Texas 2025 - 89th Regular

Texas Senate Bill SB2952 Compare Versions

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

Old	New	Differences
1	1	By: Perry S.B. No. 2952
2	2
3	3
4	4
5	5
6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the regulation of hemp and nonconsumable hemp products;
9	9	increasing a criminal penalty; increasing a civil penalty and
10	10	providing other penalties; requiring an occupational license;
11	11	imposing and authorizing certain fees.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 12.020(c), Agriculture Code, is amended
14	14	to read as follows:
15	15	(c) The provisions of law subject to this section and the
16	16	applicable penalty amounts are as follows:
17	17	Provision Amount of Penalty Provision Amount of Penalty
18	18	Provision Amount of Penalty
19	19	Chapters 13, 14A, 18, 19, 41, 46, 61, 72, 73, not more than $5,000 Chapters 13, 14A, 18, 19, 41, 46, 61, 72, 73, not more than $5,000
20	20	Chapters 13, 14A, 18, 19, 41, 46, 61, 72, 73, not more than $5,000
21	21	74, 76, 94, 95, 101, 102, 103, 122, 123, 125, 74, 76, 94, 95, 101, 102, 103, 122, 123, 125,
22	22	74, 76, 94, 95, 101, 102, 103, 122, 123, 125,
23	23	132, and 134 132, and 134
24	24	132, and 134
25	25	Subchapters A, B, and C, Chapter 71 not more than $5,000 Subchapters A, B, and C, Chapter 71 not more than $5,000
26	26	Subchapters A, B, and C, Chapter 71 not more than $5,000
27	27	Chapter 14 not more than $10,000 Chapter 14 not more than $10,000
28	28	Chapter 14 not more than $10,000
29	29	Chapter 1951, Occupations Code not more than $5,000 Chapter 1951, Occupations Code not more than $5,000
30	30	Chapter 1951, Occupations Code not more than $5,000
31	31	Chapter 153, Natural Resources Chapter 153, Natural Resources
32	32	Chapter 153, Natural Resources
33	33	Code not more than $5,000 Code not more than $5,000
34	34	Code not more than $5,000
35	35	Section 91.009 not more than $5,000. Section 91.009 not more than $5,000.
36	36	Section 91.009 not more than $5,000.
37	37	SECTION 2. Section 121.002, Agriculture Code, is amended to
38	38	read as follows:
39	39	Sec. 121.002. LEGISLATIVE FINDINGS; INTENT. (a) The
40	40	legislature finds that nothing in 7 U.S.C. Section 1639p:
41	41	(1) preempts or limits any law of this state that:
42	42	(A) regulates the production of hemp; or
43	43	(B) is more stringent than 7 U.S.C. Section 1639o
44	44	et. seq.; or
45	45	(2) prohibits the production of hemp in this state, if
46	46	the production of hemp is not otherwise prohibited by this state.
47	47	(b) It is the intent of the legislature that this state have
48	48	primary regulatory authority over the production of hemp in this
49	49	state.
50	50	(c) It is the intent of the legislature that the statutory
51	51	definition of hemp shall not include any material that is not itself
52	52	naturally created in the plant Cannabis sativa L.
53	53	(d) It is the intent of the legislature that the word
54	54	"derivatives" in the definition of hemp shall refer only to first
55	55	order derivatives of the plant Cannabis sativa L.
56	56	SECTION 3. Section 121.003(a), Agriculture Code, is amended
57	57	to read as follows:
58	58	(a) The department, after consulting with the governor and
59	59	attorney general, shall develop a state plan to monitor and
60	60	regulate the production of hemp in this state. The plan must comply
61	61	with:
62	62	(1) 7 U.S.C. Section 1639p;
63	63	(2) Chapters [Chapter] 122 and 123; and
64	64	(3) Chapter 443, Health and Safety Code.
65	65	SECTION 4. Section 122.001, Agriculture Code, is amended to
66	66	read as follows:
67	67	Sec. 122.001. DEFINITIONS. In this chapter:
68	68	(1) "Cultivate" means to plant, irrigate, cultivate,
69	69	or harvest a hemp plant.
70	70	(2) "Delta-9 tetrahydrocannabinol concentration"
71	71	shall be established by:
72	72	(A) a procedure for testing a sample using post
73	73	decarboxylation, such that all delta-9 tetrahydrocannabinolic acid
74	74	in the sample, where applicable, has been converted to delta-9
75	75	tetrahydrocannabinol, thereby identifying the total percentage by
76	76	weight of delta-9 tetrahydrocannabinol, on a dry weight basis; or
77	77	(B) a procedure for testing a sample using a
78	78	conversion factor, by identifying the sum of the percentage by
79	79	weight, on a dry weight basis where applicable, of delta-9
80	80	tetrahydrocannabinolic acid multiplied by 0.877 plus the
81	81	percentage by weight, on a dry weight basis where applicable, of
82	82	delta-9 tetrahydrocannabinol, to calculate the total percentage by
83	83	weight of delta-9 tetrahydrocannabinol, on a dry weight basis.
84	84	(3) "Disposal" means an activity that irreversibly
85	85	transitions a non-compliant substance into a non-retrievable and
86	86	non-ingestible form that is unfit to enter the stream of commerce.
