SB 3, Hse 2nd Rdg, Amnd #1

(33) "Consumable hemp product" means a food or drug, as those terms are defined by Section 431.002, Health and Safety Code, that contains hemp or one or more cannabinoids. Unless context indicates otherwise, the term includes natural hemp flower, as that term is defined by Section 301.001. The term does not include a hemp beverage or a topical product containing hemp.

(3) On page 8, between lines 3 and 4, insert the following:

(4) On page 10, line 26, strike "lab licensed under Chapter 301" and substitute "laboratory licensed under Chapter 305".

(5) On page 16, line 16, between "FEES." and "The", insert "(a)".

(6) On page 17, between lines 2 and 3, insert the following:

(b) A fee collected under this section shall be deposited to the credit of the general revenue fund and appropriated to the fund in the same manner as a tax on consumable hemp products under Section 202.016.

(7) On page 17, line 26, strike "a sign" and substitute "signs".

(8) On page 18, lines 18 and 19, strike "holder of a hemp beverage permit" and substitute "hemp beverage permittee".

(9) On page 19, line 26, strike "sell or deliver" and substitute "sell, serve, or deliver".

(10) On page 22, strike lines 11 through 18 and substitute the following:

(h) A multi-serving hemp beverage may only be sold or delivered to an ultimate consumer in a container size less than or equal to 1.5 liters. The delta-9 tetrahydrocannabinol concentration of a multi-serving hemp beverage sold or delivered to an ultimate consumer may not exceed:

(1) one milligram per ounce for a beverage marketed as a pre-mixed hemp cocktail; or

(2) 10 milligrams per ounce for any multi-serving hemp beverage other than a beverage described by Subdivision (1).

(11) On page 22, line 25, strike "package" and substitute "container".

(12) On page 25, line 18, between "distributor's" and "license", insert "or branch distributor's".

(13) On page 27, line 6, strike "as provided under this section" and substitute "in the same manner as the license holder may sell alcoholic beverages under this chapter".

(14) On page 27, line 9, between "retailers" and "and", insert ", package store permit holders, mixed beverage permit holders, private club registration permit holders,".

(15) On page 30, line 5, strike "any" and substitute "more than one-half of one percent".

(16) On page 30, line 20, between "type" and "of", insert "or brand".

(17) On page 30, lines 21 and 22, strike "or nonresident brewer's" and substitute ", nonresident brewer's, or brewpub".

(18) On page 34, strike lines 4 through 9.

(19) On page 47, line 24, between "DEFINED." and "In", insert "(a)".

(20) On page 48, between lines 5 and 6, insert the following:

(b) For purposes of this chapter, the term "first sale" does not include the sale of work in progress from the holder of a hemp manufacturer's license to another holder of a hemp manufacturer's license.

(21) On page 48, line 6, between "PRODUCTS." and "A", insert "(a)".

(22) On page 48, between lines 9 and 10, insert the following:

(b) A tax is imposed on the first sale of natural hemp flower at the rate of two cents per gram of natural hemp flower.

(23) On page 51, lines 22 and 23, between "to" and "consumable", insert "hemp beverages and".

(24) On page 52, line 22, between "beverages" and the underlined semicolon, insert "and consumable hemp products".

(25) On page 57, line 6, between "composition" and the underlined period, insert "that displays the information required to be included under Sections 310.101(l) and 310.102(d)".

(26) On page 57, strike "less" and substitute "not more" in each of the following places it appears:

(27) In added Section 301.001, Alcoholic Beverage Code (page 58, between lines 9 and 10), insert the following appropriately numbered subdivision and renumber subsequent subdivisions of that section accordingly:

(__) "Premises" means the grounds and all buildings, vehicles, and appurtenances pertaining to the grounds, including any adjacent premises if they are directly or indirectly under the control of the same person.

(28) On page 59, line 11, strike "retailer or" and substitute "distributor, retailer, or".

(29) On page 61, line 24, strike "2027" and substitute "2029".

(30) On page 62, line 5, strike "commission under" and substitute "commission. A hemp testing laboratory licensed under this chapter must comply with the requirements of".

(31) On page 63, between lines 6 and 7, insert the following:

(c) The commission by rule may impose more restrictive requirements than otherwise provided under this section regarding the ownership of or interest in a hemp testing laboratory by a holder of a license issued under this title or a hemp beverage permit.

