Texas 2023 - 88th Regular

Texas House Bill HB4439 Compare Versions

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1	1	88R8983 MP-F
2	2	By: Moody H.B. No. 4439
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; creating a criminal
9	9	offense.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter A, Chapter 443, Health and Safety
12	12	Code, is amended by adding Section 443.005 to read as 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	SECTION 2. Section 443.103, Health and Safety Code, is
38	38	amended to read as follows:
39	39	Sec. 443.103. APPLICATION; ISSUANCE. An individual or
40	40	establishment may apply for a license under this subchapter by
41	41	submitting an application to the department on a form and in the
42	42	manner prescribed by the department. The application must be
43	43	accompanied by:
44	44	(1) the physical address [a legal description] of each
45	45	location where the applicant intends to process hemp or manufacture
46	46	consumable hemp products [and the global positioning system
47	47	coordinates for the perimeter of each location];
48	48	(2) written consent from the applicant or the property
49	49	owner if the applicant is not the property owner allowing the
50	50	department, the Department of Public Safety, and any other state or
51	51	local law enforcement agency to enter onto all premises where hemp
52	52	is processed or consumable hemp products are manufactured to
53	53	conduct a physical inspection or to ensure compliance with this
54	54	chapter and rules adopted under this chapter;
55	55	(3) any fees required by the department to be
56	56	submitted with the application; and
57	57	(4) any other information required by department rule.
58	58	SECTION 3. Subchapter C, Chapter 443, Health and Safety
59	59	Code, is amended by adding Section 443.106 to read as follows:
60	60	Sec. 443.106. EXPEDITED LICENSING PROCESS. The department
61	61	by rule may provide an expedited licensing process for the
62	62	purchaser of a business that requires a license.
63	63	SECTION 4. Section 443.151(c), Health and Safety Code, is
64	64	amended to read as follows:
65	65	(c) Before material extracted from hemp by processing is
66	66	sold as, offered for sale as, or incorporated into a consumable hemp
67	67	product, the material must be tested, as required by the executive
68	68	commissioner, to determine:
69	69	(1) the presence of harmful microorganisms; and
70	70	(2) the presence or quantity of:
71	71	(A) any residual solvents used in processing, if
72	72	applicable; [and]
73	73	(B) any synthetic cannabinoid; and
74	74	(C) any other substance prescribed by the
75	75	department.
76	76	SECTION 5. Section 443.152, Health and Safety Code, is
77	77	amended by adding Subsection (d) to read as follows:
78	78	(d) The executive commissioner by rule may exclude a
79	79	substance that is generally recognized as having no risk of
80	80	contaminating a finished consumable hemp product, including a
81	81	microorganism or other substance that is inevitably destroyed or
82	82	removed while processing or manufacturing the product, from the
83	83	testing required under Section 443.151.
84	84	SECTION 6. Section 443.201, Health and Safety Code, is
85	85	amended by adding Subsection (c) to read as follows:
86	86	(c) A person may transport and deliver a consumable hemp
87	87	product to a consumer who purchased the product in compliance with
88	88	this chapter. The person transporting and delivering the
89	89	consumable hemp product shall maintain at all times while the
90	90	consumable hemp product is in the person's possession a record
91	91	sufficient to demonstrate that the transaction complies with this
92	92	chapter. The person transporting and delivering the consumable
93	93	hemp product is not required to:
94	94	(1) obtain a license under Section 443.101, unless the
95	95	person processes or manufactures the product delivered; or
96	96	(2) register under Section 443.2025, unless the person
97	97	sells the product delivered.
98	98	SECTION 7. Section 443.2025, Health and Safety Code, is
99	99	amended by amending Subsections (b), (d), and (f) and adding
100	100	Subsection (d-1) to read as follows:
101	101	(b) A person may not sell or distribute consumable hemp
102	102	products [containing cannabidiol at retail] in this state, other
103	103	than products generally recognized as safe by the United States
104	104	Food and Drug Administration, unless the person registers with the
105	105	department each location owned, operated, or controlled by the
106	106	person at which those products are sold. A person is not required
107	107	to register a location associated with an employee or independent
108	108	contractor described by Subsection (d).
109	109	(d) Except as provided by Subsection (d-1), a [A] person is
110	110	not required to register with the department under Subsection (b)
111	111	if the person is:
112	112	(1) an employee of a registrant; or
113	113	(2) an independent contractor of a registrant who
114	114	sells the registrant's products to consumers [at retail].
115	115	(d-1) A person is required to register with the department
116	116	under Subsection (b) if the person, as an employee or independent
117	117	contractor of a person located outside this state who is not a
118	118	registrant, sells or distributes products covered by Subsection (b)
119	119	in this state.
