Texas 2025 - 89th Regular

Texas House Bill HB28 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R18934 CJD-F
2	2	By: King H.B. No. 28
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the regulation of consumable hemp products and
10	10	providing for the transfer of regulatory functions; requiring a
11	11	registration; imposing fees; creating criminal offenses; providing
12	12	an administrative penalty.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 443.001, Health and Safety Code, is
15	15	amended by amending Subdivision (1) and adding Subdivision (8-a) to
16	16	read as follows:
17	17	(1) "Consumable hemp product" means [food, a drug,] a
18	18	device[,] or a cosmetic, as those terms are defined by Section
19	19	431.002, that:
20	20	(A) contains hemp or one or more hemp-derived
21	21	cannabinoids; and
22	22	(B) does not contain any amount of a cannabinoid
23	23	other than cannabidiol, cannabigerol, or delta-9
24	24	tetrahydrocannabinol [, including cannabidiol].
25	25	(8-a) "Minor" means a person under 21 years of age.
26	26	SECTION 2. Subchapter A, Chapter 443, Health and Safety
27	27	Code, is amended by adding Section 443.0025 to read as follows:
28	28	Sec. 443.0025. LOW-THC CANNABIS. This chapter does not
29	29	apply to low-THC cannabis regulated under Chapter 487.
30	30	SECTION 3. Subchapter C, Chapter 443, Health and Safety
31	31	Code, is amended by adding Section 443.1035 to read as follows:
32	32	Sec. 443.1035. LICENSING FEES. (a) An applicant for a
33	33	license under this subchapter shall pay an initial licensing fee to
34	34	the department in the amount of $5,000 for each location where the
35	35	applicant intends to process hemp or manufacture a consumable hemp
36	36	product.
37	37	(b) Before the department may renew a license as provided by
38	38	Section 443.104, a license holder shall pay a renewal fee to the
39	39	department in the amount of $2,500 for each location where the
40	40	applicant intends to process hemp or manufacture a consumable hemp
41	41	product.
42	42	SECTION 4. Section 443.104(b), Health and Safety Code, is
43	43	amended to read as follows:
44	44	(b) The department shall renew a license if the license
45	45	holder:
46	46	(1) is not ineligible to hold the license under
47	47	Section 443.102;
48	48	(2) has not violated this chapter or a rule adopted
49	49	under this chapter;
50	50	(3) submits to the department any license renewal fee;
51	51	and
52	52	(4) [(3)] does not owe any outstanding fees to the
53	53	department.
54	54	SECTION 5. Subchapter C, Chapter 443, Health and Safety
55	55	Code, is amended by adding Section 443.106 to read as follows:
56	56	Sec. 443.106. MANUFACTURE OF CONSUMABLE HEMP PRODUCTS. (a)
57	57	A license holder may not manufacture a consumable hemp product that
58	58	contains any amount of a synthesized cannabinoid.
59	59	(b) Consumable hemp products must be produced using current
60	60	good manufacturing practices, as defined by executive commissioner
61	61	rule.
62	62	SECTION 6. Sections 443.151(a), (b), and (d), Health and
63	63	Safety Code, are amended to read as follows:
64	64	(a) A consumable hemp product must be tested as provided
65	65	by[:
66	66	[(1)] Subsections (b), [and] (c), and [; or
67	67	[(2) Subsection] (d).
68	68	(b) Before a hemp plant is processed or otherwise used in
69	69	the manufacture of a consumable hemp product, a sample representing
70	70	the plant must be tested, as required by the executive
71	71	commissioner, to determine:
72	72	(1) the concentration and identity of the [various]
73	73	cannabinoids in the plant; and
74	74	(2) the presence or quantity of heavy metals,
75	75	pesticides, microbial contamination, and any other substance
76	76	prescribed by the department.
77	77	(d) Before [Except as otherwise provided by Subsection (e),
78	78	before] a consumable hemp product is sold at retail or otherwise
79	79	introduced into commerce in this state, a sample representing the
80	80	hemp product must be tested:
81	81	(1) by a laboratory located in this state that is
82	82	accredited by an accreditation body in accordance with
83	83	International Organization for Standardization ISO/IEC 17025 or a
84	84	comparable or successor standard to determine the identity and
85	85	[delta-9 tetrahydrocannabinol] concentration of any cannabinoids
86	86	contained in the product; and
87	87	(2) by an appropriate laboratory to determine that the
88	88	product does not contain a substance described by Subsection (b)(2)
89	89	[(b)] or (c) in a quantity prohibited for purposes of those
90	90	subsections.
