Texas 2021 - 87th Regular

Texas Senate Bill SB1778 Compare Versions

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

Old	New	Differences
1	1	87R14833 TYPED
2	2	By: Perry S.B. No. 1778
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the production and regulation of hemp and consumable
8	8	hemp products; providing administrative penalties; imposing and
9	9	authorizing fees; creating a criminal offense.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 121.003, Agriculture Code, is amended by
12	12	adding Subsection (e) to read as follows:
13	13	(e) Not later than the 90th day after the date a change to a
14	14	state statute, federal statute, or federal regulation takes effect,
15	15	the department shall submit to the secretary of the United States
16	16	Department of Agriculture any amendments to the state plan
17	17	necessary to incorporate and implement the change.
18	18	SECTION 2. Subchapter A, Chapter 122, Agriculture Code, is
19	19	amended by adding Section 122.005 to read as follows:
20	20	Sec. 122.005. HEMP RESEARCH BY INSTITUTIONS OF HIGHER
21	21	EDUCATION. (a) The department shall issue a license to an
22	22	institution of higher education in this state that requests the
23	23	license.
24	24	(b) Notwithstanding any provision of this chapter or
25	25	department rule other than Subsection (c), an institution of higher
26	26	education conducting research involving hemp:
27	27	(1) is not required to pay a fee collected by the
28	28	department under this chapter;
29	29	(2) is not required to obtain from the department a lot
30	30	crop permit or other permit for each location where hemp is grown;
31	31	(3) is not required to obtain preharvest testing under
32	32	Section 122.153 before harvesting plants, except as provided by
33	33	Subsection (c);
34	34	(4) may use hemp seed and cultivate and handle plants
35	35	grown from seed that is not certified or approved under Section
36	36	122.252; and
37	37	(5) is not subject to Section 122.403(c) or (d).
38	38	(c) An institution of higher education may not sell or
39	39	transfer hemp to another person unless the institution complies
40	40	with the requirements of Sections 122.153 and 122.356.
41	41	SECTION 3. Section 122.051, Agriculture Code, is amended by
42	42	adding Subsection (c) to read as follows:
43	43	(c) Not later than the 90th day after the date a change to
44	44	this chapter, a federal statute, or a federal regulation takes
45	45	effect, the department shall propose any rules necessary to
46	46	incorporate and implement the change.
47	47	SECTION 4. Section 122.151, Agriculture Code, is amended by
48	48	adding Subsection (g) to read as follows:
49	49	(g) A laboratory that performs testing required by this
50	50	chapter shall report the delta-9 tetrahydrocannabinol
51	51	concentration, the total tetrahydrocannabinol concentration, and
52	52	any other federally regulated cannabinoid of the sample on a dry
53	53	weight basis and the measurement of uncertainty in the test result.
54	54	The measurement of uncertainty must comply with International
55	55	Organization for Standardization ISO/IEC 17025 or a comparable or
56	56	successor standard. For purposes of this chapter, the delta-9
57	57	tetrahydrocannabinol concentration of the sample is the lowest
58	58	possible value given that measurement of uncertainty.
59	59	SECTION 5. Section 122.201(a), Agriculture Code, is amended
60	60	to read as follows:
61	61	(a) A license holder shall harvest the plants from a plot
62	62	not later than the 30th [20th] day after the date a preharvest
63	63	sample is collected under Section 122.154 unless field conditions
64	64	delay harvesting or the department authorizes the license holder to
65	65	delay harvesting. This subsection does not prohibit the license
66	66	holder from harvesting the plants immediately after the preharvest
67	67	sample is collected.
68	68	SECTION 6. Subchapter E, Chapter 122, Agriculture Code, is
69	69	amended by adding Section 122.203 to read as follows:
70	70	Sec. 122.203. HARVEST WHILE LICENSE SUSPENDED OR REVOKED.
71	71	(a) A person whose license is suspended or revoked after planting
72	72	hemp plants may obtain preharvest or postharvest testing under
73	73	Subchapter D and may harvest the plants under Section 122.201 in the
74	74	same manner as a license holder.
75	75	(b) While a person's license is suspended or revoked, the
76	76	department may:
77	77	(1) prohibit the person from selling or using plants
78	78	harvested under Subsection (a); or
79	79	(2) if the delta-9 tetrahydrocannabinol concentration
80	80	of the plants is not more than 0.3 percent on a dry weight basis,
81	81	allow the person to sell or use plants harvested under Subsection
82	82	(a) in the same manner as a license holder under Section 122.202.
83	83	(c) A person whose license is reinstated may sell or use
84	84	plants harvested under Subsection (a) as provided by Section
85	85	122.202.
