89R18934 CJD-F
By: King H.B. No. 28
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of consumable hemp products and
providing for the transfer of regulatory functions; requiring a
registration; imposing fees; creating criminal offenses; providing
an administrative penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 443.001, Health and Safety Code, is
amended by amending Subdivision (1) and adding Subdivision (8-a) to
read as follows:
(1) "Consumable hemp product" means [food, a drug,] a
device[,] or a cosmetic, as those terms are defined by Section
431.002, that:
(A) contains hemp or one or more hemp-derived
cannabinoids; and
(B) does not contain any amount of a cannabinoid
other than cannabidiol, cannabigerol, or delta-9
tetrahydrocannabinol [, including cannabidiol].
(8-a) "Minor" means a person under 21 years of age.
SECTION 2. Subchapter A, Chapter 443, Health and Safety
Code, is amended by adding Section 443.0025 to read as follows:
Sec. 443.0025. LOW-THC CANNABIS. This chapter does not
apply to low-THC cannabis regulated under Chapter 487.
SECTION 3. Subchapter C, Chapter 443, Health and Safety
Code, is amended by adding Section 443.1035 to read as follows:
Sec. 443.1035. LICENSING FEES. (a) An applicant for a
license under this subchapter shall pay an initial licensing fee to
the department in the amount of $5,000 for each location where the
applicant intends to process hemp or manufacture a consumable hemp
product.
(b) Before the department may renew a license as provided by
Section 443.104, a license holder shall pay a renewal fee to the
department in the amount of $2,500 for each location where the
applicant intends to process hemp or manufacture a consumable hemp
product.
SECTION 4. Section 443.104(b), Health and Safety Code, is
amended to read as follows:
(b) The department shall renew a license if the license
holder:
(1) is not ineligible to hold the license under
Section 443.102;
(2) has not violated this chapter or a rule adopted
under this chapter;
(3) submits to the department any license renewal fee;
and
(4) [(3)] does not owe any outstanding fees to the
department.
SECTION 5. Subchapter C, Chapter 443, Health and Safety
Code, is amended by adding Section 443.106 to read as follows:
Sec. 443.106. MANUFACTURE OF CONSUMABLE HEMP PRODUCTS. (a)
A license holder may not manufacture a consumable hemp product that
contains any amount of a synthesized cannabinoid.
(b) Consumable hemp products must be produced using current
good manufacturing practices, as defined by executive commissioner
rule.
SECTION 6. Sections 443.151(a), (b), and (d), Health and
Safety Code, are amended to read as follows:
(a) A consumable hemp product must be tested as provided
by[:
[(1)] Subsections (b), [and] (c), and [; or
[(2) Subsection] (d).
(b) Before a hemp plant is processed or otherwise used in
the manufacture of a consumable hemp product, a sample representing
the plant must be tested, as required by the executive
commissioner, to determine:
(1) the concentration and identity of the [various]
cannabinoids in the plant; and
(2) the presence or quantity of heavy metals,
pesticides, microbial contamination, and any other substance
prescribed by the department.
(d) Before [Except as otherwise provided by Subsection (e),
before] a consumable hemp product is sold at retail or otherwise
introduced into commerce in this state, a sample representing the
hemp product must be tested:
(1) by a laboratory located in this state that is
accredited by an accreditation body in accordance with
International Organization for Standardization ISO/IEC 17025 or a
comparable or successor standard to determine the identity and
[delta-9 tetrahydrocannabinol] concentration of any cannabinoids
contained in the product; and
(2) by an appropriate laboratory to determine that the
product does not contain a substance described by Subsection (b)(2)
[(b)] or (c) in a quantity prohibited for purposes of those
subsections.
SECTION 7. Section 443.152(c), Health and Safety Code, is
amended to read as follows:
(c) A license holder shall make available to a seller of a
consumable hemp product processed or manufactured by the license
holder the results of testing required by Section 443.151. The
results may accompany a shipment to the seller or be made available
to the seller electronically. If the results are not able to be
made available, the seller may have the testing required under
Section 443.151 performed on the product and shall make the results
available to a consumer and the department.
