Texas 2023 - 88th Regular

Texas House Bill HB4238 Compare Versions

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1	1	88R451 BEF-D
2	2	By: Klick H.B. No. 4238
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the production, sale, distribution, delivery, and
8	8	regulation of consumable hemp products.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter A, Chapter 443, Health and Safety
11	11	Code, is amended by adding Sections 443.005 and 443.006 to read as
12	12	follows:
13	13	Sec. 443.005. CONSUMABLE HEMP PRODUCTS ACCOUNT. (a) The
14	14	consumable hemp products account is an account in the general
15	15	revenue fund administered by the department.
16	16	(b) The account consists of:
17	17	(1) appropriations of money to the account by the
18	18	legislature;
19	19	(2) public or private gifts, grants, or donations,
20	20	including federal funds, received for the account;
21	21	(3) fees collected under this chapter or under Chapter
22	22	431 as it applies to consumable hemp products;
23	23	(4) interest and income earned on the investment of
24	24	money in the account;
25	25	(5) penalties for violations of this chapter or
26	26	Chapter 431 as it applies to consumable hemp products; and
27	27	(6) funds from any other source deposited in the
28	28	account.
29	29	(c) The department may accept appropriations and gifts,
30	30	grants, or donations from any source to administer and enforce this
31	31	chapter and Chapter 431 as it applies to consumable hemp products.
32	32	Money received under this subsection shall be deposited in the
33	33	account.
34	34	(d) Money in the account may be appropriated only to the
35	35	department for the administration and enforcement of this chapter
36	36	and Chapter 431 as it applies to consumable hemp products.
37	37	Sec. 443.006. TETRAHYDROCANNABINOL CONTENT. (a)
38	38	Notwithstanding any other law, a person may not manufacture, sell,
39	39	or purchase a consumable hemp product in this state:
40	40	(1) that has a delta-9 tetrahydrocannabinol
41	41	concentration of more than 0.3 percent on a dry weight basis;
42	42	(2) that contains synthetically derived
43	43	tetrahydrocannabinols, as defined by department rule, including
44	44	synthetically derived acids, isomers, or salts of
45	45	tetrahydrocannabinol;
46	46	(3) that exceeds any federal limit for
47	47	tetrahydrocannabinol; or
48	48	(4) if additional tetrahydrocannabinol in a
49	49	concentration greater than 0.3 percent on a dry weight basis has
50	50	been applied to the product.
51	51	(b) Chapter 481 prevails to the extent of any conflict with
52	52	this section.
53	53	SECTION 2. Section 443.103, Health and Safety Code, is
54	54	amended to read as follows:
55	55	Sec. 443.103. APPLICATION; ISSUANCE. An individual or
56	56	establishment may apply for a license under this subchapter by
57	57	submitting an application to the department on a form and in the
58	58	manner prescribed by the department. The application must be
59	59	accompanied by:
60	60	(1) the physical address [a legal description] of each
61	61	location where the applicant intends to process hemp or manufacture
62	62	consumable hemp products [and the global positioning system
63	63	coordinates for the perimeter of each location];
64	64	(2) written consent from the applicant or the property
65	65	owner if the applicant is not the property owner allowing the
66	66	department, the Department of Public Safety, and any other state or
67	67	local law enforcement agency to enter onto all premises where hemp
68	68	is processed or consumable hemp products are manufactured to
69	69	conduct a physical inspection or to ensure compliance with this
70	70	chapter and rules adopted under this chapter;
71	71	(3) any fees required by the department to be
72	72	submitted with the application; and
73	73	(4) any other information required by department rule.
74	74	SECTION 3. Subchapter C, Chapter 443, Health and Safety
75	75	Code, is amended by adding Section 443.106 to read as follows:
76	76	Sec. 443.106. EXPEDITED LICENSING PROCESS. The department
77	77	by rule may provide an expedited licensing process for the
78	78	purchaser of a business that requires a license.
