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A BILL TO BE ENTITLED
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AN ACT
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relating to industrial hemp; requiring an occupational license; |
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authorizing fees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 61.001(1), Agriculture Code, is amended |
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to read as follows: |
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(1) "Agricultural seed" includes the seed of any |
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grass, forage, cereal, or fiber crop, any other kind of seed |
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commonly recognized in this state as agricultural or field seed, |
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and any mixture of those seeds. The term includes the seed of |
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industrial hemp, as that term is defined by Section 112.001. |
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SECTION 2. The heading to Subtitle E, Title 5, Agriculture |
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Code, is amended to read as follows: |
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SUBTITLE E. PRODUCTION, PROCESSING, AND SALE OF FIBER PRODUCTS |
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SECTION 3. Subtitle E, Title 5, Agriculture Code, is |
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amended by adding Chapter 112 to read as follows: |
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CHAPTER 112. PRODUCTION OF INDUSTRIAL HEMP |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 112.001. DEFINITIONS. In this chapter: |
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(1) "Collective yield" means a hammer milled, |
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pulverized, or ground sample of a whole plant, including roots, |
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stalks, leaves, flowers, and seeds. |
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(2) "Compliant use" means the use or recommended use |
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of a hemp-derived product with a delta-9 tetrahydrocannabinol |
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concentration of not more than 0.3 percent for any purpose, |
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including food for human consumption, human application, feed for |
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animal consumption, animal application, fiber production, or |
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product manufacturing. |
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(3) "Hemp-derived product" includes: |
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(A) a plant segment; and |
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(B) an end product derived from an industrial |
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hemp plant or a plant segment, including extract, oil, grain, cake, |
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meal, flower, resin, fiber, or hurd. |
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(4) "Industrial hemp" means a plant or any part of a |
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plant, whether growing or not, of the species Cannabis sativa L. |
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with a delta-9 tetrahydrocannabinol concentration of not more than |
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0.3 percent on a dry weight basis. |
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(5) "Institution of higher education" has the meaning |
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assigned by 20 U.S.C. Section 1001. |
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(6) "License" means an industrial hemp producer's |
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license issued under this chapter. |
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(7) "License holder" means a person who holds a |
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license. |
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(8) "Plant segment" means an individual segment of a |
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plant, including the roots, stalks, leaves, flowers, or seeds of a |
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plant. |
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(9) "THC compliance threshold" means a delta-9 |
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tetrahydrocannabinol concentration of not more than 0.3 percent: |
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(A) on a dry weight basis for industrial hemp; or |
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(B) in a hemp-derived product. |
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Sec. 112.0015. COMPLIANCE WITH FEDERAL LAW. |
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Notwithstanding any other provision of this chapter, a person may |
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grow or cultivate industrial hemp under this chapter only to the |
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extent allowed by federal law. |
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Sec. 112.002. INDUSTRIAL HEMP RESEARCH. (a) The |
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department, in cooperation with selected institutions of higher |
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education with expertise in agricultural research, shall promote |
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the research and development of industrial hemp and commercial |
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markets for industrial hemp and hemp-derived products. |
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(b) The department shall research industrial hemp |
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production through the establishment and oversight of an industrial |
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hemp research program lasting at least five years. The department |
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shall select an institution of higher education to manage the |
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research program. The research program must consist primarily of |
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demonstration plots planted and cultivated in this state by |
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selected license holders. |
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(c) The department shall obtain any federal permit or waiver |
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necessary to conduct the industrial hemp research program from the |
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United States Drug Enforcement Agency or the appropriate federal |
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agency. |
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(d) As part of the industrial hemp research program, the |
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department shall, through the institution of higher education |
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selected under Subsection (b) and other research partners: |
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(1) oversee and analyze the growth of industrial hemp |
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by license holders for agronomy research, including analysis of |
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required soils, growing conditions, and harvest methods for |
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industrial hemp varieties that may be suitable for the production |
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of commercial hemp products; |
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(2) conduct seed research on various types of |
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industrial hemp that are best suited to be grown in this state, |
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including seed availability, creation of Texas hybrid types, |
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in-the-ground variety trials and seed production, and the |
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feasibility of a program to recognize certain industrial hemp seed |
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as being Texas heritage hemp seed; |
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(3) study the economic feasibility of developing an |
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industrial hemp market for various types of industrial hemp that |
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can be grown in this state; |
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(4) report on the estimated value-added benefits, |
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including environmental benefits, to businesses in this state of |
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creating a market for industrial hemp produced in this state; |
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(5) study the agronomy research being conducted |
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worldwide relating to industrial hemp varieties, production, and |
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utilization; |
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(6) research and promote industrial hemp and hemp seed |
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on the world market that can be produced in this state; and |
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(7) study the feasibility of attracting federal and |
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private funding for the research program under this section. |