87	87	(4) "Dry weight basis" means a basis for expressing
88	88	the percentage of a chemical in a substance after removing the
89	89	moisture from the substance.
90	90	(5) "Governing person" has the meaning assigned by
91	91	Section 1.002, Business Organizations Code.
92	92	(6) [(3)] "Handle" means to possess, manipulate, or
93	93	store a hemp plant:
94	94	(A) at a licensed location [on premises owned,
95	95	operated, or controlled by a license holder] for any period of time;
96	96	or
97	97	(B) in a vehicle for any period of time other than
98	98	during the actual transport of the plant from a licensed location
99	99	[premises owned, operated, or controlled by a license holder] to:
100	100	(i) a licensed location of [premises owned,
101	101	operated, or controlled by] another license holder; [or]
102	102	(ii) a person licensed under Chapter 123;
103	103	or
104	104	(iii) a person licensed under Chapter 443,
105	105	Health and Safety Code.
106	106	(7) [(4)] "Hemp" has the meaning assigned by Section
107	107	121.001.
108	108	(8) [(5)] "Institution of higher education" has the
109	109	meaning assigned by Section 61.003, Education Code.
110	110	(9) [(6)] "License" means a hemp grower's license
111	111	issued under Subchapter C.
112	112	(10) [(7)] "License holder" means an individual or
113	113	business entity holding a license.
114	114	(11) "Licensed location" means a premises at which a
115	115	license holder operates a license issued under this chapter.
116	116	(12) [(8)] "Nonconsumable hemp product" means a
117	117	product that contains hemp, other than a consumable hemp product as
118	118	defined by Section 443.001, Health and Safety Code. The term
119	119	includes cloth, cordage, fiber, fuel, paint, paper, particleboard,
120	120	and plastics containing [derived from] hemp.
121	121	(13) [(9)] "Plot" means a contiguous area in a field,
122	122	greenhouse, or indoor growing structure containing the same variety
123	123	or cultivar of hemp throughout the area.
124	124	(14) "Tetrahydrocannabinol" means any
125	125	tetrahydrocannabinol, including its salts, isomers, and salts of
126	126	isomers whenever the existence of such salts, isomers, or salts of
127	127	isomers is possible within the specific chemical designation.
128	128	(15) "Total tetrahydrocannabinol concentration" shall
129	129	be established by:
130	130	(A) a procedure for testing a sample using post
131	131	decarboxylation, such that all tetrahydrocannabinolic acids in the
132	132	sample, where applicable, have been converted to
133	133	tetrahydrocannabinols, thereby identifying the total percentage by
134	134	weight of tetrahydrocannabinols, on a dry weight basis; or
135	135	(B) a procedure for testing a sample using a
136	136	conversion factor, by identifying the sum of the percentage by
137	137	weight, on a dry weight basis where applicable, of
138	138	tetrahydrocannabinolic acids multiplied by 0.877 plus the
139	139	percentage by weight, on a dry weight basis where applicable, of
140	140	tetrahydrocannabinols, to calculate the total percentage by weight
141	141	of tetrahydrocannabinols, on a dry weight basis.
142	142	SECTION 5. Subchapter A, Chapter 122, Agriculture Code, is
143	143	amended by adding Section 122.005 to read as follows:
144	144	Sec. 122.005. APPLICABILITY OF CHAPTER. This chapter does
145	145	not apply to a patient, organization, person, product, or activity
146	146	regulated under Chapter 487, Health and Safety Code.
147	147	SECTION 6. Sections 122.052(a) and (b), Agriculture Code,
148	148	are amended to read as follows:
149	149	(a) The department shall set and collect:
150	150	(1) an application fee for an initial license in an
151	151	amount not to exceed $100;
152	152	(2) a license renewal fee in an amount not to exceed
153	153	$100;
154	154	(3) a participation fee for each location described by
155	155	Section 122.103 [122.103(a)(1) and each location added after the
156	156	application is submitted] in an amount not to exceed $100;
157	157	(4) a site modification fee for each change to a
158	158	location described by Section 122.103 [122.103(a)(1)] in an amount
159	159	not to exceed $500; [and]
160	160	(5) a collection and testing fee for each preharvest
161	161	test or postharvest test if performed by the department in an amount
162	162	not to exceed $300; and
163	163	(6) any other fee the department determines necessary.
164	164	(b) [A fee set by the department under this section may not
165	165	exceed the amount necessary to administer this chapter.] The
166	166	comptroller may authorize the department to collect a fee described
167	167	by Subsection (a) in an amount greater than the maximum amount
168	168	provided by that subsection if necessary to cover the department's
169	169	costs of administering this chapter.
170	170	SECTION 7. Sections 122.053(b), (c), and (d), Agriculture
171	171	Code, are amended to read as follows:
172	172	(b) The department may enter onto land described by Section
173	173	122.103 [122.103(a)(1)], conduct inspections, and collect and test
174	174	plant samples.
175	175	(c) Using [participation] fees set and collected under
176	176	Section 122.052 [122.052(a)(3)], the department shall pay the cost
177	177	of inspections under this section.
