Texas 2025 - 89th Regular

Texas House Bill HB4242 Compare Versions

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1	1		By: Cain H.B. No. 4242
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to the production, sale, distribution, delivery, and
7	9		regulation of hemp; creating a criminal offense.
8	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	11		SECTION 1. Subchapter A, Chapter 443, Health and Safety
10	12		Code, is amended by adding Section 443.005 to read as follows:
11	13		Sec. 443.005. CONSUMABLE HEMP PRODUCTS ACCOUNT. (a) The
12	14		consumable hemp products account is an account in the general
13	15		revenue fund administered by the department.
14	16		(b) The account consists of:
15	17		(1) appropriations of money to the account by the
16	18		legislature;
17	19		(2) public or private gifts, grants, or donations,
18	20		including federal funds, received for the account;
19	21		(3) fees collected under this chapter or under Chapter
20	22		431 as it applies to consumable hemp products;
21	23		(4) interest and income earned on the investment of
22	24		money in the account;
23	25		(5) penalties for violations of this chapter as it
24	26		applies to consumable hemp products; and
25	27		(6) funds from any other source deposited in the
26	28		account.
27	29		(c) The department may accept appropriations and gifts,
28	30		grants, or donations from any source to administer and enforce this
29	31		chapter as it applies to consumable hemp products. Money received
30	32		under this subsection shall be deposited in the account.
31	33		(d) Money in the account may be appropriated only to the
32	34		department for the administration and enforcement of this chapter
33	35		as it applies to consumable hemp products.
34	36		SECTION 2. Section 443.103, Health and Safety Code, is
35	37		amended to read as follows:
36	38		Sec. 443.103. APPLICATION; ISSUANCE. An individual or
37	39		establishment may apply for a license under this subchapter by
38	40		submitting an application to the department on a form and in the
39	41		manner prescribed by the department. The application [must be
40	42		accompanied by] shall include:
41	43		(1) the physical address [a legal description] of each
42	44		location where the applicant intends to process hemp or manufacture
43	45		consumable hemp products [and the global positioning system
44	46		coordinates for the perimeter of each location];
45	47		(2) written consent from the applicant or the property
46	48		owner if the applicant is not the property owner allowing the
47	49		department, the Department of Public Safety, and any other state or
48	50		local law enforcement agency to enter onto the [all] premises
49	51		during normal business hours [where hemp is processed or consumable
50	52		hemp products are manufactured] to conduct a physical inspection or
51	53		to ensure compliance with this chapter and rules adopted under this
52	54		chapter;
53	55		(3) any reasonable fees to cover the cost of the
54	56		processing of the application; [required by the department to be
55	57		submitted with the application;] and
56	58		(4) any other relevant information required by
57	59		department rule.
58	60		SECTION 3. Subchapter C, Chapter 443, Health and Safety
59	61		Code, is amended by adding Section 443.106 to read as follows:
60	62		Sec. 443.106. EXPEDITED LICENSING PROCESS. The department
61	63		by rule may provide an expedited licensing process for the renewal
62	64		of a license in good standing or the purchaser of a business by a
63	65		qualifying party of a currently licensed business.
64	66		SECTION 4. Section 443.151, Health and Safety Code, is
65	67		repealed and replaced in its entirety as follows:
66	68		Sec. 443.151. TESTING REQUIRED. (a) To ensure consumer
67	69		safety, consumable hemp must be tested as provided by this section.
68	70		(b) Before a consumable hemp product may be distributed or
69	71		sold as a final product, including hemp plant material, a sample
70	72		representing the final product must be tested, as required by the
71	73		executive commissioner, to determine:
72	74		(1) the concentration of various cannabinoids,
73	75		including delta-9 tetrahydrocannabinol;
74	76		(2) the presence or quantity of heavy metals,
75	77		pesticides, microbial contaminants, mycotoxins, harmful
76	78		microorganisms and pathogens, and residual solvents;
77	79		(3) the presence of any synthetic cannabinoids meaning
78	80		a substance included in Penalty Group 2-A under Section 481.1031 of
79	81		the Health and Safety Code; and any other substance prescribed by
80	82		the department.
81	83		(c) All cannabinoid testing required under this Chapter
82	84		must be performed by a laboratory that is accredited by an
83	85		accreditation body in accordance with International Organization
84	86		for Standardization ISO/IEC 17025 or a comparable or successor
85	87		standard to determine the delta-9 tetrahydrocannabinol
86	88		concentration of the product.
87	89		SECTION 5. Section 443.152, Health and Safety Code, is
88	90		amended by adding Subsection (d) to read as follows:
89	91		(d) The executive commissioner by rule may exclude a
90	92		substance from the testing required under Section 443.151 that is
91	93		generally recognized as having no risk of contaminating a finished
92	94		consumable hemp product, including a microorganism or other
93	95		substance that is inevitably destroyed or removed while processing
94	96		or manufacturing the product.