91	91	SECTION 7. Section 443.152(c), Health and Safety Code, is
92	92	amended to read as follows:
93	93	(c) A license holder shall make available to a seller of a
94	94	consumable hemp product processed or manufactured by the license
95	95	holder the results of testing required by Section 443.151. The
96	96	results may accompany a shipment to the seller or be made available
97	97	to the seller electronically. If the results are not able to be
98	98	made available, the seller may have the testing required under
99	99	Section 443.151 performed on the product and shall make the results
100	100	available to a consumer and the department.
101	101	SECTION 8. The heading to Section 443.2025, Health and
102	102	Safety Code, is amended to read as follows:
103	103	Sec. 443.2025. REGISTRATION REQUIRED FOR RETAILERS OF
104	104	CERTAIN CONSUMABLE HEMP PRODUCTS.
105	105	SECTION 9. Section 443.2025, Health and Safety Code, is
106	106	amended by amending Subsections (b), (d), (f), and (g) and adding
107	107	Subsections (h) and (i) to read as follows:
108	108	(b) A person may not sell consumable hemp products
109	109	containing a cannabinoid [cannabidiol] at retail in this state
110	110	unless the person registers with the department each location
111	111	owned, operated, or controlled by the person at which those
112	112	products are sold. A person is not required to register a location
113	113	associated with an employee [or independent contractor] described
114	114	by Subsection (d).
115	115	(d) A person is not required to register with the department
116	116	under Subsection (b) if the person is[:
117	117	[(1)] an employee of a registrant[; or
118	118	[(2) an independent contractor of a registrant who
119	119	sells the registrant's products at retail].
120	120	(f) The owner of a location at which consumable hemp
121	121	products are sold shall annually pay to the department a
122	122	registration fee in the amount of $2,000 for each location owned by
123	123	the person at which those products are sold [The department by rule
124	124	may adopt a registration fee schedule that establishes reasonable
125	125	fee amounts for the registration of:
126	126	[(1) a single location at which consumable hemp
127	127	products containing cannabidiol are sold; and
128	128	[(2) multiple locations at which consumable hemp
129	129	products containing cannabidiol are sold under a single
130	130	registration].
131	131	(g) The department shall adopt rules to:
132	132	(1) implement and administer this section; and
133	133	(2) require a person required to register under this
134	134	section to provide to the department information regarding the type
135	135	and concentration of each cannabinoid present in each consumable
136	136	hemp product offered for sale by the person.
137	137	(h) The department shall provide to the Department of Public
138	138	Safety the information provided to the department under Subsection
139	139	(g)(2).
140	140	(i) A person may not sell consumable hemp products unless
141	141	the person has provided to the department written consent from the
142	142	person or the property owner, if the person is not the property
143	143	owner, allowing the department, the Department of Public Safety,
144	144	and any other state or local law enforcement agency to enter onto
145	145	all premises where consumable hemp products are sold to conduct a
146	146	physical inspection or to ensure compliance with this chapter and
147	147	rules adopted under this chapter.
148	148	SECTION 10. Section 443.203, Health and Safety Code, is
149	149	amended to read as follows:
150	150	Sec. 443.203. DECEPTIVE TRADE PRACTICE. (a) A person who
151	151	sells, offers for sale, or distributes a consumable hemp product
152	152	[cannabinoid oil, including cannabidiol oil,] that the person
153	153	claims is processed or manufactured in compliance with this chapter
154	154	commits a false, misleading, or deceptive act or practice
155	155	actionable under Subchapter E, Chapter 17, Business & Commerce
156	156	Code, if the product [oil] is not processed or manufactured in
157	157	accordance with this chapter.