178	178	(d) The Department of Public Safety or a state or local law
179	179	enforcement agency may inspect, collect samples from, or test
180	180	plants from any portion of a plot to ensure compliance with this
181	181	chapter. A license holder shall allow the Department of Public
182	182	Safety or a state or local law enforcement agency access to the plot
183	183	and the property on which the plot is located for purposes of this
184	184	subsection.
185	185	SECTION 8. Section 122.054, Agriculture Code, is amended to
186	186	read as follows:
187	187	Sec. 122.054. SAMPLE COLLECTION AND TESTING. (a) The
188	188	department may collect samples and perform testing or contract with
189	189	a laboratory for the performance of that collection and testing on
190	190	behalf of the department. A test performed by a laboratory on
191	191	behalf of the department is considered to be performed by the
192	192	department for purposes of this chapter.
193	193	(b) Testing for delta-9 tetrahydrocannabinol concentration
194	194	performed under this section must consider the conversion of any
195	195	quantifiable tetrahydrocannabinolic acid into
196	196	tetrahydrocannabinol.
197	197	(c) A test result showing a delta-9 tetrahydrocannabinol
198	198	concentration of more than 0.3 percent is conclusive evidence that
199	199	the substance represented by the sample is not compliant and is
200	200	therefore not hemp.
201	201	SECTION 9. Sections 122.055(a) and (b), Agriculture Code,
202	202	are amended to read as follows:
203	203	(a) The department shall develop a shipping certificate or
204	204	cargo manifest which the department shall issue to a license holder
205	205	in connection with the transportation of a shipment of hemp [plant
206	206	material] originating in this state, other than sterilized seeds
207	207	that are incapable of beginning germination.
208	208	(b) A certificate or manifest developed under Subsection
209	209	(a) must include a unique identifying number for the shipment and
210	210	the department's contact information to allow law enforcement
211	211	during a roadside inspection of a motor vehicle transporting the
212	212	shipment to verify that the shipment consists of hemp [cultivated]
213	213	in compliance with this chapter.
214	214	SECTION 10. Section 122.101(a), Agriculture Code, is
215	215	amended to read as follows:
216	216	(a) Except as provided by Subsection (b), a person [or the
217	217	person's agent] may not cultivate or handle hemp in this state [or
218	218	transport hemp outside of this state] unless the person holds a
219	219	license under this subchapter.
220	220	SECTION 11. Section 122.102, Agriculture Code, is amended
221	221	by adding Subsection (c) to read as follows:
222	222	(c) An individual who is not a legal citizen of the United
223	223	States of America may not:
224	224	(1) hold a license under this subchapter; or
225	225	(2) be a governing person or owner of a business entity
226	226	that holds a license under this subchapter.
227	227	SECTION 12. Section 122.103, Agriculture Code, is amended
228	228	by amending Subsection (a) and adding Subsections (d) and (e) to
229	229	read as follows:
230	230	(a) A person may apply for a license under this subchapter
231	231	by submitting an application to the department on a form and in the
232	232	manner prescribed by the department. The application must be
233	233	accompanied by:
234	234	(1) a legal description of each location where the
235	235	applicant intends to cultivate or handle hemp and the global
236	236	positioning system coordinates for the perimeter of each location;
237	237	(2) written consent from the applicant or the property
238	238	owner if the applicant is not the property owner allowing the
239	239	department, the Department of Public Safety, and any other state or
240	240	local law enforcement agency to enter onto all premises where hemp
241	241	is cultivated or handled to conduct a physical inspection or to
242	242	ensure compliance with this chapter and rules adopted under this
243	243	chapter;
244	244	(3) the application fee; [and]
245	245	(4) a description of the intended use and crop type of
246	246	the hemp plant the applicant intends to cultivate, which must be
247	247	described as:
248	248	(A) an industrial use, which must be further
249	249	described as one of the following crop types:
250	250	(i) "grain hemp crop";
251	251	(ii) "fiber hemp crop";
252	252	(iii) "seed hemp crop"; or
253	253	(iv) a hybrid of the crop types described by
254	254	Subparagraphs (i)-(iii); or
255	255	(B) a cannabinoid use, which must be further
256	256	described as one of the following crop types:
257	257	(i) "floral hemp crop"; or
258	258	(ii) "other hemp crop";
259	259	(5) a description of the growing conditions of the
260	260	location where the applicant intends to cultivate or handle hemp,
261	261	which must be described as:
262	262	(A) "under protection"; or
263	263	(B) "in the open"; and
264	264	(6) any other information required by department rule.
265	265	(d) The department may only issue a license to an applicant
266	266	for a location that is at least one-half acre and with a requirement
267	267	to plant not less than:
268	268	(A) for a location that is in the open, 300
269	269	plants; or
270	270	(B) for a location that is under protection, 100
271	271	plants.
272	272	(e) The department may not:
273	273	(1) consider an incomplete application; or
274	274	(2) issue a license to a person with a history of
275	275	willful noncompliance of any laws related to hemp in any
276	276	jurisdiction.
277	277	SECTION 13. Section 122.152, Agriculture Code, is amended
278	278	by amending Subsection (b) and adding Subsection (e) to read as
279	279	follows:
280	280	(b) A laboratory is eligible for registration if the
281	281	laboratory:
282	282	(1) is registered with the Federal Drug Enforcement
283	283	Agency; and
284	284	(2) submits to the department proof of accreditation
285	285	by an independent accreditation body in accordance with
286	286	International Organization for Standardization ISO/IEC 17025 or a
287	287	comparable or successor standard and any required fee.