95	97		SECTION 6. Section 443.201, Health and Safety Code, is
96	98		amended by adding Subsections (c), (d), and (e) to read as follows:
97	99		(c) A person may transport and deliver a consumable hemp
98	100		product in compliance with this chapter to a lawful purchaser of the
99	101		product. The person transporting the consumable hemp product shall
100	102		maintain documentation during transport to demonstrate the
101	103		transaction complies with this chapter. The person transporting
102	104		and the consumable hemp product is not required to:
103	105		(1) obtain a license under Section 443.101, unless the
104	106		person processes or manufactures the product delivered; or
105	107		(2) register under Section 443.2025, unless the person
106	108		sells the product delivered.
107	109		(d) A person may not manufacture, transport or sell a
108	110		non-compliant consumable hemp product in this state.
109	111		(e) To the extent this Section conflicts with Chapter 481,
110	112		the Texas Controlled Substances Act, Chapter 481 shall prevail.
111	113		SECTION 7. Section 443.2025, Health and Safety Code, is
112	114		amended by amending Subsections (b), (d), and (f) and adding
113	115		Subsection (d-1) to read as follows:
114	116		(b) A person that sells [may not sell] or distributes
115	117		consumable hemp products [containing cannabidiol at retail] in this
116	118		state, other than products generally recognized as safe by the
117	119		United States Food and Drug Administration, shall register with the
118	120		department [unless the person registers with the department each
119	121		location owned, operated, or controlled by the person at which
120	122		those products are sold. A person is not required to register a
121	123		location associated with an employee or independent contractor
122	124		described by Subsection (d)].
123	125		(d) A person is not required to register with the department
124	126		under Subsection (b) if the person is:
125	127		(1) an employee of a registrant; or
126	128		(2) an independent contractor of a registrant who
127	129		sells the registrant's products to consumers [at retail].
128	130		(d-1) unless such employee or independent contractor works
129	131		for a person located outside of the state who is not a registrant
130	132		and sells or distributes products covered by Subsection (b) in this
131	133		state.
132	134		(f) The registration shall [department by rule may adopt a
133	135		registration fee schedule that establishes reasonable fee amounts
134	136		for the registration of]:
135	137		(1) identify the responsible party to direct
136	138		correspondence [a single location at which consumable hemp products
137	139		[containing cannabidiol are sold]; and
138	140		(2) be subject to a nominally reasonable fee [multiple
139	141		locations at which consumable hemp products [containing
140	142		cannabidiol] are sold under a single registration].
141	143		SECTION 8. Section 443.204, Health and Safety Code, is
142	144		amended by adding Subsection (b) to read as follows:
143	145		Sec. 443.204. RULES RELATED TO SALE OF CONSUMABLE HEMP
144	146		PRODUCTS. (a) Rules adopted by the executive commissioner
145	147		regulating the sale of consumable hemp products must, to the extent
146	148		allowable by law, reflect the following principles:
147	149		(1) hemp-derived cannabinoids, including cannabidiol,
148	150		are not considered controlled substances or adulterants;
149	151		(2) products containing one or more hemp-derived
150	152		cannabinoids, such as cannabidiol, intended for ingestion are
151	153		considered foods, not controlled substances or adulterated
152	154		products;
153	155		(3) consumable hemp products must be packaged and
154	156		labeled in the manner provided by Section 443.205; and
155	157		(4) the processing or manufacturing of a consumable
156	158		hemp product for smoking is prohibited.
157	159		(b) Not later than the 90th day after a change to this
158	160		chapter takes effect, the department shall adopt rules to resolve
159	161		any conflicts arising from the change. Until such rules are
160	162		adopted, the department shall enforce the provisions of this
161	163		chapter to the fullest extent possible without exceeding its
162	164		authority or conflicting with federal law or other controlling
163	165		legal requirements.
164	166		SECTION 9. Section 443.205, Health and Safety Code, is
165	167		amended to read as follows:
166	168		SEC. 443.205 CONSUMER SAFETY [PACKAGING AND LABELING]
167	169		REQUIREMENTS. (a) before a finished [Before a] consumable hemp
168	170		product, including hemp plant material, may be distributed or sold,
169	171		it [that contains or is marketed as containing more than trace
170	172		amounts of cannabinoids may be distributed or sold, the product]
171	173		must be labeled in the manner provided under this section and with
172	174		the following information:
173	175		(1) a statement of identify or product name.labeled
174	176		in the manner provided by this subchapter, including [section with]
175	177		the following information:
176	178		(2) [(1)] batch or lot identification number;
177	179		(3) [(2)] Net contents [batch date];
178	180		(4) [(3)] ingredients contained in the product,
179	181		including hemp-derived cannabinoids [product name];
180	182		(5) [(4)] major food allergens as identified by the
181	183		U.S. Food, Drug, and Cosmetic Act [a uniform resource locator (URL)
182	184		that provides or links to a certificate of analysis for the product
183	185		or each hemp-derived ingredient of the product];
184	186		(6) [(5)] the name of the product's manufacturer;[and]
185	187		(7) [(6)] a certification that the delta-9
186	188		tetrahydrocannabinol concentration of the product or each
187	189		hemp-derived ingredient of the product is not more than 0.3
188	190		percent; and
189	191		(8) contact information of the manufacturer or
190	192		licensed party.
