By: Cain H.B. No. 4242
A BILL TO BE ENTITLED
AN ACT
relating to the production, sale, distribution, delivery, and
regulation of hemp; creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 443, Health and Safety
Code, is amended by adding Section 443.005 to read as follows:
Sec. 443.005. CONSUMABLE HEMP PRODUCTS ACCOUNT. (a) The
consumable hemp products account is an account in the general
revenue fund administered by the department.
(b) The account consists of:
(1) appropriations of money to the account by the
legislature;
(2) public or private gifts, grants, or donations,
including federal funds, received for the account;
(3) fees collected under this chapter or under Chapter
431 as it applies to consumable hemp products;
(4) interest and income earned on the investment of
money in the account;
(5) penalties for violations of this chapter as it
applies to consumable hemp products; and
(6) funds from any other source deposited in the
account.
(c) The department may accept appropriations and gifts,
grants, or donations from any source to administer and enforce this
chapter as it applies to consumable hemp products. Money received
under this subsection shall be deposited in the account.
(d) Money in the account may be appropriated only to the
department for the administration and enforcement of this chapter
as it applies to consumable hemp products.
SECTION 2. Section 443.103, Health and Safety Code, is
amended to read as follows:
Sec. 443.103. APPLICATION; ISSUANCE. An individual or
establishment may apply for a license under this subchapter by
submitting an application to the department on a form and in the
manner prescribed by the department. The application [must be
accompanied by] shall include:
(1) the physical address [a legal description] of each
location where the applicant intends to process hemp or manufacture
consumable hemp products [and the global positioning system
coordinates for the perimeter of each location];
(2) written consent from the applicant or the property
owner if the applicant 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 the [all] premises
during normal business hours [where hemp is processed or consumable
hemp products are manufactured] to conduct a physical inspection or
to ensure compliance with this chapter and rules adopted under this
chapter;
(3) any reasonable fees to cover the cost of the
processing of the application; [required by the department to be
submitted with the application;] and
(4) any other relevant information required by
department rule.
SECTION 3. Subchapter C, Chapter 443, Health and Safety
Code, is amended by adding Section 443.106 to read as follows:
Sec. 443.106. EXPEDITED LICENSING PROCESS. The department
by rule may provide an expedited licensing process for the renewal
of a license in good standing or the purchaser of a business by a
qualifying party of a currently licensed business.
SECTION 4. Section 443.151, Health and Safety Code, is
repealed and replaced in its entirety as follows:
Sec. 443.151. TESTING REQUIRED. (a) To ensure consumer
safety, consumable hemp must be tested as provided by this section.
(b) Before a consumable hemp product may be distributed or
sold as a final product, including hemp plant material, a sample
representing the final product must be tested, as required by the
executive commissioner, to determine:
(1) the concentration of various cannabinoids,
including delta-9 tetrahydrocannabinol;
(2) the presence or quantity of heavy metals,
pesticides, microbial contaminants, mycotoxins, harmful
microorganisms and pathogens, and residual solvents;
(3) the presence of any synthetic cannabinoids meaning
a substance included in Penalty Group 2-A under Section 481.1031 of
the Health and Safety Code; and any other substance prescribed by
the department.
(c) All cannabinoid testing required under this Chapter
must be performed by a laboratory 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 delta-9 tetrahydrocannabinol
concentration of the product.
SECTION 5. Section 443.152, Health and Safety Code, is
amended by adding Subsection (d) to read as follows:
(d) The executive commissioner by rule may exclude a
substance from the testing required under Section 443.151 that is
generally recognized as having no risk of contaminating a finished
consumable hemp product, including a microorganism or other
substance that is inevitably destroyed or removed while processing
or manufacturing the product.
SECTION 6. Section 443.201, Health and Safety Code, is
amended by adding Subsections (c), (d), and (e) to read as follows:
(c) A person may transport and deliver a consumable hemp
product in compliance with this chapter to a lawful purchaser of the
product. The person transporting the consumable hemp product shall
maintain documentation during transport to demonstrate the
transaction complies with this chapter. The person transporting
and the consumable hemp product is not required to:
(1) obtain a license under Section 443.101, unless the
person processes or manufactures the product delivered; or
(2) register under Section 443.2025, unless the person
sells the product delivered.
(d) A person may not manufacture, transport or sell a
non-compliant consumable hemp product in this state.
(e) To the extent this Section conflicts with Chapter 481,
the Texas Controlled Substances Act, Chapter 481 shall prevail.