288	288	(e) The department shall revoke a laboratory's registration
289	289	if the department identifies a pattern of inconsistent results in
290	290	the laboratory's testing.
291	291	SECTION 14. Section 122.202, Agriculture Code, is amended
292	292	by amending Subsection (b) and adding Subsections (c), (d), and (e)
293	293	to read as follows:
294	294	(b) Except as provided by this section, if [If] the results
295	295	of a preharvest and, if applicable, postharvest test performed on a
296	296	sample show a delta-9 tetrahydrocannabinol concentration of more
297	297	than 0.3 percent on a dry weight basis,[:
298	298	[(1)] the license holder shall dispose of or destroy
299	299	all plants represented by the sample:
300	300	(1) [(A)] in the manner prescribed by federal law;
301	301	[or]
302	302	(2) using a reverse distributor registered with the
303	303	Federal Drug Enforcement Agency [(B) in a manner approved by the
304	304	department that does not conflict with federal law]; or
305	305	(3) at the licensed location, if:
306	306	(A) the license holder notifies the department of
307	307	the license holder's intent to dispose of or destroy the plants;
308	308	(B) the department approves of the disposal or
309	309	destruction; and
310	310	(C) the license holder submits documentation to
311	311	the department of the disposal or destruction in the manner
312	312	prescribed by the department, including by submitting videos or
313	313	photographs of the disposal or destruction or by allowing a
314	314	department representative to witness the disposal or destruction.
315	315	(c) A license holder may remediate plants represented by a
316	316	preharvest sample described by Subsection (b) if:
317	317	(1) [(2) if] the department determines the plants
318	318	represented by the sample reached that concentration solely as a
319	319	result of negligence;
320	320	(2) the type of hemp seed planted by the license holder
321	321	was:
322	322	(A) certified or approved under Section 122.252
323	323	as "grain hemp crop", "fiber hemp crop", "seed hemp crop" or a
324	324	hybrid of such crop types; and
325	325	(B) reported as "grain hemp crop", "fiber hemp
326	326	crop", "seed hemp crop" or a hybrid of such crop types on the
327	327	license holder's application for a license under Section 122.103;
328	328	(3) the license holder is contracted to sell the
329	329	plants to a nonconsumable hemp product manufacturer in this state;
330	330	and
331	331	(4) the license holder fulfills any other department
332	332	requirements [, the license holder is subject to Section 122.403(c)
333	333	and may:
334	334	[(A) trim the plants until the delta-9
335	335	tetrahydrocannabinol concentration of the plants is not more than
336	336	0.3 percent on a dry weight basis and dispose of the noncompliant
337	337	parts of the plants in a manner approved by the department;
338	338	[(B) process the plants into fiber with a delta-9
339	339	tetrahydrocannabinol concentration of not more than 0.3 percent on
340	340	a dry weight basis and dispose of any remaining parts of the plants
341	341	in a manner approved by the department; or
342	342	[(C) take any other corrective action consistent
343	343	with federal regulations adopted under 7 U.S.C. Chapter 38,
344	344	Subchapter VII].
345	345	(d) A license holder described by Subsection (c) may
346	346	remediate the plants by:
347	347	(1) separating and disposing of or destroying flower
348	348	or floral material, including buds and trichomes, and retaining the
349	349	stalks, fibers, grain, or seed of the plants;
350	350	(2) properly raking and retting the plants for a
351	351	minimum of 30 days to dispose of or destroy flower or floral
352	352	material; or
353	353	(3) remediating in another similar method that
354	354	disposes of or destroys any flower or floral material containing
355	355	tetrahydrocannabinol and that is approved by the department.
356	356	(e) Plants remediated under this section must undergo
357	357	postharvest testing to ensure the plants have a delta-9
358	358	tetrahydrocannabinol concentration of not more than 0.3 percent
359	359	before the hemp enters the stream of commerce.
360	360	SECTION 15. Subchapter E, Chapter 122, Agriculture Code, is
361	361	amended by adding Section 122.203 to read as follows:
362	362	Sec. 122.203. PLANTING AND HARVESTING VERIFICATION. (a)
363	363	Not later than the 30th day after a license holder plants hemp
364	364	authorized under the license, the license holder shall submit to
365	365	the department, in the manner prescribed by the department:
366	366	(1) the amount, type, and variety of each hemp seed
367	367	planted; and
368	368	(2) a description of the plot where the seeds were
369	369	planted.
370	370	(b) Not later than the 30th day after a license holder
371	371	harvests hemp plants, the license holder shall submit to the
372	372	department, in the manner prescribed by the department:
373	373	(1) the amount, type, and variety of each hemp plant
374	374	harvested; and
375	375	(2) a description of the plot where the plants were
376	376	harvested.
377	377	(c) The department may conduct an inspection of a location
378	378	indicated on any document submitted under this section.
