88R451 BEF-D     By: Klick H.B. No. 4238       A BILL TO BE ENTITLED   AN ACT   relating to the production, sale, distribution, delivery, and   regulation of consumable hemp products.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter A, Chapter 443, Health and Safety   Code, is amended by adding Sections 443.005 and 443.006 to read as   follows:          Sec. 443.005.  CONSUMABLE HEMP PRODUCTS ACCOUNT. (a)  The   consumable hemp products account is an account in the general   revenue fund administered by the department.          (b)  The account consists of:                (1)  appropriations of money to the account by the   legislature;                (2)  public or private gifts, grants, or donations,   including federal funds, received for the account;                (3)  fees collected under this chapter or under Chapter   431 as it applies to consumable hemp products;                (4)  interest and income earned on the investment of   money in the account;                (5)  penalties for violations of this chapter or   Chapter 431 as it applies to consumable hemp products; and                (6)  funds from any other source deposited in the   account.          (c)  The department may accept appropriations and gifts,   grants, or donations from any source to administer and enforce this   chapter and Chapter 431 as it applies to consumable hemp products.   Money received under this subsection shall be deposited in the   account.          (d)  Money in the account may be appropriated only to the   department for the administration and enforcement of this chapter   and Chapter 431 as it applies to consumable hemp products.          Sec. 443.006.  TETRAHYDROCANNABINOL CONTENT. (a)   Notwithstanding any other law, a person may not manufacture, sell,   or purchase a consumable hemp product in this state:                (1)  that has a delta-9 tetrahydrocannabinol   concentration of more than 0.3 percent on a dry weight basis;                (2)  that contains synthetically derived   tetrahydrocannabinols, as defined by department rule, including   synthetically derived acids, isomers, or salts of   tetrahydrocannabinol;                (3)  that exceeds any federal limit for   tetrahydrocannabinol; or                (4)  if additional tetrahydrocannabinol in a   concentration greater than 0.3 percent on a dry weight basis has   been applied to the product.          (b)  Chapter 481 prevails to the extent of any conflict with   this section.          SECTION 2.  Section 443.103, Health and Safety Code, is   amended to read as follows:          Sec. 443.103.  APPLICATION; ISSUANCE.  An individual or   establishment may apply for a license under this subchapter by   submitting an application to the department on a form and in the   manner prescribed by the department.  The application must be   accompanied by:                (1)  the physical address [a legal description] of each   location where the applicant intends to process hemp or manufacture   consumable hemp products [and the global positioning system   coordinates for the perimeter of each location];                (2)  written consent from the applicant or the property   owner if the applicant 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 hemp   is processed or consumable hemp products are manufactured to   conduct a physical inspection or to ensure compliance with this   chapter and rules adopted under this chapter;                (3)  any fees required by the department to be   submitted with the application; and                (4)  any other information required by department rule.          SECTION 3.  Subchapter C, Chapter 443, Health and Safety   Code, is amended by adding Section 443.106 to read as follows:          Sec. 443.106.  EXPEDITED LICENSING PROCESS.  The department   by rule may provide an expedited licensing process for the   purchaser of a business that requires a license.          SECTION 4.  Section 443.152, Health and Safety Code, is   amended by adding Subsection (d) to read as follows:          (d)  The executive commissioner by rule may exclude a   substance that is generally recognized as having no risk of   contaminating a finished consumable hemp product, including a   microorganism or other substance that is inevitably destroyed or   removed while processing or manufacturing the product, from the   testing required under Section 443.151.          SECTION 5.  Section 443.201, Health and Safety Code, is   amended by adding Subsection (c) to read as follows:          (c)  A person may transport and deliver a consumable hemp   product to a consumer who purchased the product in compliance with   this chapter. The person transporting and delivering the consumable   hemp product is not required to:                (1)  obtain a license under Section 443.101, unless the   person processes or manufactures the product delivered; or                (2)  register under Section 443.2025, unless the person   sells the product delivered.          SECTION 6.  Section 443.2025, Health and Safety Code, is   amended by amending Subsections (b), (d), and (f) and adding   Subsection (d-1) to read as follows:          (b)  A person may not sell or distribute consumable hemp   products containing cannabinoids to consumers [cannabidiol at   retail] in this state, other than products generally recognized as   safe by the United States Food and Drug Administration, 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 to consumers [at retail].          (d-1)  A person is required to register with the department   under Subsection (b) if the person, as an employee or independent   contractor of a person located outside this state who is not a   registrant, sells or distributes products covered by Subsection (b)   in this state.          (f)  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 cannabinoids [cannabidiol] are sold; and                (2)  multiple locations at which consumable hemp   products containing cannabinoids [cannabidiol] are sold under a   single registration.          SECTION 7.  Section 443.203, Health and Safety Code, is   amended by adding Subsection (c) to read as follows:          (c)  A person who sells, offers for sale, or distributes a   consumable hemp product commits a false, misleading, or deceptive   act or practice actionable under Subchapter E, Chapter 17, Business &   Commerce Code, if the person claims the product is made in this   state and less than 75 percent of the hemp contained in the product   was:                (1)  grown in this state by a person who holds a license   under Chapter 122, Agriculture Code; and                (2)  processed in this state by a person who holds a   license under this chapter.          SECTION 8.  Section 443.205(a), Health and Safety Code, is   amended to read as follows:          (a)  Before a consumable hemp product, including hemp plant   material, that contains or is marketed as containing more than   trace amounts of cannabinoids may be distributed or sold, the   product must be labeled in the manner provided by this section with   the following information:                (1)  batch identification number;                (2)  batch date;                (3)  product name;                (4)  a uniform resource locator (URL) that provides or   links to a certificate of analysis for the product or each   hemp-derived ingredient of the product;                (5)  the name of the product's manufacturer; and                (6)  a certification that the delta-9   tetrahydrocannabinol concentration of the product or each   hemp-derived ingredient of the product is not more than 0.3   percent.          SECTION 9.  This Act takes effect September 1, 2023.