88R4638 MP-F     By: Cain H.B. No. 2818       A BILL TO BE ENTITLED   AN ACT   relating to the production and regulation of hemp; providing   administrative penalties; creating a criminal offense.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 41.002(1), Agriculture Code, is amended   to read as follows:                (1)  "Agricultural commodity" means an agricultural,   horticultural, viticultural, or vegetable product, bees and honey,   planting seed, rice, hemp, livestock or livestock product, or   poultry or poultry product, produced in this state, either in its   natural state or as processed by the producer. The term does not   include flax.          SECTION 2.  Section 121.003, Agriculture Code, is amended by   adding Subsection (e) to read as follows:          (e)  Not later than the 120th day after the date a change to a   state statute, federal statute, or federal regulation takes effect,   the department shall submit to the secretary of the United States   Department of Agriculture any amendments to the state plan   necessary to incorporate and implement the change.          SECTION 3.  Section 122.001(5), Agriculture Code, is amended   to read as follows:                (5)  "Institution of higher education" and "private or   independent institution of higher education" have [has] the   meanings [meaning] assigned by Section 61.003, Education Code.          SECTION 4.  Subchapter A, Chapter 122, Agriculture Code, is   amended by adding Section 122.005 to read as follows:          Sec. 122.005.  HEMP RESEARCH BY INSTITUTIONS OF HIGHER   EDUCATION. (a) The department shall issue a license to an   institution of higher education or private or independent   institution of higher education in this state that requests the   license.          (b)  Notwithstanding any provision of this chapter or   department rule other than Subsection (c):                (1)  an institution of higher education conducting   research involving hemp is not required to pay a fee collected by   the department under this chapter; and                (2)  an institution of higher education or private or   independent institution of higher education conducting research   involving hemp:                      (A)  is not required to obtain from the department   a lot crop permit or other permit for each location where hemp is   grown;                      (B)  is not required to obtain preharvest testing   under Section 122.153 before harvesting plants, except as provided   by Subsection (c);                      (C)  may cultivate and handle varieties of hemp   seed and plants that are not certified or approved under Section   122.252;                      (D)  may collect and research feral hemp; and                      (E)  is not subject to Section 122.403(c) or (d).          (c)  An institution of higher education or private or   independent institution of higher education may not sell or   transfer hemp to another person unless the institution complies   with the requirements of Sections 122.153 and 122.356.          (d)  An institution of higher education or private or   independent institution of higher education may conduct research   involving hemp in conjunction with a license holder at a facility   designated by the license holder for research use only.          (e)  Subsections (b)(2) and (c) apply to a license holder and   facility described by Subsection (d).          SECTION 5.  Section 122.051, Agriculture Code, is amended by   adding Subsection (c) to read as follows:          (c)  Not later than the 90th day after the date a change to   this chapter, a federal statute, or a federal regulation takes   effect, the department shall propose any rules necessary to   incorporate and implement the change.          SECTION 6.  Section 122.055, Agriculture Code, is amended by   adding Subsection (c-1) to read as follows:          (c-1)  The department by rule may adopt a different shipping   certificate, cargo manifest, or other requirement for the shipment   or transportation of a sample of hemp to:                (1)  a testing laboratory; or                (2)  another destination if the sample contains not   more than 15 grams of hemp and is accompanied by the results of a   laboratory test indicating the delta-9 tetrahydrocannabinol   concentration of the lot or plot from which the sample was taken.          SECTION 7.  Section 122.151, Agriculture Code, is amended by   adding Subsection (g) to read as follows:          (g)  A laboratory that performs testing required by this   chapter shall report the delta-9 tetrahydrocannabinol   concentration, the total tetrahydrocannabinol concentration, and   the concentration of any other federally regulated cannabinoid of   the sample on a dry weight basis and the measurement of uncertainty   in the test result.  The measurement of uncertainty must comply with   International Organization for Standardization ISO/IEC 17025 or a   comparable or successor standard and any provisions of federal law   governing the measurement of uncertainty.  For purposes of this   chapter, the delta-9 tetrahydrocannabinol concentration of the   sample is the lowest possible value given that measurement of   uncertainty.          SECTION 8.  Section 122.202, Agriculture Code, is amended by   adding Subsection (c) to read as follows:          (c)  The delta-9 tetrahydrocannabinol concentration shall be   determined as provided by Section 122.151(g).          SECTION 9.  Subchapter E, Chapter 122, Agriculture Code, is   amended by adding Section 122.203 to read as follows:          Sec. 122.203.  HARVEST WHILE LICENSE SUSPENDED OR REVOKED.   (a) A person whose license is suspended or revoked after planting   hemp plants may obtain preharvest or postharvest testing under   Subchapter D and may harvest the plants under Section 122.201 in the   same manner as a license holder.          (b)  The department by rule shall establish fair and   objective standards for determining whether a person whose license   is suspended or revoked may use or sell plants harvested under   Subsection (a), based on the circumstances of the suspension or   revocation.  Based on those rules, the department shall:                (1)  prohibit a person from selling or using plants   harvested under Subsection (a) while the person's license is   suspended or revoked; or                (2)  if the delta-9 tetrahydrocannabinol concentration   of the plants is not more than 0.3 percent on a dry weight basis,   allow a person to sell or use plants harvested under Subsection (a)   in the same manner as a license holder under Section 122.202 while   the person's license is suspended or revoked.          (c)  A person whose license is reinstated may sell or use   plants harvested under Subsection (a) as provided by Section   122.202.          SECTION 10.  The heading to Subchapter F, Chapter 122,   Agriculture Code, is amended to read as follows:   SUBCHAPTER F.  HEMP SEED AND PLANTS          SECTION 11.  Section 122.252, Agriculture Code, is amended   to read as follows:          Sec. 122.252.  CERTIFICATION OR APPROVAL OF SEED AND PLANT   VARIETIES.  (a)  Subject to Subsection (b), the [The] department or   an entity authorized to certify seed and plants under Chapter 62   shall identify and certify or approve varieties of seed and plants   confirmed to produce hemp.          (b)   The department or entity may not certify or approve a   variety of hemp seed or plant if the variety [seed] is tested and   confirmed to produce a plant that has delta-9 tetrahydrocannabinol   concentration of more than 0.3 percent on a dry weight basis. For   purposes of this subsection, the department may partner with a   private entity or an institution of higher education to test seed   and plant varieties for the purpose of certification or approval   under this section.          (c)  The department may authorize the importation of hemp   seed and plant varieties certified in accordance with the law of   another state or jurisdiction that requires as a condition of   certification that hemp be produced in compliance with:                (1)  that state or jurisdiction's plan approved by the   United States Department of Agriculture under 7 U.S.C. Section   1639p; or                (2)  a plan established under 7 U.S.C. Section 1639q if   that plan applies in the state or jurisdiction.          (d)  The department shall maintain and make available to   license holders a list of hemp seed and plant varieties [seeds]   certified or approved under this section.          SECTION 12.  Subchapter F, Chapter 122, Agriculture Code, is   amended by adding Section 122.254 to read as follows:          Sec. 122.254.  SEEDLINGS AND OTHER IMMATURE PLANTS. (a)  In   this section, "immature plant" means a hemp seedling, clone, or   cutting that is not flowering and requires substantial cultivation   and further growth before the beginning of the period under Section   122.201(a) when the plant may be harvested.          (b)  A person may transport into this state, and a license   holder may obtain and cultivate, immature plants propagated outside   this state if the plants are accompanied by shipping documentation   that:                (1)  complies with any requirements of the state of   origin;                (2)  indicates the grower of the immature plants is   licensed by the state of origin;                (3)  lists the recipient license holder in this state   and the recipient's license number; and                (4)  shows that the variety of the immature plants is   certified or approved under Section 122.252.          (c)  A license holder may obtain and cultivate immature   plants propagated in this state by another license holder if the   plants are accompanied by the shipping certificate or cargo   manifest required by Section 122.055 that shows that the variety of   the immature plants is certified or approved under Section 122.252.     The immature plants are not subject to preharvest testing under   Section 122.153.  The license holder shall maintain records, as   required by the department, that match the lot crop permit number   issued by the department for the location where the immature plants   were propagated with the lot crop number for the location where the   plants were cultivated.          (d)  A license holder may transplant immature plants   propagated by the license holder from one plot to another plot   controlled by the license holder.  The department by rule shall   waive the requirement that a license holder obtain a lot crop permit   for and may not require a license holder to pay any fee for a   greenhouse or other location used to propagate immature plants if   the plants are transplanted to another plot controlled by the   license holder and are not sold or transferred to another person.     The department by rule may waive the requirement that a person   obtain a shipping certificate or cargo manifest to transplant   immature plants from one plot to another plot operated by the   license holder.          SECTION 13.  Section 122.403, Agriculture Code, is amended   by amending Subsection (a) and adding Subsection (e) to read as   follows:          (a)  If the department determines that a license holder   negligently violated this chapter or a rule adopted under this   chapter, the department shall enforce the violation in the manner   provided by 7 U.S.C. Section 1639p(e) and 7 C.F.R. Section 990.6.          (e)  A license holder is not subject to more than one   negligent violation related to cultivation per calendar year.          SECTION 14.  Subchapter I, Chapter 122, Agriculture Code, is   amended by adding Section 122.4035 to read as follows:          Sec. 122.4035.  PENALTIES FOR CULTIVATING HEMP WITHOUT A   LICENSE; CRIMINAL OFFENSE.  (a)  On determining that a person   violated Section 122.101, the department may:                (1)  if the person has not previously received a   penalty under this section:                      (A)  issue a written warning to the person;                      (B)  impose an administrative penalty in the   amount of $500;                      (C)  require the person to obtain a license; and                      (D)  allow the person to continue to cultivate or   handle the hemp plants that are the subject of the violation,   harvest those plants, and, after obtaining the license, sell or use   those plants as provided by Section 122.202;                (2)  if the person has received a penalty under   Subdivision (1) for a previous violation but has not previously   received a penalty under this subdivision:                      (A)  issue a second written warning to the person;                      (B)  impose an administrative penalty in the   amount of $500;                      (C)  require the person to obtain a license;                      (D)  seize and dispose of the hemp plants that are   the subject of the violation; and                      (E)  require the person to reimburse the   department for reasonable costs of disposal under Paragraph (D);   and                (3)  if the person has received a penalty under   Subdivision (2) or this subdivision for a previous violation:                      (A)  refer the matter to the appropriate   prosecuting attorney for criminal prosecution under Subsection   (b);                      (B)  seize and dispose of the hemp plants that are   the subject of the violation; and                      (C)  require the person to reimburse the   department for reasonable costs of disposal under Paragraph (B).          (b)  A person commits an offense if the person:                (1)  violates Section 122.101; and                (2)  has received a penalty under Subsection (a)(2) for   a previous violation.          (c)  An offense under Subsection (b) is a Class B   misdemeanor.          SECTION 15.  Section 122.403, Agriculture Code, as amended   by this Act, and Section 122.4035, Agriculture Code, as added by   this Act, apply only to conduct that occurs on or after the   effective date of this Act. Conduct that occurred before that date   is governed by the law in effect when the conduct occurred, and the   former law is continued in effect for that purpose.          SECTION 16.  This Act takes effect September 1, 2023.