379	379	SECTION 16. Section 122.252, Agriculture Code, is amended
380	380	by amending Subsection (d) and adding Subsection (e) to read as
381	381	follows:
382	382	(d) The department shall maintain and make available to the
383	383	general public [license holders] a list of hemp seeds certified or
384	384	approved under this section. The list must be published on the
385	385	department's Internet website, updated regularly, and include for
386	386	each approved seed:
387	387	(1) an identification number for each seed;
388	388	(2) the sex, source, and photoperiod of each seed;
389	389	(3) the intended use and crop type produced by the
390	390	seed, described as:
391	391	(A) an industrial use, which must be further
392	392	described as one of the following crop types:
393	393	(i) "grain hemp crop";
394	394	(ii) "fiber hemp crop";
395	395	(iii) "seed hemp crop"; or
396	396	(iv) a hybrid of the crop types described by
397	397	Subparagraphs (i)-(iii); or
398	398	(B) a cannabinoid use, which must be further
399	399	described as one of the following crop types:
400	400	(i) "floral hemp crop"; or
401	401	(ii) "other hemp crop";
402	402	(4) any other information the department determines
403	403	relevant to differentiate between seed types; and
404	404	(5) to the extent possible, information and best
405	405	practices to ensure hemp grown and harvested from the seed complies
406	406	with this chapter.
407	407	(e) If a variety of hemp seed approved or certified by the
408	408	department under this section produces multiple harvest batches
409	409	that yield a delta-9 tetrahydrocannabinol concentration of more
410	410	than 0.3 percent, the department shall:
411	411	(1) for a variety of hemp seed that produces plants
412	412	that have a delta-9 tetrahydrocannabinol concentration of more than
413	413	0.3 percent but not more than 1.0 percent when harvested, suspend
414	414	the approval or certification of the seed and conduct a review to
415	415	evaluate if the seed should be removed from the list of approved or
416	416	certified hemp seeds; or
417	417	(2) for a variety of hemp seed that produces plants
418	418	that have a delta-9 tetrahydrocannabinol concentration of more than
419	419	1.0 percent when harvested, remove the seed from the list of
420	420	approved or certified hemp seeds.
421	421	SECTION 17. Chapter 122, Agriculture Code, is amended by
422	422	adding Subchapter G-1 to read as follows:
423	423	SUBCHAPTER G-1. DISTRIBUTION AND SALE
424	424	Sec. 122.3011. HEMP RESTRICTIONS. A person may not
425	425	distribute, deliver, sell, purchase, or otherwise introduce into
426	426	the stream of commerce in this state hemp:
427	427	(1) that has not been tested in accordance with the
428	428	requirements of Subchapter D; and
429	429	(2) that is not accompanied by documentation that
430	430	includes:
431	431	(A) the company name and physical address for the
432	432	location where the hemp was produced;
433	433	(B) the delta-9 tetrahydrocannabinol
434	434	concentration of the hemp; and
435	435	(C) the total tetrahydrocannabinol concentration
436	436	of the hemp.
437	437	SECTION 18. Section 122.354, Agriculture Code, is amended
438	438	to read as follows:
439	439	Sec. 122.354. DEPARTMENT RULES. The department, in
440	440	consultation with the Department of Public Safety, shall adopt
441	441	rules regulating the transportation of hemp in this state to ensure
442	442	that illegal marihuana and illegal marihuana extract are [is] not
443	443	transported into, [or] through, or out of this state disguised as
444	444	legal hemp.
445	445	SECTION 19. Section 122.356, Agriculture Code, is amended
446	446	to read as follows:
447	447	Sec. 122.356. DOCUMENTATION AND OTHER SHIPPING
448	448	REQUIREMENTS. (a) A person may not transport or receive hemp
449	449	[plant material] in this state unless the hemp:
450	450	(1) is produced in compliance with:
451	451	(A) a state or tribal plan approved by the United
452	452	States Department of Agriculture under 7 U.S.C. Section 1639p; or
453	453	(B) a plan established under 7 U.S.C. Section
454	454	1639q if the hemp was produced [cultivated] in an area where that
455	455	plan applies; and
456	456	(2) is accompanied by a label clearly identifying the
457	457	hemp as hemp and:
458	458	(A) a shipping certificate or cargo manifest
459	459	issued under Section 122.055 if the hemp originated in this state;
460	460	or
461	461	(B) documentation containing the name and
462	462	address of the place where the hemp was produced, the delta-9
463	463	tetrahydrocannabinol concentration of the hemp, the total
464	464	tetrahydrocannabinol concentration of the hemp, [cultivated] and a
465	465	statement that the hemp was produced in compliance with 7 U.S.C.
466	466	Section 1639p or 7 U.S.C. Section 1639q [7 U.S.C. Chapter 38,
467	467	Subchapter VII], if the hemp originated outside this state.
468	468	(b) A person transporting hemp [plant material] in this
469	469	state:
470	470	(1) may not concurrently transport any cargo that is
471	471	not hemp [plant material]; and
472	472	(2) shall furnish the documentation required by this
473	473	section to the department or any peace officer on request.
474	474	(c) A person may not transport or receive hemp in this state
475	475	if the hemp is not accompanied by a label that includes:
476	476	(1) contact information of the department;
477	477	(2) the date and time of the departure of the hemp
478	478	shipment from the place of origin for the hemp;
479	479	(3) the quantity and form of hemp being transported;
480	480	(4) the delta-9 tetrahydrocannabinol concentration of
481	481	the hemp;
482	482	(5) the total tetrahydrocannabinol concentration of
483	483	the hemp; and
484	484	(6) any other information required by the department
485	485	or the Department of Public Safety.