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(e) In addition to the research and analysis under |
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Subsection (d), the department shall: |
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(1) coordinate with an institution of higher education |
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to study the use of industrial hemp in new energy technologies, |
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including: |
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(A) an evaluation of the use of industrial hemp |
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to generate electricity and to produce biofuels and other forms of |
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energy resources; |
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(B) the growth of industrial hemp on reclaimed |
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oil and gas lands, mine sites, and wind farms; |
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(C) the use of hemp seed oil in the production of |
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fuels; and |
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(D) an assessment of the production costs, |
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environmental issues, and costs and benefits involved with the use |
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of industrial hemp for energy; and |
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(2) promote awareness of the financial incentives that |
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may be available to agribusiness and manufacturing companies that |
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manufacture industrial hemp into hemp-derived products in order to |
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diversify the agricultural economy of this state, attract new |
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businesses to this state, create new job opportunities for |
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residents of this state, and create a commercial market for |
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industrial hemp. |
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(f) The department may solicit and accept gifts, grants, and |
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donations from public and private sources to implement the research |
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program under this section. |
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(g) Not later than December 31 of each year, the department |
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shall report on the status and progress of the research program |
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under this section to the governor and the legislature. |
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Sec. 112.003. LEGISLATIVE INTENT REGARDING COMPLIANCE |
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RESPONSIBILITIES. It is the intent of the legislature that: |
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(1) license holders be responsible for growing and |
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cultivating department-approved, certified industrial hemp seed, |
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cultivars, and clones that meet the THC compliance threshold and |
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are in compliance with other applicable laws; |
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(2) manufacturers of hemp-derived products for human |
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consumption be responsible for meeting the THC compliance threshold |
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and complying with applicable food manufacturing laws; |
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(3) manufacturers of hemp-derived products not for |
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human consumption be responsible for meeting the THC compliance |
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threshold and complying with other applicable laws; and |
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(4) wholesalers, retailers, and consumers of |
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hemp-derived products not be responsible for unknowingly buying or |
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selling products that do not meet the THC compliance threshold, |
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unless the person intentionally or knowingly adulterates the |
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product. |
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SUBCHAPTER B. POWERS AND DUTIES OF DEPARTMENT |
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Sec. 112.051. RULES. (a) The department shall adopt rules |
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to regulate industrial hemp production in this state, including: |
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(1) license application and renewal procedures; |
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(2) requirements for license applicants and license |
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holders to provide global positioning system coordinates for each |
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location where the person grows or cultivates, or intends to grow or |
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cultivate, industrial hemp; |
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(3) plant inspection requirements; |
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(4) procedures to notify law enforcement officials of |
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the licensed growth or cultivation of industrial hemp; |
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(5) requirements for license holders to post notice of |
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industrial hemp cultivation; and |
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(6) provisions governing acquisition of certified |
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seed, cultivars, and clones by license holders and institutions of |
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higher education. |
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(b) Rules adopted under this chapter must be comparable to |
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similar rules governing the production of other crops. |
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Sec. 112.052. FEES. (a) The department shall prescribe |
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reasonable license application and renewal fees, inspection fees, |
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and plant sample testing fees in amounts comparable to fees |
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associated with the production of other crops. |
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(b) Fees collected under this chapter may be appropriated |
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only to the department for the purpose of administering this |
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chapter. |
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Sec. 112.053. INSPECTIONS. (a) The department may inspect |
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plants grown or cultivated by a license holder to determine whether |
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the plants meet the THC compliance threshold and are being grown or |
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cultivated in compliance with department rules. |
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(b) Inspections and testing under this chapter shall be |
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conducted according to best practices established by the department |
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and institutions of higher education. |
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SUBCHAPTER C. INDUSTRIAL HEMP PRODUCER'S LICENSE |
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Sec. 112.101. LICENSE REQUIRED. A person may not grow or |
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cultivate industrial hemp in this state unless the person is a |
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license holder. |
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Sec. 112.102. ISSUANCE OF LICENSE. (a) An applicant for a |
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license must apply to the department and pay the required |
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application fee. |
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(b) The application must: |
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(1) be notarized to affirm the applicant's identity; |
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(2) include the global positioning system coordinates |
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of each location where the applicant will grow or cultivate |
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industrial hemp; and |
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(3) include the contact information, including an |
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electronic mail address if available, of the sheriff for each |
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county where the applicant will grow or cultivate industrial hemp. |
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(c) The department shall issue a license to a qualified |
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applicant not later than the 60th day after the date the department |
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receives the completed application and the required fee. |