86	86	SECTION 7. The heading to Subchapter F, Chapter 122,
87	87	Agriculture Code, is amended to read as follows:
88	88	SUBCHAPTER F. HEMP SEED AND PLANTS
89	89	SECTION 8. Section 122.252, Agriculture Code, is amended to
90	90	read as follows:
91	91	Sec. 122.252. CERTIFICATION OR APPROVAL OF SEED AND PLANT
92	92	VARIETIES. (a) The department or an entity authorized to certify
93	93	seed and plants under Chapter 62 shall identify and certify or
94	94	approve varieties of seed and plants confirmed to produce hemp.
95	95	(b) The department or entity may not certify or approve a
96	96	variety of hemp seed or plant if the variety [seed] is tested and
97	97	confirmed to produce a plant that has delta-9 tetrahydrocannabinol
98	98	concentration of more than 0.3 percent on a dry weight basis. For
99	99	purposes of this subsection, the department may partner with a
100	100	private entity or an institution of higher education to test seed
101	101	and plant varieties for the purpose of certification or approval
102	102	under this section.
103	103	(c) The department may authorize the importation of hemp
104	104	seed and plant varieties certified in accordance with the law of
105	105	another state or jurisdiction that requires as a condition of
106	106	certification that hemp be produced in compliance with:
107	107	(1) that state or jurisdiction's plan approved by the
108	108	United States Department of Agriculture under 7 U.S.C. Section
109	109	1639p; or
110	110	(2) a plan established under 7 U.S.C. Section 1639q if
111	111	that plan applies in the state or jurisdiction.
112	112	(d) The department shall maintain and make available to
113	113	license holders a list of hemp seed and plant varieties [seeds]
114	114	certified or approved under this section.
115	115	SECTION 9. Subchapter F, Chapter 122, Agriculture Code, is
116	116	amended by adding Section 122.254 to read as follows:
117	117	Sec. 122.254. SEEDLINGS AND OTHER IMMATURE PLANTS. (a) In
118	118	this section, "immature plant" means a hemp seedling, clone, or
119	119	cutting that requires substantial cultivation and further growth
120	120	before the beginning of the period under Section 122.201(a) when
121	121	the plant may be harvested.
122	122	(b) A person may transport into this state, and a license
123	123	holder may obtain and cultivate, immature plants propagated outside
124	124	this state if the plants are accompanied by shipping documentation
125	125	that:
126	126	(1) complies with any requirements of the state of
127	127	origin;
128	128	(2) indicates the grower of the immature plants is
129	129	licensed by the state of origin;
130	130	(3) lists the recipient license holder in this state
131	131	and the recipient's license number; and
132	132	(4) shows that the variety of the immature plants is
133	133	certified or approved under Section 122.252.
134	134	(c) A license holder may obtain and cultivate immature
135	135	plants propagated in this state by another license holder if the
136	136	plants are accompanied by the shipping certificate or cargo
137	137	manifest required by Section 122.055 that shows that the variety of
138	138	the immature plants is certified or approved under Section 122.252.
139	139	The immature plants are not subject to preharvest testing under
140	140	Section 122.153.
141	141	(d) A license holder may transplant immature plants
142	142	propagated by the license holder from one plot to another plot
143	143	controlled by the license holder. The department by rule shall
144	144	waive the requirement that a license holder obtain a lot crop permit
145	145	and not require any fee for a greenhouse or other location used to
146	146	propagate immature plants if the plants are transplanted to another
147	147	plot controlled by the license holder and are not sold or
148	148	transferred to another person. The department by rule shall waive
149	149	the requirement that a person obtain a shipping certificate or
150	150	cargo manifest to transplant immature plants from one plot to
151	151	another plot operated by the license holder.
152	152	SECTION 10. Section 122.403, Agriculture Code, is amended
153	153	by amending Subsection (a) and adding Subsection (e) to read as
154	154	follows:
155	155	(a) If the department determines that a license holder
156	156	negligently violated this chapter or a rule adopted under this
157	157	chapter, the department shall enforce the violation in the manner
158	158	provided by 7 U.S.C. Section 1639p(e) and 7 C.F.R. Section 990.6.
159	159	(e) A license holder may not receive more than one negligent
160	160	violation of the same kind per growing season.