486	486	SECTION 20. Sections 122.358(c) and (d), Agriculture Code,
487	487	are amended to read as follows:
488	488	(c) If a peace officer has probable cause to believe that a
489	489	person transporting hemp in this state is also transporting
490	490	marihuana, marihuana extract, a controlled substance analogue, or a
491	491	controlled substance, as defined by Section 481.002, Health and
492	492	Safety Code, or any other illegal substance under state or federal
493	493	law, the peace officer may seize and impound the hemp along with the
494	494	controlled or illegal substance.
495	495	(d) This subchapter does not limit or restrict a peace
496	496	officer from enforcing to the fullest extent the laws of this state
497	497	regulating marihuana, marihuana extract, controlled substance
498	498	analogues, and controlled substances, as defined by Section
499	499	481.002, Health and Safety Code.
500	500	SECTION 21. Section 122.359(a), Agriculture Code, is
501	501	amended to read as follows:
502	502	(a) A person who violates Section 122.356 is liable to this
503	503	state for a civil penalty in an amount not to exceed $5,000 [$500]
504	504	for each violation.
505	505	SECTION 22. Section 122.360(b), Agriculture Code, is
506	506	amended to read as follows:
507	507	(b) An offense under this section is a Class B misdemeanor
508	508	[punishable by a fine of not more than $1,000].
509	509	SECTION 23. Sections 122.403(a) and (c), Agriculture Code,
510	510	are amended to read as follows:
511	511	(a) If the department determines that a license holder
512	512	negligently violated this chapter or a rule adopted under this
513	513	chapter, the department shall enforce the violation in the manner
514	514	provided by Section 122.404 and 7 U.S.C. Section 1639p(e).
515	515	(c) A license holder who violates this chapter by
516	516	cultivating plants with a delta-9 tetrahydrocannabinol
517	517	concentration of more than 0.3 percent on a dry weight basis solely
518	518	as a result of negligence [described by Section 122.202(b)(2)]:
519	519	(1) must comply with an enhanced testing protocol
520	520	developed by the department;
521	521	(2) shall pay a fee in the amount not exceeding $1,000
522	522	[of $500] for each violation to cover the department's costs of
523	523	administering the enhanced testing protocol; and
524	524	(3) shall be included on a list maintained by the
525	525	department of license holders with negligent violations, which is
526	526	public information for purposes of Chapter 552, Government Code.
527	527	SECTION 24. Subchapter I, Chapter 122, Agriculture Code, is
528	528	amended by adding Section 122.405 to read as follows:
529	529	Sec. 122.405. FORFEITURE. A person who sells or
530	530	distributes a substance with a delta-9 tetrahydrocannabinol
531	531	concentration of more than 0.3 percent on a dry weight basis is
532	532	subject to forfeiture of contraband under Chapter 59, Code of
533	533	Criminal Procedure, and Chapter 481, Health and Safety Code.
534	534	SECTION 25. Subtitle F, Title 5, Agriculture Code, is
535	535	amended by adding Chapter 123 to read as follows:
536	536	CHAPTER 123. MANUFACTURE, DISTRIBUTION, AND SALE OF NONCONSUMABLE
537	537	HEMP PRODUCTS
538	538	SUBCHAPTER A. GENERAL PROVISIONS
539	539	Sec. 123.001. DEFINITIONS. In this chapter:
540	540	(1) "Consumable hemp product" has the meaning assigned
541	541	by Section 443.001, Health and Safety Code.
542	542	(2) "Dry weight basis" has the meaning assigned by
543	543	Section 122.001.
544	544	(3) "Hemp" has the meaning assigned by Section
545	545	121.001.
546	546	(4) "Institution of higher education" has the meaning
547	547	assigned by Section 61.003, Education Code.
548	548	(5) "License" means a nonconsumable hemp product
549	549	manufacturer's license issued under this chapter.
550	550	(6) "License holder" means an individual or business
551	551	entity holding a nonconsumable hemp product manufacturer's license
552	552	under this chapter.
553	553	(7) "Nonconsumable hemp product" has the meaning
554	554	assigned by Section 122.001.
555	555	(8) "Smoking" has the meaning assigned by Section
556	556	443.001, Health and Safety Code.
557	557	(9) "Tetrahydrocannabinol" has the meaning assigned
558	558	by Section 122.001.
559	559	Sec. 123.002. LEGISLATIVE INTENT. It is the intent of the
560	560	legislature to create a robust market for the production of fiber
561	561	hemp crops and the manufacturing of nonconsumable hemp products in
562	562	this state.
563	563	Sec. 123.003. LOCAL REGULATION PROHIBITED. A municipality,
564	564	county, or other political subdivision may not enact, adopt, or
565	565	enforce a rule, ordinance, order, resolution, or other regulation
566	566	that prohibits the processing of hemp for use in the manufacturing
567	567	of a nonconsumable hemp product, or the manufacturing or sale of
568	568	nonconsumable hemp products as authorized by this chapter.
