89R9393 LHC-D
By: Perry S.B. No. 3
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of consumable hemp products and the
hemp-derived cannabinoids contained in those products; 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(1), Health and Safety Code, is
amended 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 contains hemp or one or more hemp-derived
cannabinoids, including cannabidiol or cannabigerol.
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. 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 4. Subchapter C, Chapter 443, Health and Safety
Code, is amended by adding Section 443.106 to read as follows:
Sec. 443.106. RESTRICTION ON MANUFACTURE OF CERTAIN
CONSUMABLE HEMP PRODUCTS. A license holder may not manufacture a
consumable hemp product that contains any amount of a cannabinoid
other than cannabidiol or cannabigerol.
SECTION 5. Sections 443.151(b), (d), and (e), Health and
Safety Code, are amended to read as follows:
(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) 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 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.
(e) A consumable hemp product is not required to be tested
under Subsection (d) if each hemp-derived ingredient of the
product:
(1) has been tested in accordance with[:
[(A) Subsections (b) and (c); or
[(B)] Subsection (d); and
(2) does not contain any amount of a cannabinoid other
than cannabidiol or cannabigerol [have a delta-9
tetrahydrocannabinol concentration of more than 0.3 percent].
SECTION 6. Sections 443.152(a) and (c), Health and Safety
Code, are amended to read as follows:
(a) A consumable hemp product that contains any amount of a
cannabinoid other than cannabidiol or cannabigerol [has a delta-9
tetrahydrocannabinol concentration of more than 0.3 percent] may
not be sold at retail or otherwise introduced into commerce in this
state.
(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 7. Sections 443.202(b) and (c), Health and Safety
Code, are amended to read as follows:
(b) Notwithstanding any other law, a person may not sell,
offer for sale, possess, distribute, or transport a cannabinoid
oil[, including cannabidiol oil,] in this state:
(1) if the oil contains any material extracted or
derived from the plant Cannabis sativa L., other than from hemp
produced in compliance with 7 U.S.C. Chapter 38, Subchapter VII;
and
(2) unless a sample representing the oil has been
tested by a laboratory that is accredited by an independent
accreditation body in accordance with International Organization
for Standardization ISO/IEC 17025 or a comparable or successor
standard and found to not contain any amount of a cannabinoid other
than cannabidiol or cannabigerol [have a delta-9
tetrahydrocannabinol concentration of not more than 0.3 percent].
(c) The department [and the Department of Public Safety]
shall establish a process for the [random] testing of cannabinoid
oil[, including cannabidiol oil,] at various retail and other
establishments that sell, offer for sale, distribute, or use the
oil to ensure that the oil:
(1) does not contain harmful ingredients;
(2) is produced in compliance with 7 U.S.C. Chapter
38, Subchapter VII; and
(3) does not contain any amount of a cannabinoid other
than cannabidiol or cannabigerol [has a delta-9
tetrahydrocannabinol concentration of not more than 0.3 percent].
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. Sections 443.2025(b), (d), (f), and (g), Health
and Safety Code, are amended 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 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.
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 contains any amount of a cannabinoid
other than cannabidiol or cannabigerol; or
(4) the product's packaging or advertising indicates
that the product is for medical use [has a delta-9
tetrahydrocannabinol concentration of more than 0.3 percent].
SECTION 11. Section 443.204, Health and Safety Code, is
amended to read as follows:
Sec. 443.204. RULES RELATED TO SALE OF CONSUMABLE HEMP
PRODUCTS. Rules adopted by the executive commissioner regulating
the sale of consumable hemp products must to the extent allowable by
federal law reflect the following principles:
(1) hemp-derived [cannabinoids, including]
cannabidiol and cannabigerol [,] are not considered controlled
substances or adulterants;
(2) products containing [one or more] hemp-derived
[cannabinoids, such as] cannabidiol or cannabigerol[,] intended
for ingestion are considered foods, not controlled substances or
adulterated products; and
(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].
SECTION 12. Section 443.205(a), Health and Safety Code, is
amended 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 be:
(1) 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 or cannabigerol in
each serving or unit of the product; and
(G) [(6)] a certification that the concentration
of any cannabinoid other than cannabidiol or cannabigerol in the
product is not more than 0.0001 percent on a dry weight basis; and
(2) 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 [delta-9 tetrahydrocannabinol concentration of the
product or each hemp-derived ingredient of the product is not more
than 0.3 percent].
SECTION 13. 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. CRIMINAL OFFENSE OF PROHIBITED 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 an edible 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; or
(F) includes an image that resembles a food
product, including candy or juice.
(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 Class A misdemeanor.
Sec. 443.2056. PACKAGING THAT IS MISLEADING PROHIBITED.
The packaging and labeling of consumable hemp products that contain
or are marketed as containing hemp-derived cannabinoids may not
depict any statement, artwork, or design that would likely mislead
a person to believe the package does not contain a hemp-derived
cannabinoid.
SECTION 14. 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 any amount of a cannabinoid other
than cannabidiol or cannabigerol; and
(3) are packaged and labeled in the manner provided by
this subchapter.
SECTION 15. Chapter 443, Health and Safety Code, is amended
by adding Subchapters F and G 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 contains any amount of a cannabinoid
other than cannabidiol or cannabigerol.
(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
contains any amount of a cannabinoid other than cannabidiol or
cannabigerol.
(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 B 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. (a) A person commits an
offense if the person manufactures, distributes, sells, or offers
for sale a consumable hemp product for smoking.
(b) An offense under this section is a Class B 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 Class B misdemeanor.
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.
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 $10,000 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.
SECTION 16. The following provisions of the Health and
Safety Code are repealed:
(1) Section 443.201; and
(2) Sections 443.202(a) and 443.2025(a).
SECTION 17. Not later than December 1, 2025, 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. (a) Except as otherwise provided by Subsection
(b) of this section, 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.
(b) A person selling consumable hemp products on the
effective date of this Act may continue to sell those products and
is not required to register under Section 443.2025, Health and
Safety Code, as amended by this Act, before January 1, 2026.
SECTION 19. This Act takes effect September 1, 2025.