191	193		(9) Packaged in a container that is:
192	194		(a) tamper evident; and
193	195		(b) child resistant
194	196		(b) The label required by Subsection (a) may be in the form
195	197		of:
196	198		(1) a uniform resource locator (URL) [for the
197	199		manufacturer's Internet website] that provides or links to a
198	200		certificate of analysis for the product [the information required
199	201		by that subsection]; and
200	202		(2) a QR code or other bar code that may be scanned and
201	203		that leads to the information required by that subsection.
202	204		(c) The label required by Subsection (a) must appear on each
203	205		unit of the product intended for individual retail sale. If the
204	206		unit includes inner and outer packaging, the label may appear on any
205	207		of that packaging.
206	208		(d) This section does not apply to sterilized seeds
207	209		incapable of beginning germination.
208	210		(e) Before a consumable hemp product may be sold to a
209	211		consumer, the product must be either prepackaged or placed at the
210	212		time of sale in packaging or a container that is tamper-evident and
211	213		child resistant. if the product contains multiple servings or
212	214		consists of multiple products purchased in one transaction, the
213	215		package or container must be resealable in a manner that allows the
214	216		child-resistant mechanism to remain intact.
215	217		SECTION 10. Subchapter E, Chapter 443, Health and Safety
216	218		Code, is amended by adding Sections 443.2055, 443.2056, 443.208,
217	219		443.209, and 443.210 to read as follows:
218	220		Sec. 443.2055. CONSUMABLE HEMP PRODUCT AND PACKAGING
219	221		ATTRACTIVE TO MINORS. (a) Edible consumable hemp products that
220	222		contain or are marketed as containing hemp-derived cannabinoids may
221	223		not be in the shape of a human, animal, fruit, or toy or in another
222	224		shape known to be marketed to minors.
223	225		(b) Packaging of a consumable hemp product may not include:
224	226		(1) cartoons, being any drawing or depiction of an
225	227		object, person, animal, creature or any similar caricature that
226	228		uses comically-exaggerated features; and
227	229		(2) attributes human characteristics to animals,
228	230		plants, toys or other objects; or
229	231		(3) attributes unnatural or extra-human abilities,
230	232		such as imperviousness to pain or injury, X-ray vision, tunneling
231	233		at very high speeds, or human transformation (i.e.) superheroes; or
232	234		(4) images of children.
233	235		Sec. 443.2056. MISLEADING PACKAGING PROHIBITED. (a) The
234	236		packaging and labeling of consumable hemp products that contain or
235	237		are marketed as containing hemp-derived cannabinoids shall not:
236	238		(1) depict any statement, artwork, or design that
237	239		falsely suggests the product does not contain hemp-derived
238	240		cannabinoids;
239	241		(2) closely resemble a copyrighted, trademarked, or
240	242		widely recognized non-hemp product in a way that could cause
241	243		confusion.
242	244		Sec. 443.208. SALE OF CONSUMABLE HEMP PRODUCTS TO PERSONS
243	245		YOUNGER THAN 21 YEARS OF AGE PROHIBITED; PROOF OF AGE REQUIRED. (a)
244	246		A person commits an offense if the person, with criminal
245	247		negligence, sells a consumable hemp product that contains or is
246	248		marketed as containing hemp-derived cannabinoids, to an individual
247	249		under 21 years of age.
248	250		(b) An employee of an establishment that sells a consumable
249	251		hemp product in violation of Subsection (a), is individually liable
250	252		and may be prosecuted for the offense, regardless of whether the
251	253		owner or operator of the establishment is also held liable. This
252	254		section does not preclude prosecution of the owner or operator of
253	255		the establishment if the violation occurred with their knowledge or
254	256		due to their failure to exercise reasonable supervision and control
255	257		over employees.
256	258		(c) An offense under this section is a Class C misdemeanor.
257	259		(d) It is a defense to prosecution under Subsection (a) that
258	260		the person to whom the consumable hemp product was sold presented to
259	261		the defendant apparently valid proof of identification.