SECTION 7. Section 443.2025, Health and Safety Code, is
amended by amending Subsections (b), (d), and (f) and adding
Subsection (d-1) to read as follows:
(b) A person that sells [may not sell] or distributes
consumable hemp products [containing cannabidiol at retail] in this
state, other than products generally recognized as safe by the
United States Food and Drug Administration, shall register with the
department [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 to consumers [at retail].
(d-1) unless such employee or independent contractor works
for a person located outside of the state who is not a registrant
and sells or distributes products covered by Subsection (b) in this
state.
(f) The registration shall [department by rule may adopt a
registration fee schedule that establishes reasonable fee amounts
for the registration of]:
(1) identify the responsible party to direct
correspondence [a single location at which consumable hemp products
[containing cannabidiol are sold]; and
(2) be subject to a nominally reasonable fee [multiple
locations at which consumable hemp products [containing
cannabidiol] are sold under a single registration].
SECTION 8. Section 443.204, Health and Safety Code, is
amended by adding Subsection (b) to read as follows:
Sec. 443.204. RULES RELATED TO SALE OF CONSUMABLE HEMP
PRODUCTS. (a) Rules adopted by the executive commissioner
regulating the sale of consumable hemp products must, to the extent
allowable by law, reflect the following principles:
(1) hemp-derived cannabinoids, including cannabidiol,
are not considered controlled substances or adulterants;
(2) products containing one or more hemp-derived
cannabinoids, such as cannabidiol, intended for ingestion are
considered foods, not controlled substances or adulterated
products;
(3) consumable hemp products must be packaged and
labeled in the manner provided by Section 443.205; and
(4) the processing or manufacturing of a consumable
hemp product for smoking is prohibited.
(b) Not later than the 90th day after a change to this
chapter takes effect, the department shall adopt rules to resolve
any conflicts arising from the change. Until such rules are
adopted, the department shall enforce the provisions of this
chapter to the fullest extent possible without exceeding its
authority or conflicting with federal law or other controlling
legal requirements.
SECTION 9. Section 443.205, Health and Safety Code, is
amended to read as follows:
SEC. 443.205 CONSUMER SAFETY [PACKAGING AND LABELING]
REQUIREMENTS. (a) before a finished [Before a] consumable hemp
product, including hemp plant material, may be distributed or sold,
it [that contains or is marketed as containing more than trace
amounts of cannabinoids may be distributed or sold, the product]
must be labeled in the manner provided under this section and with
the following information:
(1) a statement of identify or product name.labeled
in the manner provided by this subchapter, including [section with]
the following information:
(2) [(1)] batch or lot identification number;
(3) [(2)] Net contents [batch date];
(4) [(3)] ingredients contained in the product,
including hemp-derived cannabinoids [product name];
(5) [(4)] major food allergens as identified by the
U.S. Food, Drug, and Cosmetic Act [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];
(6) [(5)] the name of the product's manufacturer;[and]
(7) [(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
(8) contact information of the manufacturer or
licensed party.
(9) Packaged in a container that is:
(a) tamper evident; and
(b) child resistant
(b) The label required by Subsection (a) may be in the form
of:
(1) a uniform resource locator (URL) [for the
manufacturer's Internet website] that provides or links to a
certificate of analysis for the product [the information required
by that subsection]; and
(2) a QR code or other bar code that may be scanned and
that leads to the information required by that subsection.
(c) The label required by Subsection (a) must appear on each
unit of the product intended for individual retail sale. If the
unit includes inner and outer packaging, the label may appear on any
of that packaging.
(d) This section does not apply to sterilized seeds
incapable of beginning germination.
(e) Before a consumable hemp product may be sold to a
consumer, the product must be either prepackaged or placed at the
time of sale in packaging or a container that is tamper-evident and
child resistant. if the product contains multiple servings or
consists of multiple products purchased in one transaction, the
package or container must be resealable in a manner that allows the
child-resistant mechanism to remain intact.
SECTION 10. Subchapter E, Chapter 443, Health and Safety
Code, is amended by adding Sections 443.2055, 443.2056, 443.208,
443.209, and 443.210 to read as follows:
Sec. 443.2055. CONSUMABLE HEMP PRODUCT AND PACKAGING
ATTRACTIVE TO MINORS. (a) Edible consumable hemp products that
contain or are marketed as containing hemp-derived cannabinoids may
not be in the shape of a human, animal, fruit, or toy or in another
shape known to be marketed to minors.
(b) Packaging of a consumable hemp product may not include:
(1) cartoons, being any drawing or depiction of an
object, person, animal, creature or any similar caricature that
uses comically-exaggerated features; and
(2) attributes human characteristics to animals,
plants, toys or other objects; or
(3) attributes unnatural or extra-human abilities,
such as imperviousness to pain or injury, X-ray vision, tunneling
at very high speeds, or human transformation (i.e.) superheroes; or
(4) images of children.
