By: Cain H.B. No. 309       A BILL TO BE ENTITLED   AN ACT   relating to the creation of the Texas Hemp Council; regulation of   products derived from hemp, including consumable hemp products and   hemp beverages and the hemp-derived cannabinoids contained in those   products; requiring occupational licenses and permits; imposing   fees; creating criminal offenses; authorizing civil penalties;   imposing taxes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  (a) Section 121.003(a), Agriculture Code, is   amended to read as follows:          (a)  The department, after consulting with the governor and   attorney general, shall develop a state plan to monitor and   regulate the production of hemp in this state. The plan must comply   with:                (1)  7 U.S.C. Section 1639p;                (2)  Chapter 122; [and]                (3)  Chapter 443A, Health and Safety Code; and                (4)  Title 7, Alcoholic Beverage Code.          SECTION 2.  Section 122.001(3), Agriculture Code, is amended   to read as follows:                (3)  "Handle" means to possess or store a hemp plant:                      (A)  on premises owned, operated, or controlled by   a license holder for any period of time; or                      (B)  in a vehicle for any period of time other than   during the actual transport of the plant from a premises owned,   operated, or controlled by a license holder to:                            (i)  a premises owned, operated, or   controlled by another license holder; or                            (ii)  a person licensed under Title 7,   Alcoholic Beverage [Chapter 443, Health and Safety] Code.          SECTION 3.  Section 122.001(8), Agriculture Code, is amended   to read as follows:                (8)  "Nonconsumable hemp product" means a product that   contains hemp, other than a consumable hemp product as defined by   Section 1.04, Alcoholic Beverage [443.001, Health and Safety] Code.   The term includes cloth, cordage, fiber, fuel, paint, paper,   particleboard, and plastics derived from hemp.          SECTION 4.  Chapter 122, Subchapter A, Agriculture Code, is   amended by adding Section 122.005 to read as follows:          Sec. 122.005.  PERFORMANCE OF DUTIES BY TEXAS A&M AGRILIFE   EXTENSION SERVICE. (a) Notwithstanding any other law, the   department shall enter into a memorandum of understanding or other   interagency contract with the Texas A&M AgriLife Extension Service   under which the extension service agrees to perform all powers and   duties conferred on the department under this chapter.          (b)  The memorandum of understanding or contract must:                (1)  provide for the delegation of regulatory and   administrative functions necessary to implement this chapter;                (2)  specify reporting oversight mechanism to ensure   compliance with applicable state and federal law;                (3)  include terms necessary to ensure continuity of   program administration and protection of proprietary information;                (4)  identify available sources of funding and   establish a mechanism for the transfer of funds from the department   to the extension service in amounts necessary to carry out the   delegated powers and duties, including appropriated funds, fees   collected under this chapter, and any other available revenue.          (c)  The department shall retain final rulemaking authority   under this chapter, but may not adopt rules inconsistent with the   memorandum of understanding or contract entered into under this   section.          (d)  This section prevails over any conflicting provision of   this chapter or other law.          SECTION 5.  Section 122.103(a), Agriculture Code, is amended   to read as follows:          (a)  A person 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)  a legal description of each location where the   applicant intends to cultivate or handle hemp 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 cultivated or handled to conduct a physical inspection or to   ensure compliance with this chapter and rules adopted under this   chapter;                (3)  a statement affirming the person's status as a   United States citizen or legal resident of the United States;                (4)  the application fee; and                (5)  any other information required by department rule.          SECTION 6.  Section 122.151(a), Agriculture Code, is amended   to read as follows:          (a)  Subject to Subsection (b), testing under this   subchapter or Section 122.053 must be performed by:                (1)  the Texas A&M AgriLife Extension Service;                (2)  an institution of higher education; or                (3)  an independent testing laboratory:                      (A)  registered under Section 122.152; and                      (B)  licensed under Chapter 443A, Health and   Safety Code.          SECTION 7.  Section 122.301(b), Agriculture Code, is amended   to read as follows:          (b)  A state agency may not authorize a person to manufacture   a product containing hemp for the burning or igniting of the hemp   and inhaling the smoke or heating the hemp and inhaling the   resulting vapor or aerosol [smoking, as defined by Section 443.001,   Health and Safety Code].          SECTION 8.  Section 122.356(a), Agriculture Code, is amended   to read as follows:          (a)  A person may not transport hemp plant material in this   state unless the hemp:                (1)  is produced in compliance with:                      (A)  a state or tribal plan approved by the United   States Department of Agriculture under 7 U.S.C. Section 1639p; or                      (B)  a plan established under 7 U.S.C. Section   1639q if the hemp was cultivated in an area where that plan applies;   and                (2)  is accompanied by:                      (A)  a shipping certificate or cargo manifest   issued under Section 122.055 if the hemp originated in this state;   or                      (B)  documentation containing the name and   address of the place where the hemp was cultivated, a statement that   the hemp was produced in compliance with Texas law and 7 U.S.C.   Chapter 38, Subchapter VII, and the name and address of the   destination, if the hemp originated outside this state.          SECTION 9.  Section 122.358, Agriculture Code, is amended by   adding Subsection (e) to read as follows:          (e)  Notwithstanding Subsection (a), if the person   transporting the plant material fails to provide the documentation   required by Section 122.356, the peace officer may seize the plant   material and arrest the person transporting the plant material.          SECTION 10.  Section 122.360(b), Agriculture Code, is   amended to read as follows:          (b)  An offense under this section is a Class A misdemeanor.          SECTION 11.  Section 1.04, Alcoholic Beverage Code, is   amended by adding Subdivisions (4-a), (32), (33), (34), (35), (36),   (37), (38), (39), (40), (41), and (42) to read as follows:                (4-a)  "Illicit consumable hemp product" means a   consumable hemp product:                      (A)  manufactured, processed, distributed,   bought, sold, stored, possessed, imported, or transported in   violation of this code;                      (B)  on which a tax imposed by the laws of this   state has not been paid; or                      (C)  possessed, kept, stored, owned, or imported   with intent to sell, distribute, process, store, or transport in   violation of this code.                (32)  "Certificate of analysis" means an official   document issued by a hemp testing laboratory:                      (A)  documenting the testing results of a   particular sample that includes:                            (i)  the concentration and amount of each   cannabinoid analyte;                            (ii)  data on the level of   tetrahydrocannabinols; or                            (iii)  other measures as established by   commission rule; and                      (B)  stating whether the sample passed or failed   any sample requirements established under Title 7 or a rule adopted   under that title.                (33)  "Consumable hemp product" means a food, drug,   device, or cosmetic, as those terms are defined by Section 431.002,   Health and Safety Code, that contains hemp or one or more   hemp-derived cannabinoids. The term does not include a topical   product containing hemp, a hemp beverage, or natural hemp flower as   that term is defined by Section 301.001.                (34)  "Converted cannabinoid" means a chemical   substance purposely created by converting a phytocannabinoid into a   different compound that is intended to mimic a phytocannabinoid or   to interact with the endocannabinoid system, except for delta-9   tetrahydrocannabinol created by converting tetrahydrocannabinolic   acid through decarboxylation.                (35)  "Hemp" has the meaning assigned by Section   121.001, Agriculture Code.                (36)  "Hemp beverage" means any consumable hemp product   in liquid form that contains any amount of tetrahydrocannabinol.                (37)  "Hemp-derived cannabinoid" means any cannabinoid   that naturally occurs in hemp and was present in its natural   molecular form in the particular hemp plant from which the   cannabinoid was derived. The term includes delta-9   tetrahydrocannabinol created by converting tetrahydrocannabinolic   acid through decarboxylation. The term does not include a   converted cannabinoid or synthetic cannabinoid.                (38)  "Hemp retailer" means a person licensed under   Section 310.302 or 310.303.                (39)  "Hemp testing laboratory" means a laboratory,   including a laboratory at an institution of higher education, as   defined by Section 61.003, Education Code, authorized by and   licensed under Chapter 443A, Health and Safety Code, to test hemp,   including natural hemp flower and hemp biomass as those terms are   defined by Section 301.001, hemp beverages, and consumable hemp   products.                (40)  "Phytocannabinoid" means a chemical substance:                      (A)  created naturally by a plant of the species   cannabis sativa L. that:                            (i)  is separated from the plant by a   mechanical or chemical extraction process; or                            (ii)  binds to or interacts with the   cannabinoid receptors of the endocannabinoid system; or                      (B)  is produced by decarboxylation from a   naturally occurring cannabinoid acid without the use of a chemical   catalyst.                (41)  "Synthetic cannabinoid" means a man-made   chemical substance created by using chemical synthesis, chemical   modification, chemical conversion, in-vitro biosynthesis, or   bioconversion that is intended to mimic a phytocannabinoid or is   intended to or able to interact with the endocannabinoid system.                (42)  "Total tetrahydrocannabinol" means the value of   tetrahydrocannabinol content determined after decarboxylation,   including delta-8 tetrahydrocannabinol, delta-9   tetrahydrocannabinol, delta-10 tetrahydrocannabinol,   tetrahydrocannabinolic acid, and any other chemically similar   isomer. If the value of tetrahydrocannabinol content contains any   detectable amount of tetrahydrocannabinolic acid, the value is   equal to the amount of tetrahydrocannabinolic acid multiplied by   0.877 plus the amount of all other tetrahydrocannabinols.          SECTION 12.  The heading to Section 5.05, Alcoholic Beverage   Code, is amended to read as follows:          Sec. 5.05.  RELATIONSHIP WITH ALCOHOLIC BEVERAGE OR   CONSUMABLE HEMP PRODUCT BUSINESS PROHIBITED.          SECTION 13.  Sections 5.05(a) and (d), Alcoholic Beverage   Code, are amended to read as follows:          (a)  A person may not be appointed to or serve on the   commission, or hold an office under the commission, or be employed   by the commission, if the person is employed by or has a financial   interest in an alcoholic beverage or consumable hemp product   business. For purposes of this subsection, a person has a financial   interest in an alcoholic beverage or consumable hemp product   business if:                (1)  the person owns or controls, directly or   indirectly, an ownership interest of:                      (A)  at least five percent in a single alcoholic   beverage or consumable hemp product business, including the right   to share in profits, proceeds, or capital gains; or                      (B)  at least five percent cumulative interest,   including the right to share in profits, proceeds, or capital   gains, in multiple alcoholic beverage or consumable hemp product   businesses; or                (2)  the person's spouse or child has an ownership   interest described by Subdivision (1).          (d)  A person may not be a member of the commission and may   not be a commission employee employed in a "bona fide executive,   administrative, or professional capacity," as that phrase is used   for purposes of establishing an exemption to the overtime   provisions of the federal Fair Labor Standards Act of 1938 (29   U.S.C. Section 201 et seq.), if:                (1)  the person is an officer, employee, or paid   consultant of a Texas trade association in the field of alcoholic   beverages or consumable hemp products; or                (2)  the person's spouse is an officer, manager, or paid   consultant of a Texas trade association in the field of alcoholic   beverages or consumable hemp products.          SECTION 14.  Section 5.17, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 5.17.  SUITS AGAINST THE COMMISSION: VENUE. In all   suits against the commission, except appeals governed by Section   11.67, [or] 32.18, or 310.031 of this code, venue is in Travis   County.          SECTION 15.  Sections 5.31(a) and (b), Alcoholic Beverage   Code, are amended to read as follows:          (a)  The commission may exercise all powers, duties, and   functions conferred by this code, and all powers incidental,   necessary, or convenient to the administration of this code. It   shall inspect, supervise, and regulate every phase of the business   of manufacturing, importing, exporting, transporting, storing,   selling, advertising, labeling, and distributing alcoholic   beverages and consumable hemp products, and the possession of   alcoholic beverages and consumable hemp products for the purpose of   sale or otherwise. It may prescribe and publish rules necessary to   carry out the provisions of this code.          (b)  The commission shall:                (1)  protect the public safety by deterring and   detecting violations of this code;                (2)  promote legal and responsible alcohol and   consumable hemp product consumption;                (3)  ensure fair competition within the alcoholic   beverage and consumable hemp product industries [industry];                (4)  ensure consistent, predictable, and timely   enforcement of this code;                (5)  ensure a consistent, predictable, and timely   licensing and permitting process;                (6)  promote and foster voluntary compliance with this   code; and                (7)  communicate the requirements of this code clearly   and consistently.          SECTION 16.  Section 5.32, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 5.32.  MAY REQUIRE REPORTS. The commission may require   persons engaged in the alcoholic beverage or consumable hemp   product business to provide information, records, or other   documents the commission finds necessary to accomplish the purposes   of this code.          SECTION 17.  Section 5.35, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 5.35.  ISSUANCE OF PERMITS AND LICENSES. The   commission may grant, refuse, suspend, or cancel alcoholic beverage   permits and licenses and consumable hemp product licenses as   provided in this code.          SECTION 18.  Section 5.36, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 5.36.  INVESTIGATION OF VIOLATIONS. [(a)] The   commission shall investigate violations of this code and of other   laws relating to alcoholic beverages and consumable hemp products,   and shall cooperate in the prosecution of offenders before any   court of competent jurisdiction. The commission may seize   alcoholic beverages and consumable hemp products manufactured,   sold, kept, imported, or transported in violation of this code and   apply for the confiscation of the beverages and products if   required to do so by this code.          SECTION 19.  Sections 5.362(b) and (d), Alcoholic Beverage   Code, are amended to read as follows:          (b)  For each violation for which a license or permit may be   suspended, the schedule of sanctions must include the number of   days a permit or license would be suspended and the corresponding   civil penalty under Section 11.64 or 310.027.          (d)  The schedule must:                (1)  allow deviations from the schedule for clearly   established mitigating circumstances, including circumstances   listed in Sections [Section] 11.64(c) and 310.027(b), or   aggravating circumstances; and                (2)  include a list of the most common violations by   members of the manufacturing, wholesaling, and retailing tiers of   the alcoholic beverage and consumable hemp product industries   [industry] and the sanctions assessed for those violations.          SECTION 20.  The heading to Section 5.38, Alcoholic Beverage   Code, is amended to read as follows:          Sec. 5.38.  QUALITY AND PURITY OF ALCOHOLIC AND HEMP   BEVERAGES AND CONSUMABLE HEMP PRODUCTS.          SECTION 21.  Section 5.38, Alcoholic Beverage Code, is   amended by adding Subsection (d) to read as follows:          (d)  The commission may require a test of the contents of a   hemp beverage or consumable hemp product manufactured or sold in   this state for the same purposes provided for testing alcoholic   beverages under Subsection (c). The commission shall use a hemp   testing lab licensed under Chapter 443A, Health and Safety Code, to   conduct testing under this subsection.          SECTION 22.  Section 5.48(a), Alcoholic Beverage Code, is   amended to read as follows:          (a)  "Private records," as used in this section, means all   records of a permittee, licensee, or other person other than the   name, proposed location, and type of permit or license sought in an   application for an original or renewal permit or license, or in a   periodic report relating to the importation, distribution, or sale   of alcoholic beverages or consumable hemp products required by the   commission to be regularly filed by a permittee or licensee.          SECTION 23.  Section 5.50(b-1), Alcoholic Beverage Code, is   amended to read as follows:          (b-1)  The commission shall develop a process for setting   fees that ensures the amount of the fees for an original or renewal   certificate, permit, or license is sufficient to cover the costs   incurred by the commission in administering this code. The process   must:                (1)  allow the commission to:                      (A)  consider relevant information including the   type of business being regulated and the level of regulatory   activities associated with each certificate, permit, or license;   and                      (B)  set different fees for the same original or   renewal certificate, permit, or license if the commission   determines the level of regulatory activities associated with a   certificate, permit, or license varies; and                (2)  ensure that the commission does not overly   penalize any segment of the alcoholic beverage or consumable hemp   product industry or impose an undue hardship on small businesses.          SECTION 24.  Sections 5.57(a), (b), and (c), Alcoholic   Beverage Code, are amended to read as follows:          (a)  The commission shall develop a formal process for making   policy decisions regarding marketing practices regulations and for   communicating those decisions to agency staff and the alcoholic   beverage and consumable hemp product industries [industry].          (b)  The commission shall gather input from a diverse group   of representatives of the alcoholic beverage and consumable hemp   product industries [industry] regarding regulatory issues and   interpretations of this code and commission rules.          (c)  The commission shall make a reasonable attempt to meet   with [alcoholic beverage industry] representatives from the   alcoholic beverage and consumable hemp product industries,   including representatives from:                (1)  the manufacturing, distribution, and retail tiers   of the industries [industry]; and                (2)  the liquor, malt beverage, and wine segments of   the alcoholic beverage industry.          SECTION 25.  Section 11.64(a), Alcoholic Beverage Code, is   amended to read as follows:          (a)  When the commission or administrator is authorized to   suspend a permit or license under this code, the commission or   administrator shall give the permittee or licensee the opportunity   to pay a civil penalty rather than have the permit or license   suspended, unless the basis for the suspension is a violation of   Section 11.61(b)(14), 22.12, 28.11, 32.17(a)(2), 32.17(a)(3),   61.71(a)(5), 61.71(a)(6), 61.74(a)(14), 69.13, 71.09, 101.04,   101.63, 104.01(a)(4), 106.03, 106.06, or 106.15, the sale or offer   for sale of an alcoholic beverage during hours prohibited by   Chapter 105, consumption or the permitting of consumption of an   alcoholic beverage on the person's licensed or permitted premises   during hours prohibited by Chapter 105 or Section 32.17(a)(7), a   violation or offense related to a hemp beverage, or an offense   relating to prostitution, trafficking of persons, gambling, or   controlled substances or drugs, in which case the commission or   administrator shall determine whether the permittee or licensee may   have the opportunity to pay a civil penalty rather than have the   permit or license suspended. The commission shall adopt rules   addressing when suspension may be imposed pursuant to this section   without the opportunity to pay a civil penalty. In adopting rules   under this subsection, the commission shall consider the type of   license or permit held, the type of violation, any aggravating or   ameliorating circumstances concerning the violation, and any past   violations of this code by the permittee or licensee. In cases in   which a civil penalty is assessed, the commission or administrator   shall determine the amount of the penalty. The amount of the civil   penalty may not be less than $150 or more than $25,000 for each day   the permit or license was to have been suspended. If the licensee   or permittee does not pay the penalty before the sixth day after the   commission or administrator notifies the licensee or permittee   [him] of the amount, the commission or administrator shall impose   the suspension.          SECTION 26.  Sections 28.01(a) and (c), Alcoholic Beverage   Code, are amended to read as follows:          (a)  The holder of a mixed beverage permit may sell, offer   for sale, and possess mixed beverages, including distilled spirits   and hemp beverages, for consumption on the licensed premises:                (1)  from sealed containers containing not less than   one fluid ounce nor more than two fluid ounces or of any legal size;   and                (2)  from unsealed containers.          (c)  The holder of a mixed beverage permit may also:                (1)  purchase wine and malt beverages containing   alcohol of not more than 24 percent by volume in containers of any   legal size from any permittee or licensee authorized to sell those   beverages for resale;                (2)  purchase hemp beverages containing not more than   0.5 milligrams of tetrahydrocannabinol per ounce in containers of   any legal size from any permittee or licensee authorized to sell   those beverages for resale;                (3)  sell the wine and malt beverages for consumption   on the licensed premises; and                (4)  sell the hemp beverages for consumption on the   licensed premises.          SECTION 27.  Section 41.01, Alcoholic Beverage Code, is   amended by adding Subsection (a-1) to read as follows:          (a-1)  The holder of a carrier permit who holds a hemp   beverage permit may continuously transport hemp beverages into and   out of this state and between points within the state to a person   authorized to sell or possess hemp beverages. The holder may   continuously transport hemp beverages from one wet area to another   wet area across a dry area if that course of transportation is   necessary or convenient.          SECTION 28.  Subtitle A, Title 3, Alcoholic Beverage Code,   is amended by adding Chapter 59 to read as follows:   CHAPTER 59. HEMP BEVERAGE PERMIT          Sec. 59.01.  CERTAIN PROVISIONS RELATED TO ALCOHOLIC   BEVERAGES AND MALT BEVERAGES. Unless otherwise provided by this   code or the context indicates otherwise, for the purposes of this   code:                (1)  the term "alcoholic beverage" includes a hemp   beverage;                (2)  the term "malt beverage" includes a hemp beverage;   and                (3)  the terms "brewing" and "brew" when referring to   malt beverages include the production of hemp beverages by   authorized brewers.          Sec. 59.02.  ELIGIBLE PERMIT AND LICENSE HOLDERS. A hemp   beverage permit may be issued to the holder of a package store   permit, mixed beverage permit, private club registration permit,   carrier's permit, consumer delivery permit, brewer's license,   nonresident brewer's license, general distributor's license,   branch distributor's license, brewpub license, and hemp retailer   license.          Sec. 59.03.  AUTHORIZED ACTIVITIES. (a) Notwithstanding   any other provision of this code, a person must hold a hemp beverage   permit to manufacture, produce, sell, import, export, distribute,   or possess for the purpose of selling, transporting, storing, or   delivering for commercial purposes hemp beverages.          (b)  Except as otherwise provided in this code, the holder of   a hemp beverage permit may engage in the activities listed in   Subsection (a) to the extent authorized by the holder's primary or   other secondary permit or license.          (c)  Notwithstanding any other law, a person holding a hemp   beverage permit may not:                (1)  allow a person under the age of 21 to enter or   remain on the permitted or licensed premises;                (2)  sell, offer for sale, or deliver any consumable   hemp product or hemp beverage:                      (A)  on New Year's Day, Thanksgiving Day, or   Christmas Day;                      (B)  on Sunday; or                      (C)  before 10 a.m. or after 9 p.m. on any other   day;                (3)  allow the on-premise consumption of any alcoholic   beverage, other than a hemp beverage;                (4)  sell a consumable hemp product to a purchaser   unless the purchaser presents an apparently valid, unexpired proof   of identification; or                (5)  provide a consumable hemp product to any person   without receiving monetary consideration in a completed retail   transaction.          