Texas 2023 - 88th Regular

Texas House Bill HB2818 Compare Versions

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1	1	By: Cain, Rosenthal, King of Uvalde, Toth, H.B. No. 2818
2	2	Bernal, et al.
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; providing an
8	8	administrative penalty; requiring a permit to conduct certain
9	9	research involving hemp; authorizing a fee; creating a criminal
10	10	offense.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 41.002(1), Agriculture Code, is amended
13	13	to read as follows:
14	14	(1) "Agricultural commodity" means an agricultural,
15	15	horticultural, viticultural, or vegetable product, bees and honey,
16	16	planting seed, rice, hemp, livestock or livestock product, or
17	17	poultry or poultry product, produced in this state, either in its
18	18	natural state or as processed by the producer. The term does not
19	19	include flax.
20	20	SECTION 2. Section 121.003, Agriculture Code, is amended by
21	21	adding Subsection (e) to read as follows:
22	22	(e) Not later than the 120th day after the date a change to a
23	23	state statute, federal statute, or federal regulation takes effect,
24	24	the department shall submit to the secretary of the United States
25	25	Department of Agriculture any amendments to the state plan
26	26	necessary to incorporate and implement the change.
27	27	SECTION 3. Section 122.001, Agriculture Code, is amended by
28	28	amending Subdivision (5) and adding Subdivision (8-a) to read as
29	29	follows:
30	30	(5) "Institution of higher education" and "private or
31	31	independent institution of higher education" have [has] the
32	32	meanings [meaning] assigned by Section 61.003, Education Code.
33	33	(8-a) "Nonprofit research entity" means a research
34	34	entity that is a nonprofit corporation, nonprofit association, or
35	35	other entity that is organized solely for one or more of the
36	36	purposes specified by Section 2.002, Business Organizations Code.
37	37	SECTION 4. Subchapter A, Chapter 122, Agriculture Code, is
38	38	amended by adding Section 122.005 to read as follows:
39	39	Sec. 122.005. HEMP RESEARCH PERMIT. (a) The department
40	40	shall issue a hemp research permit to an institution of higher
41	41	education, private or independent institution of higher education,
42	42	or nonprofit research entity in this state that requests the
43	43	permit. The entity must submit to the department a fee in an amount
44	44	equal to the application fee for a license, as provided by Section
45	45	122.052.
46	46	(b) Notwithstanding any provision of this chapter or
47	47	department rule other than Subsection (c), a hemp research permit
48	48	holder:
49	49	(1) is not required to obtain from the department a lot
50	50	crop permit or other permit for each location where hemp is grown;
51	51	(2) is not required to obtain preharvest testing under
52	52	Section 122.153 before harvesting plants, except as provided by
53	53	Subsection (c);
54	54	(3) may cultivate and handle varieties of hemp seed
55	55	and plants that are not certified or approved under Section
56	56	122.252;
57	57	(4) may collect and research feral hemp; and
58	58	(5) is not subject to Section 122.403(c) or (d).
59	59	(c) A hemp research permit holder may only sell or transfer
60	60	hemp to another person if the variety of the hemp is certified or
61	61	approved under Section 122.252 and the sale or transfer occurs at
62	62	least six months after the hemp is harvested.
63	63	(d) A hemp research permit holder may conduct research
64	64	involving hemp in conjunction with a license holder at a facility
65	65	designated by the license holder for research use only.
66	66	(e) Subsections (b) and (c) apply to a license holder and
67	67	facility described by Subsection (d).
68	68	SECTION 5. Section 122.051, Agriculture Code, is amended by
69	69	adding Subsections (c) and (d) to read as follows:
70	70	(c) Not later than the 90th day after the date a change to
71	71	this chapter, a federal statute, or a federal regulation takes
72	72	effect, the department shall propose any rules necessary to
73	73	incorporate and implement the change.
74	74	(d) This chapter, Chapter 121, and any rule adopted by the
75	75	department to incorporate or implement a federal statute or federal
76	76	regulation may not be construed in a manner that is inconsistent
77	77	with 7 U.S.C. Chapter 38, Subchapter VII, or any other applicable
78	78	federal law or rule.
79	79	SECTION 6. Section 122.055, Agriculture Code, is amended by
80	80	adding Subsection (c-1) to read as follows:
81	81	(c-1) The department by rule may adopt a different shipping
82	82	certificate, cargo manifest, or other requirement for the shipment
83	83	or transportation of a sample of hemp to:
84	84	(1) a testing laboratory; or
85	85	(2) another destination if the sample contains not
86	86	more than an amount of hemp as determined by the department by rule
87	87	and is accompanied by the results of a laboratory test indicating
88	88	the delta-9 tetrahydrocannabinol concentration of the lot or plot
89	89	from which the sample was taken.