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(d) The department shall send a copy of each license issued |
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under this chapter to the sheriff for each county where the license |
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holder will grow or cultivate industrial hemp, including the global |
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positioning system coordinates of each location where the license |
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holder will grow or cultivate industrial hemp. |
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Sec. 112.103. LICENSE TERM. A license is valid for one year |
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and may be renewed as provided by department rule. |
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Sec. 112.104. REVOCATION. The department shall revoke a |
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license if the department finds that the license holder violated |
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this chapter or a rule adopted under this chapter, or is |
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intentionally or knowingly growing plants with the intent to |
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produce marihuana. |
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SUBCHAPTER D. INDUSTRIAL HEMP SEED, CULTIVARS, AND CLONES |
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Sec. 112.151. SEED, CULTIVAR, AND CLONE CERTIFICATION. (a) |
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The department or the State Seed and Plant Board may certify under |
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Chapter 61 or 62 industrial hemp seed and industrial hemp plants, |
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cultivars, and clones. |
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(b) The department or the State Seed and Plant Board may |
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adopt rules necessary to implement this section. |
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Sec. 112.152. ACQUISITION OF SEEDS AND PLANTS. (a) A |
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license holder, the department, or an institution of higher |
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education may transport and use industrial hemp plants, industrial |
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hemp plant clones, and other industrial hemp cultivars from states |
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that allow the cultivation of industrial hemp in compliance with |
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federal law. |
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(b) The department shall acquire any necessary permits from |
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the United States Drug Enforcement Administration to acquire |
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industrial hemp seed from domestic and foreign sources. |
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Sec. 112.153. INDUSTRIAL HEMP EXCEEDING THC COMPLIANCE |
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THRESHOLD. (a) The department shall suspend the certification of |
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certified industrial hemp seed, cultivars, or clones if the |
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collective yield and average samplings from seed, cultivar, or |
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clone inspections exceed the THC compliance threshold. |
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(b) Seed, cultivars, or clones for which the collective |
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yield and average samplings exceed the THC compliance threshold |
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shall be destroyed at the license holder's expense according to |
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department rules. |
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SUBCHAPTER E. EXCEPTIONS FROM MARIHUANA LAWS FOR INDUSTRIAL HEMP |
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Sec. 112.201. APPLICABILITY OF OTHER LAW. (a) The term |
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"marihuana," as defined by Section 481.002, Health and Safety Code, |
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does not include: |
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(1) industrial hemp grown or cultivated by the |
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department, an institution of higher education, or a license |
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holder; or |
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(2) a hemp-derived product that meets the THC |
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compliance threshold. |
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(b) Except as provided by Subsection (c), a person does not |
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violate Section 481.120, 481.121, 481.122, or 481.125, Health and |
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Safety Code, if the person: |
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(1) manufactures, delivers, or possesses a |
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hemp-derived product for a compliant use; |
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(2) manufactures, delivers, or possesses equipment |
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used for the manufacture or processing of a hemp-derived product |
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for a compliant use; |
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(3) grows industrial hemp, without intent, as the |
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result of the natural spread of seeds onto property owned or |
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controlled by the person; or |
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(4) is the department, an institution of higher |
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education, or a license holder and: |
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(A) grows, cultivates, manufactures, delivers, |
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or possesses industrial hemp; |
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(B) manufactures, delivers, or possesses |
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equipment used for the cultivation or processing of industrial |
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hemp; or |
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(C) without intent, grows or cultivates a plant |
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from a department-approved, certified seed, cultivar, or clone that |
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on inspection is found to exceed the THC compliance threshold if the |
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person destroys the plant in accordance with department rules as |
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soon as practicable after learning the plant exceeds the THC |
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compliance threshold. |
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(c) Subsection (b) does not apply to a person who |
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intentionally or knowingly grows a plant or produces a product with |
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the intent to produce marihuana. |
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SECTION 4. Section 481.002(26), Health and Safety Code, is |
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amended to read as follows: |
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(26) "Marihuana" means the plant Cannabis sativa L., |
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whether growing or not, the seeds of that plant, and every compound, |
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manufacture, salt, derivative, mixture, or preparation of that |
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plant or its seeds. The term does not include: |
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(A) the resin extracted from a part of the plant |
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or a compound, manufacture, salt, derivative, mixture, or |
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preparation of the resin; |
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(B) the mature stalks of the plant or fiber |
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produced from the stalks; |
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(C) oil or cake made from the seeds of the plant; |
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(D) a compound, manufacture, salt, derivative, |
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mixture, or preparation of the mature stalks, fiber, oil, or cake; |
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[or] |
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(E) the sterilized seeds of the plant that are |
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incapable of beginning germination; or |
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(F) an item described by Section 112.201(a), |
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Agriculture Code. |
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SECTION 5. Not later than January 1, 2018, the Department of |
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Agriculture shall adopt rules necessary to implement Chapter 112, |
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Agriculture Code, as added by this Act. |
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SECTION 6. This Act takes effect September 1, 2017. |