Texas 2023 - 88th Regular

Texas Senate Bill SB321 Compare Versions

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1	1	88R4638 MP-F
2	2	By: Perry S.B. No. 321
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
8	8	administrative penalties; creating a criminal offense.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 41.002(1), Agriculture Code, is amended
11	11	to read as follows:
12	12	(1) "Agricultural commodity" means an agricultural,
13	13	horticultural, viticultural, or vegetable product, bees and honey,
14	14	planting seed, rice, hemp, livestock or livestock product, or
15	15	poultry or poultry product, produced in this state, either in its
16	16	natural state or as processed by the producer. The term does not
17	17	include flax.
18	18	SECTION 2. Section 121.003, Agriculture Code, is amended by
19	19	adding Subsection (e) to read as follows:
20	20	(e) Not later than the 120th day after the date a change to a
21	21	state statute, federal statute, or federal regulation takes effect,
22	22	the department shall submit to the secretary of the United States
23	23	Department of Agriculture any amendments to the state plan
24	24	necessary to incorporate and implement the change.
25	25	SECTION 3. Section 122.001(5), Agriculture Code, is amended
26	26	to read as follows:
27	27	(5) "Institution of higher education" and "private or
28	28	independent institution of higher education" have [has] the
29	29	meanings [meaning] assigned by Section 61.003, Education Code.
30	30	SECTION 4. Subchapter A, Chapter 122, Agriculture Code, is
31	31	amended by adding Section 122.005 to read as follows:
32	32	Sec. 122.005. HEMP RESEARCH BY INSTITUTIONS OF HIGHER
33	33	EDUCATION. (a) The department shall issue a license to an
34	34	institution of higher education or private or independent
35	35	institution of higher education in this state that requests the
36	36	license.
37	37	(b) Notwithstanding any provision of this chapter or
38	38	department rule other than Subsection (c):
39	39	(1) an institution of higher education conducting
40	40	research involving hemp is not required to pay a fee collected by
41	41	the department under this chapter; and
42	42	(2) an institution of higher education or private or
43	43	independent institution of higher education conducting research
44	44	involving hemp:
45	45	(A) is not required to obtain from the department
46	46	a lot crop permit or other permit for each location where hemp is
47	47	grown;
48	48	(B) is not required to obtain preharvest testing
49	49	under Section 122.153 before harvesting plants, except as provided
50	50	by Subsection (c);
51	51	(C) may cultivate and handle varieties of hemp
52	52	seed and plants that are not certified or approved under Section
53	53	122.252;
54	54	(D) may collect and research feral hemp; and
55	55	(E) is not subject to Section 122.403(c) or (d).
56	56	(c) An institution of higher education or private or
57	57	independent institution of higher education may not sell or
58	58	transfer hemp to another person unless the institution complies
59	59	with the requirements of Sections 122.153 and 122.356.
60	60	(d) An institution of higher education or private or
61	61	independent institution of higher education may conduct research
62	62	involving hemp in conjunction with a license holder at a facility
63	63	designated by the license holder for research use only.
64	64	(e) Subsections (b)(2) and (c) apply to a license holder and
65	65	facility described by Subsection (d).
66	66	SECTION 5. Section 122.051, Agriculture Code, is amended by
67	67	adding Subsection (c) to read as follows:
68	68	(c) Not later than the 90th day after the date a change to
69	69	this chapter, a federal statute, or a federal regulation takes
70	70	effect, the department shall propose any rules necessary to
71	71	incorporate and implement the change.
72	72	SECTION 6. Section 122.055, Agriculture Code, is amended by
73	73	adding Subsection (c-1) to read as follows:
74	74	(c-1) The department by rule may adopt a different shipping
75	75	certificate, cargo manifest, or other requirement for the shipment
76	76	or transportation of a sample of hemp to:
77	77	(1) a testing laboratory; or
78	78	(2) another destination if the sample contains not
79	79	more than 15 grams of hemp and is accompanied by the results of a
80	80	laboratory test indicating the delta-9 tetrahydrocannabinol
81	81	concentration of the lot or plot from which the sample was taken.
82	82	SECTION 7. Section 122.151, Agriculture Code, is amended by
83	83	adding Subsection (g) to read as follows:
84	84	(g) A laboratory that performs testing required by this
85	85	chapter shall report the delta-9 tetrahydrocannabinol
86	86	concentration, the total tetrahydrocannabinol concentration, and
87	87	the concentration of any other federally regulated cannabinoid of
88	88	the sample on a dry weight basis and the measurement of uncertainty
89	89	in the test result. The measurement of uncertainty must comply with
90	90	International Organization for Standardization ISO/IEC 17025 or a
91	91	comparable or successor standard and any provisions of federal law
92	92	governing the measurement of uncertainty. For purposes of this
93	93	chapter, the delta-9 tetrahydrocannabinol concentration of the
94	94	sample is the lowest possible value given that measurement of
95	95	uncertainty.