SECTION 8. The heading to Section 443.2025, Health and
Safety Code, is amended to read as follows:
Sec. 443.2025. REGISTRATION REQUIRED FOR RETAILERS OF
CERTAIN CONSUMABLE HEMP PRODUCTS.
SECTION 9. Section 443.2025, Health and Safety Code, is
amended by amending Subsections (b), (d), (f), and (g) and adding
Subsections (h) and (i) to read as follows:
(b) A person may not sell consumable hemp products
containing a cannabinoid [cannabidiol] at retail in this state
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 at retail].
(f) The owner of a location at which consumable hemp
products are sold shall annually pay to the department a
registration fee in the amount of $2,000 for each location owned by
the person at which those products are sold [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 cannabidiol are sold; and
[(2) multiple locations at which consumable hemp
products containing cannabidiol are sold under a single
registration].
(g) The department shall adopt rules to:
(1) implement and administer this section; and
(2) require a person required to register under this
section to provide to the department information regarding the type
and concentration of each cannabinoid present in each consumable
hemp product offered for sale by the person.
(h) The department shall provide to the Department of Public
Safety the information provided to the department under Subsection
(g)(2).
(i) A person may not sell consumable hemp products unless
the person has provided to the department written consent from the
person or the property owner, if the person 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 consumable hemp products are sold to conduct a
physical inspection or to ensure compliance with this chapter and
rules adopted under this chapter.
SECTION 10. Section 443.203, Health and Safety Code, is
amended to read as follows:
Sec. 443.203. DECEPTIVE TRADE PRACTICE. (a) A person who
sells, offers for sale, or distributes a consumable hemp product
[cannabinoid oil, including cannabidiol oil,] that the person
claims is processed or manufactured in compliance with this chapter
commits a false, misleading, or deceptive act or practice
actionable under Subchapter E, Chapter 17, Business & Commerce
Code, if the product [oil] is not processed or manufactured in
accordance with this chapter.
(b) A person who sells, offers for sale, or distributes a
consumable hemp product [cannabinoid oil] commits a false,
misleading, or deceptive act or practice actionable under
Subchapter E, Chapter 17, Business & Commerce Code, if [the oil]:
(1) the product contains harmful ingredients;
(2) the product is not produced in compliance with 7
U.S.C. Chapter 38, Subchapter VII; [or]
(3) the product's packaging or advertising indicates
that the product is for medical use; or
(4) the product has a delta-9 tetrahydrocannabinol
concentration of more than 0.3 percent or contains more than 10
milligrams of delta-9 tetrahydrocannabinol per serving of the
product.
SECTION 11. Section 443.205, Health and Safety Code, is
amended by amending Subsections (a) and (c) and adding Subsection
(c-1) to read as follows:
(a) Before a consumable hemp product that contains or is
marketed as containing [more than trace amounts of] cannabinoids
may be distributed or sold, the product must:
(1) be labeled in the manner provided by this
subchapter, including [section with] the following information:
(A) [(1)] batch identification number;
(B) [(2)] batch date;
(C) [(3)] product name;
(D) [(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;
(E) [(5)] the name of the product's
manufacturer;
(F) the amount of cannabidiol, cannabigerol, or
delta-9 tetrahydrocannabinol in each serving or unit of the
product; and
(G) [(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 and that each serving of the product contains not more than
10 milligrams of delta-9 tetrahydrocannabinol;
(2) be prepackaged or placed at the time of sale in
packaging or a container that is:
(A) tamper-evident;
(B) child-resistant; and
(C) if the product contains multiple servings or
consists of multiple products purchased in one transaction,
resealable in a manner that allows the child-resistant mechanism to
remain intact; and
(3) bear a warning label that reads as follows:
"WARNING: Consumption of this product will result in a
positive drug test.".
(c) The label required by Subsection (a) must appear on the
outer packaging of each unit of the product intended for individual
retail sale. [If that unit includes inner and outer packaging, the
label may appear on any of that packaging.]