Sec. 443.2056. MISLEADING PACKAGING PROHIBITED. (a) The
packaging and labeling of consumable hemp products that contain or
are marketed as containing hemp-derived cannabinoids shall not:
(1) depict any statement, artwork, or design that
falsely suggests the product does not contain hemp-derived
cannabinoids;
(2) closely resemble a copyrighted, trademarked, or
widely recognized non-hemp product in a way that could cause
confusion.
Sec. 443.208. SALE OF CONSUMABLE HEMP PRODUCTS TO PERSONS
YOUNGER THAN 21 YEARS OF AGE PROHIBITED; 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 an individual
under 21 years of age.
(b) An employee of an establishment that sells a consumable
hemp product in violation of Subsection (a), is individually liable
and may be prosecuted for the offense, regardless of whether the
owner or operator of the establishment is also held liable. This
section does not preclude prosecution of the owner or operator of
the establishment if the violation occurred with their knowledge or
due to their failure to exercise reasonable supervision and control
over employees.
(c) An offense under this section is a Class C 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) It is an exception to the application of Subsection (a)
that the person to whom the consumable hemp product was sold is at
least 18 years of age and presented at the time of purchase a valid
military identification card of the United States military forces
or the state military forces.
(g) A person who owns, manages, or operates an Internet
website that contains an e-commerce platform on which consumable
hemp products, including hemp plant material, that contain or are
marketed as containing hemp-derived cannabinoids are sold at retail
or offered for retail sale must:
(1) require a consumer accessing the e-commerce
platform to state affirmatively that the person is at least 21 years
of age; and
(2) verify a consumer's age prior to completing a
purchase on the e-commerce platform by:
(A) using a reliable online age verification
service; or
(B) obtaining and examining a copy of a valid
government-issued identification.
Sec. 443.209. SALE OF CERTAIN CONSUMABLE HEMP PRODUCTS TO
PERSONS YOUNGER THAN 21 YEARS OF AGE. (a) The department by rule
shall adopt a list of hemp-derived cannabinoids that are exempt
from the requirements of Sections 443.205(a)(9), 443.205(e),
443.2055, and 443.208.
(b) The list adopted under Subsection (a):
(1) must include cannabidiol and cannabigerol; and
(2) may include cannabinoid quantity thresholds.
(c) Notwithstanding Subsection (a), Sections
443.205(a)(9), 443.2055, and 443.208 apply to any consumable hemp
product that contains:
(1) a hemp-derived cannabinoid not included on the
list adopted under Subsection (a); or
(2) a quantity of a hemp-derived cannabinoid that
exceeds any applicable threshold established under Subsection
(b)(2).
Sec. 443.210. APPLICABILITY OF PENALTIES TO CERTAIN
RETAILERS. Notwithstanding another provision of this subchapter, a
retailer of consumable hemp products is not liable for a penalty
under this subchapter if the retailer proves by a preponderance of
the evidence that the violation was unintentional and due to the
retailer's good faith reliance on a representation made by a
manufacturer, processor, or distributor of consumable hemp
products.
SECTION 11. Subchapter C, Chapter 122, Agriculture Code,
Section 122.102 is amended by adding subsection(c) to read as
follows:
(c) Except as provided by subdivision (d) and
notwithstanding any other law, The department may not issue a
license under this subchapter to produce hemp on real property
owned by any of the following:
(1) a governmental entity of China, Iran, North Korea,
or Russia;
(2) a company or other entity that is:
(A) headquartered in China, Iran, North Korea, or
Russia;
(B) directly or indirectly under the control of
the government of China, Iran, North Korea, or Russia; or
(C) owned by or under the control of one or more
individuals who are citizens of China, Iran, North Korea, or
Russia;
(3) a company or other entity that is owned by or under
the control of a company or entity described by Subdivision (2); or
(4) an individual who is a citizen of China, Iran,
North Korea, or Russia.
(d) This subsection does not apply to an individual who is a
citizen or lawful permanent resident of the United States,
including an individual who is a citizen of a foreign country.
SECTION 12. Notwithstanding any other law, a retailer may
possess, transport, or sell a consumable hemp product that becomes
part of the retailer's inventory before rules required to implement
the changes in law made by this Act become effective unless the
product:
(1) is unsafe for consumption based on the presence or
quantity of heavy metals, pesticides, harmful microorganisms, or
residual solvents; or
(2) has a delta-9 tetrahydrocannabinol concentration
that exceeds 0.3% delta-9 tetrahydrocannabinol by dry weight.
SECTION 13. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2025