158	158	(b) A person who sells, offers for sale, or distributes a
159	159	consumable hemp product [cannabinoid oil] commits a false,
160	160	misleading, or deceptive act or practice actionable under
161	161	Subchapter E, Chapter 17, Business & Commerce Code, if [the oil]:
162	162	(1) the product contains harmful ingredients;
163	163	(2) the product is not produced in compliance with 7
164	164	U.S.C. Chapter 38, Subchapter VII; [or]
165	165	(3) the product's packaging or advertising indicates
166	166	that the product is for medical use; or
167	167	(4) the product has a delta-9 tetrahydrocannabinol
168	168	concentration of more than 0.3 percent or contains more than 10
169	169	milligrams of delta-9 tetrahydrocannabinol per serving of the
170	170	product.
171	171	SECTION 11. Section 443.205, Health and Safety Code, is
172	172	amended by amending Subsections (a) and (c) and adding Subsection
173	173	(c-1) to read as follows:
174	174	(a) Before a consumable hemp product that contains or is
175	175	marketed as containing [more than trace amounts of] cannabinoids
176	176	may be distributed or sold, the product must:
177	177	(1) be labeled in the manner provided by this
178	178	subchapter, including [section with] the following information:
179	179	(A) [(1)] batch identification number;
180	180	(B) [(2)] batch date;
181	181	(C) [(3)] product name;
182	182	(D) [(4)] a uniform resource locator (URL) that
183	183	provides or links to a certificate of analysis for the product or
184	184	each hemp-derived ingredient of the product;
185	185	(E) [(5)] the name of the product's
186	186	manufacturer;
187	187	(F) the amount of cannabidiol, cannabigerol, or
188	188	delta-9 tetrahydrocannabinol in each serving or unit of the
189	189	product; and
190	190	(G) [(6)] a certification that the delta-9
191	191	tetrahydrocannabinol concentration of the product [or each
192	192	hemp-derived ingredient of the product] is not more than 0.3
193	193	percent and that each serving of the product contains not more than
194	194	10 milligrams of delta-9 tetrahydrocannabinol;
195	195	(2) be prepackaged or placed at the time of sale in
196	196	packaging or a container that is:
197	197	(A) tamper-evident;
198	198	(B) child-resistant; and
199	199	(C) if the product contains multiple servings or
200	200	consists of multiple products purchased in one transaction,
201	201	resealable in a manner that allows the child-resistant mechanism to
202	202	remain intact; and
203	203	(3) bear a warning label that reads as follows:
204	204	"WARNING: Consumption of this product will result in a
205	205	positive drug test.".
206	206	(c) The label required by Subsection (a) must appear on the
207	207	outer packaging of each unit of the product intended for individual
208	208	retail sale. [If that unit includes inner and outer packaging, the
209	209	label may appear on any of that packaging.]
210	210	(c-1) If a container contains multiple servings of a
211	211	consumable hemp product, each serving must be individually packaged
212	212	within the container.
213	213	SECTION 12. Subchapter E, Chapter 443, Health and Safety
214	214	Code, is amended by adding Sections 443.2055 and 443.2056 to read as
215	215	follows:
216	216	Sec. 443.2055. OFFENSE: MARKETING OF CONSUMABLE HEMP
217	217	PRODUCT OR PACKAGING IN MANNER ATTRACTIVE TO MINORS. (a) A person
218	218	commits an offense if the person markets, advertises, sells, or
219	219	causes to be sold a consumable hemp product containing a
220	220	hemp-derived cannabinoid that:
221	221	(1) is in the shape of a human, animal, fruit, or
222	222	cartoon or in another shape that is attractive to children; or
223	223	(2) is in packaging or a container that:
224	224	(A) is in the shape of a human, animal, fruit, or
225	225	cartoon or in another shape that is attractive to children;
226	226	(B) depicts an image of a human, animal, fruit,
227	227	or cartoon or another image that is attractive to children;
228	228	(C) imitates or mimics trademarks or trade dress
229	229	of products that are or have been primarily marketed to minors;
230	230	(D) includes a symbol that is primarily used to
231	231	market products to minors;
232	232	(E) includes an image of a celebrity;
233	233	(F) includes an image that resembles a food
234	234	product, including candy or juice; or
235	235	(G) includes an image that resembles a hemp
236	236	flower.
