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A BILL TO BE ENTITLED
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AN ACT
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relating to the production and regulation of hemp and consumable |
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hemp products; providing administrative penalties; imposing and |
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authorizing fees; creating a criminal offense. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 121.003, Agriculture Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) Not later than the 90th day after the date a change to a |
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state statute, federal statute, or federal regulation takes effect, |
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the department shall submit to the secretary of the United States |
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Department of Agriculture any amendments to the state plan |
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necessary to incorporate and implement the change. |
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SECTION 2. Subchapter A, Chapter 122, Agriculture Code, is |
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amended by adding Section 122.005 to read as follows: |
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Sec. 122.005. HEMP RESEARCH BY INSTITUTIONS OF HIGHER |
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EDUCATION. (a) The department shall issue a license to an |
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institution of higher education in this state that requests the |
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license. |
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(b) Notwithstanding any provision of this chapter or |
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department rule other than Subsection (c), an institution of higher |
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education conducting research involving hemp: |
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(1) is not required to pay a fee collected by the |
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department under this chapter; |
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(2) is not required to obtain from the department a lot |
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crop permit or other permit for each location where hemp is grown; |
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(3) is not required to obtain preharvest testing under |
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Section 122.153 before harvesting plants, except as provided by |
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Subsection (c); |
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(4) may use hemp seed and cultivate and handle plants |
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grown from seed that is not certified or approved under Section |
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122.252; and |
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(5) is not subject to Section 122.403(c) or (d). |
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(c) An institution of higher education may not sell or |
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transfer hemp to another person unless the institution complies |
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with the requirements of Sections 122.153 and 122.356. |
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SECTION 3. Section 122.051, Agriculture Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) Not later than the 90th day after the date a change to |
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this chapter, a federal statute, or a federal regulation takes |
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effect, the department shall propose any rules necessary to |
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incorporate and implement the change. |
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SECTION 4. Section 122.151, Agriculture Code, is amended by |
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adding Subsection (g) to read as follows: |
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(g) A laboratory that performs testing required by this |
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chapter shall report the delta-9 tetrahydrocannabinol |
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concentration, the total tetrahydrocannabinol concentration, and |
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any other federally regulated cannabinoid of the sample on a dry |
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weight basis and the measurement of uncertainty in the test result. |
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The measurement of uncertainty must comply with International |
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Organization for Standardization ISO/IEC 17025 or a comparable or |
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successor standard. For purposes of this chapter, the delta-9 |
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tetrahydrocannabinol concentration of the sample is the lowest |
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possible value given that measurement of uncertainty. |
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SECTION 5. Section 122.201(a), Agriculture Code, is amended |
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to read as follows: |
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(a) A license holder shall harvest the plants from a plot |
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not later than the 30th [20th] day after the date a preharvest |
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sample is collected under Section 122.154 unless field conditions |
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delay harvesting or the department authorizes the license holder to |
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delay harvesting. This subsection does not prohibit the license |
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holder from harvesting the plants immediately after the preharvest |
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sample is collected. |
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SECTION 6. Subchapter E, Chapter 122, Agriculture Code, is |
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amended by adding Section 122.203 to read as follows: |
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Sec. 122.203. HARVEST WHILE LICENSE SUSPENDED OR REVOKED. |
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(a) A person whose license is suspended or revoked after planting |
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hemp plants may obtain preharvest or postharvest testing under |
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Subchapter D and may harvest the plants under Section 122.201 in the |
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same manner as a license holder. |
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(b) While a person's license is suspended or revoked, the |
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department may: |
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(1) prohibit the person from selling or using plants |
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harvested under Subsection (a); or |
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(2) if the delta-9 tetrahydrocannabinol concentration |
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of the plants is not more than 0.3 percent on a dry weight basis, |
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allow the person to sell or use plants harvested under Subsection |
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(a) in the same manner as a license holder under Section 122.202. |
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(c) A person whose license is reinstated may sell or use |
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plants harvested under Subsection (a) as provided by Section |
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122.202. |
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SECTION 7. The heading to Subchapter F, Chapter 122, |
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Agriculture Code, is amended to read as follows: |
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SUBCHAPTER F. HEMP SEED AND PLANTS |
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SECTION 8. Section 122.252, Agriculture Code, is amended to |
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read as follows: |