569	569	Sec. 123.004. SEVERABILITY. (a) A provision of this
570	570	chapter or its application to any person or circumstance is invalid
571	571	if the secretary of the United States Department of Agriculture
572	572	determines that the provision or application conflicts with 7
573	573	U.S.C. Chapter 38, Subchapter VII, and prevents the approval of the
574	574	state plan submitted under Chapter 121.
575	575	(b) The invalidity of a provision or application under
576	576	Subsection (a) does not affect the other provisions or applications
577	577	of this chapter that can be given effect without the invalid
578	578	provision or application, and to this end the provisions of this
579	579	chapter are declared to be severable.
580	580	SUBCHAPTER B. POWERS AND DUTIES
581	581	Sec. 123.051. DEPARTMENT RULES AND PROCEDURES. (a) The
582	582	department shall adopt rules and procedures necessary to implement,
583	583	administer, and enforce this chapter.
584	584	(b) Rules adopted under Subsection (a) must comply with:
585	585	(1) a state plan submitted to and approved by the
586	586	secretary of the United States Department of Agriculture under
587	587	Section 121.003; and
588	588	(2) 7 U.S.C. Chapter 38, Subchapter VII, and federal
589	589	regulations adopted under that subchapter.
590	590	Sec. 123.052. DESIGNATION OF CONSUMABLE HEMP PRODUCT. (a)
591	591	The executive commissioner of the Health and Human Services
592	592	Commission may designate a substance that contains hemp as a
593	593	consumable hemp product if the executive commissioner determines
594	594	that the substance qualifies as a consumable hemp product under
595	595	Section 443.001, Health and Safety Code.
596	596	(b) A designation or modification of a designation made by
597	597	the executive commissioner of the Health and Human Services
598	598	Commission under this section is final and binding.
599	599	(c) A consumable hemp product designated under this section
600	600	is governed under Chapter 443, Health and Safety Code.
601	601	(d) A designation under this section is not subject to
602	602	Chapter 2001, Government Code.
603	603	Sec. 123.053. INDUSTRIAL HEMP STANDARDS. (a) The
604	604	department shall adopt standards for the production of hemp for
605	605	industrial purposes.
606	606	(b) The department may work with an institution of higher
607	607	education or certified third party to adopt and administer
608	608	responsible hemp standards for the production and distribution of
609	609	hemp for industrial purposes, as well as the manufacturing of
610	610	nonconsumable hemp products.
611	611	SUBCHAPTER C. NONCONSUMABLE HEMP PRODUCT MANUFACTURER'S LICENSE
612	612	Sec. 123.101. LICENSE REQUIRED; LIMITATIONS. A person may
613	613	not process hemp for use in a nonconsumable hemp product or
614	614	manufacture a nonconsumable hemp product in this state unless the
615	615	person holds a license under this subchapter.
616	616	Sec. 123.102. LICENSE INELIGIBILITY. (a) An individual who
617	617	is or has been convicted of a felony relating to a controlled
618	618	substance under federal law or the law of any state may not, before
619	619	the 10th anniversary of the date of the conviction:
620	620	(1) hold a license under this subchapter; or
621	621	(2) be a governing person or owner of a business entity
622	622	that holds a license under this subchapter.
623	623	(b) A person licensed under Chapter 443, Health and Safety
624	624	Code, may not be issued or hold a license under this subchapter.
625	625	(c) An individual who is not a legal citizen of the United
626	626	States of America may not:
627	627	(1) hold a license under this subchapter; or
628	628	(2) be a governing person or owner of a business entity
629	629	that holds a license under this subchapter.
630	630	Sec. 123.103. APPLICATION; ISSUANCE. A person may apply
631	631	for a license by submitting an application in the manner prescribed
632	632	by the department. The application must be accompanied by:
633	633	(1) the physical address, including the county, of the
634	634	location where the applicant intends to process hemp for use in a
635	635	nonconsumable product or manufacture nonconsumable hemp products;
636	636	and
637	637	(2) any other information the department requires by
638	638	rule.
639	639	Sec. 123.104. TERM; RENEWAL. (a) A license is valid for
640	640	one year and may be renewed as provided by this section.
641	641	(b) The department shall renew a license if the license
642	642	holder:
643	643	(1) is eligible to hold the license; and
644	644	(2) does not owe any outstanding fee to the
645	645	department.
646	646	Sec. 123.105. REVOCATION. The department may suspend or
647	647	revoke a license if the license holder fails to comply with this
648	648	chapter or a department rule.
649	649	Sec. 123.106. FEES. The department by rule shall establish
650	650	a fee schedule for this chapter, including an application fee and an
651	651	annual renewal fee each in the amount not to exceed $10,000.
652	652	SUBCHAPTER D. TESTING OF NONCONSUMABLE HEMP PRODUCTS
653	653	Sec. 123.151. TESTING REQUIRED. (a) Before a
654	654	nonconsumable hemp product is sold in this state by a license
655	655	holder, one or more samples from a batch of the nonconsumable hemp
656	656	product must be tested by a laboratory located in the state that is:
657	657	(1) registered with the Federal Drug Enforcement
658	658	Agency; and
659	659	(2) accredited by an accreditation body in accordance
660	660	with International Organization for Standardization ISO/IEC 17025
661	661	or a comparable or successor standard.
662	662	(b) The department shall adopt rules that require a
663	663	laboratory to electronically report any test result conducted under
664	664	this section to the department.