(c-1) If a container contains multiple servings of a
consumable hemp product, each serving must be individually packaged
within the container.
SECTION 12. Subchapter E, Chapter 443, Health and Safety
Code, is amended by adding Sections 443.2055 and 443.2056 to read as
follows:
Sec. 443.2055. OFFENSE: MARKETING OF CONSUMABLE HEMP
PRODUCT OR PACKAGING IN MANNER ATTRACTIVE TO MINORS. (a) A person
commits an offense if the person markets, advertises, sells, or
causes to be sold a consumable hemp product containing a
hemp-derived cannabinoid that:
(1) is in the shape of a human, animal, fruit, or
cartoon or in another shape that is attractive to children; or
(2) is in packaging or a container that:
(A) is in the shape of a human, animal, fruit, or
cartoon or in another shape that is attractive to children;
(B) depicts an image of a human, animal, fruit,
or cartoon or another image that is attractive to children;
(C) imitates or mimics trademarks or trade dress
of products that are or have been primarily marketed to minors;
(D) includes a symbol that is primarily used to
market products to minors;
(E) includes an image of a celebrity;
(F) includes an image that resembles a food
product, including candy or juice; or
(G) includes an image that resembles a hemp
flower.
(b) In this section, a cartoon includes a depiction of an
object, person, animal, creature, or any similar caricature that:
(1) uses comically exaggerated features and
attributes;
(2) assigns human characteristics to animals, plants,
or other objects; or
(3) has unnatural or extra-human abilities, such as
imperviousness to pain or injury, x-ray vision, tunneling at very
high speeds, or transformation.
(c) An offense under this section is a state jail felony.
Sec. 443.2056. OFFENSE: MISLEADING CONSUMABLE HEMP
PACKAGING. (a) A person commits an offense if the person sells or
offers for sale a consumable hemp product that contains or is
marketed as containing hemp-derived cannabinoids in a package that
depicts any statement, artwork, or design that would likely mislead
a person to believe:
(1) the package does not contain a hemp-derived
cannabinoid; or
(2) the product is intended for medical use, including
by depicting a green cross.
(b) An offense under this section is a Class A misdemeanor.
SECTION 13. Section 443.206, Health and Safety Code, is
amended to read as follows:
Sec. 443.206. RETAIL SALE OF OUT-OF-STATE CONSUMABLE HEMP
PRODUCTS. Retail sales of consumable hemp products processed or
manufactured outside of this state may be made in this state when
the products were processed or manufactured in another state or
jurisdiction if the products:
(1) were manufactured or processed in compliance with:
(A) [(1)] that state's [state] or jurisdiction's
plan approved by the United States Department of Agriculture under
7 U.S.C. Section 1639p;
(B) [(2)] a plan established under 7 U.S.C.
Section 1639q if that plan applies to the state or jurisdiction; or
(C) [(3)] the laws of that state or jurisdiction
if the products are tested in accordance with, or in a manner
similar to, Section 443.151;
(2) do not contain a concentration of delta-9
tetrahydrocannabinol in excess of 0.3 percent; and
(3) do not contain an amount of delta-9
tetrahydrocannabinol in excess of 10 milligrams in each serving.
SECTION 14. Subchapter E, Chapter 443, Health and Safety
Code, is amended by adding Section 443.208 to read as follows:
Sec. 443.208. MAXIMUM AMOUNT OF DELTA-9
TETRAHYDROCANNABINOL. (a) A license holder may not manufacture and
a person required to register under Section 443.2025 may not sell,
give, or cause to be sold or given a consumable hemp product that
contains more than 10 milligrams of delta-9 tetrahydrocannabinol in
a container.
(b) A person required to register under Section 443.2025 may
not sell, give, or cause to be sold or given consumable hemp
products with a total of more than 10 milligrams of delta-9
tetrahydrocannabinol per transaction.