120	120	(f) The department by rule may adopt a registration fee
121	121	schedule that establishes reasonable fee amounts for the
122	122	registration of:
123	123	(1) a single location at which consumable hemp
124	124	products [containing cannabidiol] are sold; and
125	125	(2) multiple locations at which consumable hemp
126	126	products [containing cannabidiol] are sold under a single
127	127	registration.
128	128	SECTION 8. Section 443.204, Health and Safety Code, is
129	129	amended to read as follows:
130	130	Sec. 443.204. RULES RELATED TO SALE OF CONSUMABLE HEMP
131	131	PRODUCTS. (a) Rules adopted by the executive commissioner
132	132	regulating the sale of consumable hemp products must to the extent
133	133	allowable by federal law reflect the following principles:
134	134	(1) hemp-derived cannabinoids, including cannabidiol,
135	135	are not considered controlled substances or adulterants;
136	136	(2) products containing one or more hemp-derived
137	137	cannabinoids, such as cannabidiol, intended for ingestion are
138	138	considered foods, not controlled substances or adulterated
139	139	products;
140	140	(3) consumable hemp products must be packaged and
141	141	labeled in the manner provided by Section 443.205; and
142	142	(4) the processing or manufacturing of a consumable
143	143	hemp product for smoking is prohibited.
144	144	(b) The department shall propose any rules necessary to
145	145	incorporate and implement a change to this chapter, a federal
146	146	statute, or a federal regulation not later than the 90th day after
147	147	the effective date of the change. The department may also adopt the
148	148	proposed rules as emergency rules. If a change to this chapter, a
149	149	federal statute, or a federal regulation creates a conflict with
150	150	department rules, the amended chapter, statute, or regulation
151	151	controls until the department's rules incorporating and
152	152	implementing the change take effect.
153	153	SECTION 9. Section 443.205(a), Health and Safety Code, is
154	154	amended to read as follows:
155	155	(a) Before a consumable hemp product, including hemp plant
156	156	material, that contains or is marketed as containing hemp-derived
157	157	[more than trace amounts of] cannabinoids may be distributed or
158	158	sold, the product must be:
159	159	(1) labeled in the manner provided by this subchapter,
160	160	including [section with] the following information:
161	161	(A) [(1)] batch or lot identification number;
162	162	(B) [(2)] batch or lot date;
163	163	(C) [(3)] product name;
164	164	(D) [(4)] a uniform resource locator (URL) that
165	165	provides or links to a certificate of analysis for the product or
166	166	each hemp-derived ingredient of the product;
167	167	(E) [(5)] the name of the product's
168	168	manufacturer; and
169	169	(F) [(6)] a certification that the delta-9
170	170	tetrahydrocannabinol concentration of the product or each
171	171	hemp-derived ingredient of the product is not more than 0.3
172	172	percent; and
173	173	(2) prepackaged or placed at the time of sale in
174	174	packaging or a container that is:
175	175	(A) tamper-evident;
176	176	(B) child-resistant; and
177	177	(C) if the product contains multiple servings or
178	178	consists of multiple products purchased in one transaction,
179	179	resealable in a manner that allows the child-resistant mechanism to
180	180	remain intact.
181	181	SECTION 10. Subchapter E, Chapter 443, Health and Safety
182	182	Code, is amended by adding Sections 443.2055, 443.2056, 443.208,
183	183	443.209, and 443.210 to read as follows:
184	184	Sec. 443.2055. CONSUMABLE HEMP PRODUCT AND PACKAGING THAT
185	185	IS ATTRACTIVE TO CHILDREN PROHIBITED. (a) An edible consumable
186	186	hemp product that contains or is marketed as containing
187	187	hemp-derived cannabinoids may not be in the shape of a human,
188	188	animal, fruit, or cartoon or in another shape that is attractive to
189	189	children.
190	190	(b) The packaging of an edible consumable hemp product that
191	191	contains or is marketed as containing hemp-derived cannabinoids may
192	192	not:
193	193	(1) be in the shape of a human, animal, fruit, or
194	194	cartoon or in another shape that is attractive to children; or
195	195	(2) depict an image of a human, animal, fruit, or
196	196	cartoon or another image that is attractive to children.
197	197	(c) In this section, a cartoon includes a depiction of an
198	198	object, person, animal, creature, or any similar caricature that:
199	199	(1) uses comically exaggerated features and
200	200	attributes;
201	201	(2) assigns human characteristics to animals, plants,
202	202	or other objects; or
203	203	(3) has unnatural or extra-human abilities, such as
204	204	imperviousness to pain or injury, x-ray vision, tunneling at very
205	205	high speeds, or transformation.
206	206	Sec. 443.2056. PACKAGING THAT IS MISLEADING PROHIBITED.
207	207	The packaging and labeling of consumable hemp products, including
208	208	hemp plant material, that contain or are marketed as containing
209	209	hemp-derived cannabinoids may not depict any statement, artwork, or
210	210	design that would likely mislead a person to believe the package
211	211	does not contain a hemp-derived cannabinoid.
