SB3 - Relating to the regulation of products derived from hemp, including consumable hemp products and the hemp-derived cannabinoids contained in those products; requiring occupational licenses and permits; imposing fees; creating criminal offenses; authorizing an administrative penalty.

      S.B. No. 3         AN ACT   relating to the regulation of products derived from hemp, including   consumable hemp products and the hemp-derived cannabinoids   contained in those products; requiring occupational licenses and   permits; imposing fees; creating criminal offenses; authorizing an   administrative penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 443.001, Health and Safety Code, is   amended by amending Subdivision (1) and adding Subdivision (8-a) to   read as follows:                (1)  "Consumable hemp product" means food, a drug, a   device, or a cosmetic, as those terms are defined by Section   431.002, that contains hemp or one or more hemp-derived   cannabinoids, including cannabidiol or cannabigerol .                 (8-a)  "Minor" means a person under 21 years of age.          SECTION 2.  Chapter 443, Health and Safety Code, is amended   by adding Subchapter A-1 to read as follows:   SUBCHAPTER A-1.   NONAPPLICABILITY           Sec.   443.021.     LOW-THC CANNABIS.   This chapter does not   apply to low-THC cannabis regulated under Chapter 487.           Sec.   443.022.     RESEARCH. This chapter does not apply to   research on hemp conducted by:                 (1)     a medical school, as defined by Section 61.501,   Education Code;                 (2)  a hospital licensed under Chapter 241; or                 (3)     an institution of higher education or private or   independent institution of higher education, as defined by Section   61.003, Education Code.          SECTION 3.  Subchapter C, Chapter 443, Health and Safety   Code, is amended by adding Section 443.1035 to read as follows:           Sec.   443.1035.     LICENSING FEES. (a)   An applicant for a   license under this subchapter shall pay an initial licensing fee to   the department in the amount of $10,000 for each location where the   applicant intends to process hemp or manufacture a consumable hemp   product.           (b)     Before the department may renew a license as provided by   Section 443.104, a license holder shall pay a renewal fee to the   department in the amount of $10,000 for each location where the   applicant intends to process hemp or manufacture a consumable hemp   product.          SECTION 4.  Section 443.104(b), Health and Safety Code, is   amended to read as follows:          (b)  The department shall renew a license if the license   holder:                (1)  is not ineligible to hold the license under   Section 443.102;                (2)   has not violated this chapter or a rule adopted   under this chapter;                 (3)   submits to the department any license renewal fee;   and                 (4)  [ (3) ]  does not owe any outstanding fees to the   department.          SECTION 5.  Subchapter C, Chapter 443, Health and Safety   Code, is amended by adding Section 443.106 to read as follows:           Sec.   443.106.     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 6.  Section 443.151, Health and Safety Code, is   amended by amending Subsections (a), (b), and (d) and adding   Subsections (d-1) and (d-2) to read as follows:          (a)  A consumable hemp product must be tested as provided   by[ :                [ (1) ]  Subsections (b) , [ and ] (c) , and [ ; or                [ (2)  Subsection ] (d).          (b)  Before a hemp plant is processed or otherwise used in   the manufacture of a consumable hemp product, a sample representing   the plant must be tested, as required by the executive   commissioner, to determine:                (1)  the concentration and identity of the [ various ]   cannabinoids in the plant ; and                (2)  the presence or quantity of heavy metals,   pesticides, microbial contamination, and any other substance   prescribed by the department.          (d)   Before  [ Except as otherwise provided by Subsection (e),   before ] a consumable hemp product is sold at retail or otherwise   introduced into commerce in this state, a sample representing the   hemp product must be tested:                (1)  by a laboratory that is :                       (A)  located in this state;                       (B)     registered with the United States Drug   Enforcement Administration; and                       (C)   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.           (d-1)     The testing required under Subsection (d) must use   post-decarboxylation, high-performance liquid chromatography, or a   similar method that includes the conversion of   tetrahydrocannabolic acid into tetrahydrocannabinol to determine   the total tetrahydrocannabinol concentration in a tested product.           (d-2)     A person that tests a consumable hemp product under   Subsection (d) shall report the test results to the department in   the form and manner required by the department.          SECTION 7.  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 8.  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 9.  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 10.  Section 443.2025, Health and Safety Code, is   amended by amending Subsections (b), (d), and (f) and adding   Subsection (h) to read as follows:          (b)  A person may not sell consumable hemp products   containing a cannabinoid [ cannabidiol ] at retail in this state   unless the person registers with the department each location   owned, operated, or controlled by the person at which those   products are sold. A person is not required to register a location   associated with an employee [ or independent contractor ] described   by Subsection (d).          (d)  A person is not required to register with the department   under Subsection (b) if the person is[ :                [ (1) ]  an employee of a registrant[ ; or                [ (2)     an independent contractor of a registrant who   sells the registrant's products at retail ].          (f)   The owner of a location at which consumable hemp   products are sold shall annually pay to the department a   registration fee in the amount of $20,000 for each location owned by   the person at which those products are sold [ The department by rule   may adopt a registration fee schedule that establishes reasonable   fee amounts for the registration of:                [ (1)     a single location at which consumable hemp   products containing cannabidiol are sold; and                [ (2)     multiple locations at which consumable hemp   products containing cannabidiol are sold under a single   registration ].           (h)     A person may not sell consumable hemp products unless   the person has provided to the department written consent from the   person or the property owner, if the person is not the property   owner, allowing the department, the Department of Public Safety,   and any other state or local law enforcement agency to enter onto   all premises where consumable hemp products are sold to conduct a   physical inspection or to ensure compliance with this chapter and   rules adopted under this chapter.          SECTION 11.  Subchapter E, Chapter 443, Health and Safety   Code, is amended by adding Section 443.2026 to read as follows:   &#x [Text truncated for display. 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