HB28 - Relating to the regulation of consumable hemp products and providing for the transfer of regulatory functions; requiring a registration; imposing fees; creating criminal offenses; providing an administrative penalty.

  89R18934 CJD-F     By: King H.B. No. 28       A BILL TO BE ENTITLED   AN ACT   relating to the regulation of consumable hemp products and   providing for the transfer of regulatory functions; requiring a   registration; imposing fees; creating criminal offenses; providing   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 :                       (A)   contains hemp or one or more hemp-derived   cannabinoids ; and                       (B)     does not contain any amount of a cannabinoid   other than cannabidiol, cannabigerol, or delta-9   tetrahydrocannabinol  [ , including cannabidiol ].                 (8-a)  "Minor" means a person under 21 years of age.          SECTION 2.  Subchapter A, Chapter 443, Health and Safety   Code, is amended by adding Section 443.0025 to read as follows:           Sec.   443.0025.     LOW-THC CANNABIS. This chapter does not   apply to low-THC cannabis regulated under Chapter 487.          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 $5,000 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 $2,500 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.     MANUFACTURE OF CONSUMABLE HEMP PRODUCTS. (a)     A license holder may not manufacture a consumable hemp product that   contains any amount of a synthesized cannabinoid.           (b)     Consumable hemp products must be produced using current   good manufacturing practices, as defined by executive commissioner   rule.          SECTION 6.  Sections 443.151(a), (b), and (d), Health and   Safety Code, are amended 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 located in this state  that is   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.          SECTION 7.  Section 443.152(c), Health and Safety Code, is   amended to read as follows:          (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.  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 9.  Section 443.2025, Health and Safety Code, is   amended by amending Subsections (b), (d), (f), and (g) and adding   Subsections (h) and (i) 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 $2,000 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 ].          (g)  The department shall adopt rules to :                 (1)   implement and administer this section ; and                 (2)     require a person required to register under this   section to provide to the department information regarding the type   and concentration of each cannabinoid present in each consumable   hemp product offered for sale by the person .           (h)     The department shall provide to the Department of Public   Safety the information provided to the department under Subsection   (g)(2).           (i)     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 10.  Section 443.203, Health and Safety Code, is   amended to read as follows:          Sec. 443.203.  DECEPTIVE TRADE PRACTICE.  (a) A person who   sells, offers for sale, or distributes a consumable hemp product   [ cannabinoid oil, including cannabidiol oil, ] that the person   claims is processed or manufactured in compliance with this chapter   commits a false, misleading, or deceptive act or practice   actionable under Subchapter E, Chapter 17, Business & Commerce   Code, if the product [ oil ] is not processed or manufactured in   accordance with this chapter.          (b)  A person who sells, offers for sale, or distributes a   consumable hemp product [ cannabinoid oil ] commits a false,   misleading, or deceptive act or practice actionable under   Subchapter E, Chapter 17, Business & Commerce Code, if [ the oil ]:                (1)   the product  contains harmful ingredients;                (2)   the product  is not produced in compliance with 7   U.S.C. Chapter 38, Subchapter VII; [ or ]                (3)   the product's packaging or advertising indicates   that the product is for medical use; or                 (4)  the product has a delta-9 tetrahydrocannabinol   concentration of more than 0.3 percent or contains more than 10   milligrams of delta-9 tetrahydrocannabinol per serving of the   product .          SECTION 11.  Section 443.205, Health and Safety Code, is   amended by amending Subsections (a) and (c) and adding Subsection   (c-1) to read as follows:          (a)  Before a consumable hemp product that contains or is   marketed as containing [ more than trace amounts of ] cannabinoids   may be distributed or sold, the product must :                 (1)   be labeled in the manner provided by this   subchapter, including [ section with ] the following information:                       (A)  [ (1) ]  batch identification number;                       (B)  [ (2) ]  batch date;                       (C)  [ (3) ]  product name;                       (D)  [ (4) ]  a uniform resource locator (URL) that   provides or links to a certificate of analysis for the product or   each hemp-derived ing [Text truncated for display. 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