SECTION 15. Chapter 443, Health and Safety Code, is amended
by adding Subchapters F, G, and H to read as follows:
SUBCHAPTER F. CRIMINAL OFFENSES
Sec. 443.251. OFFENSE: MANUFACTURE, DELIVERY, OR
POSSESSION WITH INTENT TO DELIVER OF CERTAIN CONSUMABLE HEMP
PRODUCTS. (a) A person commits an offense if the person knowingly
manufactures, delivers, or possesses with intent to deliver a
consumable hemp product that:
(1) has a delta-9 tetrahydrocannabinol concentration
of more than 0.3 percent; or
(2) contains more than 10 milligrams of delta-9
tetrahydrocannabinol in a container or more than 10 milligrams of
delta-9 tetrahydrocannabinol in each serving.
(b) An offense under this section is a felony of the third
degree.
(c) If conduct constituting an offense under this section
also constitutes an offense under another law, the actor may be
prosecuted under this section, the other law, or both.
Sec. 443.252. OFFENSE: POSSESSION OF CERTAIN CONSUMABLE
HEMP PRODUCTS. (a) A person commits an offense if the person
knowingly or intentionally possesses a consumable hemp product
that:
(1) has a delta-9 tetrahydrocannabinol concentration
of more than 0.3 percent; or
(2) contains more than 10 milligrams of delta-9
tetrahydrocannabinol in a container or more than 10 milligrams of
delta-9 tetrahydrocannabinol in each serving.
(b) An offense under this section is a Class A misdemeanor.
(c) If conduct constituting an offense under this section
also constitutes an offense under another law, the actor may be
prosecuted under this section, the other law, or both.
Sec. 443.253. OFFENSE: SALE OR DISTRIBUTION OF CERTAIN
CONSUMABLE HEMP PRODUCTS TO PERSONS YOUNGER THAN 21 YEARS OF AGE;
PROOF OF AGE REQUIRED. (a) A person commits an offense if the
person, with criminal negligence, sells a consumable hemp product
that contains or is marketed as containing hemp-derived
cannabinoids to a person who is younger than 21 years of age.
(b) An employee of the owner of a store in which consumable
hemp products that contain or are marketed as containing
hemp-derived cannabinoids are sold at retail is criminally
responsible and subject to prosecution for an offense under this
section that occurs in connection with a sale by the employee.
(c) An offense under this section is a Class A misdemeanor.
(d) It is a defense to prosecution under Subsection (a) that
the person to whom the consumable hemp product was sold presented to
the defendant apparently valid proof of identification.
(e) A proof of identification satisfies the requirements of
Subsection (d) if it contains a physical description and photograph
consistent with the person's appearance, purports to establish that
the person is 21 years of age or older, and was issued by a
governmental agency. The proof of identification may include a
driver's license issued by this state or another state, a passport,
or an identification card issued by a state or the federal
government.
(f) The owner of a store in which consumable hemp products
that contain or are marketed as containing hemp-derived
cannabinoids are sold, or an employee of the owner, may not display
consumable hemp products for sale adjacent to products that are
legal for children to consume.
Sec. 443.254. OFFENSE: MANUFACTURE, DISTRIBUTION, OR SALE
OF CONSUMABLE HEMP PRODUCTS FOR SMOKING OR INHALING. (a) A person
commits an offense if the person manufactures, distributes, sells,
or offers for sale a consumable hemp product for smoking or
inhaling.
(b) An offense under this section is a Class A misdemeanor.
Sec. 443.2545. OFFENSE: MANUFACTURE, DISTRIBUTION, OR SALE
OF EDIBLE CONSUMABLE HEMP PRODUCTS. (a) A person commits an
offense if the person manufactures, distributes, sells, or offers
for sale a consumable hemp product that is intended for eating,
including foods, gummies, and candies.
(b) An offense under this section is a Class A misdemeanor.
Sec. 443.255. OFFENSE: SALE OR DELIVERY OF CERTAIN
CONSUMABLE HEMP PRODUCTS NEAR SCHOOL. (a) In this section,
"school" and "premises" have the meanings assigned by Section
481.134.