Sec. 59.04.  FEES. (a) A separate license fee is required   for each place of business that manufactures, produces, sells,   imports, exports, distributes, or possesses for the purpose of   selling transporting, storing, or delivering for commercial   purposes hemp beverages.          (b)  The fee for the issuance of an original or renewal hemp   beverage permit issued under this chapter is:                (1)  $5,000 for the holder of a package store permit;                (2)  $10,000 for the holder of a mixed beverage permit   or private club registration permit;                (3)  $2,500 for the holder of a carrier's permit;                (4)  $7,500 for the holder of a brewer's license or   nonresident brewer's license;                (5)  $7,000 for the holder of a general distributor's   license or branch distributor's license;                (6)  $2,500 for the holder of a brewpub license; and                (7)  $10,000 for the holder of a hemp retailer's   license.          Sec. 59.05.  PACKAGING AND ADVERTISING OR PROMOTION OF HEMP   BEVERAGE. (a) A hemp beverage package or container:                (1)  must not:                      (A)  be designed to be attractive to children,   including by mimicking other non-hemp derived products marketed to   children;                      (B)  bear any resemblance to soda, candy, snacks,   medicine, or other food products that are widely distributed and   readily available to the public; or                      (C)  be stocked near products described in   Paragraph (B); and                (2)  must be tamper evident and child resistant.          (b)  A hemp beverage may not be advertised or promoted in any   manner that is designed to be attractive to children or that could   cause a reasonable individual or child to confuse the hemp beverage   for soda, medicine, or other beverage products that are widely   distributed and readily available to the public.          (c)  The commission by rule shall impose restrictions on the   holder of a hemp beverage permit with respect to advertising or   otherwise promoting hemp beverages to minors to the full extent   permitted by the United States Constitution and Texas Constitution.          Sec. 59.06.  REQUIRED POSTING OF SIGNS BY CERTAIN PERMIT   HOLDERS. (a) A holder of a hemp beverage permit authorized to sell   hemp beverages at retail shall prominently display on the permitted   or licensed premises, including in any restroom and the check-out   or cash register portion of the premises, a sign containing the   following information in English and in Spanish:                (1)  consumption of a hemp beverage will result in a   positive drug test;                (2)  a person should not drive or operate machinery if   under the influence of a hemp beverage;                (3)  consuming alcohol and hemp beverages together may   result in unanticipated severe levels of intoxication; and                (4)  consult your physician before consuming hemp   beverages during pregnancy as doing so is not recommended for   mothers.          (b)  The sign must be at least 8-1/2 inches high and 11 inches   wide and displayed in a conspicuous manner clearly visible to the   public and employees of the permit holder. The English notice must   cover approximately two-thirds of the sign, and the Spanish notice   must cover approximately one-third of the sign.          (c)  The commission shall develop the sign described by this   section and post a copy of the sign on the commission's Internet   website.          Sec. 59.07.  PROHIBITED MIXING OF HEMP BEVERAGES. A holder   of a hemp beverage permit authorized to sell hemp beverages at   retail may not mix, or knowingly or recklessly allow anyone on the   permitted or licensed premises to mix, a hemp beverage with any   other liquid or substance containing alcohol, caffeine, tobacco,   nicotine, kratom, kava, psychoactive mushrooms, or any other   psychoactive substance, or a derivative of any of those items.          Sec. 59.08.  ELECTRONIC VERIFICATION OF CONSUMER'S   IDENTIFICATION. (a) A holder of a hemp beverage permit authorized   to sell or serve hemp beverages to an ultimate consumer shall,   before initiating the sale, verify that the purchaser is 21 years of   age or older.          (b)  A person shall verify a purchaser's or recipient's age   under Subsection (a) by:                (1)  personally inspecting the provided proof of   identification;                (2)  scanning the provided proof of identification with   a device capable of deciphering electronically readable   information on a driver's license, commercial driver's license, or   identification certificate;                (3)  using identification authentication software   approved by the Department of Public Safety; and                (4)  using any other identification security features   the commission determines appropriate.          (c)  A proof of identification provided by a purchaser or   recipient under this section must contain a physical description   and photograph consistent with the person's appearance, purport to   establish that the person is 21 years of age or older, and have been   issued by a governmental agency. The proof of identification may   include a driver's license or identification certificate issued by   the Department of Public Safety, a passport, or a military   identification card.          (d)  A holder of a hemp beverage permit, or the permit   holder's agent, servant, or employee may not sell a hemp beverage to   a purchaser unless the person presents an apparently valid,   unexpired proof of identification.          Sec. 59.09.  RETAIL SALE OF HEMP BEVERAGE TRAINING PROGRAM.   (a) The commission by rule shall develop a training program on:                (1)  the requirements and responsibilities provided by   law for persons authorized to sell or serve hemp beverages at   retail; and                (2)  the risks associated with the consumption of hemp   beverages.          (b)  The holder of a hemp beverage permit authorized to sell   hemp beverages at retail, and the holder's agents, servants, and   employees, shall annually complete the training program developed   by the commission under Subsection (a).          (c)  If the holder of a hemp beverage permit authorized to   sell hemp beverages at retail is not an individual, the training   program under Subsection (a) must be annually completed by an   officer, director, or other individual with senior management   responsibilities for the holder.          (d)  The training program developed under this section is not   a seller training program for purposes of Section 106.14.          Sec. 59.10.  HEMP BEVERAGES. A hemp beverage may not:          (a)  contain any amount of converted cannabinoids or   synthetic cannabinoids as those terms are defined by Section 1.004;          (b)  contain or be mixed with alcohol, caffeine, tobacco,   nicotine, kratom, kava, psychoactive mushrooms, or a derivative of   any of those items;          (c)  contain a total tetrahydrocannabinol content of greater   than 0.5 milligrams per fluid ounce;          (d)  contain less than 15 milligrams of hemp-derived   cannabinoid, other than tetrahydrocannabinol, for every 1   milligram of tetrahydrocannabinol; or          (e)  except as provided by Section 59.11, contain more than   12 fluid ounces; or          (f)  be sold to ultimate consumers in a package containing   more than six individual hemp beverage containers.          Sec. 59.11.  MULTI-SERVING HEMP BEVERAGES. (a) A hemp   beverage permit holder that also holds a brewer's license,   nonresident brewer's license, or brewpub license may produce a hemp   beverage that contains more than 12 fluid ounces if the hemp   beverage is contained in a resealable container containing less   than 15.5 gallons.          (b)  The permit holder may:                (1)  sell hemp beverages containing more than 12 fluid   ounces to a hemp beverage permit holder that also holds a brewer's   license, nonresident brewer's license, general distributor's   license, or branch distributor's license, or to qualified persons   outside this state in compliance with that state's law; and                (2)  if the permit holder is also licensed under   Chapter 62A, self-distribute hemp beverages that contain more than   12 fluid ounces to licensed hemp retailers.          (c)  A hemp beverage permit holder that also holds a general   distributor's license or branch distributor's license may receive   hemp beverages that contain more than 12 fluid ounces from   authorized brewers as provided in Subsection (b) and general and   branch distributors that also hold a hemp beverage permit. The   distributor may only sell hemp beverages that contain more than 12   fluid ounces to a hemp beverage permit holder that is also a mixed   beverage permit holder, private club registration permit holder,   hemp retailer, general distributor's license holder, branch   distributor's license holder, local distributor's permit holder, or   a package store permit holder.          (d)  A hemp beverage permit holder that also holds a package   store permit may not sell hemp beverages that contain more than 12   fluid ounces to ultimate consumers.          (e)  A hemp beverage permit holder that also holds a local   distributor's permit may sell a hemp beverage that contain more   than 12 fluid ounces for resale, but only to a hemp beverage permit   holder that is also a mixed beverage permit holder, private club   registration permit holder, or hemp retailer.          (f)  A hemp beverage permit holder that also holds a mixed   beverage permit, private club registration permit, or on-premise   hemp retailer's license may use hemp beverages that contain more   than 12 fluid ounces to serve, mix, or pour a hemp beverage for sale   to an ultimate consumer.          (g)  In addition to any other applicable requirements in this   code, a hemp beverage that contains more than 12 fluid ounces must   clearly and conspicuously display a warning that the container is   not for individual sale.          SECTION 29.  Section 61.02(a), Alcoholic Beverage Code, is   amended to read as follows:          (a)  A license issued under this subtitle [code] is a purely   personal privilege and is subject to revocation as provided in this   code. It is not property, is not subject to execution, does not   pass by descent or distribution, and ceases on the death of the   holder.          SECTION 30.  Section 61.13(e), Alcoholic Beverage Code, is   amended to read as follows:          (e)  A holder of a license issued under this subtitle [code]   who has held a permit for three years or more before the date the   holder applied for renewal of the license is not required to furnish   a surety bond if the holder:                (1)  has not had a license or permit issued under this   code revoked in the five years before the date the holder applied   for renewal of the license;                (2)  is not the subject of a pending permit or license   revocation proceeding; and                (3)  has continuously operated on the licensed premises   for three years or more before the date the holder applied for   renewal of the license.          SECTION 31.  Section 61.31(b), Alcoholic Beverage Code, is   amended to read as follows:          (b)  On receipt of an application for a license under this   subtitle [code], the commission shall follow the procedure under   Section 11.43.          SECTION 32.  Section 61.314(b), Alcoholic Beverage Code, is   amended to read as follows:          (b)  The commission may give due consideration to the   recommendations of a person listed under Subsection (a) when   evaluating an application for a license under this subtitle [code].          SECTION 33.  Section 61.381(a), Alcoholic Beverage Code, is   amended to read as follows:          (a)  An applicant for a license issued under this subtitle   [code] for a location not previously licensed for the on-premises   consumption of alcoholic beverages must, not later than the 60th   day before the date the license is issued, prominently post an   outdoor sign at the location stating that alcoholic beverages are   intended to be served on the premises, the type of license, and the   name and business address of the applicant.          SECTION 34.  Section 61.421(b), Alcoholic Beverage Code, is   amended to read as follows:          (b)  The commission shall deny an application for an original   or renewal license authorizing on-premises consumption of   alcoholic beverages if the commission has reasonable grounds to   believe and finds that, during the three years preceding the date   the license application was filed, a license or permit previously   held under this subtitle [code] by the applicant, a person who owns   the premises for which the license is sought, or an officer of a   person who owns the premises for which the license is sought was   canceled or not renewed as a result of a shooting, stabbing, or   other violent act.          SECTION 35.  Section 62.09, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 62.09.  MALT BEVERAGES FOR EXPORT. (a) Regardless of   any other provision of this code, a holder of a brewer's license may   brew and package malt beverages or import them from outside the   state, for shipment out of the state, even though the alcohol   content, containers, packages, or labels make the beverages illegal   to sell within the state. The licensee may export the beverages out   of state or deliver them at the licensee's premises for shipment out   of the state without being liable for any state tax on malt   beverages sold for resale in the state.          (b)  This section does not apply to the import or export of   hemp beverages.          SECTION 36.  Section 64.01, Alcoholic Beverage Code, is   amended by adding Subsection (c) to read as follows:          (c)  Notwithstanding Subsection (a), the holder of a general   distributor's license who also holds a hemp beverage permit may   only distribute or sell hemp beverages to:                (1)  the holder of a hemp beverage permit that is also a   general distributor's license holder, branch distributor's license   holder, local distributor's permit holder, package store permit   holder, mixed beverage permit holder, private club registration   permit holder, or a hemp retailer; and                (2)  qualified persons outside the state in compliance   with that state's law.          SECTION 37.  Section 64.08(a), Alcoholic Beverage Code, is   amended to read as follows:          (a)  The holder of a general distributor's license may sell   malt beverages, not including hemp beverages, for use as an   ingredient in the manufacturing and processing of food products.          SECTION 38.  Section 64.09(a), Alcoholic Beverage Code, is   amended to read as follows:          (a)  In this section "malt beverages for export" means malt   beverages a distributor holds for export to another state in which   the distributor has been assigned a territory for the distribution   and sale of the malt beverages. The term includes malt beverages   that are illegal to sell in this state because of alcohol content,   containers, packages, or labels. The term does not include hemp   beverages that are illegal to sell in this state because of content,   containers, packages, or labels.          SECTION 39.  Section 66.11(a), Alcoholic Beverage Code, is   amended to read as follows:          (a)  In this section "malt beverages for export" means malt   beverages a distributor holds for export to another state in which   the distributor has been assigned a territory for the distribution   and sale of the malt beverages. The term includes malt beverages   that are illegal to sell in this state because of alcohol content,   containers, packages, or labels. The term does not include hemp   beverages that are illegal to sell in this state because of content,   containers, packages, or labels.          SECTION 40.  Chapter 74, Alcoholic Beverage Code, is amended   by adding Section 74.10 to read as follows:          Sec. 74.10.  SALES OF HEMP BEVERAGES TO RETAILERS AND   DISTRIBUTORS. (a) Notwithstanding any other provision of this   chapter, a holder of a brewpub license who also holds a hemp   beverage permit may manufacture hemp beverages.          (b)  A holder of a brewpub license who also holds a hemp   beverage permit and a mixed beverage permit may sell hemp beverages   to ultimate consumers as provided under this section.          (c)  A holder of a brewpub license who holds a hemp beverage   permit but does not hold a mixed beverage permit may sell hemp   beverages produced under the license to hemp retailers and general   or branch distributors that also hold a hemp beverage permit in the   same manner as the license holder may sell malt beverages under   Sections 74.08 and 74.09.          SECTION 41.  Section 101.02, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 101.02.  ARREST WITHOUT WARRANT. A peace officer may   arrest without a warrant any person the officer [he] observes   violating any provision of this code or any rule or regulation of   the commission. The officer shall take possession of all illicit   beverages and illicit consumable hemp products the person has in   the person's [his] possession or on the person's [his] premises as   provided in Chapter 103 of this code.          SECTION 42.  Section 101.03(a), Alcoholic Beverage Code, is   amended to read as follows:          (a)  A search warrant may issue under Chapter 18, Code of   Criminal Procedure, 1965, as amended, to search for, seize, and   destroy or otherwise dispose of in accordance with this code:                (1)  an illicit beverage or illicit consumable hemp   product;                (2)  any equipment or instrumentality used, or capable   or designed to be used, to manufacture an illicit beverage or   illicit consumable hemp product;                (3)  a vehicle or instrumentality used or to be used for   the illegal transportation of an illicit beverage or illicit   consumable hemp product;                (4)  unlawful equipment or materials used or to be used   in the illegal manufacturing of an illicit beverage or illicit   consumable hemp product;                (5)  a forged or counterfeit stamp, die, plate,   official signature, certificate, evidence of tax payment, license,   permit, or other instrument pertaining to this code; or                (6)  any instrumentality or equipment, or parts of   either of them, used or to be used, or designed or capable of use, to   manufacture, print, etch, indite, or otherwise make a forged or   counterfeit instrument covered by Subdivision (5) of this   subsection.          SECTION 43.  The heading to Section 101.31, Alcoholic   Beverage Code, is amended to read as follows:          Sec. 101.31.  ALCOHOLIC BEVERAGES, CONSUMABLE HEMP   PRODUCTS, AND HEMP BEVERAGES IN DRY AREAS.          SECTION 44.  Section 101.31, Alcoholic Beverage Code, is   amended by adding Subsection (a-1) to read as follows:          (a-1)  Except as otherwise provided in this code, no person   in a dry area that prohibits consumable hemp products may sell or   possess with intent to sell a consumable hemp product.          (a-2)  Except as otherwise provided in this code, no person   in a dry area that prohibits hemp beverages may sell or possess with   intent to sell a hemp beverage.          SECTION 45.  Section 101.41, Alcoholic Beverage Code, is   amended by amending Subsection (c) and adding Subsection (e) to   read as follows:          (c)  The label of a container of malt beverages, not   including a hemp beverage, must state:                (1)  the net contents in terms of United States liquor   measure; and                (2)  the alcohol content by volume.          (e)  The label of a container of hemp beverages must state:                (1)  the net contents in terms of ounces of liquid;                (2)  the percentage and total amount in milligrams of   each cannabinoid contained in the beverage;                (3)  the total tetrahydrocannabinol concentration as a   percentage of the total volume of the beverage                (4)  a warning that consumption of the beverage impairs   a person's ability to drive a car or operate machinery, may cause   health problems, and may result in a positive drug test;                (5)  a warning that the consumer should consult a   physician before consuming a hemp beverage during pregnancy as   doing so is not recommended for mothers;                (6)  a warning that consuming alcohol and hemp   beverages together may result in unanticipated severe levels of   intoxication; and                (7)  a warning that consuming hemp beverages may result   in an increased risk of psychosis.          SECTION 46.  Section 101.66, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 101.66.  BEVERAGES OF CERTAIN ALCOHOL CONTENT   PROHIBITED. (a) A person may not manufacture, sell, barter, or   exchange a beverage that contains more than one-half of one percent   alcohol by volume and not more than five percent alcohol by volume,   except malt beverages, wine coolers, and spirit coolers.          (b)  A person may not manufacture, sell, barter, or exchange   a hemp beverage that contains any alcohol by volume.          SECTION 47.  Section 101.67, Alcoholic Beverage Code, is   amended by amending Subsections (a), (d), (e), and (f) and adding   Subsections (a-1) and (a-2) to read as follows:          (a)  Before an authorized licensee may ship or cause to be   shipped into the state, import into the state, manufacture and   offer for sale in the state, or distribute, sell, or store in the   state any malt beverages, the licensee must register the malt   beverages with the commission. Except as provided by Subsection   (a-1), the [The] registration application must include a   certificate of label approval issued by the United States Alcohol   and Tobacco Tax and Trade Bureau for the product.          (a-1)  The registration application for a hemp beverage must   include a certificate of product approval issued by the Department   of State Health Services under Section 443A.009 for the product.          (a-2)  Each different sized container of the same type of   hemp beverage produced by a holder of a brewer's or nonresident   brewer's license requires an individual registration with the   commission.          (d)  On registration of a certificate of label approval   issued by the United States Alcohol and Tobacco Tax and Trade Bureau   or a certificate of product approval issued by the Department of   State Health Services, as applicable, the commission shall approve   the product under this section and issue a letter to that effect to   the licensee unless the commission determines the product, despite   having a valid federal certificate of label approval or a   certificate of product approval issued by the Department of State   Health Services, would create a public safety concern, create a   cross-tier violation, or otherwise violate this code.          (e)  Not later than the 30th day after the date the   commission receives an application for registration of a product   under this section, the commission shall either approve or deny the   registration application. If the commission denies the application   for a product with a valid federal certificate of label approval or   a certificate of product approval issued by the Department of State   Health Services or fails to act on the application within the time   required by this subsection, the licensee submitting the   application is entitled to an administrative hearing before the   State Office of Administrative Hearings.          (f)  The commission by rule shall establish procedures for:                (1)  accepting federal certificates of label approval   or certificates of product approval issued by the Department of   State Health Services for registration under this section;                (2)  registering alcoholic beverage products, other   than hemp beverages, that are not eligible to receive a certificate   of label approval issued by the United States Alcohol and Tobacco   Tax and Trade Bureau; and                (3)  registering alcoholic beverage products, other   than hemp beverages, during periods when the United States Alcohol   and Tobacco Tax and Trade Bureau has ceased processing applications   for a certificate of label approval.          SECTION 48.  Section 101.6701, Alcoholic Beverage Code, is   amended by adding Subsection (e) to read as follows:          (e)  This section does not apply to hemp beverages.          SECTION 49.  Subchapter D, Chapter 101, Alcoholic Beverage   Code, is amended by adding Section 101.6702 to read as follows:          Sec. 101.6702.  HEMP BEVERAGE AUTHORIZATION. (a) The   commission shall by rule develop a process by which a hemp beverage   is approved by the commission before the beverage is made available   for sale or otherwise introduced into commerce in this state.          (b)  In approving a hemp beverage under Subsection (a), the   commission shall ensure that the hemp beverage is labeled in   accordance with the requirements of Sections 101.41(e), 322.001,   and 322.002.          (c)  The commission shall ensure that each hemp beverage   container complies with the requirements of this code.          SECTION 50.  Sections 101.70(a) and (c), Alcoholic Beverage   Code, are amended to read as follows:          (a)  A room, building, boat, structure, or other place where   alcoholic beverages or consumable hemp products are sold, bartered,   manufactured, stored, possessed, or consumed in violation of this   code or under circumstances contrary to the purposes of this code,   the beverages and products themselves, and all property kept or   used in the place, are a common nuisance. A person who maintains or   assists in maintaining the nuisance commits an offense.          (c)  The plaintiff is not required to give a bond. The final   judgment is a judgment in rem against the property and a judgment   against the defendant. If the court finds against the defendant, on   final judgment it shall order that the place where the nuisance   exists be closed for one year or less and until the owner, lessee,   tenant, or occupant gives bond with sufficient surety as approved   by the court in the penal sum of at least $1,000. The bond must be   payable to the state and conditioned:                (1)  that this code will not be violated;                (2)  that no person will be permitted to resort to the   place to drink alcoholic beverages or consume consumable hemp   products in violation of this code; and                (3)  that the defendant will pay all fines, costs, and   damages assessed against the defendant [him] for any violation of   this code.          SECTION 51.  Section 101.71, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 101.71.  INSPECTION OF VEHICLE. No holder of a permit   issued under Title 3, Subtitle A, or a license under Title 7, of   this code, may refuse to allow the commission or its authorized   representative or a peace officer, on request, to make a full   inspection, investigation, or search of any vehicle.          