adopt a registration fee
367		-	schedule that establishes reasonable fee amounts for the
368		-	registration of:
369		-	(1) a single location at which consumable hemp
370		-	products containing cannabinoids [cannabidiol] are sold; and
371		-	(2) multiple locations at which consumable hemp
372		-	products containing cannabinoids [cannabidiol] are sold under a
373		-	single registration.
374		-	SECTION 21. Section 443.203, Health and Safety Code, is
375		-	amended by adding Subsection (c) to read as follows:
376		-	(c) A person who sells, offers for sale, or distributes a
377		-	consumable hemp product commits a false, misleading, or deceptive
378		-	act or practice actionable under Subchapter E, Chapter 17, Business &
379		-	Commerce Code, if the person:
380		-	(1) claims the product is made in this state and the
381		-	product contains any hemp that was not grown and processed in this
382		-	state solely by persons who hold the appropriate licenses under
383		-	Chapter 122, Agriculture Code, and this chapter;
384		-	(2) claims the product is "grown in Texas" and the
385		-	product was not grown in this state by a license holder under
386		-	Chapter 122, Agriculture Code; or
387		-	(3) claims the product is "processed in Texas" and the
388		-	product was not processed in this state by a license holder under
389		-	this chapter.
390		-	SECTION 22. Section 443.205(a), Health and Safety Code, is
	237	+	SECTION 16. Section 443.204, Health and Safety Code, is
391	238		amended to read as follows:
392		-	(a) Before a consumable hemp product, including hemp plant
393		-	material, that contains or is marketed as containing more than
394		-	trace amounts of cannabinoids may be distributed or sold, the
395		-	product must be labeled in the manner provided by this section with
396		-	the following information:
397		-	(1) batch identification number;
398		-	(2) batch date;
399		-	(3) product name;
400		-	(4) a uniform resource locator (URL) that provides or
401		-	links to a certificate of analysis for the product or each
402		-	hemp-derived ingredient of the product;
403		-	(5) the name of the product's manufacturer; and
404		-	(6) a certification that the delta-9
405		-	tetrahydrocannabinol concentration of the product or each
406		-	hemp-derived ingredient of the product is not more than 0.3
407		-	percent.
408		-	SECTION 23. Section 122.403, Agriculture Code, as amended
409		-	by this Act, and Section 122.4035, Agriculture Code, as added by
410		-	this Act, apply only to conduct that occurs on or after the
411		-	effective date of this Act. Conduct that occurred before that date
412		-	is governed by the law in effect when the conduct occurred, and the
413		-	former law is continued in effect for that purpose.
414		-	SECTION 24. This Act takes effect September 1, 2021.
415		-	* * * * *
	239	+	Sec. 443.204. RULES RELATED TO SALE OF CONSUMABLE HEMP
	240	+	PRODUCTS. (a) Rules adopted by the executive commissioner
	241	+	regulating the sale of consumable hemp products must to the extent
	242	+	allowable by federal law reflect the following principles:
	243	+	(1) hemp-derived cannabinoids, including cannabidiol,
	244	+	are not considered controlled substances or adulterants;
	245	+	(2) products containing one or more hemp-derived
	246	+	cannabinoids, such as cannabidiol, intended for ingestion are
	247	+	considered foods, not controlled substances or adulterated
	248	+	products;
	249	+	(3) consumable hemp products must be packaged and
	250	+	labeled in the manner provided by Section 443.205; and
	251	+	(4) the processing or manufacturing of a consumable
	252	+	hemp product for smoking is prohibited.
	253	+	(b) Notwithstanding Subsection (a)(4), a person may
	254	+	manufacture products described by that subsection in this state if:
	255	+	(1) the products are sold only to persons located
	256	+	outside this state; and
	257	+	(2) the person was manufacturing or processing
	258	+	consumable hemp products in this state on May 22, 2019.
	259	+	SECTION 17. This Act takes effect September 1, 2021.