161	161	SECTION 11. Subchapter I, Chapter 122, Agriculture Code, is
162	162	amended by adding Section 122.4035 to read as follows:
163	163	Sec. 122.4035. PENALTIES FOR CULTIVATING HEMP WITHOUT A
164	164	LICENSE; CRIMINAL OFFENSE. (a) On determining that a person
165	165	violated Section 122.101, the department may:
166	166	(1) if the person has not previously received a
167	167	penalty under this section:
168	168	(A) issue a written warning to the person;
169	169	(B) impose an administrative penalty in the
170	170	amount of $500;
171	171	(C) require the person to obtain a license; and
172	172	(D) allow the person to continue to cultivate or
173	173	handle the hemp plants that are the subject of the violation,
174	174	harvest those plants, and, after obtaining the license, sell or use
175	175	those plants as provided by Section 122.202;
176	176	(2) if the person has previously received a penalty
177	177	under Subdivision (1) for other conduct but has not previously
178	178	received a penalty under this subdivision:
179	179	(A) issue a second written warning to the person;
180	180	(B) impose an administrative penalty in the
181	181	amount of $500;
182	182	(C) require the person to obtain a license; and
183	183	(D) seize and dispose of the hemp plants that are
184	184	the subject of the violation; and
185	185	(3) if the person has previously received a penalty
186	186	under Subdivision (2) or this subdivision for other conduct:
187	187	(A) refer the matter to the appropriate
188	188	prosecuting attorney for criminal prosecution under Subsection
189	189	(b); and
190	190	(B) seize and dispose of the hemp plants that are
191	191	the subject of the violation.
192	192	(b) A person commits an offense if the person:
193	193	(1) violates Section 122.101; and
194	194	(2) has previously received a penalty under Subsection
195	195	(a)(2) for other conduct.
196	196	(c) An offense under Subsection (b) is a Class B
197	197	misdemeanor.
198	198	SECTION 12. Subchapter A, Chapter 443, Health and Safety
199	199	Code, is amended by adding Sections 443.005 and 443.006 to read as
200	200	follows:
201	201	Sec. 443.005. CONSUMABLE HEMP PRODUCTS ACCOUNT. (a) The
202	202	consumable hemp products account is an account in the general
203	203	revenue fund administered by the department.
204	204	(b) The account consists of:
205	205	(1) appropriations of money to the account by the
206	206	legislature;
207	207	(2) public or private gifts, grants, or donations,
208	208	including federal funds, received for the account;
209	209	(3) fees collected under this chapter or under Chapter
210	210	431 as it applies to consumable hemp products;
211	211	(4) interest and income earned on the investment of
212	212	money in the account;
213	213	(5) penalties for violations of this chapter or
214	214	Chapter 431 as it applies to consumable hemp products; and
215	215	(6) funds from any other source deposited in the
216	216	account.
217	217	(c) The department may accept appropriations and gifts,
218	218	grants, or donations from any source to administer and enforce this
219	219	chapter and Chapter 431 as it applies to consumable hemp products.
220	220	Money received under this subsection shall be deposited in the
221	221	account.
222	222	(d) Money in the account may be appropriated only to the
223	223	department for the administration and enforcement of this chapter
224	224	and Chapter 431 as it applies to consumable hemp products.
225	225	Sec. 443.006. MAXIMUM TETRAHYDROCANNABINOL CONTENT. (a)
226	226	Notwithstanding any other law, a person may not process,
227	227	manufacture, possess, transport, sell, or purchase a consumable
228	228	hemp product in this state that:
229	229	(1) has a delta-9 tetrahydrocannabinol concentration
230	230	of more than 0.3 percent on a dry weight basis;
231	231	(2) has a total tetrahydrocannabinol concentration of
232	232	more than one percent on a dry weight basis;
233	233	(3) exceeds any federal limit; or
234	234	(4) has been adulterated with additional
235	235	tetrahydrocannabinol or synthetic tetrahydrocannabinol.
236	236	(b) For purposes of Subsection (a), the total
237	237	tetrahydrocannabinol concentration includes all isomers, acids,
238	238	compounds, and other forms of tetrahydrocannabinol and shall be
239	239	determined without any adjustment for a measurement of uncertainty
240	240	in a test result.
241	241	SECTION 13. Section 443.103, Health and Safety Code, is
242	242	amended to read as follows:
243	243	Sec. 443.103. APPLICATION; ISSUANCE. An individual or
244	244	establishment may apply for a license under this subchapter by
245	245	submitting an application to the department on a form and in the
246	246	manner prescribed by the department. The application must be
247	247	accompanied by:
248	248	(1) the physical address [a legal description] of each
249	249	location where the applicant intends to process hemp or manufacture
250	250	consumable hemp products [and the global positioning system
251	251	coordinates for the perimeter of each location];
252	252	(2) written consent from the applicant or the property
253	253	owner if the applicant is not the property owner allowing the
254	254	department, the Department of Public Safety, and any other state or
255	255	local law enforcement agency to enter onto all premises where hemp
256	256	is processed or consumable hemp products are manufactured to
257	257	conduct a physical inspection or to ensure compliance with this
258	258	chapter and rules adopted under this chapter;
259	259	(3) any fees required by the department to be
260	260	submitted with the application; and
261	261	(4) any other information required by department rule.