212	212	Sec. 443.208. SALE OF CONSUMABLE HEMP PRODUCTS TO PERSONS
213	213	YOUNGER THAN 21 YEARS OF AGE PROHIBITED; PROOF OF AGE REQUIRED. (a)
214	214	A person commits an offense if the person, with criminal
215	215	negligence, sells a consumable hemp product, including hemp plant
216	216	material, that contains or is marketed as containing hemp-derived
217	217	cannabinoids, to a person who is younger than 21 years of age.
218	218	(b) An employee of the owner of a store in which consumable
219	219	hemp products, including hemp plant material, that contain or are
220	220	marketed as containing hemp-derived cannabinoids, are sold at
221	221	retail is criminally responsible and subject to prosecution for an
222	222	offense under this section that occurs in connection with a sale by
223	223	the employee.
224	224	(c) An offense under this section is a Class C misdemeanor.
225	225	(d) It is a defense to prosecution under Subsection (a) that
226	226	the person to whom the consumable hemp product was sold presented to
227	227	the defendant apparently valid proof of identification.
228	228	(e) A proof of identification satisfies the requirements of
229	229	Subsection (d) if it contains a physical description and photograph
230	230	consistent with the person's appearance, purports to establish that
231	231	the person is 21 years of age or older, and was issued by a
232	232	governmental agency. The proof of identification may include a
233	233	driver's license issued by this state or another state, a passport,
234	234	or an identification card issued by a state or the federal
235	235	government.
236	236	(f) It is an exception to the application of Subsection (a)
237	237	that the person to whom the consumable hemp product was sold is at
238	238	least 18 years of age and presented at the time of purchase a valid
239	239	military identification card of the United States military forces
240	240	or the state military forces.
241	241	(g) A person who owns, manages, or operates an Internet
242	242	website that contains an e-commerce platform on which consumable
243	243	hemp products, including hemp plant material, that contain or are
244	244	marketed as containing hemp-derived cannabinoids are sold at retail
245	245	or offered for retail sale must:
246	246	(1) require a consumer accessing the e-commerce
247	247	platform to state affirmatively that the person is at least 21 years
248	248	of age; and
249	249	(2) prior to completing a purchase on the e-commerce
250	250	platform, verify a consumer's age by:
251	251	(A) using a reliable online age verification
252	252	service; or
253	253	(B) obtaining and examining a copy of a valid
254	254	government-issued identification.
255	255	Sec. 443.209. SALE OF CERTAIN CONSUMABLE HEMP PRODUCTS TO
256	256	PERSONS YOUNGER THAN 21 YEARS OF AGE. (a) The department by rule
257	257	shall adopt a list of hemp-derived cannabinoids that are exempt
258	258	from the requirements of Sections 443.205(a)(2), 443.2055, and
259	259	443.208.
260	260	(b) The list adopted under Subsection (a):
261	261	(1) must include cannabidiol; and
262	262	(2) may include cannabinoid quantity thresholds.
263	263	(c) Notwithstanding Subsection (a), Sections
264	264	443.205(a)(2), 443.2055, and 443.208 apply to any consumable hemp
265	265	product that contains:
266	266	(1) a hemp-derived cannabinoid not included on the
267	267	list adopted under Subsection (a); or
268	268	(2) a quantity of a hemp-derived cannabinoid that
269	269	exceeds the applicable threshold established under Subsection
270	270	(b)(2).
271	271	Sec. 443.210. APPLICABILITY OF PENALTIES TO CERTAIN
272	272	RETAILERS. Notwithstanding another provision of this subchapter, a
273	273	retailer of consumable hemp products is not liable for a penalty
274	274	under this subchapter if the retailer proves by a preponderance of
275	275	the evidence that the violation was unintentional and due to the
276	276	retailer's good faith reliance on a representation made by a
277	277	manufacturer, processor, or distributor of consumable hemp
278	278	products.
279	279	SECTION 11. Notwithstanding any other law, a retailer may
280	280	possess, transport, or sell a consumable hemp product that becomes
281	281	part of the retailer's inventory before rules required to implement
282	282	the changes in law made by this Act become effective unless the
283	283	product:
284	284	(1) is unsafe for consumption based on the presence or
285	285	quantity of heavy metals, pesticides, harmful microorganisms, or
286	286	residual solvents; or
287	287	(2) has a delta-9 tetrahydrocannabinol concentration
288	288	that exceeds the concentration allowed by federal law for hemp.
289	289	SECTION 12. Not later than December 1, 2023, the Department
290	290	of State Health Services shall adopt the list of hemp-derived
291	291	cannabinoids that may be sold to persons younger than 21 years of
292	292	age as required by Section 443.209, Health and Safety Code, as added
293	293	by this Act.
294	294	SECTION 13. This Act takes effect September 1, 2023.