237	237	(b) In this section, a cartoon includes a depiction of an
238	238	object, person, animal, creature, or any similar caricature that:
239	239	(1) uses comically exaggerated features and
240	240	attributes;
241	241	(2) assigns human characteristics to animals, plants,
242	242	or other objects; or
243	243	(3) has unnatural or extra-human abilities, such as
244	244	imperviousness to pain or injury, x-ray vision, tunneling at very
245	245	high speeds, or transformation.
246	246	(c) An offense under this section is a state jail felony.
247	247	Sec. 443.2056. OFFENSE: MISLEADING CONSUMABLE HEMP
248	248	PACKAGING. (a) A person commits an offense if the person sells or
249	249	offers for sale a consumable hemp product that contains or is
250	250	marketed as containing hemp-derived cannabinoids in a package that
251	251	depicts any statement, artwork, or design that would likely mislead
252	252	a person to believe:
253	253	(1) the package does not contain a hemp-derived
254	254	cannabinoid; or
255	255	(2) the product is intended for medical use, including
256	256	by depicting a green cross.
257	257	(b) An offense under this section is a Class A misdemeanor.
258	258	SECTION 13. Section 443.206, Health and Safety Code, is
259	259	amended to read as follows:
260	260	Sec. 443.206. RETAIL SALE OF OUT-OF-STATE CONSUMABLE HEMP
261	261	PRODUCTS. Retail sales of consumable hemp products processed or
262	262	manufactured outside of this state may be made in this state when
263	263	the products were processed or manufactured in another state or
264	264	jurisdiction if the products:
265	265	(1) were manufactured or processed in compliance with:
266	266	(A) [(1)] that state's [state] or jurisdiction's
267	267	plan approved by the United States Department of Agriculture under
268	268	7 U.S.C. Section 1639p;
269	269	(B) [(2)] a plan established under 7 U.S.C.
270	270	Section 1639q if that plan applies to the state or jurisdiction; or
271	271	(C) [(3)] the laws of that state or jurisdiction
272	272	if the products are tested in accordance with, or in a manner
273	273	similar to, Section 443.151;
274	274	(2) do not contain a concentration of delta-9
275	275	tetrahydrocannabinol in excess of 0.3 percent; and
276	276	(3) do not contain an amount of delta-9
277	277	tetrahydrocannabinol in excess of 10 milligrams in each serving.
278	278	SECTION 14. Subchapter E, Chapter 443, Health and Safety
279	279	Code, is amended by adding Section 443.208 to read as follows:
280	280	Sec. 443.208. MAXIMUM AMOUNT OF DELTA-9
281	281	TETRAHYDROCANNABINOL. (a) A license holder may not manufacture and
282	282	a person required to register under Section 443.2025 may not sell,
283	283	give, or cause to be sold or given a consumable hemp product that
284	284	contains more than 10 milligrams of delta-9 tetrahydrocannabinol in
285	285	a container.
286	286	(b) A person required to register under Section 443.2025 may
287	287	not sell, give, or cause to be sold or given consumable hemp
288	288	products with a total of more than 10 milligrams of delta-9
289	289	tetrahydrocannabinol per transaction.
290	290	SECTION 15. Chapter 443, Health and Safety Code, is amended
291	291	by adding Subchapters F, G, and H to read as follows:
292	292	SUBCHAPTER F. CRIMINAL OFFENSES
293	293	Sec. 443.251. OFFENSE: MANUFACTURE, DELIVERY, OR
294	294	POSSESSION WITH INTENT TO DELIVER OF CERTAIN CONSUMABLE HEMP
295	295	PRODUCTS. (a) A person commits an offense if the person knowingly
296	296	manufactures, delivers, or possesses with intent to deliver a
297	297	consumable hemp product that:
298	298	(1) has a delta-9 tetrahydrocannabinol concentration
299	299	of more than 0.3 percent; or
300	300	(2) contains more than 10 milligrams of delta-9
301	301	tetrahydrocannabinol in a container or more than 10 milligrams of
302	302	delta-9 tetrahydrocannabinol in each serving.
303	303	(b) An offense under this section is a felony of the third
304	304	degree.
305	305	(c) If conduct constituting an offense under this section
306	306	also constitutes an offense under another law, the actor may be
307	307	prosecuted under this section, the other law, or both.
