The bill would amend the definition of consumable hemp products to mean a device or cosmetic that contains hemp or hemp-derived cannabinoids that only contain cannabidiol (CBD), cannabigerol (CBG), or delta-9 tetrahydrocannabinol (THC). The bill would exempt low-THC cannabis from the Compassionate Use Program regulated by the Department of Public Safety (DPS).The bill would set the initial consumable hemp product manufacturing license fee to $5,000 per location and the renewal fee to $2,500 per location limiting renewals to manufacturers that have not violated program statutes or rules.The bill would prohibit the manufacturing of a consumable hemp product that contains synthesized cannabinoids and would require the use of good manufacturing practices as defined by the Department of State Health Services (DSHS) through rules.The bill would require testing of the identity of cannabinoids in the plant, microbial contamination, and would require testing of all consumable hemp products sold at retail or introduced into commerce. The bill would require testing to be conducted by a lab located in Texas.The bill would require a license holder to make available testing results to a seller of a consumable hemp product processed or manufactured by the license holder. If the results are not able to be made available, the seller may have testing performed on the product and make the results available to the consumer and DSHS.
The bill would prohibit the sale of consumable hemp products containing a cannabinoid without DSHS registration of each location owned, operated, and controlled by the person.
The bill would set consumable hemp product retail annual registration fees at $2,000 for each location.
The bill would require retailers to provide DSHS the type and concentration of cannabinoids in consumable hemp products sold and requires DSHS to provide that information to DPS.
The bill would require a retailer to provide written consent for DPS, DSHS, and any other state or local law enforcement to enter on premises where consumable hemp products are sold for inspections an compliance.
The bill would prohibit deceptive trade practices for the selling, offering for sale, or distributing of a consumable hemp product that a person claims is processed and manufactured in compliance under the bill.
The bill would prohibit consumable hemp product packaging or advertising for medical use and would limit the serving size of Delta-9 THC to 10 milligrams.
The bill would require consumable hemp product labels to include the amount of cannabidiol, cannabigerol, or Delta-9 THC per serving or unit and certification of the serving size of Delta-9 THC to 10 milligrams.
The bill would require the product to be packaged or in a container that is temper-resistant, child-resistant, and individually packaged by serving.
The bill would require a warning label regarding positive drug tests.
The bill would prohibit marketing and packaging in a manner attractive to minors, or that it is intended for medical use.
The bill would require retailers to ensure consumable hemp products processed or manufactured out-of-state comply with that state's or jurisdiction's US Department of Agriculture's approved plan, that does not contain more than 0.3 percent Delta-9 THC, and does not contain more than 10 milligrams of Delta-9 THC per serving.
The bill would prohibit a consumable hemp product manufacturer or retail registrant from selling, giving, or causing to be sold a consumable hemp product that contains more than 10 milligrams Delta-9 THC per container, and prohibits retail registrants from selling a consumable hemp product with more than 10 milligrams Delta-9 THC per transaction.
The bill would create the following criminal offenses:
- selling or offering for sale a consumable hemp product that contains or is market as containing hemp-derived cannabinoids in packaging that would indicate that the product does not contain a hemp-derived cannabinoid, or that the product is intended for medical use, would be a Class A misdemeanor;
- manufacturing, delivering, or possessing with intent to deliver, consumable hemp products that contain a Delta-9 THC concentration of more than 0.3 percent and contains more than 10 milligrams Delta- 9 THC per serving would be a third degree felony;
- possessing a consumable hemp product that has a Delta-9 THC concentration of more than 0.3 percent and contains more than 10 milligrams Delta-9 THC per serving would be a Class A misdemeanor;
- selling or distributing a consumable hemp product to persons younger than 21 years of age would be a Class A misdemeanor;
- manufacturing, distributing, or selling consumable hemp products for smoking or inhaling would be a Class A misdemeanor;
- manufacturing, distributing, selling, or offering to sell consumable hemp products intended for eating would be a Class A misdemeanor;
- selling or delivering a consumable hemp product within 1,000 feet of the premises of a school would be a state jail felony;
- marketing or packaging a consumable hemp product in a manner attractive to minors would be a state jail felony;
- providing a consumable hemp product by courier, delivery, or mail service would be a Class A misdemeanor;
- forging, falsifying, or altering he results of a laboratory test would be a third degree felony; and
- growing, selling, or offering for sale a hemp flower in an unapproved manner would be a Class C misdemeanor.
The bill would authorize DSHS to receive and investigate complaints of violations by consumable help licensees and retail hemp registrants. Penalties may include revoking, suspension, or refusal to renewal licenses or registration. DSHS may impose up to an administrative penalty not to exceed $20,000 against a license holder or registrant for each violation.
The bill requires DSHS to enter a memorandum of understanding with Texas Alcoholic Beverage Commission (TABC) regarding:
- transfers of certain consumable hemp product regulatory functions from DSHS to TABC;
- changing the license structure to three-tiered structure that includes manufacturers, wholesalers, and retailers;
- locations where consumable hemp products are sold including on-premises consumption;
- regulations of locations where consumable hemp products are sold, including required signage informing consumers;
- licensing and permittee fees;
- funding mechanism for a consumable regulatory scheme, including taxation and disposition of taxation;
- synthetic cannabinoids and retail sale of hemp flower regulation;
- creating open container laws for consumable hemp products;
- testing facilities certifications;
- consumable hemp products with alcohol or caffeine regulations; and
- consumable hemp products packaging and labeling.
DSHS would be authorized to adopt rules under the bill.