96	96	SECTION 8. Section 122.202, Agriculture Code, is amended by
97	97	adding Subsection (c) to read as follows:
98	98	(c) The delta-9 tetrahydrocannabinol concentration shall be
99	99	determined as provided by Section 122.151(g).
100	100	SECTION 9. Subchapter E, Chapter 122, Agriculture Code, is
101	101	amended by adding Section 122.203 to read as follows:
102	102	Sec. 122.203. HARVEST WHILE LICENSE SUSPENDED OR REVOKED.
103	103	(a) A person whose license is suspended or revoked after planting
104	104	hemp plants may obtain preharvest or postharvest testing under
105	105	Subchapter D and may harvest the plants under Section 122.201 in the
106	106	same manner as a license holder.
107	107	(b) The department by rule shall establish fair and
108	108	objective standards for determining whether a person whose license
109	109	is suspended or revoked may use or sell plants harvested under
110	110	Subsection (a), based on the circumstances of the suspension or
111	111	revocation. Based on those rules, the department shall:
112	112	(1) prohibit a person from selling or using plants
113	113	harvested under Subsection (a) while the person's license is
114	114	suspended or revoked; or
115	115	(2) if the delta-9 tetrahydrocannabinol concentration
116	116	of the plants is not more than 0.3 percent on a dry weight basis,
117	117	allow a person to sell or use plants harvested under Subsection (a)
118	118	in the same manner as a license holder under Section 122.202 while
119	119	the person's license is suspended or revoked.
120	120	(c) A person whose license is reinstated may sell or use
121	121	plants harvested under Subsection (a) as provided by Section
122	122	122.202.
123	123	SECTION 10. The heading to Subchapter F, Chapter 122,
124	124	Agriculture Code, is amended to read as follows:
125	125	SUBCHAPTER F. HEMP SEED AND PLANTS
126	126	SECTION 11. Section 122.252, Agriculture Code, is amended
127	127	to read as follows:
128	128	Sec. 122.252. CERTIFICATION OR APPROVAL OF SEED AND PLANT
129	129	VARIETIES. (a) Subject to Subsection (b), the [The] department or
130	130	an entity authorized to certify seed and plants under Chapter 62
131	131	shall identify and certify or approve varieties of seed and plants
132	132	confirmed to produce hemp.
133	133	(b) The department or entity may not certify or approve a
134	134	variety of hemp seed or plant if the variety [seed] is tested and
135	135	confirmed to produce a plant that has delta-9 tetrahydrocannabinol
136	136	concentration of more than 0.3 percent on a dry weight basis. For
137	137	purposes of this subsection, the department may partner with a
138	138	private entity or an institution of higher education to test seed
139	139	and plant varieties for the purpose of certification or approval
140	140	under this section.
141	141	(c) The department may authorize the importation of hemp
142	142	seed and plant varieties certified in accordance with the law of
143	143	another state or jurisdiction that requires as a condition of
144	144	certification that hemp be produced in compliance with:
145	145	(1) that state or jurisdiction's plan approved by the
146	146	United States Department of Agriculture under 7 U.S.C. Section
147	147	1639p; or
148	148	(2) a plan established under 7 U.S.C. Section 1639q if
149	149	that plan applies in the state or jurisdiction.
150	150	(d) The department shall maintain and make available to
151	151	license holders a list of hemp seed and plant varieties [seeds]
152	152	certified or approved under this section.
153	153	SECTION 12. Subchapter F, Chapter 122, Agriculture Code, is
154	154	amended by adding Section 122.254 to read as follows:
155	155	Sec. 122.254. SEEDLINGS AND OTHER IMMATURE PLANTS. (a) In
156	156	this section, "immature plant" means a hemp seedling, clone, or
157	157	cutting that is not flowering and requires substantial cultivation
158	158	and further growth before the beginning of the period under Section
159	159	122.201(a) when the plant may be harvested.
160	160	(b) A person may transport into this state, and a license
161	161	holder may obtain and cultivate, immature plants propagated outside
162	162	this state if the plants are accompanied by shipping documentation
163	163	that:
164	164	(1) complies with any requirements of the state of
165	165	origin;
166	166	(2) indicates the grower of the immature plants is
167	167	licensed by the state of origin;
168	168	(3) lists the recipient license holder in this state
169	169	and the recipient's license number; and
170	170	(4) shows that the variety of the immature plants is
171	171	certified or approved under Section 122.252.