308	308	Sec. 443.252. OFFENSE: POSSESSION OF CERTAIN CONSUMABLE
309	309	HEMP PRODUCTS. (a) A person commits an offense if the person
310	310	knowingly or intentionally possesses a consumable hemp product
311	311	that:
312	312	(1) has a delta-9 tetrahydrocannabinol concentration
313	313	of more than 0.3 percent; or
314	314	(2) contains more than 10 milligrams of delta-9
315	315	tetrahydrocannabinol in a container or more than 10 milligrams of
316	316	delta-9 tetrahydrocannabinol in each serving.
317	317	(b) An offense under this section is a Class A misdemeanor.
318	318	(c) If conduct constituting an offense under this section
319	319	also constitutes an offense under another law, the actor may be
320	320	prosecuted under this section, the other law, or both.
321	321	Sec. 443.253. OFFENSE: SALE OR DISTRIBUTION OF CERTAIN
322	322	CONSUMABLE HEMP PRODUCTS TO PERSONS YOUNGER THAN 21 YEARS OF AGE;
323	323	PROOF OF AGE REQUIRED. (a) A person commits an offense if the
324	324	person, with criminal negligence, sells a consumable hemp product
325	325	that contains or is marketed as containing hemp-derived
326	326	cannabinoids to a person who is younger than 21 years of age.
327	327	(b) An employee of the owner of a store in which consumable
328	328	hemp products that contain or are marketed as containing
329	329	hemp-derived cannabinoids are sold at retail is criminally
330	330	responsible and subject to prosecution for an offense under this
331	331	section that occurs in connection with a sale by the employee.
332	332	(c) An offense under this section is a Class A misdemeanor.
333	333	(d) It is a defense to prosecution under Subsection (a) that
334	334	the person to whom the consumable hemp product was sold presented to
335	335	the defendant apparently valid proof of identification.
336	336	(e) A proof of identification satisfies the requirements of
337	337	Subsection (d) if it contains a physical description and photograph
338	338	consistent with the person's appearance, purports to establish that
339	339	the person is 21 years of age or older, and was issued by a
340	340	governmental agency. The proof of identification may include a
341	341	driver's license issued by this state or another state, a passport,
342	342	or an identification card issued by a state or the federal
343	343	government.
344	344	(f) The owner of a store in which consumable hemp products
345	345	that contain or are marketed as containing hemp-derived
346	346	cannabinoids are sold, or an employee of the owner, may not display
347	347	consumable hemp products for sale adjacent to products that are
348	348	legal for children to consume.
349	349	Sec. 443.254. OFFENSE: MANUFACTURE, DISTRIBUTION, OR SALE
350	350	OF CONSUMABLE HEMP PRODUCTS FOR SMOKING OR INHALING. (a) A person
351	351	commits an offense if the person manufactures, distributes, sells,
352	352	or offers for sale a consumable hemp product for smoking or
353	353	inhaling.
354	354	(b) An offense under this section is a Class A misdemeanor.
355	355	Sec. 443.2545. OFFENSE: MANUFACTURE, DISTRIBUTION, OR SALE
356	356	OF EDIBLE CONSUMABLE HEMP PRODUCTS. (a) A person commits an
357	357	offense if the person manufactures, distributes, sells, or offers
358	358	for sale a consumable hemp product that is intended for eating,
359	359	including foods, gummies, and candies.
360	360	(b) An offense under this section is a Class A misdemeanor.
361	361	Sec. 443.255. OFFENSE: SALE OR DELIVERY OF CERTAIN
362	362	CONSUMABLE HEMP PRODUCTS NEAR SCHOOL. (a) In this section,
363	363	"school" and "premises" have the meanings assigned by Section
364	364	481.134.
365	365	(b) A person commits an offense if the person sells, offers
366	366	for sale, or delivers a consumable hemp product containing a
367	367	hemp-derived cannabinoid in, on, or within 1,000 feet of the
368	368	premises of a school.
369	369	(c) An offense under this section is a state jail felony.
370	370	Sec. 443.256. OFFENSE: PROVISION OF CERTAIN CONSUMABLE HEMP
371	371	PRODUCT BY COURIER, DELIVERY, OR MAIL SERVICE. (a) A person
372	372	commits an offense if the person provides a consumable hemp product
373	373	containing a hemp-derived cannabinoid by courier, delivery, or mail
374	374	service.