79	79	SECTION 4. Section 443.152, Health and Safety Code, is
80	80	amended by adding Subsection (d) to read as follows:
81	81	(d) The executive commissioner by rule may exclude a
82	82	substance that is generally recognized as having no risk of
83	83	contaminating a finished consumable hemp product, including a
84	84	microorganism or other substance that is inevitably destroyed or
85	85	removed while processing or manufacturing the product, from the
86	86	testing required under Section 443.151.
87	87	SECTION 5. Section 443.201, Health and Safety Code, is
88	88	amended by adding Subsection (c) to read as follows:
89	89	(c) A person may transport and deliver a consumable hemp
90	90	product to a consumer who purchased the product in compliance with
91	91	this chapter. The person transporting and delivering the consumable
92	92	hemp product is not required to:
93	93	(1) obtain a license under Section 443.101, unless the
94	94	person processes or manufactures the product delivered; or
95	95	(2) register under Section 443.2025, unless the person
96	96	sells the product delivered.
97	97	SECTION 6. Section 443.2025, Health and Safety Code, is
98	98	amended by amending Subsections (b), (d), and (f) and adding
99	99	Subsection (d-1) to read as follows:
100	100	(b) A person may not sell or distribute consumable hemp
101	101	products containing cannabinoids to consumers [cannabidiol at
102	102	retail] in this state, other than products generally recognized as
103	103	safe by the United States Food and Drug Administration, unless the
104	104	person registers with the department each location owned, operated,
105	105	or controlled by the person at which those products are sold. A
106	106	person is not required to register a location associated with an
107	107	employee or independent contractor described by Subsection (d).
108	108	(d) A person is not required to register with the department
109	109	under Subsection (b) if the person is:
110	110	(1) an employee of a registrant; or
111	111	(2) an independent contractor of a registrant who
112	112	sells the registrant's products to consumers [at retail].
113	113	(d-1) A person is required to register with the department
114	114	under Subsection (b) if the person, as an employee or independent
115	115	contractor of a person located outside this state who is not a
116	116	registrant, sells or distributes products covered by Subsection (b)
117	117	in this state.
118	118	(f) The department by rule may adopt a registration fee
119	119	schedule that establishes reasonable fee amounts for the
120	120	registration of:
121	121	(1) a single location at which consumable hemp
122	122	products containing cannabinoids [cannabidiol] are sold; and
123	123	(2) multiple locations at which consumable hemp
124	124	products containing cannabinoids [cannabidiol] are sold under a
125	125	single registration.
126	126	SECTION 7. Section 443.203, Health and Safety Code, is
127	127	amended by adding Subsection (c) to read as follows:
128	128	(c) A person who sells, offers for sale, or distributes a
129	129	consumable hemp product commits a false, misleading, or deceptive
130	130	act or practice actionable under Subchapter E, Chapter 17, Business &
131	131	Commerce Code, if the person claims the product is made in this
132	132	state and less than 75 percent of the hemp contained in the product
133	133	was:
134	134	(1) grown in this state by a person who holds a license
135	135	under Chapter 122, Agriculture Code; and
136	136	(2) processed in this state by a person who holds a
137	137	license under this chapter.
138	138	SECTION 8. Section 443.205(a), Health and Safety Code, is
139	139	amended to read as follows:
140	140	(a) Before a consumable hemp product, including hemp plant
141	141	material, that contains or is marketed as containing more than
142	142	trace amounts of cannabinoids may be distributed or sold, the
143	143	product must be labeled in the manner provided by this section with
144	144	the following information:
145	145	(1) batch identification number;
146	146	(2) batch date;
147	147	(3) product name;
148	148	(4) a uniform resource locator (URL) that provides or
149	149	links to a certificate of analysis for the product or each
150	150	hemp-derived ingredient of the product;
151	151	(5) the name of the product's manufacturer; and
152	152	(6) a certification that the delta-9
153	153	tetrahydrocannabinol concentration of the product or each
154	154	hemp-derived ingredient of the product is not more than 0.3
155	155	percent.
156	156	SECTION 9. This Act takes effect September 1, 2023.