260	262		(e) A proof of identification satisfies the requirements of
261	263		Subsection (d) if it contains a physical description and photograph
262	264		consistent with the person's appearance, purports to establish that
263	265		the person is 21 years of age or older, and was issued by a
264	266		governmental agency. The proof of identification may include a
265	267		driver's license issued by this state or another state, a passport,
266	268		or an identification card issued by a state or the federal
267	269		government.
268	270		(f) It is an exception to the application of Subsection (a)
269	271		that the person to whom the consumable hemp product was sold is at
270	272		least 18 years of age and presented at the time of purchase a valid
271	273		military identification card of the United States military forces
272	274		or the state military forces.
273	275		(g) A person who owns, manages, or operates an Internet
274	276		website that contains an e-commerce platform on which consumable
275	277		hemp products, including hemp plant material, that contain or are
276	278		marketed as containing hemp-derived cannabinoids are sold at retail
277	279		or offered for retail sale must:
278	280		(1) require a consumer accessing the e-commerce
279	281		platform to state affirmatively that the person is at least 21 years
280	282		of age; and
281	283		(2) verify a consumer's age prior to completing a
282	284		purchase on the e-commerce platform by:
283	285		(A) using a reliable online age verification
284	286		service; or
285	287		(B) obtaining and examining a copy of a valid
286	288		government-issued identification.
287	289		Sec. 443.209. SALE OF CERTAIN CONSUMABLE HEMP PRODUCTS TO
288	290		PERSONS YOUNGER THAN 21 YEARS OF AGE. (a) The department by rule
289	291		shall adopt a list of hemp-derived cannabinoids that are exempt
290	292		from the requirements of Sections 443.205(a)(9), 443.205(e),
291	293		443.2055, and 443.208.
292	294		(b) The list adopted under Subsection (a):
293	295		(1) must include cannabidiol and cannabigerol; and
294	296		(2) may include cannabinoid quantity thresholds.
295	297		(c) Notwithstanding Subsection (a), Sections
296	298		443.205(a)(9), 443.2055, and 443.208 apply to any consumable hemp
297	299		product that contains:
298	300		(1) a hemp-derived cannabinoid not included on the
299	301		list adopted under Subsection (a); or
300	302		(2) a quantity of a hemp-derived cannabinoid that
301	303		exceeds any applicable threshold established under Subsection
302	304		(b)(2).
303	305		Sec. 443.210. APPLICABILITY OF PENALTIES TO CERTAIN
304	306		RETAILERS. Notwithstanding another provision of this subchapter, a
305	307		retailer of consumable hemp products is not liable for a penalty
306	308		under this subchapter if the retailer proves by a preponderance of
307	309		the evidence that the violation was unintentional and due to the
308	310		retailer's good faith reliance on a representation made by a
309	311		manufacturer, processor, or distributor of consumable hemp
310	312		products.
311	313		SECTION 11. Subchapter C, Chapter 122, Agriculture Code,
312	314		Section 122.102 is amended by adding subsection(c) to read as
313	315		follows:
314	316		(c) Except as provided by subdivision (d) and
315	317		notwithstanding any other law, The department may not issue a
316	318		license under this subchapter to produce hemp on real property
317	319		owned by any of the following:
318	320		(1) a governmental entity of China, Iran, North Korea,
319	321		or Russia;
320	322		(2) a company or other entity that is:
321	323		(A) headquartered in China, Iran, North Korea, or
322	324		Russia;
323	325		(B) directly or indirectly under the control of
324	326		the government of China, Iran, North Korea, or Russia; or
325	327		(C) owned by or under the control of one or more
326	328		individuals who are citizens of China, Iran, North Korea, or
327	329		Russia;
328	330		(3) a company or other entity that is owned by or under
329	331		the control of a company or entity described by Subdivision (2); or
330	332		(4) an individual who is a citizen of China, Iran,
331	333		North Korea, or Russia.
332	334		(d) This subsection does not apply to an individual who is a
333	335		citizen or lawful permanent resident of the United States,
334	336		including an individual who is a citizen of a foreign country.
335	337		SECTION 12. Notwithstanding any other law, a retailer may
336	338		possess, transport, or sell a consumable hemp product that becomes
337	339		part of the retailer's inventory before rules required to implement
338	340		the changes in law made by this Act become effective unless the
339	341		product:
340	342		(1) is unsafe for consumption based on the presence or
341	343		quantity of heavy metals, pesticides, harmful microorganisms, or
342	344		residual solvents; or
343	345		(2) has a delta-9 tetrahydrocannabinol concentration
344	346		that exceeds 0.3% delta-9 tetrahydrocannabinol by dry weight.
345	347		SECTION 13. This Act takes effect immediately if it
346	348		receives a vote of two-thirds of all the members elected to each
347	349		house, as provided by Section 39, Article III, Texas Constitution.
348	350		If this Act does not receive the vote necessary for immediate
349	351		effect, this Act takes effect September 1, 2025