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Sec. 122.252. CERTIFICATION OR APPROVAL OF SEED AND PLANT |
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VARIETIES. (a) The department or an entity authorized to certify |
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seed and plants under Chapter 62 shall identify and certify or |
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approve varieties of seed and plants confirmed to produce hemp. |
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(b) The department or entity may not certify or approve a |
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variety of hemp seed or plant if the variety [seed] is tested and |
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confirmed to produce a plant that has delta-9 tetrahydrocannabinol |
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concentration of more than 0.3 percent on a dry weight basis. For |
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purposes of this subsection, the department may partner with a |
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private entity or an institution of higher education to test seed |
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and plant varieties for the purpose of certification or approval |
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under this section. |
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(c) The department may authorize the importation of hemp |
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seed and plant varieties certified in accordance with the law of |
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another state or jurisdiction that requires as a condition of |
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certification that hemp be produced in compliance with: |
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(1) that state or jurisdiction's plan approved by the |
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United States Department of Agriculture under 7 U.S.C. Section |
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1639p; or |
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(2) a plan established under 7 U.S.C. Section 1639q if |
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that plan applies in the state or jurisdiction. |
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(d) The department shall maintain and make available to |
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license holders a list of hemp seed and plant varieties [seeds] |
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certified or approved under this section. |
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SECTION 9. Subchapter F, Chapter 122, Agriculture Code, is |
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amended by adding Section 122.254 to read as follows: |
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Sec. 122.254. SEEDLINGS AND OTHER IMMATURE PLANTS. (a) In |
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this section, "immature plant" means a hemp seedling, clone, or |
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cutting that requires substantial cultivation and further growth |
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before the beginning of the period under Section 122.201(a) when |
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the plant may be harvested. |
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(b) A person may transport into this state, and a license |
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holder may obtain and cultivate, immature plants propagated outside |
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this state if the plants are accompanied by shipping documentation |
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that: |
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(1) complies with any requirements of the state of |
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origin; |
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(2) indicates the grower of the immature plants is |
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licensed by the state of origin; |
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(3) lists the recipient license holder in this state |
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and the recipient's license number; and |
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(4) shows that the variety of the immature plants is |
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certified or approved under Section 122.252. |
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(c) A license holder may obtain and cultivate immature |
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plants propagated in this state by another license holder if the |
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plants are accompanied by the shipping certificate or cargo |
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manifest required by Section 122.055 that shows that the variety of |
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the immature plants is certified or approved under Section 122.252. |
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The immature plants are not subject to preharvest testing under |
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Section 122.153. |
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(d) A license holder may transplant immature plants |
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propagated by the license holder from one plot to another plot |
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controlled by the license holder. The department by rule shall |
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waive the requirement that a license holder obtain a lot crop permit |
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and not require any fee for a greenhouse or other location used to |
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propagate immature plants if the plants are transplanted to another |
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plot controlled by the license holder and are not sold or |
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transferred to another person. The department by rule shall waive |
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the requirement that a person obtain a shipping certificate or |
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cargo manifest to transplant immature plants from one plot to |
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another plot operated by the license holder. |
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SECTION 10. Section 122.403, Agriculture Code, is amended |
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by amending Subsection (a) and adding Subsection (e) to read as |
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follows: |
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(a) If the department determines that a license holder |
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negligently violated this chapter or a rule adopted under this |
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chapter, the department shall enforce the violation in the manner |
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provided by 7 U.S.C. Section 1639p(e) and 7 C.F.R. Section 990.6. |
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(e) A license holder may not receive more than one negligent |
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violation of the same kind per growing season. |
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SECTION 11. Subchapter I, Chapter 122, Agriculture Code, is |
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amended by adding Section 122.4035 to read as follows: |
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Sec. 122.4035. PENALTIES FOR CULTIVATING HEMP WITHOUT A |
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LICENSE; CRIMINAL OFFENSE. (a) On determining that a person |
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violated Section 122.101, the department may: |
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(1) if the person has not previously received a |
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penalty under this section: |
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(A) issue a written warning to the person; |
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(B) impose an administrative penalty in the |
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amount of $500; |
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(C) require the person to obtain a license; and |
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(D) allow the person to continue to cultivate or |