375	375	(b) An offense under this section is a Class A misdemeanor.
376	376	Sec. 443.257. OFFENSE: FALSE LABORATORY REPORT. (a) A
377	377	person commits an offense if the person, with the intent to deceive,
378	378	forges, falsifies, or alters the results of a laboratory test
379	379	authorized or required by this chapter.
380	380	(b) An offense under this section is a felony of the third
381	381	degree.
382	382	Sec. 443.258. OFFENSE: GROWING OR SELLING HEMP FLOWER. (a)
383	383	A person commits an offense if the person grows hemp flower or sells
384	384	or offers for sale hemp flower in a manner that is not approved by
385	385	executive commissioner rule.
386	386	(b) An offense under this section is a Class C misdemeanor.
387	387	SUBCHAPTER G. ADMINISTRATIVE ENFORCEMENT
388	388	Sec. 443.301. ENFORCEMENT BY DEPARTMENT. (a) The
389	389	department shall receive and investigate complaints concerning
390	390	violations of this chapter by:
391	391	(1) a license holder under Subchapter C; or
392	392	(2) a registrant under Section 443.2025.
393	393	(b) The department may revoke, suspend, or refuse to renew a
394	394	license or registration for a violation of this chapter or a rule
395	395	adopted under this chapter.
396	396	(c) The department may impose an administrative penalty in
397	397	an amount not to exceed $20,000 against a license holder or
398	398	registrant for each violation of this chapter or a rule adopted
399	399	under this chapter.
400	400	(d) A proceeding under this section is a contested case
401	401	under Chapter 2001, Government Code.
402	402	SUBCHAPTER H. MEMORANDUM OF UNDERSTANDING
403	403	Sec. 443.351. MEMORANDUM OF UNDERSTANDING FOR TRANSFER OF
404	404	REGULATORY FUNCTIONS. The department shall enter into a
405	405	memorandum of understanding with the Texas Alcoholic Beverage
406	406	Commission regarding:
407	407	(1) the transfer of certain regulatory functions for
408	408	consumable hemp products from the department to the Texas Alcoholic
409	409	Beverage Commission;
410	410	(2) changing the licensing structure for consumable
411	411	hemp products to a three-tiered structure that includes
412	412	manufacturers, wholesalers, and retailers;
413	413	(3) the locations at which consumable hemp products
414	414	may be sold, including locations for the on-premises consumption of
415	415	consumable hemp products;
416	416	(4) the regulation of locations described by
417	417	Subdivision (3), including any signage required for informing
418	418	consumers;
419	419	(5) the amount of fees to charge permittees or
420	420	licensees;
421	421	(6) the funding mechanism for a consumable hemp
422	422	regulatory scheme, including the taxation of consumable hemp and
423	423	the disposition of those taxes;
424	424	(7) the regulation of synthetic cannabinoids;
425	425	(8) regulating the retail sale of hemp flower;
426	426	(9) the creation of open container laws for consumable
427	427	hemp products;
428	428	(10) the certification of testing facilities;
429	429	(11) regulating the mixing of consumable hemp products
430	430	with alcohol or caffeine; and
431	431	(12) the packaging and labeling of consumable hemp
432	432	products.
433	433	SECTION 16. The following provisions of the Health and
434	434	Safety Code are repealed:
435	435	(1) Section 443.151(e);
436	436	(2) Section 443.201;
437	437	(3) Sections 443.202(a) and 443.2025(a) and (c); and
438	438	(4) Section 443.204.
439	439	SECTION 17. As soon as practicable after the effective date
440	440	of this Act, the Department of State Health Services shall adopt the
441	441	rules required by Section 443.2025(g), Health and Safety Code, as
442	442	amended by this Act.
443	443	SECTION 18. The changes in law made by this Act apply to the
444	444	manufacture, sale, delivery, or possession of a consumable hemp
445	445	product that occurs on or after the effective date of this Act. The
446	446	manufacture, sale, delivery, or possession of a consumable hemp
447	447	product that occurs before the effective date of this Act is
448	448	governed by the law in effect on the date the manufacture, sale,
449	449	delivery, or possession occurred, and the former law is continued
450	450	in effect for that purpose.
451	451	SECTION 19. This Act takes effect January 1, 2026.