90	90	SECTION 7. Section 122.102, Agriculture Code, is amended to
91	91	read as follows:
92	92	Sec. 122.102. LICENSE AND HEMP RESEARCH PERMIT
93	93	INELIGIBILITY. (a) An individual who is or has been convicted of a
94	94	felony relating to a controlled substance under federal law or the
95	95	law of any state may not, before the 10th anniversary of the date of
96	96	the conviction:
97	97	(1) hold a license under this subchapter or a hemp
98	98	research permit under Subchapter A; or
99	99	(2) be a governing person of a business entity or
100	100	nonprofit research entity that holds a license under this
101	101	subchapter or a hemp research permit under Subchapter A.
102	102	(b) The department may not issue a license under this
103	103	subchapter or a hemp research permit under Subchapter A to a person
104	104	who materially falsifies any information contained in an
105	105	application submitted to the department under Section 122.005 or
106	106	122.103.
107	107	SECTION 8. Section 122.151, Agriculture Code, is amended by
108	108	adding Subsection (g) to read as follows:
109	109	(g) A laboratory that performs testing required by this
110	110	chapter shall report the delta-9 tetrahydrocannabinol
111	111	concentration, the total tetrahydrocannabinol concentration, and
112	112	the concentration of any other cannabinoid federally regulated
113	113	under 7 U.S.C. Chapter 38, Subchapter VII, of the sample on a dry
114	114	weight basis and the measurement of uncertainty in the test result.
115	115	The measurement of uncertainty must comply with International
116	116	Organization for Standardization ISO/IEC 17025 or a comparable or
117	117	successor standard and any provisions of federal law governing the
118	118	measurement of uncertainty.
119	119	SECTION 9. Subchapter E, Chapter 122, Agriculture Code, is
120	120	amended by adding Section 122.203 to read as follows:
121	121	Sec. 122.203. HARVEST WHILE LICENSE SUSPENDED OR REVOKED.
122	122	(a) A person whose license is suspended or revoked after planting
123	123	hemp plants may obtain preharvest or postharvest testing under
124	124	Subchapter D and may harvest the plants under Section 122.201 in the
125	125	same manner as a license holder.
126	126	(b) The department by rule shall establish fair and
127	127	objective standards for determining whether a person whose license
128	128	is suspended or revoked may use or sell plants harvested under
129	129	Subsection (a), based on the circumstances of the suspension or
130	130	revocation. Based on those rules, the department may prohibit a
131	131	person from selling or using plants harvested under Subsection (a)
132	132	while the person's license is suspended or revoked.
133	133	(c) A person whose license is reinstated may sell or use
134	134	plants harvested under Subsection (a) as provided by Section
135	135	122.202.
136	136	SECTION 10. The heading to Subchapter F, Chapter 122,
137	137	Agriculture Code, is amended to read as follows:
138	138	SUBCHAPTER F. HEMP SEED AND PLANTS
139	139	SECTION 11. Section 122.252, Agriculture Code, is amended
140	140	to read as follows:
141	141	Sec. 122.252. CERTIFICATION OR APPROVAL OF SEED AND PLANT
142	142	VARIETIES. (a) Subject to Subsection (b), the [The] department or
143	143	an entity authorized to certify seed and plants under Chapter 62
144	144	shall identify and certify or approve varieties of seed and plants
145	145	confirmed to produce hemp.
146	146	(b) The department or entity may not certify or approve a
147	147	variety of hemp seed or plant if the variety [seed] is tested and
148	148	confirmed to produce a plant that has delta-9 tetrahydrocannabinol
149	149	concentration of more than 0.3 percent on a dry weight basis. For
150	150	purposes of this subsection, the department may partner with a
151	151	private entity or an institution of higher education to test seed
152	152	and plant varieties for the purpose of certification or approval
153	153	under this section.
154	154	(c) The department may authorize the importation of hemp
155	155	seed and plant varieties certified in accordance with the law of
156	156	another state or jurisdiction that requires as a condition of
157	157	certification that hemp be produced in compliance with:
158	158	(1) that state or jurisdiction's plan approved by the
159	159	United States Department of Agriculture under 7 U.S.C. Section
160	160	1639p; or
161	161	(2) a plan established under 7 U.S.C. Section 1639q if
162	162	that plan applies in the state or jurisdiction.