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handle the hemp plants that are the subject of the violation, |
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harvest those plants, and, after obtaining the license, sell or use |
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those plants as provided by Section 122.202; |
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(2) if the person has previously received a penalty |
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under Subdivision (1) for other conduct but has not previously |
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received a penalty under this subdivision: |
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(A) issue a second written warning to the person; |
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(B) impose an administrative penalty in the |
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amount of $500; |
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(C) require the person to obtain a license; and |
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(D) seize and dispose of the hemp plants that are |
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the subject of the violation; and |
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(3) if the person has previously received a penalty |
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under Subdivision (2) or this subdivision for other conduct: |
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(A) refer the matter to the appropriate |
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prosecuting attorney for criminal prosecution under Subsection |
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(b); and |
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(B) seize and dispose of the hemp plants that are |
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the subject of the violation. |
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(b) A person commits an offense if the person: |
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(1) violates Section 122.101; and |
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(2) has previously received a penalty under Subsection |
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(a)(2) for other conduct. |
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(c) An offense under Subsection (b) is a Class B |
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misdemeanor. |
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SECTION 12. Subchapter A, Chapter 443, Health and Safety |
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Code, is amended by adding Sections 443.005 and 443.006 to read as |
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follows: |
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Sec. 443.005. CONSUMABLE HEMP PRODUCTS ACCOUNT. (a) The |
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consumable hemp products account is an account in the general |
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revenue fund administered by the department. |
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(b) The account consists of: |
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(1) appropriations of money to the account by the |
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legislature; |
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(2) public or private gifts, grants, or donations, |
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including federal funds, received for the account; |
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(3) fees collected under this chapter or under Chapter |
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431 as it applies to consumable hemp products; |
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(4) interest and income earned on the investment of |
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money in the account; |
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(5) penalties for violations of this chapter or |
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Chapter 431 as it applies to consumable hemp products; and |
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(6) funds from any other source deposited in the |
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account. |
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(c) The department may accept appropriations and gifts, |
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grants, or donations from any source to administer and enforce this |
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chapter and Chapter 431 as it applies to consumable hemp products. |
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Money received under this subsection shall be deposited in the |
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account. |
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(d) Money in the account may be appropriated only to the |
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department for the administration and enforcement of this chapter |
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and Chapter 431 as it applies to consumable hemp products. |
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Sec. 443.006. MAXIMUM TETRAHYDROCANNABINOL CONTENT. (a) |
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Notwithstanding any other law, a person may not process, |
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manufacture, possess, transport, sell, or purchase a consumable |
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hemp product in this state that: |
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(1) has a delta-9 tetrahydrocannabinol concentration |
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of more than 0.3 percent on a dry weight basis; |
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(2) has a total tetrahydrocannabinol concentration of |
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more than one percent on a dry weight basis; |
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(3) exceeds any federal limit; or |
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(4) has been adulterated with additional |
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tetrahydrocannabinol or synthetic tetrahydrocannabinol. |
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(b) For purposes of Subsection (a), the total |
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tetrahydrocannabinol concentration includes all isomers, acids, |
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compounds, and other forms of tetrahydrocannabinol and shall be |
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determined without any adjustment for a measurement of uncertainty |
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in a test result. |
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SECTION 13. Section 443.103, Health and Safety Code, is |
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amended to read as follows: |
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Sec. 443.103. APPLICATION; ISSUANCE. An individual or |
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establishment may apply for a license under this subchapter by |
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submitting an application to the department on a form and in the |
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manner prescribed by the department. The application must be |
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accompanied by: |
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(1) the physical address [a legal description] of each |
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location where the applicant intends to process hemp or manufacture |
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consumable hemp products [and the global positioning system |
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coordinates for the perimeter of each location]; |
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(2) written consent from the applicant or the property |
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owner if the applicant is not the property owner allowing the |
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department, the Department of Public Safety, and any other state or |
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local law enforcement agency to enter onto all premises where hemp |
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is processed or consumable hemp products are manufactured to |
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conduct a physical inspection or to ensure compliance with this |
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chapter and rules adopted under this chapter; |