(32) On page 71, line 16, strike "rule" and substitute "the commission".

(33) On page 76, line 3, between "that" and "manufactures", insert "tests,".

(34) On page 76, line 14, strike "and".

(35) On page 76, line 15, between "license" and the underlined period, insert the following:

(8) $1,000 for a hemp testing laboratory

(36) On page 76, lines 16 and 17, strike "as provided in a fund dedicated for the administration of hemp laws" and substitute "and appropriated to the fund in the same manner as a tax on consumable hemp products under Section 202.016".

(37) Strike page 76, line 27, through page 77, line 4, and substitute the following:

(e) The commission may not refund a license fee except when an application for a license is rejected by the commission or administrator. As much of the proceeds from license fees as is necessary may be appropriated for that purpose.

(38) On page 82, line 12, strike "310.301 and 310.302" and substitute "310.302 and 310.303".

(39) On page 88, lines 21 and 22, strike "license holder" and substitute "licensee".

(40) On page 92, line 17, strike "and" and substitute "including".

(41) On page 94, line 2, strike "310.204" and substitute "310.203".

(42) On page 95, lines 20 and 21, strike "or another out-of-state hemp manufacturer".

(43) Strike page 97, line 20, through page 98, line 1.

(44) On page 98, line 24, immediately following the underlined semicolon, insert "and".

(45) On page 98, strike lines 25 and 26.

(46) On page 98, line 27, strike "(4)" and substitute "(3)".

(47) On page 100, strike lines 17 through 25.

(48) Strike added Section 310.301(a), Alcoholic Beverage Code (page 100, line 27, through page 101, line 3), and reletter subsequent subsections in that section accordingly.

(49) On page 105, strike lines 8 through 11 and substitute the following:

Sec. 310.303. ON-PREMISE HEMP RETAILER'S LICENSE. (a) Except as otherwise provided in this section, all requirements, restrictions, and privileges of an off-premise hemp retailer's license provided under Section 310.302 apply to an on-premise hemp retailer's license holder.

(50) On page 105, line 12, strike "activities" and substitute "privileges".

(51) Strike "under this subchapter" in each of the following places it appears:

(A) page 106, line 7; and

(B) page 107, lines 3 and 4.

(52) Between "a" and "hemp" insert "hemp manufacturer's license or" in each of the following places it appears:

(A) page 107, line 19; and

(B) page 108, line 18.

(53) On page 109, line 4, strike "a hemp retailer premises" and substitute "the premises of a holder of a hemp manufacturer's license or hemp retailer".

(54) On page 116, line 7, between "TOTAL" and "TETRAHYDROCANNABINOL", insert "DELTA-9".

(55) On page 116, between "of" and "tetrahydrocannabinol", insert "delta-9" in each of the following places:

(56) On page 116, line 23, between "product" and "may", insert ", other than natural hemp flower,".

(57) On page 118, lines 9 and 10, strike "retail license number and hemp testing laboratory", and substitute "hemp retailer's license number and hemp testing laboratory's license".

(58) On page 118, line 12, strike "less" and substitute "not more".

(59) On page 123, lines 4-6, strike "numbers of the manufacturer and hemp testing laboratory that performed the compliance testing for the product's batch" and substitute "number of the manufacturer and a QR code as required under Section 321.003 or 322.001, as applicable".

(60) On page 127, line 23, strike "Section 501.001(1), Election Code, is" and substitute "Sections 501.001(1) and (3), Election Code, are".

(61) On page 128, between lines 1 and 2, insert the following:

(3) "Premises" has the meaning assigned by Section 11.49 or 301.001, Alcoholic Beverage Code, as applicable.

(62) On page 137, line 16, strike "1.04" and substitute "301.001".

(63) On page 139, line 2, immediately following the period, insert "Section 2001.0045, Government Code, does not apply to a rule adopted under this Act."

(64) On page 140, line 3, between "3," and "45", insert "7, 11,".

(65) On page 140, line 9, between "305," and "321", insert "310,".

(66) Insert the following appropriately numbered SECTION:

SECTION ___. A person required to obtain a license under Subchapter B, C, D, E, or F, Chapter 310, Alcoholic Beverage Code, as added by this Act, is not required to obtain a license or otherwise comply with the requirements of this Act until January 1, 2027.

(67) Renumber SECTIONS of the bill and cross-references to those SECTIONS accordingly.