88R451 BEF-D
By: Klick H.B. No. 4238
A BILL TO BE ENTITLED
AN ACT
relating to the production, sale, distribution, delivery, and
regulation of consumable hemp products.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 443, Health and Safety
Code, is amended by adding Sections 443.005 and 443.006 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.
Sec. 443.006. TETRAHYDROCANNABINOL CONTENT. (a)
Notwithstanding any other law, a person may not manufacture, sell,
or purchase a consumable hemp product in this state:
(1) that has a delta-9 tetrahydrocannabinol
concentration of more than 0.3 percent on a dry weight basis;
(2) that contains synthetically derived
tetrahydrocannabinols, as defined by department rule, including
synthetically derived acids, isomers, or salts of
tetrahydrocannabinol;
(3) that exceeds any federal limit for
tetrahydrocannabinol; or
(4) if additional tetrahydrocannabinol in a
concentration greater than 0.3 percent on a dry weight basis has
been applied to the product.
(b) Chapter 481 prevails to the extent of any conflict with
this section.
SECTION 2. 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 3. Subchapter C, Chapter 443, Health and Safety
Code, is amended by adding Section 443.106 to read as follows:
Sec. 443.106. EXPEDITED LICENSING PROCESS. The department
by rule may provide an expedited licensing process for the
purchaser of a business that requires a license.
SECTION 4. 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 5. 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 6. Section 443.2025, Health and Safety Code, is
amended by amending Subsections (b), (d), and (f) and adding
Subsection (d-1) to read as follows:
(b) A person may not sell or distribute consumable hemp
products containing cannabinoids to consumers [cannabidiol at
retail] in this state, other than products generally recognized as
safe by the United States Food and Drug Administration, unless the
person registers with the department each location owned, operated,
or controlled by the person at which those products are sold. A
person is not required to register a location associated with an
employee or independent contractor described by Subsection (d).
(d) A person is not required to register with the department
under Subsection (b) if the person is:
(1) an employee of a registrant; or
(2) an independent contractor of a registrant who
sells the registrant's products to consumers [at retail].
(d-1) A person is required to register with the department
under Subsection (b) if the person, as an employee or independent
contractor of a person located outside this state who is not a
registrant, sells or distributes products covered by Subsection (b)
in this state.
(f) The department by rule may adopt a registration fee
schedule that establishes reasonable fee amounts for the
registration of:
(1) a single location at which consumable hemp
products containing cannabinoids [cannabidiol] are sold; and
(2) multiple locations at which consumable hemp
products containing cannabinoids [cannabidiol] are sold under a
single registration.
SECTION 7. Section 443.203, Health and Safety Code, is
amended by adding Subsection (c) to read as follows:
(c) A person who sells, offers for sale, or distributes a
consumable hemp product commits a false, misleading, or deceptive
act or practice actionable under Subchapter E, Chapter 17, Business &
Commerce Code, if the person claims the product is made in this
state and less than 75 percent of the hemp contained in the product
was:
(1) grown in this state by a person who holds a license
under Chapter 122, Agriculture Code; and
(2) processed in this state by a person who holds a
license under this chapter.
SECTION 8. Section 443.205(a), Health and Safety Code, is
amended to read as follows:
(a) Before a consumable hemp product, including hemp plant
material, that contains or is marketed as containing more than
trace amounts of cannabinoids may be distributed or sold, the
product must be labeled in the manner provided by this section with
the following information:
(1) batch identification number;
(2) batch date;
(3) product name;
(4) a uniform resource locator (URL) that provides or
links to a certificate of analysis for the product or each
hemp-derived ingredient of the product;
(5) the name of the product's manufacturer; and
(6) a certification that the delta-9
tetrahydrocannabinol concentration of the product or each
hemp-derived ingredient of the product is not more than 0.3
percent.
SECTION 9. This Act takes effect September 1, 2023.