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(3) any fees required by the department to be |
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submitted with the application; and |
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(4) any other information required by department rule. |
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SECTION 14. Subchapter C, Chapter 443, Health and Safety |
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Code, is amended by adding Section 443.106 to read as follows: |
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Sec. 443.106. CHANGE OF OWNERSHIP. The department may |
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change ownership to another person if: |
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(1) the current license holder and the recipient apply |
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to the department for the change of ownership; |
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(2) the recipient is not ineligible to hold a license |
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under Section 443.102; and |
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(3) one party to the change of ownership submits any |
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change of ownership fee to the department. |
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SECTION 15. Section 443.152, Health and Safety Code, is |
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amended by adding Subsections (d) and (e) to read as follows: |
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(d) The executive commissioner by rule may exclude a |
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substance that is generally recognized as having no risk of |
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contaminating a finished consumable hemp product, including a |
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microorganism or other substance that is inevitably destroyed or |
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removed while processing or manufacturing the product, from the |
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testing required under Section 443.151. |
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SECTION 16. Section 443.201, Health and Safety Code, is |
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amended by adding Subsection (c) to read as follows: |
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(c) A person may transport and deliver a consumable hemp |
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product to a consumer who purchased the product in compliance with |
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this chapter. The person transporting and delivering the consumable |
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hemp product is not required to: |
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(1) obtain a license under Section 443.101, unless the |
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person processes or manufactures the product delivered; or |
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(2) register under Section 443.2025, unless the person |
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sells the product delivered. |
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SECTION 17. The heading to Section 443.2025, Health and |
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Safety Code, is amended to read as follows: |
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Sec. 443.2025. REGISTRATION REQUIRED FOR RETAILERS AND |
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DISTRIBUTORS OF CERTAIN PRODUCTS. |
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SECTION 18. Section 443.2025, Health and Safety Code, is |
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amended by amending Subsections (b), (d), and (f) and adding |
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Subsection (d-1) to read as follows: |
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(b) A person may not sell or distribute consumable hemp |
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products containing more than trace amounts of cannabinoids to |
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consumers [cannabidiol at retail] in this state or distribute those |
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products intended for sale to consumers in this state unless the |
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person registers with the department each location owned, operated, |
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or controlled by the person at which those products are sold. A |
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person is not required to register a location associated with an |
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employee or independent contractor described by Subsection (d). |
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(d) A person is not required to register with the department |
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under Subsection (b) if the person is: |
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(1) an employee of a registrant; or |
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(2) an independent contractor of a registrant who |
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sells the registrant's products to consumers [at retail]. |
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(d-1) A person is required to register with the department |
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under Subsection (b) if the person, as an employee or independent |
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contractor of a person located outside this state who is not a |
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registrant, sells or distributes products covered by Subsection (b) |
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in this state. |
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(f) The department by rule may adopt a registration fee |
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schedule that establishes reasonable fee amounts for the |
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registration of: |
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(1) a single location at which consumable hemp |
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products containing more than trace amounts of cannabinoids |
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[cannabidiol] are sold; and |
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(2) multiple locations at which consumable hemp |
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products containing more than trace amounts of cannabinoids |
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[cannabidiol] are sold under a single registration. |
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SECTION 19. Section 443.203, Health and Safety Code, is |
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amended by adding Subsection (c) to read as follows: |
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(c) A person who sells, offers for sale, or distributes a |
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consumable hemp product that the person claims is made in this state |
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commits a false, misleading, or deceptive act or practice |
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actionable under Subchapter E, Chapter 17, Business & Commerce |
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Code, if the product contains any hemp that was not grown and |
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processed in this state by license holders under Chapter 122, |
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Agriculture Code and Chapter 443, Health and Safety Code. |
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SECTION 20. Section 122.403, Agriculture Code, as amended |
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by this Act, and Section 122.4035, Agriculture Code, as added by |
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this Act, apply only to conduct that occurs on or after the |
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effective date of this Act. Conduct that occurred before that date |
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is governed by the law in effect when the conduct occurred, and the |
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former law is continued in effect for that purpose. |
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SECTION 21. This Act takes effect September 1, 2021. |