SECTION 52.  Chapter 103, Alcoholic Beverage Code, is   amended by adding Section 103.001 to read as follows:          Sec. 103.001.  ILLICIT CONSUMABLE HEMP PRODUCTS. In this   chapter, references to an "illicit beverage" include an illicit   consumable hemp product.          SECTION 53.  The heading to Section 106.02, Alcoholic   Beverage Code, is amended to read as follows:          Sec. 106.02.  PURCHASE OF ALCOHOL OR CONSUMABLE HEMP   PRODUCTS BY A MINOR.          SECTION 54.  Section 106.02(a), Alcoholic Beverage Code, is   amended to read as follows:          (a)  A minor commits an offense if the minor purchases an   alcoholic beverage or a consumable hemp product. A minor does not   commit an offense if the minor purchases an alcoholic beverage or a   consumable hemp product under the immediate supervision of a   commissioned peace officer engaged in enforcing the provisions of   this code.          SECTION 55.  The heading to Section 106.025, Alcoholic   Beverage Code, is amended to read as follows:          Sec. 106.025.  ATTEMPT TO PURCHASE ALCOHOL OR CONSUMABLE   HEMP PRODUCT BY A MINOR.          SECTION 56.  Sections 106.03(a), (b), and (d), Alcoholic   Beverage Code, are amended to read as follows:          (a)  A person commits an offense if with criminal negligence   the person [he] sells an alcoholic beverage or a consumable hemp   product to a minor.          (b)  A person who sells a minor an alcoholic beverage or a   consumable hemp product does not commit an offense if the minor   falsely represents the minor [himself] to be 21 years old or older   by displaying an apparently valid proof of identification that   contains a physical description and photograph consistent with the   minor's appearance, purports to establish that the minor is 21   years of age or older, and was issued by a governmental agency. The   proof of identification may include a driver's license or   identification card issued by the Department of Public Safety, a   passport, or a military identification card.          (d)  Subsection (b) does not apply to a person who accesses   electronically readable information under Section 59.08, 109.61,   or 310.307 that identifies a driver's license or identification   certificate as invalid.          SECTION 57.  The heading to Section 106.04, Alcoholic   Beverage Code, is amended to read as follows:          Sec. 106.04.  CONSUMPTION OF ALCOHOL OR CONSUMABLE HEMP   PRODUCT BY A MINOR.          SECTION 58.  Sections 106.04(a), (b), and (e), Alcoholic   Beverage Code, are amended to read as follows:          (a)  A minor commits an offense if the minor [he] consumes an   alcoholic beverage or a consumable hemp product.          (b)  It is an affirmative defense to prosecution under this   section that the alcoholic beverage or consumable hemp product was   consumed in the visible presence of the minor's adult parent,   guardian, or spouse.          (e)  Subsection (a) does not apply to a minor who:                (1)  requested emergency medical assistance in   response to the possible alcohol or consumable hemp product   overdose of the minor or another person;                (2)  was the first person to make a request for medical   assistance under Subdivision (1); and                (3)  if the minor requested emergency medical   assistance for the possible alcohol or consumable hemp product   overdose of another person:                      (A)  remained on the scene until the medical   assistance arrived; and                      (B)  cooperated with medical assistance and law   enforcement personnel.          SECTION 59.  The heading to Section 106.05, Alcoholic   Beverage Code, is amended to read as follows:          Sec. 106.05.  POSSESSION OF ALCOHOL OR CONSUMABLE HEMP   PRODUCT BY A MINOR.          SECTION 60.  Sections 106.05(a), (b), and (d), Alcoholic   Beverage Code, are amended to read as follows:          (a)  Except as provided in Subsection (b) of this section, a   minor commits an offense if the minor [he] possesses an alcoholic   beverage or a consumable hemp product.          (b)  A minor may possess an alcoholic beverage or a   consumable hemp product:                (1)  while in the course and scope of the minor's   employment if the minor is an employee of a licensee or permittee   and the employment is not prohibited by this code;                (2)  if the minor is in the visible presence of the   minor's [his] adult parent, guardian, or spouse, or other adult to   whom the minor has been committed by a court;                (3)  if the minor is under the immediate supervision of   a commissioned peace officer engaged in enforcing the provisions of   this code; or                (4)  if the beverage is lawfully provided to the minor   under Section 106.16.          (d)  Subsection (a) does not apply to a minor who:                (1)  requested emergency medical assistance in   response to the possible alcohol or consumable hemp product   overdose of the minor or another person;                (2)  was the first person to make a request for medical   assistance under Subdivision (1); and                (3)  if the minor requested emergency medical   assistance for the possible alcohol or consumable hemp product   overdose of another person:                      (A)  remained on the scene until the medical   assistance arrived; and                      (B)  cooperated with medical assistance and law   enforcement personnel.          SECTION 61.  The heading to Section 106.06, Alcoholic   Beverage Code, is amended to read as follows:          Sec. 106.06.  PURCHASE OF ALCOHOL OR CONSUMABLE HEMP PRODUCT   FOR A MINOR; FURNISHING ALCOHOL OR CONSUMABLE HEMP PRODUCT TO A   MINOR.          SECTION 62.  Sections 106.06(a), (b), (c-1), (d), and (e),   Alcoholic Beverage Code, are amended to read as follows:          (a)  Except as provided in Subsection (b), a person commits   an offense if the person purchases an alcoholic beverage or a   consumable hemp product for or gives an alcoholic beverage or a   consumable hemp product to a minor.          (b)  A person may purchase an alcoholic beverage or a   consumable hemp product for or give an alcoholic beverage to a minor   if the person is:                (1)  the minor's adult parent, guardian, or spouse, or   an adult in whose custody the minor has been committed by a court,   and is visibly present when the minor possesses or consumes the   alcoholic beverage or consumable hemp product; or                (2)  a person lawfully providing an alcoholic beverage   to a minor under Section 106.16.          (c-1)  An offense under this section is a state jail felony   if it is shown on the trial of the offense that the person purchased   an alcoholic beverage or a consumable hemp product for or gave an   alcoholic beverage or a consumable hemp product to a minor who, as a   result of the consumption of the alcoholic beverage or consumable   hemp product, caused another person to suffer serious bodily injury   or death.          (d)  A judge, acting under Chapter 42A, Code of Criminal   Procedure, who places a defendant charged with an offense under   this section on community supervision under that chapter shall, if   the defendant committed the offense at a gathering where   participants were involved in the abuse of alcohol, including binge   drinking or forcing or coercing individuals to consume alcohol or   consumable hemp products, in addition to any other condition   imposed by the judge:                (1)  require the defendant to:                      (A)  perform community service for not less than   20 or more than 40 hours; and                      (B)  attend an alcohol awareness program approved   under Section 106.115 or a substance misuse education program under   Section 521.374(a)(1), Transportation Code; and                (2)  order the Department of Public Safety to suspend   the driver's license or permit of the defendant or, if the defendant   does not have a driver's license or permit, to deny the issuance of   a driver's license or permit to the defendant for 180 days.          (e)  Community service ordered under Subsection (d) is in   addition to any community service ordered by the judge under   Article 42A.304, Code of Criminal Procedure, and must be related to   education about or prevention of misuse of alcohol or drugs if   programs or services providing that education are available in the   community in which the court is located. If programs or services   providing that education are not available, the court may order   community service that the court considers appropriate for   rehabilitative purposes.          SECTION 63.  Section 106.07(a), Alcoholic Beverage Code, is   amended to read as follows:          (a)  A minor commits an offense if the minor [he] falsely   states that the minor [he] is 21 years of age or older or presents   any document that indicates the minor [he] is 21 years of age or   older to a person engaged in selling or serving alcoholic beverages   or consumable hemp products.          SECTION 64.  The heading to Section 106.071, Alcoholic   Beverage Code, is amended to read as follows:          Sec. 106.071.  PUNISHMENT FOR HEMP OR ALCOHOL-RELATED   OFFENSE BY MINOR.          SECTION 65.  Section 106.08, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 106.08.  IMPORTATION BY A MINOR. No minor may import   into this state or possess with intent to import into this state any   alcoholic beverage or consumable hemp product.          SECTION 66.  The heading to Section 106.115, Alcoholic   Beverage Code, is amended to read as follows:          Sec. 106.115.  ALCOHOL AWARENESS OR SUBSTANCE MISUSE   EDUCATION PROGRAM; LICENSE SUSPENSION.          SECTION 67.  Sections 106.115(b-1), (b-2), (c), and (d),   Alcoholic Beverage Code, are amended to read as follows:          (b-1)  If the defendant resides in a county with a population   of 75,000 or less and access to an alcohol awareness or substance   misuse education program is not readily available in the county,   the court may allow the defendant to take an online alcohol   awareness or substance misuse education program approved by the   Texas Department of Licensing and Regulation or require the   defendant to perform not less than eight hours of community service   related to alcohol or drug abuse prevention or treatment instead of   attending the alcohol or substance misuse education awareness   program. Community service ordered under this subsection is in   addition to community service ordered under Section 106.071(d).          (b-2)  For purposes of Subsection (b-1), if the defendant is   enrolled in an institution of higher education located in a county   in which access to an alcohol awareness or substance misuse   education program is readily available, the court may consider the   defendant to be a resident of that county. If the defendant is not   enrolled in such an institution of higher education or if the court   does not consider the defendant to be a resident of the county in   which the institution is located, the defendant's residence is the   residence listed on the defendant's driver's license or personal   identification certificate issued by the Department of Public   Safety. If the defendant does not have a driver's license or   personal identification certificate issued by the Department of   Public Safety, the defendant's residence is the residence on the   defendant's voter registration certificate. If the defendant is   not registered to vote, the defendant's residence is the residence   on file with the public school district on which the defendant's   enrollment is based. If the defendant is not enrolled in public   school, the defendant's residence is determined by the court.          (c)  The court shall require the defendant to present to the   court, within 90 days of the date of final conviction, evidence in   the form prescribed by the court that the defendant, as ordered by   the court, has satisfactorily completed an alcohol awareness or   substance misuse education program or performed the required hours   of community service. For good cause the court may extend this   period by not more than 90 days. If the defendant presents the   required evidence within the prescribed period, the court may   reduce the assessed fine to an amount equal to no less than one-half   of the amount of the initial fine.          (d)  If the defendant does not present the required evidence   within the prescribed period, the court:                (1)  shall order the Department of Public Safety to:                      (A)  suspend the defendant's driver's license or   permit for a period not to exceed six months or, if the defendant   does not have a license or permit, to deny the issuance of a license   or permit to the defendant for that period; or                      (B)  if the defendant has been previously   convicted of an offense under one or more of the sections listed in   Subsection (a), suspend the defendant's driver's license or permit   for a period not to exceed one year or, if the defendant does not   have a license or permit, to deny the issuance of a license or   permit to the defendant for that period; and                (2)  may order the defendant or the parent, managing   conservator, or guardian of the defendant to do any act or refrain   from doing any act if the court determines that doing the act or   refraining from doing the act will increase the likelihood that the   defendant will present evidence to the court that the defendant has   satisfactorily completed an alcohol awareness or substance misuse   education program or performed the required hours of community   service.          SECTION 68.  Section 106.13(a), Alcoholic Beverage Code, is   amended to read as follows:          (a)  Except as provided in Subsections (b) and (c) of this   section, the commission or administrator may cancel or suspend for   not more than 90 days a retail license or permit issued under this   code or a private club registration permit if it is found, on notice   and hearing, that the licensee or permittee with criminal   negligence sold, served, dispensed, or delivered an alcoholic   beverage or consumable hemp product to a minor or with criminal   negligence permitted a minor to violate Section 106.04 or 106.05 of   this code on the licensed premises.          SECTION 69.  Section 106.14, Alcoholic Beverage Code, is   amended by adding Subsection (a-1) to read as follows:          (a-1)  In addition to the requirements in Subsection (a), an   employee's actions are not attributable to the employer if the   employee sells, serves, or dispenses hemp beverages as authorized   under Chapter 59 on the employer's premises and the employee has   attended the annual hemp beverage training required under Section   59.09.          SECTION 70.  Chapter 106, Alcoholic Beverage Code, is   amended by adding Section 106.141 to read as follows:          Sec. 106.141.  ACTIONS OF EMPLOYEE OF HEMP RETAILER. For   purposes of this chapter and any other provision of this code   relating to the sale, service, or dispensing of consumable hemp   products to a minor or an intoxicated person or the consumption of   consumable hemp products by a minor or an intoxicated person, the   actions of an employee shall not be attributable to the employer if:                (1)  the employee has attended the mandatory training   under Section 310.304 within the last year; and                (2)  the employer has not directly or indirectly   encouraged the employee to violate such law.          SECTION 71.  Section 107.07, Alcoholic Beverage Code, is   amended by amending Subsection (a) and adding Subsection (b) to   read as follows:          (a)  Except as provided by Subsection (b), a [A] person may   import not more than 24 12-ounce bottles or an equivalent quantity   of malt beverages, 3 gallons of wine, and 1 gallon of distilled   spirits for the person's own personal use without being required to   hold a permit. A person importing alcoholic beverages into the   state under this subsection must pay the state tax on alcoholic   beverages and an administrative fee of $3 and must affix the   required tax stamps. No minor and no intoxicated person may import   any alcoholic beverages into the state. A person importing   alcoholic beverages under this subsection must personally   accompany the alcoholic beverages as the alcoholic beverages enter   the state. A person may not use the exemptions set forth in this   subsection more than once every thirty days.          (b)  This section does not authorize the importation of hemp   beverages for personal use.          SECTION 72.  Section 107.11, Alcoholic Beverage Code, is   amended by amending Subsection (a) and adding Subsection (c) to   read as follows:          (a)  Except as provided by Subsection (c), a [A] person who   is relocating a household may import, or contract with a motor   carrier or another person to import, a personal malt beverage,   wine, or distilled spirit collection as a part of that person's   household goods.          (c)  This section does not authorize the importation of a   hemp beverage as part of a person's household goods.          SECTION 73.  Sections 109.01, 109.02, and 109.03, Alcoholic   Beverage Code, are amended to read as follows:          Sec. 109.01.  SALE OF SALVAGED OR INSURED LOSS. If a person   who does not hold a permit or license to sell alcoholic beverages or   consumable hemp products acquires possession of alcoholic   beverages or consumable hemp products as an insurer or insurance   salvor in the salvage or liquidation of an insured damage or loss   sustained in this state by a qualified licensee or permittee, the   person [he] may sell the beverages or products in one lot or parcel   as provided in this subchapter without being required to obtain a   license or permit.          Sec. 109.02.  REGISTRATION OF BEVERAGES OR CONSUMABLE HEMP   PRODUCTS WITH COMMISSION. Immediately after taking possession of   the alcoholic beverages or consumable hemp products, the insurer or   insurance salvor shall register them with the commission,   furnishing the commission a detailed inventory and the exact   location of the beverages or products. At the time of registration,   the registrant shall post with the commission a surety bond in an   amount that the administrator finds adequate to protect the state   against the taxes due on the beverages or products, if any are due.   The registrant shall remit with the registration a fee of $10. The   fee only permits the sale of the beverages or products listed in the   registration.          Sec. 109.03.  PREREQUISITE TO SALABILITY. An alcoholic   beverage or consumable hemp product is salable under this   subchapter only if it has not been adulterated, it is fit for human   consumption, all tax stamps required by law have been affixed, and   the labels are legible as to contents, brand, and manufacturer.          SECTION 74.  Subchapter A, Chapter 109, Alcoholic Beverage   Code, is amended by adding Section 109.055 to read as follows:          Sec. 109.055.  SALE OF CONSUMABLE HEMP PRODUCTS: PROCEDURE.   (a) When the commission is notified under this subchapter of the   acquisition of consumable hemp products or their containers or   original packages, the commission shall immediately notify a holder   of a hemp distributor's license who handles the brand of consumable   hemp products or the holder of the hemp manufacturer's license who   produced the products.          (b)  The insurer or insurance salvor, the commission, and the   distributor or manufacturer shall jointly agree whether the   consumable hemp products are salable. If the consumable hemp   products are determined to be unsalable, the commission shall   destroy the products. If the consumable hemp products are   determined to be salable, the products must first be offered for   sale to the manufacturer or distributor at their cost price, less   any state taxes that have been paid on the products.          (c)  If the distributor or manufacturer does not exercise the   right to purchase the consumable hemp products within 10 days after   being given the opportunity to purchase, the insurer or insurance   salvor may sell the products to any qualified consumable hemp   product licensee in the same manner provided for the sale of   alcoholic beverages in Section 109.01.          SECTION 75.  Section 109.06, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 109.06.  PURCHASER'S RIGHT TO USE BEVERAGES OR   CONSUMABLE HEMP PRODUCTS. A permittee or licensee who purchases   alcoholic beverages or consumable hemp products under this   subchapter may treat them as other alcoholic beverages or   consumable hemp products acquired by the permittee or licensee   [him] as provided in this code.          SECTION 76.  Section 109.21(a), Alcoholic Beverage Code, is   amended to read as follows:          (a)  The head of a family or an unmarried adult may produce   for the person's use or the use of the person's family not more than   200 gallons of wine or malt beverages, not including hemp   beverages, per year. No license or permit is required.          SECTION 77.  Title 5, Alcoholic Beverage Code, is amended by   adding Chapter 202 to read as follows:   CHAPTER 202. CONSUMABLE HEMP PRODUCTS TAX          Sec. 202.001.  DEFINITIONS. In this chapter:                (1)  "Consumable hemp product" has the meanings   assigned by Section 1.004, Alcoholic Beverage Code.                (2)  "Total tetrahydrocannabinol" means the value of   tetrahydrocannabinol content determined after decarboxylation   including delta-8, delta-9, delta-10, tetrahydrocannabinolic acid,   and any other chemically similar isomer. If the value of   tetrahydrocannabinol content contains any detectable amount of   tetrahydrocannabinolic acid, the value is equal to the amount of   tetrahydrocannabinolic acid multiplied by 0.877 plus the amount of   all other tetrahydrocannabinols.          Sec. 202.002.  TIMELY FILING: DILIGENCE. A person filing a   report or making a tax payment complies with the filing   requirements for timeliness for a report not filed or a payment not   made on time if the person exercised reasonable diligence to comply   with the filing requirements and the failure to file or the making   of a late payment is not the fault of the person.          Sec. 202.003.  "FIRST SALE" DEFINED. In this chapter,   "first sale" means the first sale of a consumable hemp product by   the holder of a hemp manufacturer's license or an out-of-state hemp   manufacturer's license to:                (1)  the holder of a hemp manufacturer's license;                (2)  the holder of a hemp distributor's license;                (3)  a hemp retailer; or                (4)  an ultimate consumer in this state for consumption   on or off the manufacturer's licensed premises.          Sec. 202.004.  TAX ON CONSUMABLE HEMP PRODUCTS. A tax is   imposed on the first sale of a consumable hemp product at the rate   of:                (1)  for products containing 0.5 milligrams or less of   total tetrahydrocannabinol, 2 cents per milligram of cannabinols   contained in the consumable hemp product;                (2)  for products containing 25 milligrams or less but   more than 0.5 milligrams of total tetrahydrocannabinol, 25 cents   per milligram of total tetrahydrocannabinol contained in the   consumable hemp product;                (3)  for products containing 50 milligrams or less but   more than 25 milligrams of total tetrahydrocannabinol, 50 cents per   milligram of total tetrahydrocannabinol contained in the   consumable hemp product; and                (4)  for products containing more than 50 milligrams of   total tetrahydrocannabinol, one dollar per milligram of total   tetrahydrocannabinol contained in the consumable hemp product.          Sec. 202.005.  PAYMENT OF TAX; DISCOUNTS. (a) The tax on a   consumable hemp product, levied and computed under this chapter,   shall be paid by a remittance payable to the comptroller and   forwarded together with any required sworn statement or report of   taxes due to the commission in Austin on or before the date it is   due.          (b)  A discount of two percent of the amount due shall be   withheld by the licensee for keeping records, furnishing bonds, and   properly accounting for the remittance of the tax due. No discount   is permitted if the tax is delinquent at the time of payment.          Sec. 202.006.  DUE DATE. The tax on a consumable hemp   product is due and payable on the 15th of the month following the   first sale, together with a report on the tax due.          Sec. 202.007.  SUMMARY SUSPENSION. (a) The commission may   summarily suspend, without a hearing, the license of a licensee who   fails to file a report or return or to make a tax payment required by   this chapter. Chapter 2001, Government Code, does not apply to the   commission in the enforcement and administration of this section.          (b)  A suspension under this section takes effect on the   third day after the date the notice of suspension is given. The   notice shall be given to the licensee or the licensee's agent or   employee by registered or certified mail if not given in person.          (c)  The commission shall terminate a suspension made under   this section when the licensee files all required returns and makes   all required tax payments that are due.          Sec. 202.008.  EXEMPTION FROM TAX. (a) No tax may be   collected on a consumable hemp product shipped out of state for   consumption outside the state.          (b)  The commission shall provide forms for claiming the   exemption prescribed by this section.          (c)  A tax credit shall be allowed for payment of any   unintended or excess tax.          Sec. 202.009.  REFUND DUE ON DISPOSITION OUTSIDE OF STATE.   The holder of any license authorizing the transportation of   consumable hemp products out of this state may apply to the   commission for a refund of the tax paid on a consumable hemp product   on proper proof that the product was sold or disposed of outside of   this state.          Sec. 202.010.  EXCESS TAX. A licensee is entitled to a   refund of or a tax credit on a future tax payment for any excess tax   paid on a consumable hemp product through oversight, mistake,   error, or miscalculation.          Sec. 202.011.  TAX CREDITS AND REFUNDS. The commission   shall provide by rule for the equitable and final disposition of tax   refunds or credits when the tax on a consumable hemp product is   overpaid or paid by mistake. The commission shall prescribe the   time and manner for filing claims for credits and refunds and   provide appropriate forms.          Sec. 202.012.  STATEMENTS. (a) The commission may require   the manufacturer of a consumable hemp product processed or   manufactured in this state or imported into this state to provide   information as to purchases, sales, and shipments to enable the   commission to collect the full amount of the tax due on the   consumable hemp product. No licensee may fail or refuse to furnish   the information.          (b)  The commission may seize or withhold from sale the   manufacturer's consumable hemp products for failure or refusal to   supply the information required under Subsection (a) or to permit   the commission to make an investigation of pertinent records   whether inside or outside this state.          Sec. 202.013.  SALE OF UNTAXED CONSUMABLE HEMP PRODUCTS   PROHIBITED. No person may sell, offer for sale, or store for the   purpose of sale in this state any consumable hemp product on which   the tax, if due, has not been paid.          Sec. 202.014.  TAX ON UNSALABLE CONSUMABLE HEMP PRODUCTS.   No tax under Section 202.003 may be imposed or collected on a   consumable hemp product that for any reason has been found and   declared to be unsalable by the commission or administrator. A hemp   manufacturer or an out-of-state hemp manufacturer is entitled to a   refund of any tax the manufacturer paid on an unsalable consumable   hemp product.          Sec. 202.015.  EVIDENCE IN SUIT. In a suit brought to   enforce the collection of tax owed by the holder of a license   authorizing the sale of consumable hemp products in this state, a   certificate by the commission or administrator showing the   delinquency is prima facie evidence of:                (1)  the levy of the tax or the delinquency of the   stated amount of tax and penalty; and                (2)  compliance by the commission with the provisions   of this code relating to the computation and levy of the tax.          Sec. 202.016.  PENALTY. A person who violates any section of   this chapter except Section 202.008 or 202.012 commits a   misdemeanor which on conviction is punishable by a fine of more than   $100 but not more than $1,000 or by imprisonment in the county jail   for more than 30 days but not more than one year. A violation of   Section 202.008 or 202.012 is punishable in accordance with Section   1.05.          Sec. 202.017.  CONSUMABLE HEMP PRODUCTS TAX DISTRIBUTION.   (a) The revenue attributable to taxes imposed under this chapter   and Chapter 151, Tax Code, on consumable hemp products shall be   deposited to the credit of the general revenue fund. Money   deposited under this section may be appropriated only as follows:                (1)  one-half of the revenue to the commission for the   administration and enforcement of this code with respect to   consumable hemp products;                (2)  one-fourth of the revenue to accredited crime   laboratories; and                (3)  one-fourth of the revenue to local governments for   addiction treatment and education programs.          (b)  Chapter 205 of this code and Subchapter M, Chapter 151,   Tax Code, do not apply to revenue to which this section applies.          SECTION 78.  Section 203.01, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 203.01.  TAX ON MALT BEVERAGES. (a) A tax is imposed on   the first sale of malt beverages, not including hemp beverages,   brewed in this state or imported into this state at the rate of six   dollars per barrel.          (b)  A tax is imposed on the first sale of a hemp beverage   manufactured in this state or imported into this state at the rate   of:                (1)  for a hemp beverage container containing 0.5   milligrams or less of total tetrahydrocannabinol, 2 cents per   milligram of cannabinols contained in the hemp beverage container;                (2)  for a hemp beverage container containing 6   milligrams or less but more than 0.5 milligrams of total   tetrahydrocannabinol, 25 cents per milligram of total   tetrahydrocannabinol contained in the hemp beverage container; and                (3)  for a hemp beverage container containing more than   6 milligrams of total tetrahydrocannabinol, one dollar per   milligram of total tetrahydrocannabinol contained in the hemp   beverage container.          SECTION 79.  Chapter 203, Alcoholic Beverage Code, is   amended by adding Section 203.14 to read as follows:          Sec. 203.14.  HEMP BEVERAGE TAX DISTRIBUTION. (a) The   revenue attributable to taxes imposed under this chapter and   Chapters 151 and 183, Tax Code, on hemp beverages shall be deposited   to the credit of the general revenue fund. Money deposited under   this section may be appropriated only as follows:                (1)  one-half of the revenue to the commission for the   administration and enforcement of this code with respect to hemp   beverages;                (2)  one-fourth of the revenue to accredited crime   laboratories; and                (3)  one-fourth of the revenue to local governments for   addiction treatment and education programs.          (b)  Chapter 205 of this code, Subchapter M, Chapter 151, Tax   Code, and Subchapter C, Chapter 183, Tax Code, do not apply to   revenue to which this section applies.          SECTION 80.  Section 251.71, Alcoholic Beverage Code, is   amended by adding Subsections (a-1) and (f) and amending Subsection   (d) to read as follows:          (a-1)  An area is a "dry area" as to consumable hemp products   if the sale of the products is unlawful in the area. An area is a   "wet area" for consumable hemp products if the sale of the products   is lawful in the area.          (d)  In an information, complaint, or indictment, an   allegation that an area is a dry area as to a particular type of   alcoholic beverage, hemp beverage, or consumable hemp product is   sufficient, but a different status of the area may be urged and   proved as a defense.          (f)  Notwithstanding Section 59.01, a vote to prohibit or   legalize the sale of alcoholic beverages, mixed beverages, or malt   beverages does not determine whether the sale of hemp beverages is   prohibited or legal. An authorized voting unit's status regarding   hemp beverages is determined as provided by Section 251.83.          SECTION 81.  Section 251.72, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 251.72.  CHANGE OF STATUS. Except as provided in   Sections 251.725, 251.726, 251.727, 251.73, and 251.80, an   authorized voting unit that has exercised or may exercise the right   of local option retains the status adopted, whether absolute   prohibition or legalization of the sale of hemp beverages,   consumable hemp products, or alcoholic beverages of one or more of   the various types and alcoholic contents on which an issue may be   submitted under the terms of Section 501.035, Election Code, until   that status is changed by a subsequent local option election in the   same authorized voting unit.          SECTION 82.  Section 251.73, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 251.73.  PREVAILING STATUS: RESOLUTION OF CONFLICTS.   To ensure [insure] that each voter has the maximum possible control   over the status of the sale of hemp beverages, consumable hemp   products, and alcoholic beverages in the area where the voter [he]   resides:                (1)  the status that resulted from or is the result of a   duly called election for an incorporated city or town prevails   against the status that resulted from or is the result of a duly   called election in a justice precinct or county in which the   incorporated city or town, or any part of it is contained; and                (2)  the status that resulted or is the result of a duly   called election for a justice precinct prevails against the status   that resulted from or is the result of a duly called election in an   incorporated city or town in which the justice precinct is wholly   contained or in a county in which the justice precinct is located.          SECTION 83.  Section 251.80(a-1), Alcoholic Beverage Code,   is amended to read as follows:          (a-1)  For purposes of a local option election, a newly   created justice precinct shall be considered to have not held a   local option election on the sale of hemp beverages, consumable   hemp products, and alcoholic beverages. Any local option status   established in the territory comprising the new justice precinct   that resulted from a local option election held in the territory   when the territory was part of another justice precinct remains in   effect until that status is changed by a local option election held   in the new justice precinct.          SECTION 84.  Subchapter D, Chapter 251, Alcoholic Beverage   Code, is amended by adding Sections 251.83, 251.84, and 251.85 to   read as follows:          Sec. 251.83.  SALE OF HEMP BEVERAGES. (a) The sale of hemp   beverages is authorized in each authorized voting unit in this   state unless that status is changed by a local option election in   the same authorized voting unit.          (b)  An authorized voting unit that has exercised the right   of local option election retains the status adopted, whether   prohibition or legalization of the sale of hemp beverages, until   that status is changed by a subsequent local option election in the   same authorized voting unit.          Sec. 251.84.  SALE OF CONSUMABLE HEMP PRODUCTS. (a) The   sale of consumable hemp products is authorized in each authorized   voting unit in this state unless that status is changed by a local   option election in the same authorized voting unit.          (b)  An authorized voting unit that has exercised the right   of local option election retains the status adopted, whether   prohibition or legalization of the sale of consumable hemp   products, until that status is changed by a subsequent local option   election in the same authorized voting unit.          Sec. 251.85.  CONTINUANCE OF OPERATION AS HEMP MANUFACTURER   OR DISTRIBUTOR. (a) Notwithstanding any other provision of this   code, a person who has been issued a hemp manufacturer's license may   not subsequently be denied an original or renewal hemp   manufacturer's license for the same location on the ground that the   sale of consumable hemp products has been prohibited in the area by   a local option election. A person holding a license at the time of   the election or issued a license as authorized by this section may   exercise all privileges granted by this code to the holder of a hemp   manufacturer's license, except selling consumable hemp products to   ultimate consumers.          (b)  Notwithstanding any other provision of this code, a   person who has been issued a hemp distributor's license, whose   warehouse or other facility used in connection with the   distributorship is located in the area affected, may not   subsequently be denied an original or renewal hemp distributor's   license for the same location on the ground that the sale of   consumable hemp products has been prohibited in the area by a local   option election. A person holding a license at the time of the   election or issued a license as authorized by this section may   exercise all privileges granted by this code to the holder of a hemp   distributor's license, except that the distributor may sell   consumable hemp products only to licensed persons located where the   sale of such products is legal.          SECTION 85.  The Alcoholic Beverage Code is amended by   adding Title 7 to read as follows:   TITLE 7. CONSUMABLE HEMP PRODUCTS   SUBTITLE A. GENERAL PROVISIONS   CHAPTER 301.  GENERAL PROVISIONS          Sec. 301.001.  DEFINITIONS. In this title:                (1)  "Batch" means a specific quantity of plant matter,   raw materials, or processed product that is uniform and intended to   meet specifications for identity, strength, purity, and   composition.                (2)  "Converted cannabinoid" means a chemical   substance purposely created by converting a phytocannabinoid into a   different compound that is intended to mimic a phytocannabinoid or   to interact with the endocannabinoid system, except for delta-9   tetrahydrocannabinol created by converting tetrahydrocannabinolic   acid through decarboxylation.                (3)  "Council" means the Texas Hemp Council.                (4)  "Hemp biomass" means the unrefined and   unadulterated plant matter including flowers, leaves, and other   parts of the plant cannabis sativa L. with a delta-9   tetrahydrocannabinol concentration of less than 0.3 percent by dry   weight.                (5)  "Hemp-derived cannabinoid" means any cannabinoid   5that naturally occurs in hemp and was present in its natural   molecular form in the particular hemp plant from which the   cannabinoid was derived. The term includes delta-9   tetrahydrocannabinol created by converting tetrahydrocannabinolic   acid through decarboxylation. The term does not include a   converted cannabinoid or synthetic cannabinoid.                (6)  "Manufacture" has the meaning assigned by Section   431.002, Health and Safety Code.                (7)  "Measure of uncertainty" means the parameter   associated with the results of an analytical measurement   characterizing the dispersion of the values that could reasonably   be attributed to the quantity subjected to a testing measurement.                (8)  "Natural hemp flower" means unadulterated dried   flower from the plant cannabis sativa L. with a delta-9   tetrahydrocannabinol concentration of less than 0.3 percent by dry   weight.                (9)  "Phytocannabinoid" means a chemical substance:                      (A)  created naturally by a plant of the species   cannabis sativa L. that:                            (i)  is separated from the plant by a   mechanical or chemical extraction process; or                            (ii)  binds to or interacts with the   cannabinoid receptors of the endocannabinoid system; or                      (B)  produced by decarboxylation from a naturally   occurring cannabinoid acid without the use of a chemical catalyst.                (10)  "Process" means to extract a component of hemp,   including cannabidiol or another cannabinoid, that is:                      (A)  sold as a consumable hemp product;                      (B)  offered for sale as a consumable hemp   product;                      (C)  incorporated into a consumable hemp product;   or                      (D)  intended to be incorporated into a consumable   hemp product.                (11)  "QR code" means a quick response machine-readable   code that can be read by a camera, consisting of an array of black   and white squares used for storing information or directing or   leading a user to additional information.                (12)  "Synthetic cannabinoid" means a man-made   chemical substance created by using chemical synthesis, chemical   modification, chemical conversion, in-vitro biosynthesis, or   bioconversion that is intended to mimic a phytocannabinoid or is   intended to or able to interact with the endocannabinoid system.                (13)  "Total tetrahydrocannabinol content" means the   value of tetrahydrocannabinol content determined after   decarboxylation including delta-8, delta-9, delta-10,   tetrahydrocannabinolic acid, and any other chemically similar   isomer. If the value of tetrahydrocannabinol content contains any   detectable amount of tetrahydrocannabinolic acid, the value is   equal to the amount of tetrahydrocannabinolic acid multiplied by   0.877 plus the amount of all other tetrahydrocannabinols.                (14)  "Work in progress" means hemp extract that is in   the intermediate phase of processing and refinement and that is not   intended for sale to a retailer or an ultimate consumer.          Sec. 301.002.  APPLICABILITY OF OTHER LAW. (a) Unless   expressly provided otherwise in this title, the following   provisions do not apply in the regulation of consumable hemp   products or to a license issued under this title:                (1)  Title 3;                (2)  Chapter 102; and                (3)  Sections 6.03 and 109.53.          (b)  Chapter 431, Health and Safety Code, applies to a   license holder and a consumable hemp product regulated under this   chapter.          Sec. 301.003.  POSSESSION, TRANSPORTATION, AND SALE OF   CONSUMABLE HEMP PRODUCTS. (a) Except as provided by Subsection   (b), a person may possess, transport, sell, or purchase a   consumable hemp product only if the product is processed or   manufactured in compliance with this title.          (b)  Nothing in this title prohibits the continuous   transportation or shipment of hemp or hemp products produced in   another state in accordance with federal law through this state.          Sec. 301.004.  LOW-THC CANNABIS. This title does not apply   to low-THC cannabis regulated under Chapter 487, Health and Safety   Code.          Sec. 301.005.  LOCAL REGULATION PROHIBITED. (a) Except as   provided by Subsection (b) or Chapters 251 and 501, Election Code, a   municipality, county, or other political subdivision of this state   may not enact, adopt, or enforce a rule, ordinance, order,   resolution, or other regulation concerning the processing of hemp,   or the manufacturing, distribution, or sale of a consumable hemp   product as authorized by this title.          (b)  Subject to Section 109.57(a), the holder of a license   issued under this title shall comply with all applicable local   rules, ordinances, orders, resolutions, or regulations, including   those regarding health, safety, zoning, sanitation, and   advertising.          Sec. 301.006.  SEVERABILITY.  (a) A provision of this title   or its application to any person or circumstance is invalid if the   provision or application conflicts with 7 U.S.C. Chapter 38,   Subchapter VII, and prevents the approval of the state plan   submitted under Chapter 121, Agriculture Code.          (b)  The invalidity of a provision or application under   Subsection (a) does not affect the other provisions or applications   of this title that can be given effect without the invalid provision   or application, and to this end the provisions of this title are   declared to be severable.          Sec. 301.007.  WAIVER OF REQUIREMENTS OR STANDARDS. (a)   Subject to Subsection (b), the commission by order may waive or   modify a requirement or standard of this code as it applies to   consumable hemp products or hemp beverages and a licensee or   permittee that manufactures, distributes, or sells consumable hemp   products or hemp beverages if the commission determines that the   waiver or modification:                (1)  is necessary or advisable for the efficient   operation of the hemp industry in Texas;                (2)  will not negatively impact the public health,   safety, or welfare of the people of this state; and                (3)  is in the best interests of this state.          (b)  A waiver or modification ordered by the administrator   under this section may not extend past the last day of the regular   session of the legislature that begins after the waiver or   modification takes effect. The waiver or modification may not be   renewed, nor may a new substantially similar waiver or modification   be ordered.          (c)  This section expires May 28, 2027.          Sec. 301.008.  SALE OR INTRODUCTION INTO COMMERCE. (a)   Natural hemp flower or hemp biomass that has a delta-9   tetrahydrocannabinol concentration of more than 0.3 percent by dry   weight, subject to the measure of uncertainty, may not be   introduced into commerce in this state.          (b)  A consumable hemp product or hemp beverage may not be   sold at retail or otherwise introduced into commerce in this state   if:                (1)  it is derived from hemp grown or harvested outside   of the United States; or                (2)  the tetrahydrocannabinol content exceeds the   applicable limit established by Section 59.10 or 320.005.   SUBTITLE B.  REGULATION   CHAPTER 310.  LICENSING   SUBCHAPTER A.  GENERAL PROVISIONS          Sec. 310.001.  LICENSE REQUIRED. (a) A person may not   manufacture or process consumable hemp products, import, ship, or   transport consumable hemp products, distribute or sell consumable   hemp products, or possess consumable hemp products for the purpose   of sale without having first obtained an appropriate license as   provided by this title.          (b)  Each license holder shall display the license at all   times in a conspicuous place at the licensed place of business.          (c)  A separate license is required, and a separate licensing   fee must be paid, for each location at which a person is engaged in   the consumable hemp product business under this title. An   applicant may obtain a license only for a building or similar   permanent structure that is adequate for the privileges conferred   under the license.          (d)  A person may not use a license or exercise any privilege   granted by the license except at the place, address, premises, or   location for which the license is issued.          (e)  A license holder must have and maintain exclusive   occupancy and control of the entire licensed premises in every   phase of the manufacturing, processing, storing, possession, and   sale of consumable hemp products purchased, stored, or sold on the   licensed premises.  A device, scheme, or plan that surrenders   control of the employees, premises, or business of the license   holder to a person other than the license holder is unlawful.          (f)  A license issued under this title is a purely personal   privilege and is subject to revocation or suspension as provided by   this title. A license issued under this title is not property, is   not subject to execution, does not pass by descent or distribution,   and expires on the death of the license holder.          Sec. 310.002.  APPLICATION FOR LICENSE. (a) A person may   file an application for a license to test, manufacture, distribute,   sell, or carry consumable hemp products as prescribed by the   commission.          (b)  The commission may issue an original or renewal license   or deny an application for an original or renewal license under the   provisions of this subchapter.          (c)  On receipt of an application for a license under this   title, the administrator shall evaluate the application. If after   evaluating the license application the administrator finds that all   facts stated in the application are true and no legal ground to deny   the application exists, the administrator shall issue the license.          (d)  If after the evaluation of a license application the   administrator finds a legal ground to deny the application, the   administrator shall recommend to the commission that the   application be denied. If the administrator recommends denial of   the application, the applicant may request a hearing be conducted   under Subsection (e).          (e)  A hearing under this section shall be conducted by the   State Office of Administrative Hearings. Chapter 2001, Government   Code, applies to a hearing under this section. After a hearing   under this section, the administrative law judge shall make   findings of fact and conclusions of law and promptly issue to the   commission a proposal for a decision on the application. Based on   the findings of fact, conclusions of law, and proposal for a   decision, the commission shall issue a final decision denying the   application or issuing the license.          (f)  If the commission denies a permit application, the   applicant may, after exhausting all administrative remedies,   appeal the commission's decision to a district court in Travis   County.          (g)  The commission shall adopt rules to implement the   application review process.          (h)  A person may not test, manufacture, process,   distribute, import, store, carry, or sell consumable hemp products   during the pendency of the person's original license application.          Sec. 310.003.  CONTENTS OF APPLICATION: MANUFACTURERS. In   addition to any requirements imposed by this subchapter or the   commission, an application for a hemp manufacturer's license or an   out-of-state manufacturer's license must include:                (1)  a legal description of each location where the   applicant intends to process hemp or manufacture consumable hemp   products;                (2)  a statement that the applicant understands and   consents to inspections under Section 101.04;                (3)  a statement affirming the person's status as a   United States citizen or legal resident of the United States; and                (4)  its written policies and procedures for monitoring   and tracking all quality assurance concerns and complaints from   consumers and retail license holders, including:                      (A)  a policy requiring notification to the   commission within 24 hours of the applicant initiating a recall;                      (B)  procedures for rapid notification to the   applicant's supply and distribution chain to recall any consumable   hemp product or hemp beverage when directed by the commission or as   deemed necessary by the applicant;                      (C)  procedures for instructing the general   public and retail license holders how to return or destroy a   consumable hemp product or hemp beverage manufactured by the   applicant and subject to a recall.          Sec. 310.004.  CONTENTS OF APPLICATION: DISTRIBUTORS. In   addition to any requirements imposed by this subchapter or the   commission, an application for a hemp distributor's license must   include:                (1)  a legal description of each location where the   applicant intends to possess, hold, or dispatch consumable hemp   products; and                (2)  a statement that the applicant understands and   consents to inspections under Section 101.04; and                (3)  a statement affirming the person's status as a   United States citizen or legal resident of the United States.          Sec. 310.005.  CONTENTS OF APPLICATION: RETAILERS. In   addition to any requirements imposed by this subchapter or the   commission, an application for a hemp retailer's license must   include:                (1)  a legal description of the proposed retail   premises;                (2)  a statement that the applicant understands and   consents to inspections under Section 101.04; and                (3)  a statement affirming the person's status as a   United States citizen or legal resident of the United States.          Sec. 310.006.  APPEAL FROM DENIAL. (a) If a license is   issued on the basis of a district court judgment and that judgment   is reversed on appeal, the mandate of the appellate court   automatically invalidates the license.          (b)  A person appealing from an order denying a license shall   give bond for all costs incident to the appeal and shall be required   to pay those costs only if the judgment on appeal is unfavorable to   the appellant. A bond is not required on appeals filed on behalf of   the state.          Sec. 310.007.  CERTIFICATION OF WET OR DRY STATUS FOR   CONSUMABLE HEMP PRODUCTS. (a) This section does not apply to a   prospective applicant for a hemp testing laboratory license.          (b)  Not later than the 30th day after the date a prospective   applicant for a license issued by the commission under this title   requests certification, the county clerk of the county in which the   request is made shall certify whether the location or address given   in the request is in a wet area for consumable hemp products.          (c)  Not later than the 30th day after the date a prospective   applicant for a license issued by the commission under this title   requests certification, the city secretary or clerk of the city in   which the request is made shall certify whether the location or   address given in the request is in a wet area for consumable hemp   products.          (d)  If a license is issued for a premises that is not in a   wet area, based on a mistaken certification or otherwise, that   license is not eligible for renewal at that location unless a   subsequent local option election legalizes the sale of consumable   hemp products in the territory where the premises is located.          (e)  Notwithstanding any other provision of this code, if the   county clerk, city secretary, or city clerk certifies that the   location or address given in the request is not in a wet area or   refuses to issue the certification required by this section, the   prospective applicant is entitled to a hearing before the county   judge to contest the certification or refusal to certify. The   prospective applicant must submit a written request to the county   judge for a hearing under this subsection. The county judge shall   conduct a hearing required by this subsection not later than the   30th day after the date the county judge receives the written   request.          Sec. 310.008.  RENEWAL APPLICATION. (a) An application to   renew a license issued under this title must be filed with the   commission not earlier than the 30th day before the date the license   expires but not after it expires. The application must be signed by   the applicant and must contain complete information required by   rule showing that the applicant is not disqualified from holding a   license. The application must be accompanied by the appropriate   license fee.          (b)  When the renewal application has been filed in   accordance with Subsection (a), the commission shall follow the   procedures for reviewing a license application under Section   310.002.          Sec. 310.009.  EXPIRATION OF LICENSE. (a) Except as   provided by Subsections (b) and (c) or another provision of this   title, any license issued under this title expires on the second   anniversary of the date on which it is issued.          (b)  The commission by rule may require that the expiration   date for an individual license holder's license is the first   anniversary of the date on which the license is issued due to the   license holder's violation history.          (c)  The commission may issue a license with an expiration   date of less than two years after the date the license is issued to   maintain a reasonable annual distribution of renewal application   review work and license fees. If the commission issues a license   with an expiration date of less than two years after the date the   license is issued, the commission shall prorate the license fee on a   monthly basis so the license holder pays only that portion of the   license fee that is allocable to the number of months during which   the license is valid.          Sec. 310.010.  LICENSE NOT ASSIGNABLE. (a) A license holder   may not assign a license to another person.          (b)  A license holder may not consent to or allow the use or   display of the license holder's license by a person other than the   person to whom the license was issued.          Sec. 310.011.  NAME OF BUSINESS. A person may not own,   wholly or partly, a business engaged in the processing,   manufacture, transportation, distribution, importation, or sale of   consumable hemp products under a name other than the name to which   the license covering the person's place of business is issued.          Sec. 310.012.  PRIVILEGES LIMITED TO LICENSED PREMISES.   Except as otherwise provided by this title, a person licensed to   sell consumable hemp products at retail may not use or display a   license or exercise a privilege granted by the license except at the   licensed premises.          Sec. 310.013.  AGENT FOR SERVICE. Each licensed hemp   manufacturer, out-of-state hemp manufacturer, and hemp   distributor, or person shipping consumable hemp products into this   state, shall file a certificate with the secretary of state   designating the name, street address, and business of the person's   agent on whom process may be served. Filing a certificate shall   constitute consent to jurisdiction in the courts of this state. If   a licensee fails to file a certificate, service may be had on the   secretary of state in any cause of action arising out of a violation   of this code, and the secretary of state shall send any citation   served on the secretary by registered mail, return receipt   requested, to the person for whom the citation is intended. The   receipt by the secretary of state is prima facie evidence of service   on the person.          Sec. 310.014.  STATEMENT OF STOCK OWNERSHIP. The commission   at any time may require an officer of a corporation holding a   license under this title to file a sworn statement showing the   actual owners of the stock of the corporation, the amount of stock   owned by each owner, the officers of the corporation, and any   information concerning the qualifications of the officers or   stockholders.          Sec. 310.015.  CHANGE OF LOCATION. If a license holder   desires to change the license holder's place of business, the   license holder shall file an application to change location with   the commission. An additional license fee for the unexpired term of   the license may not be required for an application to change   location.          Sec. 310.016.  RESTRICTION ON CONSUMPTION. A license holder   may not permit consumable hemp products to be consumed on the   licensed premises. This section does not apply to the holder of an   on-premise hemp retailer's license.          Sec. 310.017.  CONDUCT SURETY BOND. (a) Except as provided   by Subsections (b) and (e), an applicant for or a holder of a   license issued under this title shall file with the commission a   surety bond in the amount of $10,000, conditioned on the   applicant's or license holder's compliance with laws relating to   consumable hemp products and narcotics. This bond requirement is   in addition to any other applicable bond requirement imposed by   this code.          (b)  A surety bond required under this section must contain   the following statements on the face of the bond:                (1)  that the license holder will not violate a law of   this state relating to consumable hemp products, narcotics, or   alcoholic beverages or a rule adopted by the commission; and                (2)  that the license holder agrees that the amount of   the bond shall be paid to the state if the license is revoked or on   final adjudication that the license holder violated a provision of   this code, regardless of whether the actions of an employee of the   license holder are attributable to the license holder under Section   106.141.          (c)  The commission shall adopt rules relating to the:                (1)  form of a surety bond;                (2)  qualifications for a surety;                (3)  method for filing and obtaining approval of the   bond by the commission; and                (4)  release or discharge of the bond.          (d)  A license holder required to file a surety bond may   furnish instead of all or part of the required bond amount:                (1)  one or more certificates of deposit assigned to   the state issued by a federally insured bank or savings institution   authorized to do business in this state; or                (2)  one or more letters of credit issued by a federally   insured bank or savings institution authorized to do business in   this state.          (e)  A license holder who has held a license for three years   or more before the date the license holder applied for renewal of   the license is not required to furnish a surety bond if the license   holder:                (1)  has not had a license or permit issued under this   code revoked in the five years immediately preceding the date the   license holder applied for renewal of the license;                (2)  is not the subject of a pending permit or license   revocation proceeding; and                (3)  has continuously operated on the licensed premises   for three years or more immediately preceding the date the license   holder applied for renewal of the license.          (f)  If a license holder is exempt from furnishing a conduct   surety bond under Subsection (f), the license holder is exempt from   furnishing the bond at another location where the license holder   applies for or holds a license.          Sec. 310.018.  LICENSING FEES. (a) A separate license fee   is required for each place of business that manufactures,   processes, imports, transports, distributes, or sells consumable   hemp products.          (b)  The fee for the issuance of an original or renewal   license issued under this title is:                (1)  $25,000 for a hemp manufacturer's license;                (2)  $20,000 for an out-of-state hemp manufacturer's   license;                (3)  $10,000 for a hemp distributor's license;                (4)  $20,000 for an off-premise hemp retailer's   license;                (5)  $30,000 for an on-premise hemp retailer's license;   and                (6)  $10,000 for a hemp carrier's license.          (c)  All license fees shall be deposited as provided in a   fund dedicated for the administration of hemp laws. Each license   application must be accompanied by a cashier's check, a teller's   check, a check drawn on the account of a corporation applying for a   license or on the account of a corporation that is an agent for the   person applying for a license, a money order, or payment by credit   card, charge card, or other electronic form of payment approved by   commission rule for the amount of the fee, payable to the order of   the comptroller of public accounts.          (d)  A license holder may not obtain a refund on the   surrender or nonuse of a license except as provided by this title.          (e)  The executive commissioner may not refund a license fee   except when an application for a license is denied under Section   310.021. The commission may appropriate as much of the proceeds   from the license fees as necessary for the payment of a refund under   this subsection.          Sec. 310.019.  MANDATORY GROUNDS FOR DENIAL. (a) In this   section, "applicant" includes, as of the date of the application,   each member of a partnership or association and, with respect to a   corporation, each officer and the owner or owners of a majority of   the corporate stock.          (b)  The commission shall deny an application for a license   under this title if:                (1)  the applicant fails to include the required   contents; or                (2)  the commission has reasonable grounds to believe   and finds that:                      (A)  the applicant is a minor;                      (B)  the applicant is indebted to the state for   any taxes, fees, or penalties imposed by this code or a rule adopted   by the commission;                      (C)  the place or manner in which the applicant   may conduct the applicant's business warrants a denial of the   application for a license based on the general welfare, health,   peace, morals, safety, and sense of decency of the people;                      (D)  the applicant has developed an incapacity   that prevents or could prevent the applicant from conducting the   applicant's business with reasonable skill, competence, and safety   to the public;                      (E)  the applicant is not a United States citizen   or legal resident of the United States;                      (F)  the applicant was convicted of a felony   during the five years immediately preceding the filing of the   applicant's application;                      (G)  the applicant is not of good moral character   or the applicant's reputation for being a peaceable, law-abiding   citizen in the community where the applicant resides is bad;                      (H)  as to a corporation, it is not incorporated   under the laws of this state, or at least 51 percent of the   corporate stock is not owned at all times by persons who   individually are qualified to obtain a license;                      (H)  the applicant was convicted of a felony under   Chapter 481, Health and Safety Code, during the ten years   immediately preceding the filing of the applicant's application; or                      (I)  granting the license would result in   subterfuge ownership of the license or the licensed premises in   violation of Section 310.036.          (c)  The commission shall deny an application for an original   hemp manufacturer's license or hemp retailer's license unless the   applicant for the license files with the application a certificate   issued by the comptroller of public accounts stating that the   applicant holds, or has applied for and satisfies all legal   requirements for the issuance of, a sales tax permit for the place   of business for which the license is sought.          (d)  The commission shall deny for a period of one year an   application for a hemp retailer's license for a premises where a   license or permit issued under this code has been canceled during   the immediately preceding 12 months as a result of:                (1)  a shooting, stabbing, or other violent act; or                (2)  an offense involving drugs, prostitution, or   trafficking of persons.          (e)  The commission shall deny an application for a license   of a person convicted of an offense under Section 101.76 for a   period of five years from the date of the conviction.          (f)  The commission shall deny an application for an original   or renewal license if the commission has reasonable grounds to   believe and finds that, during the three years immediately   preceding the date the license application was filed, a license or   permit previously held under this code by the applicant, a person   who owns the premises for which the license is sought, or an officer   of a person who owns the premises for which the license is sought   was canceled or not renewed as a result of a shooting, stabbing, or   other violent act, or an offense involving drugs, prostitution, or   trafficking of persons.          Sec. 310.020.  MANDATORY GROUNDS FOR DENIAL: HEMP   MANUFACTURERS. The commission shall deny an application for a hemp   manufacturer's license or an out-of-state hemp manufacturer's   license if the commission has reasonable grounds to believe, and   finds that the applicant has failed to state under oath, that it   will engage in the business of manufacturing consumable hemp   products within one year after the issuance of its original license   in sufficient quantities as to make its operation that of a bona   fide manufacturer. The license holder is ineligible to renew, and   the commission may cancel, its license if it ceases to be a bona   fide manufacturer.          Sec. 310.021.  DISCRETIONARY GROUNDS FOR DENIAL. (a) In   this section, "applicant" includes, as of the date of the   application, each member of a partnership or association and, with   respect to a corporation, each officer and the owner or owners of a   majority of the corporate stock.          (b)  The commission may deny an application for a license if   the commission has reasonable grounds to believe and finds that:                (1)  the applicant has been convicted in a court of   competent jurisdiction for the violation of a provision of this   code during the two years immediately preceding the filing of an   application;                (2)  the applicant has been convicted of a felony and   the termination of which, by pardon or otherwise, occurred during   the five-year period immediately preceding the filing of an   application;                (3)  the applicant has violated or caused to be   violated a provision of this code or a rule adopted under this code   during the 12-month period immediately preceding the filing of an   application;                (4)  the applicant failed to answer or falsely or   incorrectly answered a question in an original or renewal   application;                (5)  before conducting any activity authorized by a   license issued under this code, the applicant does not have an   adequate building available at the address for which the license is   sought;                (6)  the applicant or a person with whom the applicant   is residentially domiciled had an interest in a license or permit   issued under this code that was canceled or revoked within the   12-month period immediately preceding the filing of an application;                (7)  the applicant will conduct business in a manner   contrary to law or in a place or manner conducive to a violation of   the law; or                (8)  the place, building, or premises for which the   license is sought was used for selling consumable hemp products,   narcotic drugs, as defined by Section 481.002, Health and Safety   Code, or alcoholic beverages in violation of the law at any time   during the six months immediately preceding the filing of the   application or was used, operated, or frequented during that time   for a purpose or in a manner which was lewd, immoral, offensive to   public decency, or in violation of this code.          Sec. 310.022.  GROUNDS FOR CANCELLATION OR SUSPENSION. (a)   The commission or administrator may suspend for not more than 60   days or cancel a license issued under this title if it is found,   after notice and hearing, that the license holder:                (1)  violated a provision of this code or a rule adopted   under this title during the existence of the license sought to be   canceled or suspended or during the immediately preceding license   period;                (2)  was finally for violating a penal provision of   this code;                (3)  was finally of a felony while holding a license;                (4)  made a false statement or a misrepresentation in   the license holder's application;                (5)  sold, served, or delivered with criminal   negligence a consumable hemp product or hemp beverage to a minor;                (6)  sold, served, or delivered a consumable hemp   product or hemp beverage to an intoxicated person;                (7)  sold, served, or delivered a consumable hemp   product or hemp beverage at a time when its sale was prohibited;                (8)  possessed on the licensed premises, or on adjacent   premises directly or indirectly under the license holder's control,   a consumable hemp product not authorized to be sold on the licensed   premises, or permitted an agent, servant, or employee to do so;                (9)  employed a person under 21 years of age to sell,   handle, or dispense consumable hemp products, or to assist in doing   so, except as authorized under Sections 310.301 and 310.302;                (10)  conspired with a person to violate Chapter 322;                (11)  refused to allow or interfered with an inspection   or investigation of the licensed premises, vehicles, or records by   an authorized representative of the commission or a peace officer;                (12)  permitted the use or display of the license   holder's license in the conduct of a business for the benefit of a   person not authorized by law to have an interest in the license;                (13)  conducted the license holder's business in a   place or manner which warrants the cancellation or suspension of   the license based on the general welfare, health, peace, morals,   safety, and sense of decency of the people;                (14)  consumed a consumable hemp product or permitted   one to be consumed on the licensed premises, except as authorized by   this code;                (15)  purchased consumable hemp products for the   purpose of resale from a person who is not authorized to sell the   consumable hemp products for resale under this title;                (16)  acquired a consumable hemp product for the   purpose of resale from a hemp retailer;                (17)  manufactured, processed, purchased, imported,   exported, sold, offered for sale, distributed, or delivered a   consumable hemp product while the license holder's license was   under suspension;                (18)  purchased, possessed, stored, imported,   distributed, sold, or offered for sale consumable hemp products in   or from an original package bearing a brand or trade name of a   manufacturer other than the brand or trade name shown on the   container;                (19)  is insolvent or has developed an incapacity that   prevents or could prevent the license holder from managing the   license holder's establishment with reasonable skill, competence,   and safety to the public;                (20)  imported consumable hemp products into this state   in violation of this title;                (21)  knowingly permitted a person who had an interest   in a license that was canceled for cause to sell, handle, or assist   in selling or handling consumable hemp products on the licensed   premises within one year after the cancellation;                (22)  is residentially domiciled with or related to a   person whose license has been canceled within the preceding 12   months so that there is a community of interests that the commission   or administrator finds contrary to the purposes of this title;                (23)  failed to promptly report to the commission a   breach of the peace occurring on the license holder's licensed   premises;                (24)  often uses narcotic drugs, as that term is   defined by Section 481.002, Health and Safety Code, or uses   consumable hemp products or alcoholic beverages in excess;                (25)  knowingly misrepresented to a customer or the   public any consumable hemp product sold by the license holder;                (26)  was intoxicated on the premises;                (27)  failed to comply with a requirement of the   commission relating to the keeping of records or making of reports;                (28)  failed to pay any tax due to the state on any   consumable hemp products;                (29)  no longer holds a sales tax permit, if required,   for the place of business covered by the license;                (30)  is shown on the records of the comptroller of   public accounts as being subject to a final determination of taxes   due and payable under the Limited Sales, Excise and Use Tax Act   (Chapter 151, Tax Code), or is shown on the records of the   comptroller of public accounts as being subject to a final   determination of taxes due and payable under Chapter 321, Tax Code;   or                (31)  gave a check, as maker or endorser, or a draft, as   drawer or endorser, as full or partial payment for consumable hemp   products that was not honored when presented for payment.          (b)  The grounds listed by Subsection (a) apply to each   member of a partnership or association and, as to a corporation, to   the president, manager, and owner of the majority of the corporate   stock.          (c)  The commission or administrator without a hearing may   for investigative purposes summarily suspend an off-premise hemp   retailer's license or on-premise hemp retailer's license for not   more than seven days if the commission or administrator finds that a   shooting, stabbing, or murder has occurred on the licensed premises   that is likely to result in a subsequent act of violence. Notice of   the order suspending the license shall be given to the license   holder personally within 24 hours of the time the violent act   occurs. If the license holder cannot be located, notice shall be   provided by posting a copy of the order on the front door of the   licensed premises.          (d)  The length of a suspension must be appropriate for the   nature and seriousness of the violation. In determining the length   of a suspension, the commission or administrator shall consider:                (1)  the type of license held;                (2)  the type of violation;                (3)  any aggravating or ameliorating circumstances   concerning the violation; and                (4)  the license holder's previous violations.          Sec. 310.023.  EMERGENCY ORDER SUSPENDING LICENSE. (a) If   the commission or administrator determines that the continued   operation of a business licensed under this title would constitute   a continuing threat to the public welfare, the commission or   administrator may issue an emergency order, without a hearing,   suspending the license for not more than 90 days.          (b)  An order suspending a license under this section must   state the length of the suspension in the order.          (c)  If an emergency order is issued without a hearing under   this section, the commission or administrator shall set the time   and place for a hearing to be conducted not later than the 10th day   after the date the order was issued. A hearing under this section   to affirm, modify, or set aside the emergency order shall be   conducted by the State Office of Administrative Hearings. The   order shall be affirmed if the administrative law judge determines   that reasonable cause existed to issue the order.          (d)  The commission by rule may prescribe procedures for the   determination and appeal of an emergency order issued under this   section, including a rule allowing the commission to affirm,   modify, or set aside a decision made by the State Office of   Administrative Hearings under Subsection (c).          (e)  A proceeding under this section is a contested case   under Chapter 2001, Government Code.          Sec. 310.024.  CANCELLATION FOR IMPROPER DISPLAY OR USE OF   LICENSE. The commission or administrator shall cancel a license   issued under this title if it is found, after notice and hearing,   that the license holder was convicted of an offense under Section   101.76.          Sec. 310.025.  CANCELLATION OF PERMIT OR LICENSE IN CERTAIN   MUNICIPALITIES. (a) The commission or administrator may cancel a   license issued under this title and the commission may deny an   application for any new license for the same premises for one year   after the date of cancellation if:                (1)  the chief of police of the city or the sheriff of   the county in which the premises is located submits a sworn   statement to the commission stating:                      (A)  specific allegations that the place or manner   in which the license holder conducts its business endangers the   general welfare, health, peace, morals, or safety of the community;   and                      (B)  that there is a reasonable likelihood that   such conduct would continue at the same location under another   license holder; and                (2)  the commission finds, after notice and hearing,   that:                      (A)  the place or manner in which the license   holder conducts its business does in fact endanger the general   welfare, health, peace, morals, or safety of the community; and                      (B)  there is a reasonable likelihood that such   conduct would continue at the same location under another license   holder.          (b)  A hearing under this section shall be conducted by the   State Office of Administrative Hearings.          Sec. 310.026.  