172	172	(c) A license holder may obtain and cultivate immature
173	173	plants propagated in this state by another license holder if the
174	174	plants are accompanied by the shipping certificate or cargo
175	175	manifest required by Section 122.055 that shows that the variety of
176	176	the immature plants is certified or approved under Section 122.252.
177	177	The immature plants are not subject to preharvest testing under
178	178	Section 122.153. The license holder shall maintain records, as
179	179	required by the department, that match the lot crop permit number
180	180	issued by the department for the location where the immature plants
181	181	were propagated with the lot crop number for the location where the
182	182	plants were cultivated.
183	183	(d) A license holder may transplant immature plants
184	184	propagated by the license holder from one plot to another plot
185	185	controlled by the license holder. The department by rule shall
186	186	waive the requirement that a license holder obtain a lot crop permit
187	187	for and may not require a license holder to pay any fee for a
188	188	greenhouse or other location used to propagate immature plants if
189	189	the plants are transplanted to another plot controlled by the
190	190	license holder and are not sold or transferred to another person.
191	191	The department by rule may waive the requirement that a person
192	192	obtain a shipping certificate or cargo manifest to transplant
193	193	immature plants from one plot to another plot operated by the
194	194	license holder.
195	195	SECTION 13. Section 122.403, Agriculture Code, is amended
196	196	by amending Subsection (a) and adding Subsection (e) to read as
197	197	follows:
198	198	(a) If the department determines that a license holder
199	199	negligently violated this chapter or a rule adopted under this
200	200	chapter, the department shall enforce the violation in the manner
201	201	provided by 7 U.S.C. Section 1639p(e) and 7 C.F.R. Section 990.6.
202	202	(e) A license holder is not subject to more than one
203	203	negligent violation related to cultivation per calendar year.
204	204	SECTION 14. Subchapter I, Chapter 122, Agriculture Code, is
205	205	amended by adding Section 122.4035 to read as follows:
206	206	Sec. 122.4035. PENALTIES FOR CULTIVATING HEMP WITHOUT A
207	207	LICENSE; CRIMINAL OFFENSE. (a) On determining that a person
208	208	violated Section 122.101, the department may:
209	209	(1) if the person has not previously received a
210	210	penalty under this section:
211	211	(A) issue a written warning to the person;
212	212	(B) impose an administrative penalty in the
213	213	amount of $500;
214	214	(C) require the person to obtain a license; and
215	215	(D) allow the person to continue to cultivate or
216	216	handle the hemp plants that are the subject of the violation,
217	217	harvest those plants, and, after obtaining the license, sell or use
218	218	those plants as provided by Section 122.202;
219	219	(2) if the person has received a penalty under
220	220	Subdivision (1) for a previous violation but has not previously
221	221	received a penalty under this subdivision:
222	222	(A) issue a second written warning to the person;
223	223	(B) impose an administrative penalty in the
224	224	amount of $500;
225	225	(C) require the person to obtain a license;
226	226	(D) seize and dispose of the hemp plants that are
227	227	the subject of the violation; and
228	228	(E) require the person to reimburse the
229	229	department for reasonable costs of disposal under Paragraph (D);
230	230	and
231	231	(3) if the person has received a penalty under
232	232	Subdivision (2) or this subdivision for a previous violation:
233	233	(A) refer the matter to the appropriate
234	234	prosecuting attorney for criminal prosecution under Subsection
235	235	(b);
236	236	(B) seize and dispose of the hemp plants that are
237	237	the subject of the violation; and
238	238	(C) require the person to reimburse the
239	239	department for reasonable costs of disposal under Paragraph (B).
240	240	(b) A person commits an offense if the person:
241	241	(1) violates Section 122.101; and
242	242	(2) has received a penalty under Subsection (a)(2) for
243	243	a previous violation.
244	244	(c) An offense under Subsection (b) is a Class B
245	245	misdemeanor.
246	246	SECTION 15. Section 122.403, Agriculture Code, as amended
247	247	by this Act, and Section 122.4035, Agriculture Code, as added by
248	248	this Act, apply only to conduct that occurs on or after the
249	249	effective date of this Act. Conduct that occurred before that date
250	250	is governed by the law in effect when the conduct occurred, and the
251	251	former law is continued in effect for that purpose.
252	252	SECTION 16. This Act takes effect September 1, 2023.