262	262	SECTION 14. Subchapter C, Chapter 443, Health and Safety
263	263	Code, is amended by adding Section 443.106 to read as follows:
264	264	Sec. 443.106. CHANGE OF OWNERSHIP. The department may
265	265	change ownership to another person if:
266	266	(1) the current license holder and the recipient apply
267	267	to the department for the change of ownership;
268	268	(2) the recipient is not ineligible to hold a license
269	269	under Section 443.102; and
270	270	(3) one party to the change of ownership submits any
271	271	change of ownership fee to the department.
272	272	SECTION 15. Section 443.152, Health and Safety Code, is
273	273	amended by adding Subsections (d) and (e) to read as follows:
274	274	(d) The executive commissioner by rule may exclude a
275	275	substance that is generally recognized as having no risk of
276	276	contaminating a finished consumable hemp product, including a
277	277	microorganism or other substance that is inevitably destroyed or
278	278	removed while processing or manufacturing the product, from the
279	279	testing required under Section 443.151.
280	280	SECTION 16. Section 443.201, Health and Safety Code, is
281	281	amended by adding Subsection (c) to read as follows:
282	282	(c) A person may transport and deliver a consumable hemp
283	283	product to a consumer who purchased the product in compliance with
284	284	this chapter. The person transporting and delivering the consumable
285	285	hemp product is not required to:
286	286	(1) obtain a license under Section 443.101, unless the
287	287	person processes or manufactures the product delivered; or
288	288	(2) register under Section 443.2025, unless the person
289	289	sells the product delivered.
290	290	SECTION 17. The heading to Section 443.2025, Health and
291	291	Safety Code, is amended to read as follows:
292	292	Sec. 443.2025. REGISTRATION REQUIRED FOR RETAILERS AND
293	293	DISTRIBUTORS OF CERTAIN PRODUCTS.
294	294	SECTION 18. Section 443.2025, Health and Safety Code, is
295	295	amended by amending Subsections (b), (d), and (f) and adding
296	296	Subsection (d-1) to read as follows:
297	297	(b) A person may not sell or distribute consumable hemp
298	298	products containing more than trace amounts of cannabinoids to
299	299	consumers [cannabidiol at retail] in this state or distribute those
300	300	products intended for sale to consumers in this state unless the
301	301	person registers with the department each location owned, operated,
302	302	or controlled by the person at which those products are sold. A
303	303	person is not required to register a location associated with an
304	304	employee or independent contractor described by Subsection (d).
305	305	(d) A person is not required to register with the department
306	306	under Subsection (b) if the person is:
307	307	(1) an employee of a registrant; or
308	308	(2) an independent contractor of a registrant who
309	309	sells the registrant's products to consumers [at retail].
310	310	(d-1) A person is required to register with the department
311	311	under Subsection (b) if the person, as an employee or independent
312	312	contractor of a person located outside this state who is not a
313	313	registrant, sells or distributes products covered by Subsection (b)
314	314	in this state.
315	315	(f) The department by rule may adopt a registration fee
316	316	schedule that establishes reasonable fee amounts for the
317	317	registration of:
318	318	(1) a single location at which consumable hemp
319	319	products containing more than trace amounts of cannabinoids
320	320	[cannabidiol] are sold; and
321	321	(2) multiple locations at which consumable hemp
322	322	products containing more than trace amounts of cannabinoids
323	323	[cannabidiol] are sold under a single registration.
324	324	SECTION 19. Section 443.203, Health and Safety Code, is
325	325	amended by adding Subsection (c) to read as follows:
326	326	(c) A person who sells, offers for sale, or distributes a
327	327	consumable hemp product that the person claims is made in this state
328	328	commits a false, misleading, or deceptive act or practice
329	329	actionable under Subchapter E, Chapter 17, Business & Commerce
330	330	Code, if the product contains any hemp that was not grown and
331	331	processed in this state by license holders under Chapter 122,
332	332	Agriculture Code and Chapter 443, Health and Safety Code.
333	333	SECTION 20. Section 122.403, Agriculture Code, as amended
334	334	by this Act, and Section 122.4035, Agriculture Code, as added by
335	335	this Act, apply only to conduct that occurs on or after the
336	336	effective date of this Act. Conduct that occurred before that date
337	337	is governed by the law in effect when the conduct occurred, and the
338	338	former law is continued in effect for that purpose.
339	339	SECTION 21. This Act takes effect September 1, 2021.