665	665	(c) This section does not apply to a nonconsumable hemp
666	666	product containing only:
667	667	(1) the mature stalks of the plant Cannabis sativa L.;
668	668	or
669	669	(2) fiber produced from the mature stalks of the plant
670	670	Cannabis sativa L.
671	671	Sec. 123.152. PROVISIONS RELATED TO TESTING. Any method
672	672	for detecting tetrahydrocannabinols must consider the conversion
673	673	of tetrahydrocannabinolic acid into tetrahydrocannabinol.
674	674	SUBCHAPTER E. MANUFACTURE, TRANSPORTATION, AND SALE OF
675	675	NONCONSUMABLE HEMP PRODUCT
676	676	Sec. 123.201. TRANSPORTATION OF NONCONSUMABLE HEMP
677	677	PRODUCTS. A person may transport a nonconsumable hemp product
678	678	manufactured in compliance with this subchapter.
679	679	Sec. 123.202. INTERSTATE TRANSPORTATION OF PRODUCTS.
680	680	Nonconsumable hemp products may only be transported across state
681	681	lines in a manner that is consistent with state and federal law.
682	682	Sec. 123.203. RESTRICTIONS ON SALE. (a) A person may not
683	683	sell a nonconsumable hemp product if the product contains any
684	684	detectable tetrahydrocannabinols.
685	685	(b) All nonconsumable hemp products must be manufactured in
686	686	product batches to allow for accurate sampling, testing, packaging,
687	687	and labeling.
688	688	(c) A person may not manufacture, distribute, deliver, make
689	689	available for sale, purchase, possess, or use a nonconsumable hemp
690	690	product in this state that:
691	691	(1) contains harmful ingredients;
692	692	(2) can be used for smoking; or
693	693	(3) contains any detectable tetrahydrocannabinols.
694	694	Sec. 123.204. PACKAGING AND LABELING. Each nonconsumable
695	695	hemp product must be labeled with:
696	696	(1) a logo or insignia designed by the department
697	697	identifying the product as a nonconsumable hemp product; and
698	698	(2) the name and address of the license holder.
699	699	Sec. 123.205. SALE OF OUT-OF-STATE NONCONSUMABLE HEMP
700	700	PRODUCTS. A person may sell a nonconsumable hemp product
701	701	manufactured outside of this state if:
702	702	(1) the hemp in the nonconsumable hemp product was
703	703	cultivated or processed in compliance with a plan approved by the
704	704	United States Department of Agriculture under 7 U.S.C. Section
705	705	1639p or established under 7 U.S.C. Section 1639q;
706	706	(2) the nonconsumable hemp product was tested and the
707	707	result reported in accordance with the requirements of Section
708	708	123.151; and
709	709	(3) the sale does not violate federal law.
710	710	SECTION 26. The following provisions of the Agriculture
711	711	Code are repealed:
712	712	(1) Section 122.052(c);
713	713	(2) Section 122.053(e);
714	714	(3) Subchapter G, Chapter 122; and
715	715	(4) Sections 122.358(a) and (b).
716	716	SECTION 27. (a) Not later than December 1, 2025, the
717	717	Department of Agriculture shall develop and submit for approval a
718	718	state plan to the secretary of the United States Department of
719	719	Agriculture as required by Section 121.003, Agriculture Code, as
720	720	amended by this Act.
721	721	(b) If the state plan submitted under Subsection (a) of this
722	722	section is not approved, as soon as practicable, the Department of
723	723	Agriculture shall submit amended state plans as required by Section
724	724	121.003, Agriculture Code, as amended by this Act, until the plan is
725	725	approved by the secretary of the United States Department of
726	726	Agriculture.
727	727	(c) As soon as practicable after a state plan is approved
728	728	under Subsection (a) or (b) of this section, the Department of
729	729	Agriculture and the Department of State Health Services shall
730	730	implement the state plan.
731	731	SECTION 28. (a) As soon as practicable after the effective
732	732	date of this Act, the executive commissioner of the Health and Human
733	733	Services Commission shall adopt rules necessary to implement the
734	734	changes in law made by this Act.
735	735	(b) As soon as practicable after the effective date of this
736	736	Act, the commissioner of the Department of Agriculture shall adopt
737	737	rules necessary to implement the changes in law made by this Act.
738	738	SECTION 29. This Act takes effect September 1, 2025.
739	739
740	740
741	741
742	742
743	743
744	744
745	745
746	746	Provision Amount of Penalty
747	747
748	748
749	749
750	750	Chapters 13, 14A, 18, 19, 41, 46, 61, 72, 73, not more than $5,000
751	751
752	752
753	753
754	754	74, 76, 94, 95, 101, 102, 103, 122, 123, 125,
755	755
756	756
757	757
758	758	132, and 134
759	759
760	760
761	761
762	762	Subchapters A, B, and C, Chapter 71 not more than $5,000
763	763
764	764
765	765
766	766	Chapter 14 not more than $10,000
767	767
768	768
769	769
770	770	Chapter 1951, Occupations Code not more than $5,000
771	771
772	772
773	773
774	774	Chapter 153, Natural Resources
775	775
776	776
777	777
778	778	Code not more than $5,000
779	779
780	780
781	781
782	782	Section 91.009 not more than $5,000.