(b) A person commits an offense if the person sells, offers
for sale, or delivers a consumable hemp product containing a
hemp-derived cannabinoid in, on, or within 1,000 feet of the
premises of a school.
(c) An offense under this section is a state jail felony.
Sec. 443.256. OFFENSE: PROVISION OF CERTAIN CONSUMABLE HEMP
PRODUCT BY COURIER, DELIVERY, OR MAIL SERVICE. (a) A person
commits an offense if the person provides a consumable hemp product
containing a hemp-derived cannabinoid by courier, delivery, or mail
service.
(b) An offense under this section is a Class A misdemeanor.
Sec. 443.257. OFFENSE: FALSE LABORATORY REPORT. (a) A
person commits an offense if the person, with the intent to deceive,
forges, falsifies, or alters the results of a laboratory test
authorized or required by this chapter.
(b) An offense under this section is a felony of the third
degree.
Sec. 443.258. OFFENSE: GROWING OR SELLING HEMP FLOWER. (a)
A person commits an offense if the person grows hemp flower or sells
or offers for sale hemp flower in a manner that is not approved by
executive commissioner rule.
(b) An offense under this section is a Class C misdemeanor.
SUBCHAPTER G. ADMINISTRATIVE ENFORCEMENT
Sec. 443.301. ENFORCEMENT BY DEPARTMENT. (a) The
department shall receive and investigate complaints concerning
violations of this chapter by:
(1) a license holder under Subchapter C; or
(2) a registrant under Section 443.2025.
(b) The department may revoke, suspend, or refuse to renew a
license or registration for a violation of this chapter or a rule
adopted under this chapter.
(c) The department may impose an administrative penalty in
an amount not to exceed $20,000 against a license holder or
registrant for each violation of this chapter or a rule adopted
under this chapter.
(d) A proceeding under this section is a contested case
under Chapter 2001, Government Code.
SUBCHAPTER H. MEMORANDUM OF UNDERSTANDING
Sec. 443.351. MEMORANDUM OF UNDERSTANDING FOR TRANSFER OF
REGULATORY FUNCTIONS. The department shall enter into a
memorandum of understanding with the Texas Alcoholic Beverage
Commission regarding:
(1) the transfer of certain regulatory functions for
consumable hemp products from the department to the Texas Alcoholic
Beverage Commission;
(2) changing the licensing structure for consumable
hemp products to a three-tiered structure that includes
manufacturers, wholesalers, and retailers;
(3) the locations at which consumable hemp products
may be sold, including locations for the on-premises consumption of
consumable hemp products;
(4) the regulation of locations described by
Subdivision (3), including any signage required for informing
consumers;
(5) the amount of fees to charge permittees or
licensees;
(6) the funding mechanism for a consumable hemp
regulatory scheme, including the taxation of consumable hemp and
the disposition of those taxes;
(7) the regulation of synthetic cannabinoids;
(8) regulating the retail sale of hemp flower;
(9) the creation of open container laws for consumable
hemp products;
(10) the certification of testing facilities;
(11) regulating the mixing of consumable hemp products
with alcohol or caffeine; and
(12) the packaging and labeling of consumable hemp
products.
SECTION 16. The following provisions of the Health and
Safety Code are repealed:
(1) Section 443.151(e);
(2) Section 443.201;
(3) Sections 443.202(a) and 443.2025(a) and (c); and
(4) Section 443.204.
SECTION 17. As soon as practicable after the effective date
of this Act, the Department of State Health Services shall adopt the
rules required by Section 443.2025(g), Health and Safety Code, as
amended by this Act.
SECTION 18. The changes in law made by this Act apply to the
manufacture, sale, delivery, or possession of a consumable hemp
product that occurs on or after the effective date of this Act. The
manufacture, sale, delivery, or possession of a consumable hemp
product that occurs before the effective date of this Act is
governed by the law in effect on the date the manufacture, sale,
delivery, or possession occurred, and the former law is continued
in effect for that purpose.
SECTION 19. This Act takes effect January 1, 2026.