163	163	(d) The department shall maintain and make available to
164	164	license holders a list of hemp seed and plant varieties [seeds]
165	165	certified or approved under this section.
166	166	SECTION 12. Subchapter F, Chapter 122, Agriculture Code, is
167	167	amended by adding Section 122.254 to read as follows:
168	168	Sec. 122.254. SEEDLINGS AND OTHER IMMATURE PLANTS. (a) A
169	169	person may transport into this state, and a license holder may
170	170	obtain and cultivate, immature plants propagated outside this state
171	171	if the plants are accompanied by shipping documentation that:
172	172	(1) complies with any requirements of the state of
173	173	origin;
174	174	(2) indicates the grower of the immature plants is
175	175	licensed by the state of origin;
176	176	(3) lists the recipient license holder in this state
177	177	and the recipient's license number; and
178	178	(4) shows that the variety of the immature plants is
179	179	certified or approved under Section 122.252.
180	180	(b) A license holder may obtain and cultivate immature
181	181	plants propagated in this state by another license holder if the
182	182	plants are accompanied by the shipping certificate or cargo
183	183	manifest required by Section 122.055 that shows that the variety of
184	184	the immature plants is certified or approved under Section 122.252.
185	185	The immature plants are not subject to preharvest testing under
186	186	Section 122.153. The license holder shall maintain records, as
187	187	required by the department, that match the lot crop permit number
188	188	issued by the department for the location where the immature plants
189	189	were propagated with the lot crop number for the location where the
190	190	plants were cultivated.
191	191	(c) A license holder may transplant immature plants
192	192	propagated by the license holder from one plot to another plot
193	193	controlled by the license holder. The department by rule shall
194	194	waive the requirement that a license holder obtain a lot crop permit
195	195	for and may not require a license holder to pay any fee for a
196	196	greenhouse or other location used to propagate immature plants if
197	197	the plants are transplanted to another plot controlled by the
198	198	license holder and are not sold or transferred to another person.
199	199	The department by rule may waive the requirement that a person
200	200	obtain a shipping certificate or cargo manifest to transplant
201	201	immature plants from one plot to another plot operated by the
202	202	license holder.
203	203	(d) The department by rule shall define "immature plant."
204	204	SECTION 13. Section 122.403, Agriculture Code, is amended
205	205	by amending Subsection (a) and adding Subsection (e) to read as
206	206	follows:
207	207	(a) If the department determines that a license holder
208	208	negligently violated this chapter or a rule adopted under this
209	209	chapter, the department shall enforce the violation in the manner
210	210	provided by 7 U.S.C. Section 1639p(e) and 7 C.F.R. Section 990.6.
211	211	(e) A license holder is not subject to more than one
212	212	negligent violation related to cultivation per calendar year.
213	213	SECTION 14. Subchapter I, Chapter 122, Agriculture Code, is
214	214	amended by adding Sections 122.4034 and 122.4035 to read as
215	215	follows:
216	216	Sec. 122.4034. ADMINISTRATIVE PENALTY FOR CULTIVATING HEMP
217	217	WITHOUT A LICENSE. On determining that a person violated Section
218	218	122.101, the department may:
219	219	(1) issue a written warning to the person;
220	220	(2) impose an administrative penalty in the amount of
221	221	$500; and
222	222	(3) require the person to obtain a license.
223	223	Sec. 122.4035. PENALTY FOR CULTIVATING HEMP WITHOUT A
224	224	LICENSE; CRIMINAL OFFENSE. (a) A person commits an offense if the
225	225	person:
226	226	(1) violates Section 122.101; and
227	227	(2) has received an administrative penalty under
228	228	Section 122.4034 for a previous violation of Section 122.101.
229	229	(b) An offense under this section is a Class C misdemeanor,
230	230	except that the offense is:
231	231	(1) a Class B misdemeanor if it is shown on the trial
232	232	of the offense that the person has previously been convicted one
233	233	time of an offense under this section; and
234	234	(2) a Class A misdemeanor if it is shown on the trial
235	235	of the offense that the person has previously been convicted two or
236	236	more times of an offense under this section.
237	237	SECTION 15. Section 122.403, Agriculture Code, as amended
238	238	by this Act, and Sections 122.4034 and 122.4035, Agriculture Code,
239	239	as added by this Act, apply only to conduct that occurs on or after
240	240	the effective date of this Act. Conduct that occurred before that
241	241	date is governed by the law in effect when the conduct occurred, and
242	242	the former law is continued in effect for that purpose.
243	243	SECTION 16. This Act takes effect September 1, 2023.