SUSPENSION INSTEAD OF CANCELLATION. When a   cause for the cancellation of a license is prescribed by this title,   the commission or administrator has the discretionary authority to   suspend the license for not more than 60 days rather than to cancel   the license.          Sec. 310.027.  ALTERNATIVES TO SUSPENSION OR CANCELLATION.   (a) When the commission or administrator is authorized to suspend a   license under this title, the commission or administrator, in its   discretion, may give the license holder the opportunity to pay a   civil penalty rather than have the license suspended.          (b)  In determining whether to give a license holder the   opportunity to pay a civil penalty under this section, the   commission or administrator shall consider:                (1)  the type of license held;                (2)  the type of violation;                (3)  any aggravating or ameliorating circumstances   concerning the violation; and                (4)  any past violations of this code by the license   holder.          (c)  The commission or administrator shall determine the   amount of the penalty, which may not be less than $150 or more than   $25,000 for each day the license was to have been suspended.          (d)  If the license holder does not pay the penalty before   the sixth day after the commission or administrator notifies the   license holder of the amount, the commission or administrator shall   impose the suspension.          (e)  In the case of a violation of this code by a license   holder, the commission or administrator may relax any provision of   this title relating to the suspension or cancellation of the   license and assess a sanction the commission or administrator finds   just under the circumstances, and the commission or administrator   may reinstate the license or permit at any time during the period of   suspension on payment by the license holder of a fee of not less   than $75 nor more than $500, if the commission or administrator   finds that any of the following circumstances exists:                (1)  that the violation could not reasonably have been   prevented by the license holder by the exercise of due diligence;                (2)  that the license holder was entrapped;                (3)  that an agent, servant, or employee of the license   holder violated this code without the knowledge of the license   holder;                (4)  that the license holder did not knowingly violate   this code;                (5)  that the license holder has demonstrated good   faith, including the taking of actions to rectify the consequences   of the violation and to deter future violations; or                (6)  that the violation was a technical one.          (f)  The amount of a civil penalty under this section must be   appropriate for the nature and seriousness of the violation. In   determining the amount of the civil penalty, the commission or   administrator shall consider:                (1)  the type of license held;                (2)  the type of violation;                (3)  any aggravating or ameliorating circumstances   concerning the violation, including those enumerated in Subsection   (b);                (4)  the license holder's previous violations; and                (5)  if the commission or administrator determines the   license holder has previously violated this code, whether the   license holder profited from the violation, and if so the amount of   the license holder's profit.          (g)  Any fees and civil penalties received by the commission   or administrator under this section shall be deposited in the fund   established under Section 202.016.          Sec. 310.028.  CERTAIN ACTS ALSO VIOLATIONS OF CODE. Any act   or omission which is a ground for cancellation or suspension of a   license under this title is also a violation of this code,   punishable as provided by Section 1.05, except that the penalty for   making a false statement in an application for a license or in a   statement, report, or other instrument to be filed with the   commission is provided by Section 101.69 of this code.          Sec. 310.029.  VIOLATOR NOT EXCUSED BY CANCELLATION OR   SUSPENSION. The cancellation or suspension of a license does not   excuse the violator from the penalties provided in this code.          Sec. 310.030.  HEARING FOR CANCELLATION OR SUSPENSION OF   LICENSE. The commission or administrator, on the motion of either,   may set a date for a hearing to determine if a license should be   canceled or suspended. The commission or administrator shall   notify the license holder of the hearing and of its right to appear   and show cause why the license should not be canceled or suspended.          Sec. 310.031.  APPEAL FROM CANCELLATION OR SUSPENSION OF   LICENSE. Sections 11.67(a) and (b) apply to an appeal from a   decision or order of the commission or administrator canceling or   suspending a license.          Sec. 310.032.  MAY NOT RESTRAIN SUSPENSION ORDER. A suit of   any nature may not be maintained in a court of this state to   restrain the commission or administrator or any other officer from   enforcing an order of suspension issued by the commission or   administrator.          Sec. 310.033.  CANCELLATION OR SUSPENSION: WHEN EFFECTIVE.   The manner in which the cancellation or suspension of a license   takes effect is governed by Section 11.65.          Sec. 310.034.  ACTIVITIES PROHIBITED DURING CANCELLATION OR   SUSPENSION. (a) A person whose license is canceled may not test,   manufacture, process, distribute, import, store, sell, or offer for   sale consumable hemp products for a period of one year immediately   following the cancellation, unless the order of cancellation is   superseded pending trial or unless the person prevails in a final   judgment rendered on an appeal prosecuted in accordance with this   code.          (b)  A person may not test, manufacture, process,   distribute, import, store, sell, or offer for sale a consumable   hemp product which the person was authorized to sell under a license   after the license has been suspended. If it is established to the   satisfaction of the commission or administrator at a hearing that a   consumable hemp product was tested, manufactured, processed,   distributed, imported, stored, sold, or offered for sale during a   period of suspension, the commission or administrator may cancel   the license.          Sec. 310.035.  MULTIPLE LICENSES. (a) Subject to   Subsections (b), (c), (d), and (e), a person may hold more than one   license type under this chapter.          (b)  A person who holds a hemp manufacturer's license may not   hold:                (1)  a hemp distributor's license; or                (2)  a hemp carrier's license.          (c)  A person who holds a distributors license may not hold:                (1)  an on-premise hemp retailer's license;                (2)  an off-premise hemp retailer's license; or                (3)  a hemp manufacturer's license.          (d)  A person who holds an on-premise hemp retailer's license   may not hold an off-premise hemp retailer's license.          (e)  A person may not hold more than a total of five hemp   retailer's licenses.          Sec. 310.036.  SUBTERFUGE OWNERSHIP. (a) Subterfuge   ownership of a license or the licensed premises is prohibited.          (b)  The commission or administrator may permanently suspend   a license issued under this title if it is found, after notice and   hearing, that the license holder violated Subsection (a).          (c)  In this section, "subterfuge" means any act, device,   scheme, or arrangement intended to evade or conceal the true   ownership or control of a license or licensed premises.   SUBCHAPTER B. MANUFACTURING          Sec. 310.101.  HEMP MANUFACTURER'S LICENSE. (a) The holder   of a hemp manufacturer's license may:                (1)  receive and process at the licensed premises   natural hemp flower or hemp biomass from a hemp grower licensed   under Section 122.101, Agriculture Code, or a hemp grower licensed   under another state's laws;                (2)  manufacture consumable hemp products in this state   at the licensed premises;                (3)  solicit and take orders from a holder of a hemp   manufacturer's license or out-of-state hemp manufacturer's license   for the sale of works in progress;                (4)  label and package the license holder's finished   consumable hemp products; and                (5)  sell the finished consumable hemp products in this   state to holders of hemp distributor's licenses, hemp retailers,   and qualified persons outside the state.          (b)  The holder of a hemp manufacturer's license may ship   consumable hemp products using a licensed hemp carrier or the   United States Postal Service, or personally transport consumable   hemp products, if the shipping or transportation is for a lawful   purpose, from the manufacturer's licensed premises or authorized   place of storage to:                (1)  the licensed premises of a licensed purchaser; and                (2)  an ultimate consumer, as provided by Subsection   (a)(7); and                (3)  lawful destinations outside this state for   delivery to qualified purchasers or recipients.          (c)  Delivery to an ultimate consumer under Subsection   (a)(7) may also be by the holder of a hemp consumer delivery   license.          (d)  The holder of a hemp manufacturer's license personally   transporting consumable hemp products under this section shall   provide to the commission:                (1)  a full description of each motor vehicle used by   the license holder for transporting consumable hemp products; and                (2)  any other information the commission requires.          (e)  The holder of a hemp manufacturer's license may   personally transport consumable hemp products only in a vehicle   that is:                (1)  described by Subsection (d);                (2)  owned or leased in good faith by the license holder   or by the license holder's agent; and                (3)  printed or painted with the manufacturer's   discrete mark or brand and the manufacturer's license number as   required for the holder of a hemp distributor's license under   Section 310.204.          (f)  The holder of a hemp manufacturer's license may store   consumable hemp products:                (1)  on the license holder's premises; or                (2)  inside the county in which the license holder's   business is located in a:                      (A)  public bonded warehouse registered with the   commission; or                      (B)  private warehouse that is:                            (i)  operated and either owned or leased by   the license holder; and                            (ii)  registered with the commission.          (g)  The privileges granted to a holder of a hemp   manufacturer's license are confined strictly to consumable hemp   products manufactured under the manufacturer's license.          (h)  A holder of a hemp manufacturer's license may not   knowingly use or employ any person under 21 years of age to work on   the license holder's premises in any capacity.          (i)  The authority of a holder of a hemp manufacturer's   license to sell finished consumable hemp products to ultimate   consumers at the manufacturer's licensed premises under Subsection   (a)(6) is automatically revoked if the property on which the   manufacturer's premises is located is in a territory that votes to   prohibit the sale of consumable hemp products under Section 251.84.          (j)  The transportation or shipment of consumable hemp   products across state lines into foreign jurisdictions must be done   in a manner that is consistent with federal law and the laws of   those foreign jurisdictions.          (k)  The transportation of natural hemp flower or hemp   biomass from a licensed hemp grower to a licensed hemp manufacturer   under Subsection (a)(1) must comply with Chapter 122, Agriculture   Code, and any applicable rules adopted by the Department of   Agriculture.          (l)  A holder of a hemp manufacturer's license shall label   each batch to include:                (1)  the manufacturer's license number; and                (2)  a sequence to allow for inventory, traceability,   and identification of the plant or extract batches used in the   production of products.          Sec. 310.102.  OUT-OF-STATE HEMP MANUFACTURER'S LICENSE.   (a) The holder of an out-of-state hemp manufacturer's license may:                (1)  solicit and take orders for finished consumable   hemp products from holders of a hemp distributor's license, hemp   retailers, and ultimate consumers;                (2)  solicit and take orders for works in progress from   a holder of a hemp manufacturer's license or another out-of-state   hemp manufacturer; and                (3)  sell and ship consumable hemp products into this   state, or cause them to be shipped into this state, in consummation   of sales made to a holder of a hemp manufacturer's license, the   holder of a hemp distributor's license, and the holder of a hemp   retailer's license; and                (4)  sell and ship finished consumable hemp products to   ultimate consumers in this state, but not for resale purposes.          (b)  The holder of an out-of-state hemp manufacturer's   license may ship consumable hemp products using a licensed hemp   carrier or the United States Postal Service if the shipping is for a   lawful purpose, from the out-of-state manufacturer's licensed   premises to:                (1)  the licensed premises of a licensed purchaser   described by paragraph (a)(3); and                (2)  ultimate consumers, as provided by Subsection   (a)(4).          (c)  The privileges granted to a holder of an out-of-state   hemp manufacturer's license are confined strictly to consumable   hemp products actually manufactured by the license holder.          (d)  A holder of an out-of-state hemp manufacturer's license   shall label each batch to include:                (1)  the manufacturer's license number; and                (2)  a sequence to allow for inventory, traceability,   and identification of the plant or extract batches used in the   production of products.          Sec. 310.103.  WORK IN PROGRESS. (a) A manufacturer   licensed under this subchapter may derive a work in progress only   from natural hemp flower or hemp biomass based on sampling that was   collected not more than 30 days before the day on which the cannabis   plant was harvested.          (b)  A work in progress must be securely kept on the premises   of a manufacturer licensed under this subchapter and may only be   transferred to another licensed manufacturer for use as an   ingredient for the processing of a consumable hemp product.          (c)  A manufacturer licensed under this subchapter   transporting a work in progress must provide with the work in   progress the sending manufacturer's license number and the license   number of the receiving manufacturer. Manufacturers must keep a   log of any such shipments with the date, time, volume, and batch of   the work in progress. The log entry must be signed by the   individuals who authorized the shipment and accompanied the   shipment.          Sec. 310.104.  SELF-AUDITS. (a) At least once every   calendar quarter, a person licensed under this subchapter shall   conduct a self-audit of inventory creation, tracking, and sales and   maintain the resulting data in the form and for the duration   required by the commission.          (b)  The license holder shall provide the data to the   commission on request.          (c)  This data qualifies as a private record under Section   5.48.          Sec. 310.105.  GOOD MANUFACTURING PRACTICES. A holder of a   license issued under this subchapter shall follow current good   manufacturing practices, as defined by commission rule.          Sec. 310.106.  PURCHASE, SALE, AND TRANSPORTATION OF NATURAL   HEMP FLOWER. For the purposes of this subchapter, a holder of a   hemp manufacturer's license or an out-of-state hemp manufacturer's   license may purchase, sell, and transport natural hemp flower   between the manufacturer and the holder of a hemp distributor's   license, and another licensed hemp manufacturer in the same manner   in which the manufacturer may purchase, sell, and transport   consumable hemp products to such license holders under this   subchapter.          Sec. 310.107.  ELECTRONIC VERIFICATION OF CONSUMER'S   IDENTIFICATION. (a) A holder of a hemp manufacturer's license or   out-of-state hemp manufacturer's license that sells or delivers   consumable hemp products to an ultimate consumer shall, before   initiating the sale and delivering the product, verify that the   purchaser is 21 years of age or older by:                (1)  personally inspecting the provided proof of   identification and scanning the provided proof of identification   with a device capable of deciphering electronically readable   information on a driver's license, commercial driver's license, or   identification certificate using identification authentication   software approved by the Department of Public Safety; or                (2)  using any other identification security features   the commission determines appropriate.          (b)  A proof of identification provided by a purchaser or   recipient under Subsection (a) must contain a physical description   and photograph consistent with the person's appearance, purport to   establish that the person is 21 years of age or older, and have been   issued by a governmental agency. The proof of identification may   include a driver's license or identification certificate issued by   the Department of Public Safety, a passport, or a military   identification card.          (c)  A holder of a hemp manufacturer's license or   out-of-state hemp manufacturer's license, or the license holder's   agent, servant, or employee may not sell a consumable hemp product   to a purchaser unless the person presents an apparently valid,   unexpired proof of identification.   SUBCHAPTER C. DISTRIBUTION          Sec. 310.201.  HEMP DISTRIBUTOR'S LICENSE. (a) The holder   of a hemp distributor's license may:                (1)  purchase and import consumable hemp products from   holders of out-of-state hemp manufacturer's licenses;                (2)  purchase consumable hemp products from holders of   hemp manufacturer's licenses;                (3)  purchase consumable hemp products from other   licensed hemp distributors in this state;                (4)  sell consumable hemp products in the original   containers and packages in which the products are received to   licensed hemp distributors and hemp retailers in this state; and                (5)  sell consumable hemp products to qualified persons   outside this state.          (b)  The holder of a hemp distributor's license may ship   consumable hemp products using a licensed hemp carrier or the   United States Postal Service, or personally transport consumable   hemp products, for a lawful purpose:                (1)  from the seller's licensed premises to the   distributor's licensed premises or authorized place of storage;                (2)  from the distributor's licensed premises or   authorized place of storage to a purchaser's licensed premises or   authorized place of storage;                (3)  from the distributor's licensed premises or   authorized place of storage to ultimate consumers; and                (4)  from the distributor's licensed premises or   authorized place of storage to lawful destinations outside this   state for delivery to qualified purchasers or recipients.          (c)  The holder of a hemp distributor's license personally   transporting consumable hemp products under this section shall   provide to the commission:                (1)  a full description of each motor vehicle used by   the license holder for transporting consumable hemp products; and                (2)  any other information the commission requires.          (d)  The holder of a hemp distributor's license may   personally transport consumable hemp products only in a vehicle   that is:                (1)  described by Subsection (c);                (2)  owned or leased in good faith by the license holder   or by the license holder's agent; and                (3)  printed or painted in accordance with Section   310.203.          (e)  The holder of a hemp distributor's license may store   consumable hemp products:                (1)  on the license holder's premises; or                (2)  inside the county in which the license holder's   business is located in a:                      (A)  public bonded warehouse registered with the   commission; or                      (B)  private warehouse that is:                            (i)  operated and either owned or leased by   the license holder; and                            (ii)  registered with the commission.          (f)  A hemp distributor's license holder may not knowingly   use or employ any person under 21 years of age to work on the license   holder's premises in any capacity.          (g)  The transportation or shipment of consumable hemp   products across state lines into foreign jurisdictions must be done   in a manner that is consistent with federal law and the laws of   those foreign jurisdictions.          Sec. 310.202.  TRACKING. Each vehicle used by a holder of a   hemp distributor's license must be equipped with a global   positioning system tracking device. The commission shall by rule   determine the length of time tracking data must be recorded and   stored.          Sec. 310.203.  VEHICLE MARKINGS. All vehicles used by a   holder of a hemp distributor's license to transport consumable hemp   products must display the distributor's discrete mark or brand and   must have the holder's license number visible on the exterior.          Sec. 310.204.  PURCHASE, SALE, AND TRANSPORTATION OF NATURAL   HEMP FLOWER. For the purposes of this subchapter, a holder of a   hemp distributor's license may purchase, sell, and transport   natural hemp flower between the distributor and the holder of a hemp   manufacturer's license, the holder of an out-of-state hemp   manufacturer's license, and another hemp distributor in the same   manner in which the distributor may purchase, sell, and transport   consumable hemp products to those license holders under this   subchapter.          Sec. 310.205.  ELECTRONIC VERIFICATION OF CONSUMER'S   IDENTIFICATION. (a) A holder of a hemp distributor's license that   sells or delivers consumable hemp products to an ultimate consumer   shall, before initiating the sale and delivering the product,   verify that the purchaser is 21 years of age or older by:                (1)  personally inspecting the provided proof of   identification and scanning the provided proof of identification   with a device capable of deciphering electronically readable   information on a driver's license, commercial driver's license, or   identification certificate using identification authentication   software approved by the Department of Public Safety; or                (2)  using any other identification security features   the commission determines appropriate.          (b)  A proof of identification provided by a purchaser or   recipient under Subsection (a) must contain a physical description   and photograph consistent with the person's appearance, purport to   establish that the person is 21 years of age or older, and have been   issued by a governmental agency. The proof of identification may   include a driver's license or identification certificate issued by   the Department of Public Safety, a passport, or a military   identification card.          (c)  A holder of a hemp distributor's license, or the license   holder's agent, servant, or employee may not sell a consumable hemp   product to a purchaser unless the person presents an apparently   valid, unexpired proof of identification.   SUBCHAPTER D. RETAIL SALE OF HEMP          Sec. 310.301.  GENERAL HEMP RETAILER PROVISIONS. (a)   Except as otherwise provided by this chapter, only a licensed hemp   retailer may sell consumable hemp products at retail.          (b)  A hemp retailer's location must be at a fixed location   and may not be in a vehicle or otherwise mobile.          (c)  A hemp retailer may not:                (1)  permit a person under the age of 21 to enter or   remain on the premises; or                (2)  sell or offer for sale any consumable hemp product   or hemp beverage:                      (A)  on New Year's Day, Thanksgiving Day, or   Christmas Day;                      (B)  on Sunday; or                      (C)  before 10 a.m. or after 9 p.m. on any other   day;                (3)  deliver any consumable hemp product or hemp   beverage to an ultimate consumer; or                (4)  allow the on-premise consumption of any alcoholic   beverage, other than a hemp beverage;                (5)  sell a consumable hemp product to a purchaser   unless the purchaser presents an apparently valid, unexpired proof   of identification; or                (6)  provide a consumable hemp product to any person   without receiving monetary consideration in a completed retail   transaction.          (d)  Except as provided by Subsection (c), a hemp retailer:                (1)  may sell:                      (A)  consumable hemp products;                      (B)  if the retailer holds a hemp beverage permit,   hemp beverages; and                      (C)  other products that do not contain   cannabinoids; and                (2)  may not sell:                      (A)  tobacco and nicotine products, alcoholic   beverages, or natural hemp flower; or                      (B)  a hemp product or hemp beverage that is   derived from hemp grown or harvested outside of the United States.          (e)  For the purposes of Subsection (d), the term alcoholic   beverages does not include hemp beverages.          Sec. 310.302.  OFF-PREMISE HEMP RETAILER'S LICENSE. (a)   The holder of an off-premise hemp retailer's license may:                (1)  purchase finished consumable hemp products in this   state from the holder of a hemp manufacturer's, out-of-state hemp   manufacturer's, or hemp distributor's license;                (2)  purchase hemp beverages from persons authorized to   manufacture and distribute hemp beverages under this code;                (3)  sell finished consumable hemp products, and hemp   beverages in unbroken original containers and packages on or from   the holder's licensed premises at retail to ultimate consumers for   off-premise consumption only and not for the purpose of resale; and                (4)  sell finished consumable hemp products, and hemp   beverages to ultimate consumers off the licensed premises, but not   for resale purposes.          (b)  Except as otherwise prohibited by law, the holder of an   off-premise hemp retailer's license may ship consumable hemp   products, and hemp beverages using a licensed hemp carrier or the   United States Postal Service or personally transport those items,   if the shipping or transportation is for a lawful purpose.          (c)  The holder of an off-premise hemp retailer's license   personally transporting consumable hemp products or hemp beverages   under this section shall provide to the commission:                (1)  a full description of each motor vehicle used by   the license holder for transporting those items; and                (2)  any other information the commission requires.          (d)  The holder of an off-premise hemp retailer's license may   transport consumable hemp products and hemp beverages only in a   vehicle that is:                (1)  described by Subsection (c);                (2)  owned or leased in good faith by the license holder   or by the license holder's agent; and                (3)  printed or painted with the retailer's discrete   mark or brand and the retailer's license number as required for the   holder of a hemp distributor's license under Section 310.203.          (e)  A person may not hold or have an interest, directly or   indirectly, in more than 5 hemp retailer stores or in their business   or license.          (f)  For the purpose of Subsection (e):                (1)  a person has an interest in any license in which   the person's spouse has an interest; and                (2)  as to a corporate license holder, the   stockholders, managers, officers, agents, servants, and employees   of the corporation have an interest in the license, business, and   hemp retailer stores of the corporation.          (g)  An off-premise hemp retailer's license may not be owned   or held by:                (1)  a public corporation;                (2)  any entity that is directly or indirectly owned or   controlled, wholly or partly, by a public corporation;                (3)  any entity that would hold the license for the   benefit of a public corporation; or                (4)  any entity that holds a hemp manufacturer's or   distributor's license.          (h)  For purposes of Subsection (g), a public corporation   means:                (1)  any corporation or other legal entity whose shares   or other evidence of ownership are listed on a public stock   exchange; or                (2)  any corporation or other legal entity in which   more than 35 persons hold an ownership interest in the entity.          (i)  Before the commission may renew an off-premise hemp   retailer's license, an individual who is an owner or officer of the   license holder must file with the commission a sworn affidavit   stating that the license holder fully complies with the   requirements of Subsection (g).          (j)  Any off-premise hemp retailer's license holder who is   injured in its business or property by another hemp retailer or by   any other person by reason of anything prohibited in Subsection (g)   may institute suit in any district court in the county where the   violation is alleged to have occurred to require enforcement by   injunctive procedures and to recover triple damages plus costs of   suit, including reasonable attorney's fees.          (k)  An off-premise hemp retailer's license holder may not   knowingly use or employ any person under 21 years of age to work on   the premises of the retailer in any capacity.          (l)  An off-premise hemp retailer business may operate only   during the hours in which a person may sell malt beverages under   Section 105.05.          Sec. 310.303.  ON-PREMISE HEMP RETAILER'S LICENSE. (a) The   holder of an on-premise hemp retailer's license may engage in the   same activities as the holder of an off-premise hemp retailer's   license.          (b)  In addition to the activities authorized under   Subsection (a), an on-premise hemp retailer's license holder may   sell consumable hemp products unbroken original containers and   packages on or from the holder's licensed premises at retail to   ultimate consumers for on- or off-premise consumption and not for   the purpose of resale.          (c)  If an on-premise hemp retailer's license holder also   obtains a hemp beverage permit, the license holder may serve, mix,   and pour hemp beverages for on-premises consumption provided that   the consumer may not be served more than 12 milligrams of total   tetrahydrocannabinol content within a 24-hour period.          Sec. 310.304.  RETAIL SALE OF CONSUMABLE HEMP PRODUCTS   TRAINING PROGRAM. (a) The commission by rule shall develop a   training program on:                (1)  the requirements and responsibilities provided by   law for persons authorized to sell consumable hemp products at   retail; and                (2)  the nature and risks associated with the   consumption of consumable hemp products.          (b)  The commission may develop the training program in   conjunction with the training program required under Section 59.09.          (c)  A license holder authorized to sell consumable hemp   products at retail under this subchapter, and the holder's agents,   servants, and employees that engage in such sales, shall annually   complete the training program developed by the commission under   Subsection (a).          (d)  If a license holder authorized to sell consumable hemp   products at retail is not an individual, an officer, director, or   other individual with senior management responsibilities shall   annually complete the training program developed under Subsection   (a) on behalf of the license holder.          (e)  The training program developed under this section is not   a seller training program for purposes of Section 106.14.          Sec. 310.305.  SALES NEAR CERTAIN LOCATIONS. (a)   Notwithstanding any other law, the retail sale of consumable hemp   products is prohibited within 1,000 feet of a school, church,   public playground, day-care center, child-care center, homeless   shelter, or substance abuse treatment center.          (b)  The measurement of the distance between the place of   business where consumable hemp products are sold and the school,   church, playground, center, or shelter shall be in a direct line   from the property line of the school, church, playground, center,   or shelter to the property line of the place of business, and in a   direct line across intersections.          Sec. 310.306.  VIDEO SURVEILLANCE. (a) A license holder   authorized to sell consumable hemp products at retail under this   subchapter shall install a fully operational video surveillance and   camera recording system on the licensed premises. The system must   capture video of the portion of the premises accessible to the   public, including the checkout area but excluding any restroom.          (b)  A license holder shall make available on request any   video recordings captured by the system to the commission or a law   enforcement agency with jurisdiction over the license holder or   premises.          (c)  Video recordings under this section are private records   under Section 5.48.          (d)  The commission shall adopt rules establishing standards   and requirements for the video surveillance and camera recording   system and retention requirements for video footage captured on the   system.          Sec. 310.307.  ELECTRONIC VERIFICATION OF CONSUMER'S   IDENTIFICATION. (a) A holder of a hemp retailer's license   authorized to sell or serve consumable hemp products, or hemp   beverages to an ultimate consumer, or the license holder's agent,   servant, or employee shall, before initiating the sale, verify that   the purchaser is 21 years of age or older.          (b)  A person shall verify a purchaser's or recipient's age   under Subsection (a) by:                (1)  personally inspecting the provided proof of   identification and scanning the provided proof of identification   with a device capable of deciphering electronically readable   information on a driver's license, commercial driver's license, or   identification certificate using identification authentication   software approved by the Department of Public Safety; or                (2)  using any other identification security features   the commission determines appropriate.          (c)  A proof of identification provided by a purchaser or   recipient under this section must contain a physical description   and photograph consistent with the person's appearance, purport to   establish that the person is 21 years of age or older, and have been   issued by a governmental agency. The proof of identification may   include a driver's license or identification certificate issued by   the Department of Public Safety, a passport, or a military   identification card.          (d)  A holder of a hemp retailer's license, or the license   holder's agent, servant, or employee, may not sell, serve, or   deliver a consumable hemp product to a purchaser or recipient   unless the person presents an apparently valid, unexpired proof of   identification.          Sec. 310.308.  SELF-AUDITS. At least once every calendar   quarter, a hemp retailer shall conduct a self-audit of inventory   tracking and sales data and maintain the resulting data in the form   required and for the duration required by the commission. The   license holder shall provide the data to the commission on request.   This data qualifies as a private record under Section 5.48.          Sec. 310.309.  AGE REQUIREMENTS. A person under 21 years of   age may not be permitted to enter or remain on the licensed premises   of a hemp retailer.   SUBCHAPTER E. HEMP CARRIER LICENSE          Sec. 310.401.  HEMP CARRIER LICENSE. (a) The holder of a   hemp carrier license may transport consumable hemp products into   and out of this state and between points within this state.          (b)  The license holder may continuously transport   consumable hemp products from one wet area to another wet area   across a dry area if that course of transportation is necessary or   convenient.          (c)  The holder of a hemp carrier license who transports   consumable hemp products to the premises of a holder of a hemp   manufacturer's license or hemp distributor's license, or the   license holder's authorized place of storage, shall provide to the   consignee a shipping invoice that clearly states:                (1)  the name and address of the consignor and   consignee;                (2)  the origin and destination of the shipment; and                (3)  any other information required by this code or   commission rule, including the brands of consumable hemp products,   sizes of containers, types of consumable hemp products, and   quantities of consumable hemp products contained in the shipment.          (d)  A hemp carrier license may be issued to:                (1)  a water carrier;                (2)  an airline;                (3)  a railway;                (4)  a motor carrier registered under Chapter 643,   Transportation Code; or                (5)  a common carrier operating under a certificate   issued by the Interstate Commerce Commission.          (e)  The holder of a hemp carrier license shall furnish   information required by the commission concerning the   transportation of consumable hemp products.   SUBTITLE C. CONSUMABLE HEMP PRODUCTS AND HEMP FLOWER   CHAPTER 320. CONSUMABLE HEMP PRODUCT REQUIREMENTS          Sec. 320.001.  DOMESTIC SOURCING. All ingredients for a   consumable hemp product must originate from within the United   States unless the commission specifically approves an ingredient   originating from another location.          Sec. 320.002.  INGREDIENTS OF CONSUMABLE HEMP PRODUCT. (a)   Each ingredient in a consumable hemp product must be organic and may   not include genetically modified organisms unless the commission   specifically approves the ingredient.          (b)  An ingredient in a consumable hemp product may not   include an artificial dye or other artificial product unless the   commission specifically approves the ingredient.          Sec. 320.003.  CONVERTED OR SYNTHETIC CANNABINOIDS   PROHIBITED. A consumable hemp product may not contain any   converted or synthetic cannabinoids. A consumable hemp product may   contain only cannabinoids that are hemp derived cannabinoids.          Sec. 320.004.  PROHIBITED FORMS OF CONSUMABLE HEMP PRODUCTS.   (a) Except as provided by Subsection (b), a consumable hemp product   may not resemble common snacks such as chips, candy, chewing gum, or   other products designed to be attractive to minors.          (b)  A consumable hemp product may be in the form of gummies,   pills, or mints, provided that the form of the item and packaging   are not attractive to minors and comply with Sections 322.001 and   322.002.          (c)  A consumable hemp product may not be in a form intended   for inhaling by heating the product, including as a hemp-infused   oil.          Sec. 320.005.  CANNABINOID LIMITS FOR CONSUMABLE HEMP   PRODUCTS. (a) A consumable hemp product that is an oil-based   tincture may not contain more than, subject to allowable variance   rates and the measure of uncertainty:                (1)  2.5 milligrams of tetrahydrocannabinol in each   one-milliliter serving;                (2)  50 milligrams of cannabinoids, other than   tetrahydrocannabinol, in each one-milliliter serving;          (b)  A consumable hemp product other than an oil-based   tincture may not contain more than, subject to allowable variance   rates and the measure of uncertainty:                (1)  2.5 milligrams of tetrahydrocannabinol in each   serving;                (2)  50 milligrams of cannabinoids, other than   tetrahydrocannabinol, in each serving;          (C)  Notwithstanding Subsection (a) or (b), a consumable   hemp product must contain at least 15 milligrams of cannabinoids,   other than tetrahydrocannabinol, for every 1 milligram of   tetrahydrocannabinol.          Sec. 320.006.  CONSUMABLE HEMP PRODUCT REGISTRATION. (a) A   consumable hemp product may not be offered for sale in this state   unless the manufacturer of the product, before selling the product:                (1)  submits an application for the consumable hemp   product to be registered with the commission that includes front   and back pictures of the product; and                (2)  receives approval from the commission that the   product is compliant with this chapter, registered, and approved   for sale in this state.          (b)  The commission shall issue a unique product   registration number to each consumable hemp product approved by and   registered with the commission.          (c)  A manufacturer applying to register a consumable hemp   product under this section shall pay an application fee to the   commission in the amount of $100 for each consumable hemp product   the manufacturer seeks to register.          (d)  The commission may not approve for sale or register a   consumable hemp product that:                (1)  contains any cannabinoid other than a hemp-derived   cannabinoid;                (2)  contains or is mixed with alcohol, tobacco,   nicotine, kratom, kava, psychoactive mushrooms, or a derivative of   any of those items; or                (3)  is derived from hemp grown or harvested outside of   the United States.          (e)  The commission may adopt rules for the submission of and   requirements for an application for registration under this   section.          Sec. 320.007.  REGISTERED PRODUCT WEBSITE. The commission   shall maintain an updated product registration list on the   commission's public Internet website, which must include front and   back identifying pictures of each registered consumable hemp   product for the purpose of confirming registration of the product   and allowing verification of the product by law enforcement.   CHAPTER 321. NATURAL HEMP FLOWER REQUIREMENTS          Sec. 321.001.  ADDITIVES PROHIBITED. A grower or   manufacturer may not add any ingredient to natural hemp flower.   CHAPTER 322. PACKAGING, LABELING, AND ADVERTISING OF CONSUMABLE   HEMP PRODUCTS          Sec. 322.001.  LABELING REQUIREMENTS. (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 be labeled in the manner provided by this section   with the following information:                (1)  the common name of the product, stated clearly,   prominently, and truthfully;                (2)  the product ingredients;                (3)  any relevant major food allergens identified in   the federal Food and Drug Act;                (4)  the batch identification number;                (5)  the batch date;                (6)  the product name;                (7)  a uniform resource locator that provides or links   to a certificate of analysis for the product;                (8)  the name and commission license number of the   product's manufacturer;                (9)  a certification that the tetrahydrocannabinol   content of the product complies with state law;                (10)  the identity, concentration, and amount,   including total and per serving, of each hemp-derived cannabinoid   in the product; and                (11)  if the product contains tetrahydrocannabinols, a   tetrahydrocannabinol warning icon and statement adopted by the   commission.          (b)  Each consumable hemp product, including the container   and package, if applicable, must be labeled with:                (1)  a QR code that links to the commission's product   registration list under Section 320.007, including the identifying   pictures of the back and front of the product; and                (2)  the following message placed adjacent to the   required QR code on the label: "SCAN QR CODE BEFORE PURCHASE".          (c)  The labeling required under this section must appear on   each unit of the product intended for individual retail sale. If   that unit includes inner and outer packaging, the labeling must   appear on both the inner and outer package.          (d)  Packaging for a consumable hemp product must be tamper   evident and child resistant.          Sec. 322.002.  PACKAGING PROHIBITIONS. (a) A person may not   market, advertise, sell, or cause to be sold a consumable hemp   product that:                (1)  is in the shape of a human, animal, fruit, or   cartoon or in another shape that is designed to be attractive to   minors; or                (2)  is in packaging or a container that:                      (A)  is in the shape of a human, animal, fruit, or   cartoon or in another shape that is designed to be attractive to   minors;                      (B)  depicts an image of a human, animal, fruit,   or cartoon or another image that is designed to be attractive to   minors;                      (C)  imitates or mimics trademarks or trade dress   of products that are or have been primarily marketed to minors;                      (D)  includes a symbol that is primarily used to   market products to minors;                      (E)  includes an unauthorized image of a   celebrity; or                      (F)  includes an image that resembles a food   product, including candy or juice.          (b)  For purposes of this section, a cartoon includes a   depiction of an object, person, animal, creature, or any similar   caricature that:                (1)  uses comically exaggerated features and   attributes;                (2)  assigns human characteristics to animals, plants,   or other objects; or                (3)  has unnatural or extra-human abilities, including   imperviousness to pain or injury, x-ray vision, tunneling at very   high speeds, and transformation.          Sec. 322.003.  ADVERTISING RESTRICTIONS. (a) A person may   not advertise or promote a consumable hemp product in a manner that:                (1)  is designed to be targeted or attractive to   minors;                (2)  suggests the product is medicine or holds   medicinal qualities; or                (3)  could cause a reasonable person or minor to   confuse the product for medicine, candy, snacks, or other food   products that are widely distributed and generally available to the   public.          (b)  A person may not advertise or use signage that asserts   consumable hemp products are safe because the products are:                (1)  regulated by the state or the commission; or                (2)  tested by the state, commission, another   governmental entity, or a testing facility.          (c)  A person may not advertise a consumable hemp product   using amplified sound from, or signs, pictures, or video on, a   vehicle on a public street or highway.          Sec. 322.004.  LICENSE HOLDER ADVERTISING RESTRICTIONS. (a)   A license holder may not:                (1)  engage in advertising that is deceptive, false, or   misleading;                (2)  make any deceptive, false, or misleading   assertions or statements on a product, sign, or document provided   to a consumer;                (3)  engage in marketing directed toward   location-based devices, including cellular phones; or                (4)  use unsolicited pop-up advertisements on an   Internet website.          Sec. 322.005.  PROHIBITED SPONSORSHIP OR ADVERTISEMENT AT   CERTAIN EVENTS. A license holder may not sponsor, and a person may   not advertise a consumable hemp product at, a charitable, sports,   or similar event.          Sec. 322.006.  LOCATION OF ADVERTISEMENTS. (a) In this   section:                (1)  "Homeless shelter" has the meaning assigned by   Section 109.36.                (2)  "Playground" and "school" have the meanings   assigned by Section 481.134, Health and Safety Code.          (b)  A person may not advertise a consumable hemp product or   a consumable hemp product business on an outdoor sign that is within   1,000 feet of a school, church, playground, day-care center,   child-care center, homeless shelter, or substance abuse treatment   center.          (c)  Subsection (b) does not apply to a license holder   engaged in business unrelated to consumable hemp products if the   advertisement does not promote a consumable hemp product or the   license holder's involvement with a consumable hemp product.          Sec. 322.007.  ADVERTISING; RULES. The commission shall   adopt rules regarding the advertisement and promotion of consumable   hemp products by license holders, including rules that restrict the   advertisement or promotion of a consumable hemp product to minors   to the full extent permitted by the United States Constitution and   Texas Constitution.   SUBTITLE D. ENFORCEMENT   CHAPTER 340. PROHIBITIONS AND OFFENSES   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 340.001.  PROHIBITIONS. (a) A person may not sell,   offer for sale, possess, distribute, or transport a consumable hemp   product or hemp beverage in this state that:                (1)  contains any material extracted or derived from   the plant cannabis sativa L., other than from hemp produced in   compliance with 7 U.S.C. Subchapter VII, Chapter 38;                (2)  is not labeled with the license numbers of the   manufacturer and hemp testing laboratory that performed the   compliance testing for the product's batch; or                (3)  has not been tested by a hemp testing laboratory in   compliance with Chapter 443A, Health and Safety Code.          (b)  The commission and the Department of Public Safety shall   establish a process for the random testing of consumable hemp   products and hemp beverages at various retail and other   establishments that sell, offer for sale, distribute, or use the   products or beverages to ensure that the products or beverages:                (1)  do not contain harmful ingredients;                (2)  are produced in compliance with 7 U.S.C.   Subchapter VII, Chapter 38; and                (3)  have a tetrahydrocannabinol content in compliance   with the applicable limits established by Section 59.10 or 320.005.          Sec. 340.002.  DECEPTIVE TRADE PRACTICE. (a) A person who   sells, offers for sale, or distributes a consumable hemp product or   hemp beverage commits a false, misleading, or deceptive act or   practice actionable under Subchapter E, Chapter 17, Business &   Commerce Code:                (1)  if the person falsely claims the product or   beverage has been processed or manufactured in compliance with this   title; or                (2)  if the product or beverage:                      (A)  contains harmful ingredients;                      (B)  is not produced in compliance with 7 U.S.C.   Subchapter VII, Chapter 38;                      (C)  has a tetrahydrocannabinol content that   exceeds the applicable limits established by Section 59.10 or   320.005                      (D)  is packaged, marketed, or sold in a manner   that indicates it is for medical use;                      (E)  is natural hemp flower; or                      (F)  is sold to a minor.   SUBCHAPTER B. CRIMINAL OFFENSES          Sec. 340.101.  OFFENSE: MANUFACTURE, DELIVERY, OR   POSSESSION WITH INTENT TO DELIVER CERTAIN CONSUMABLE HEMP PRODUCTS   OR HEMP BEVERAGES. (a) A person commits an offense if the person   knowingly manufactures, delivers, or possesses with intent to   deliver a consumable hemp product or hemp beverage that contains:                (1)  synthetic or converted cannabinoids; or                (2)  an amount of tetrahydrocannabinol that exceeds the   applicable limits established by Section 59.10 or 320.005.          (b)  An offense under this section is a state jail felony.          (c)  If conduct constituting an offense under this section   also constitutes an offense under another law, the actor may be   prosecuted under this section, the other law, or both.          Sec. 340.102.  OFFENSE: POSSESSION OF CERTAIN CONSUMABLE   HEMP PRODUCTS OR HEMP BEVERAGES. (a) A person commits an offense   if the person intentionally or knowingly possesses a consumable   hemp product or hemp beverage that contains:                (1)  synthetic or converted cannabinoids; or                (2)  an amount of tetrahydrocannabinol that exceeds the   applicable limits established by Section 59.10 or 320.005.          (b)  An offense under this section is a Class A misdemeanor.          (c)  If conduct constituting an offense under this section   also constitutes an offense under another law, the actor may be   prosecuted under this section, the other law, or both.          Sec. 340.103.  OFFENSE: SALE OR DELIVERY OF CONSUMABLE HEMP   PRODUCTS OR HEMP BEVERAGES NEAR SCHOOL. (a) In this section,   "premises," notwithstanding any other provision of this code, and   "school" have the meanings assigned by Section 481.134, Health and   Safety Code.          (b)  A person commits an offense if the person sells or   offers for sale a consumable hemp product or hemp beverage in, on,   or within 1,000 feet of the premises of a school, church, public   playground, day-care center, child-care center, homeless shelter,   or substance abuse treatment center.          (c)  An offense under this section is a state jail felony.          Sec. 340.104.  OFFENSE: FALSE LABORATORY REPORT. (a) A   person commits an offense if the person, with the intent to deceive,   forges, falsifies, or alters the results of a laboratory test   authorized or required by this title, Chapter 122, Agriculture   Code, or Chapter 443A, Health and Safety Code.          (b)  An offense under this section is a felony of the third   degree.          Sec. 340.105.  OFFENSE: POSSESSION OR SALE OF NATURAL HEMP   FLOWER. (a) A person commits an offense if the person possesses,   sells, or offers for sale natural hemp flower.          (b)  An offense under this section is:                (1)  a Class B misdemeanor if the amount of natural hemp   flower possessed, sold, or offered for sale is two ounces or less;                (2)  a Class A misdemeanor if the amount of natural hemp   flower possessed, sold, or offered for sale is four ounces or less   but more than two ounces;                (3)  a state jail felony if the amount of natural hemp   flower possessed, sold, or offered for sale is five pounds or less   but more than four ounces;                (4)  a felony of the third degree if the amount of   natural hemp flower possessed, sold, or offered for sale is 50   pounds or less but more than 5 pounds;                (5)  a felony of the second degree if the amount of   natural hemp flower possessed, sold, or offered for sale is 2,000   pounds or less but more than 50 pounds; and                (6)  a felony of the first degree punishable by   imprisonment in the Texas Department of Criminal Justice for life   or for a term of not more than 99 years or less than 5 years, and a   fine not to exceed $50,000, if the amount of natural hemp flower   possessed, sold, or offered for sale is more than 2,000 pounds.          (d)  It is an exception to the application of Subsection (a)   that the person holds a grower's, hemp brewer's, distributor's, or   manufacturer's license during the course and scope of a business   activity conducted pursuant to the applicable license.          (e)  It is an exception to the application of Subsection (a)   that the person is engaged in continuous transport of the natural   hemp flower through the state and possesses a shipping invoice that   clearly states the name and address of the origin and destination of   the shipment.          Sec. 340.106.  OFFENSE: SALE OF CERTAIN HEMP-DERIVED   PRODUCTS. (a) A person commits an offense if the person knowingly   sells or offers for sale consumable hemp product or hemp beverage   that contains:                (1)  synthetic or converted cannabinoids;                (2)  a cannabinoid other than a hemp-derived   cannabinoid; or                (3)  an amount of tetrahydrocannabinol that exceeds the   applicable limits established by Section 59.10 or 320.005.          (b)  An offense under this section is a state jail felony.          Sec. 340.107.  POSSESSION OF HEMP BEVERAGE IN OPEN CONTAINER   IN MOTOR VEHICLE. (a) In this section:                (1)  "Open container" means a package, container, or   other receptacle that contains any amount of hemp beverage and that   is open, that has been opened, that has a broken seal, or the   contents of which are partially removed.                (2)  "Passenger area of a motor vehicle" means the area   of a motor vehicle designed for the seating of the operator and   passengers of the vehicle. The term does not include:                      (A)  a glove compartment or similar storage   container that is locked;                      (B)  the trunk of a vehicle; or                      (C)  the area behind the last upright seat of the   vehicle, if the vehicle does not have a trunk.                (3)  "Public highway" means the entire width between   and immediately adjacent to the boundary lines of any public road,   street, highway, interstate, or other publicly maintained way if   any part is open for public use for the purpose of motor vehicle   travel. The term includes the right-of-way of a public highway.          (b)  A person commits an offense if the person knowingly   possesses an open container in a passenger area of a motor vehicle   that is located on a public highway, regardless of whether the   vehicle is being operated or is stopped or parked. Possession by a   person of one or more open containers in a single criminal episode   is a single offense.          (c)  It is an exception to the application of Subsection (b)   that at the time of the offense the defendant was a passenger in:                (1)  the passenger area of a motor vehicle designed,   maintained, or used primarily for the transportation of persons for   compensation, including a bus, taxicab, or limousine; or                (2)  the living quarters of a motorized house coach or   motorized house trailer, including a self-contained camper, a motor   home, or a recreational vehicle.          (d)  An offense under this section is a Class C misdemeanor.          (e)  A peace officer charging a person with an offense under   this section, instead of taking the person before a magistrate,   shall issue to the person a written citation and notice to appear   that contains the time and place the person must appear before a   magistrate, the name and address of the person charged, and the   offense charged. If the person makes a written promise to appear   before the magistrate by signing in duplicate the citation and   notice to appear issued by the officer, the officer shall release   the person.          SECTION 86.  The heading to Section 17.463, Business &   Commerce Code, is amended to read as follows:          Sec. 17.463.  PRODUCTION, SALE, DISTRIBUTION, OR PROMOTION   OF HEMP AND CERTAIN SYNTHETIC SUBSTANCES.          SECTION 87.  Section 17.463(a), Business & Commerce Code, is   amended to read as follows:          (a)  This section applies only to an act described by Section   17.46(b)(31) and Section 340.002, Alcoholic Beverage Code.          SECTION 88.  The heading to Chapter 501, Election Code, is   amended to read as follows:   CHAPTER 501. LOCAL OPTION ELECTIONS ON SALE OF CONSUMABLE HEMP   PRODUCTS, HEMP BEVERAGES, OR ALCOHOLIC BEVERAGES          SECTION 89.  Section 501.001(1), Election Code, is amended   to read as follows:                (1)  "Alcoholic beverage," "commission," "consumable   hemp product," "hemp beverage," "liquor," "malt beverage," "mixed   beverage," and "wine and vinous liquor" have the meanings assigned   by Section 1.04, Alcoholic Beverage Code.          SECTION 90.  Section 501.021, Election Code, is amended to   read as follows:          Sec. 501.021.  ELECTION TO BE HELD BY PETITION. On proper   petition by the required number of voters of a county, justice   precinct, or municipality in the county, the commissioners court   shall order a local option election in the political subdivision to   determine whether the sale of consumable hemp products, hemp   beverages, or alcoholic beverages of one or more of the various   types and alcoholic contents shall be prohibited or legalized in   the political subdivision.          SECTION 91.  Section 501.023(a), Election Code, is amended   to read as follows:          (a)  If 10 or more qualified voters of any county, justice   precinct, or municipality file a written application and provide   proof of publication of notice in a newspaper of general   circulation in that political subdivision, the county clerk of the   county shall issue to the applicants a petition to be circulated   among the qualified voters of the political subdivision for the   signatures of those qualified voters who desire that a local option   election be called for the purpose of determining whether the sale   of consumable hemp products, hemp beverages, or alcoholic beverages   of one or more of the various types and alcoholic contents shall be   prohibited or legalized in the political subdivision. The notice   must include:                (1)  the individual or entity that is applying for the   petition to gather signatures for a local option [liquor] election;                (2)  the type of local option [liquor] election;                (3)  the name of the political subdivision in which the   petition will be circulated; and                (4)  the name and title of the person with whom the   application will be filed.          SECTION 92.  Sections 501.024(a) and (b), Election Code, are   amended to read as follows:          (a)  An application for a petition seeking an election to   prohibit the sale of consumable hemp products, hemp beverages, or   alcoholic beverages of one or more of the various types and   alcoholic contents must be headed: "Application for Local Option   Election Petition to Prohibit."          (b)  The application must contain a statement just ahead of   the signatures of the applicants, as follows: "It is the hope,   purpose and intent of the applicants whose signatures appear hereon   to see prohibited the sale of consumable hemp products, hemp   beverages, or alcoholic beverages, as applicable, referred to in   the issue set out above."          SECTION 93.  Sections 501.025(a) and (b), Election Code, are   amended to read as follows:          (a)  An application for a petition seeking an election to   legalize the sale of consumable hemp products, hemp beverages, or   alcoholic beverages of one or more of the various types and   alcoholic contents must be headed: "Application for Local Option   Election Petition to Legalize."          (b)  The application must contain a statement just ahead of   the signatures of the applicants, as follows: "It is the hope,   purpose and intent of the applicants whose signatures appear hereon   to see legalized the sale of consumable hemp products, hemp   beverages, or alcoholic beverages, as applicable, referred to in   the issue set out above."          SECTION 94.  Sections 501.027(a) and (b), Election Code, are   amended to read as follows:          (a)  Each page of the petition for a local option election   seeking to prohibit the sale of consumable hemp products, hemp   beverages, or alcoholic beverages of one or more of the various   types and alcoholic contents must be headed "Petition for Local   Option Election to Prohibit."          (b)  The petition must contain a statement just ahead of the   signatures of the petitioners, as follows: "It is the hope, purpose   and intent of the petitioners whose signatures appear hereon to see   prohibited the sale of consumable hemp products, hemp beverages, or   alcoholic beverages, as applicable, referred to in the issue set   out above."          SECTION 95.  Sections 501.028(a) and (b), Election Code, are   amended to read as follows:          (a)  Each page of the petition for a local option election   seeking to legalize the sale of consumable hemp products, hemp   beverages, or alcoholic beverages of one or more of the various   types and alcoholic contents must be headed "Petition for Local   Option Election to Legalize."          (b)  The petition must contain a statement just ahead of the   signatures of the petitioners, as follows: "It is the hope, purpose   and intent of the petitioners whose signatures appear hereon to see   legalized the sale of consumable hemp products, hemp beverages, or   alcoholic beverages, as applicable, referred to in the issue set   out above."          SECTION 96.  Section 501.034(a), Election Code, is amended   to read as follows:          (a)  The election order must state in its heading and text   whether the local option election to be held is for the purpose of   prohibiting or legalizing the sale of consumable hemp products,   hemp beverages, or the alcoholic beverages set out in the issue   recited in the application and petition.          SECTION 97.  Sections 501.035(b) and (c), Election Code, are   amended to read as follows:          (b)  In an area where consumable hemp products, hemp   beverages, or any type or classification of alcoholic beverages is   prohibited and the issue submitted pertains to legalization of the   sale of one or more of the prohibited types or classifications, the   ballot shall be prepared to permit voting for or against the one of   the following issues that applies:                (1)  "The legal sale of malt beverages for off-premise   consumption only."                (2)  "The legal sale of malt beverages."                (3)  "The legal sale of malt beverages and wine for   off-premise consumption only."                (4)  "The legal sale of malt beverages and wine."                (5)  "The legal sale of all alcoholic beverages for   off-premise consumption only."                (6)  "The legal sale of all alcoholic beverages except   mixed beverages."                (7)  "The legal sale of all alcoholic beverages   including mixed beverages."                (8)  "The legal sale of mixed beverages."                (9)  "The legal sale of mixed beverages in restaurants   by food and beverage certificate holders only."                (10)  "The legal sale of wine on the premises of a   holder of a winery permit."                (11)  "The legal sale of consumable hemp products."                (12)  "The legal sale of hemp beverages."          (c)  In an area where the sale of consumable hemp products,   hemp beverages, or any type or classification of alcoholic   beverages has been legalized, the ballot for a prohibitory election   shall be prepared to permit voting for or against the one of the   following issues that applies:                (1)  "The legal sale of malt beverages for off-premise   consumption only."                (2)  "The legal sale of malt beverages."                (3)  "The legal sale of malt beverages and wine for   off-premise consumption only."                (4)  "The legal sale of malt beverages and wine."                (5)  "The legal sale of all alcoholic beverages for   off-premise consumption only."                (6)  "The legal sale of all alcoholic beverages except   mixed beverages."                (7)  "The legal sale of all alcoholic beverages   including mixed beverages."                (8)  "The legal sale of mixed beverages."                (9)  "The legal sale of mixed beverages in restaurants   by food and beverage certificate holders only."                (10)  "The legal sale of wine on the premises of a   holder of a winery permit."                (11)  "The legal sale of consumable hemp products."                (12)  "The legal sale of hemp beverages."          SECTION 98.  Section 501.107, Election Code, is amended to   read as follows:          Sec. 501.107.  COUNTY PAYMENT OF ELECTION EXPENSES. The   county shall pay the expense of holding a local option election   authorized by this chapter in the county, justice precinct, or   municipality in that county except that:                (1)  if an election is to be held only within the   corporate limits of a municipality located wholly within the   county, the county may require the municipality to reimburse the   county for all or part of the expenses of holding the local option   election;                (2)  county payment of the expense of an election to   legalize the sale of consumable hemp products, hemp beverages, or   alcoholic beverages is limited to the holding of one election in a   political subdivision during a one-year period; and                (3)  county payment of the expense of an election to   prohibit the sale of consumable hemp products, hemp beverages, or   alcoholic beverages is limited to the holding of one election in a   political subdivision during a one-year period.          SECTION 99.  Section 501.109(a), Election Code, is amended   to read as follows:          (a)  This section applies only to an election to permit or   prohibit the legal sale of consumable hemp products, hemp   beverages, or alcoholic beverages of one or more of the various   types and alcoholic contents in a municipality.          SECTION 100.  Sections 501.151(b) and (c), Election Code,   are amended to read as follows:          (b)  In a prohibitory election, if a majority of the votes   cast do not favor the issue "The legal sale. . .," the court's order   must state that the sale of consumable hemp products, hemp   beverages, or the type or types of beverages stated in the issue at   the election is prohibited effective on the 30th day after the date   the order is entered. The prohibition remains in effect until   changed by a subsequent local option election held under this   chapter.          (c)  In a legalization election, if a majority of the votes   cast favor the issue "The legal sale . . .," the legal sale of   consumable hemp products, hemp beverages, or the type or types of   beverages stated in the issue at the election is legal on the   entering of the court's order. The legalization remains in effect   until changed by a subsequent local option election held under this   code.          SECTION 101.  Section 501.154(a), Election Code, is amended   to read as follows:          (a)  A commissioners court order declaring the result of a   local option election and prohibiting the sale of any or all types   of consumable hemp products, hemp beverages, or alcoholic beverages   must be published by posting the order at three public places in the   county or other political subdivision in which the election was   held.          SECTION 102.  Section 411.110(a), Government Code, is   amended to read as follows:          (a)  The Department of State Health Services and the Health   and Human Services Commission are entitled to obtain criminal   history record information as provided by Subsection (a-1) that   relates to a person who is:                (1)  an applicant for a license or certificate under   Chapter 773, Health and Safety Code, an owner or manager of an   applicant for an emergency medical services provider license under   that chapter, or the holder of a license or certificate under that   chapter;                (2)  an applicant for a license or a license holder   under Subchapter I, L, or N, Chapter 431, Health and Safety Code;                (3)  an applicant for employment at or current employee   of:                      (A)  a public health hospital as defined by   Section 13.033, Health and Safety Code; or                      (B)  the South Texas Health Care System;                (4)  an applicant for employment at, current employee   of, or person who contracts or may contract to provide goods or   services with the Council on Sex Offender Treatment or other   division or component of the Health and Human Services Commission   that monitors sexually violent predators as described by Section   841.003(a), Health and Safety Code; or                (5)  authorized to access vital records or the vital   records electronic registration system under Chapter 191, Health   and Safety Code, including an employee of or contractor for the   Department of State Health Services, a local registrar, a medical   professional, or a funeral director[; or                [(6)  an applicant for a license or a license holder   under Subchapter C, Chapter 443, Health and Safety Code].          SECTION 103.  Chapter 772, Government Code, is amended by   adding Subchapter C to read as follows:   SUBCHAPTER C. TEXAS HEMP COUNCIL          Sec. 772.101.  DEFINITIONS. In this chapter, "council"   means the Texas Hemp Council.          Sec. 772.102.  APPLICATION OF SUNSET ACT. The Texas Hemp   Interagency Coordinating Council is subject to Chapter 325,   Government Code (Texas Sunset Act). Unless continued in existence   as provided by that chapter, the council is abolished September 1,   2030.          Sec. 772.103.  APPOINTMENT OF COUNCIL. The council consists   of:                (1)  the governor, or the governor's designee;                (2)  the commissioner of agriculture, or the   commissioner's designee;                (3)  the executive director of the Department of State   Health Services, or the executive director's designee;                (4)  the executive director of the Texas Alcoholic   Beverage Commissioner, or the executive director's designee;                (5)  the executive director of the Texas Department of   Public Safety, or the executive director's designee;                (6)  the director of the Texas A&M AgriLife Extension   Service, or the executive director's designee;                (7)  a member of the public appointed by the governor,   who serves at the pleasure of the governor.          Sec. 772.104.  PRESIDING OFFICER. (a) The governor serves   as the presiding officer of the council.          (b)  The presiding officer may vote on all matters before the   council.          Sec. 772.105.  COMPENSATION; REIMBURSEMENT. (a) A council   member may not receive compensation for service on the commission.          (b)  A council member is entitled to reimbursement for actual   and necessary expenses incurred in performing functions as a   council member, subject to any applicable limitation on   reimbursement provided by the General Appropriations Act.          Sec. 772.106.  MEETINGS. (a) The commission shall meet at   least once in each quarter of the fiscal year.          (b)  The commission may meet at other times at the call of the   presiding officer or as provided by council rules.          Sec. 772.107.  WORKING GROUPS. The council may establish   one or more working groups, composed of members of the council or   other members appointed by the governor, as determined necessary by   the council.          Sec. 772.108.  RULEMAKING. (a) The council shall assist   state agencies that regulate hemp in the development and adoption   of rules to ensure consistency in the regulation of hemp and   hemp-derived products.          (b)  The council may issue recommendations to the agencies   described by Subsection (a) regarding proposed or existing rules.          (c)  Each agency described by Subsection (a) shall consult   with the council in the rulemaking process to promote uniformity   and avoid conflicting regulatory requirements.          Sec. 772.109.  STUDY ON RETAIL SALES AND PURCHASE   LIMITATIONS. (a) The council shall conduct a study regarding:                (1)  mechanisms to limit the number of sales of   consumable hemp products and hemp beverages a permit holder under   Title 7, Alcoholic Beverage Code, may complete to an individual   customer within a 24-hour period;                (2)  mechanisms to limit the number of purchases of   consumable hemp products and hemp beverages a person may complete   within a 24-hour period, from one or more permit holders under Title   7, Alcoholic Beverage Code;                (3)  methods for determining intoxication resulting   from the use of consumable hemp products, hemp beverages, or other   products containing tetrahydrocannabinols; and                (4)  any other matter related to consumable hemp   products, hemp beverages, or other products containing   tetrahydrocannabinols the council determines is appropriate.          (b)  The study must identify and consider:                (1)  the feasibility and cost of real-time sales   tracking systems to enforce transaction limits across permit   holders;                (2)  privacy and data security implications associated   with monitoring consumer purchases;                (3)  enforcement mechanisms, including administrative   or criminal penalties for exceeding transaction limits; and                (4)  the public health and safety benefits of   implementing transaction limits on consumable hemp products and   hemp beverages;                (5)  the effectiveness and reliability of available   testing methods for use by law enforcement to determine   intoxication resulting from the consumption of products containing   tetrahydrocannabinols; and                (6)  the impact on public health and safety of varying   levels of intoxication resulting from the consumption of products   containing tetrahydrocannabinols.          (c)  Not later than December 1, 2026, the council shall   submit a report on the findings of the study to the governor, the   lieutenant governor, the speaker of the house of representatives,   and the standing committees of the legislature with jurisdiction   over public health and criminal justice matters.          SECTION 104.  Effective September 1, 2027, Section 431.011,   Health and Safety Code, is amended to read as follows:          Sec. 431.011.  APPLICABILITY OF CHAPTER TO CONSUMABLE HEMP   PRODUCTS AND MANUFACTURERS. (a) This chapter applies to a   consumable hemp product subject to Title 7, Alcoholic Beverage Code   [Chapter 443]. An article regulated under this chapter may not be   deemed to be adulterated solely on the basis that the article is a   consumable hemp product.          (b)  Except as provided by Subsection (c), this chapter   applies to the conduct of a person who holds a license under Title   7, Alcoholic Beverage Code [Chapter 443].          (c)  A person who holds a license under Title 7, Alcoholic   Beverage Code, [Chapter 443] related to the processing of hemp or   the manufacturing of a consumable hemp product regulated under that   title [chapter] and is engaging in conduct within the scope of that   license is not required to hold a license as a food manufacturer or   food wholesaler under Subchapter J.          SECTION 105.  Section 431.2211(a-3), Health and Safety Code,   is amended to read as follows:          (a-3)  A person is not required to hold a license under this   subchapter if the person holds a license under Title 7, Alcoholic   Beverage Code, [Chapter 443] and is engaging in conduct within the   scope of that license.          SECTION 106.  Title 6, Subtitle A, Health and Safety Code is   amended by adding Chapter 443A to read as follows:   CHAPTER 443A. TESTING OF CONSUMABLE HEMP PRODUCTS          Sec. 443A.001.  DEFINITIONS. In this chapter:                (1)  "Consumable hemp product" has the meaning assigned   by Section 1.04, Alcoholic Beverage Code.                (2)  "Council" means the Texas Hemp Interagency   Coordinating Council.                (3)  "Department" means the Department of State Health   Services.                (4)  "Hemp beverage" has the meaning assigned by   Section 1.04, Alcoholic Beverage Code.          Sec. 443A.002.  LICENSING OF HEMP TESTING LABORATORIES. (a)   A hemp testing laboratory must be licensed by the department.          (b)  The department shall license one or more hemp testing   laboratories in each public health region designated under Section   121.007.          (c)  To be eligible for a hemp testing laboratory license, a   laboratory must be:                (1)  accredited by an accreditation body in accordance   with International Organization for Standardization ISO/IEC 17025   or a comparable successor;                (2)  registered with the federal Drug Enforcement   Administration; and                (3)  located in this state.          (c)  Notwithstanding Subsection (b)(3), the department may   issue a license to a hemp testing laboratory located in another   state if the laboratory:                (1)  is licensed in the laboratory's home jurisdiction;                (2)  posts a surety bond as required under this   chapter; and                (3)  otherwise meets the requirements for eligibility   for a hemp testing laboratory license in this state.          Sec. 443A.003.  CONDUCT SURETY BOND. An applicant for or a   holder of a hemp testing laboratory license shall file with the   department a surety bond in the amount of $10,000, conditioned on   the applicant's or license holder's compliance with laws and   regulations relating to hemp and the testing of hemp, consumable   hemp products, and hemp beverages.          Sec. 443A.004.  LICENSE NUMBER. (a) The department shall   issue each licensed hemp testing laboratory a license number.          (b)  A hemp testing laboratory shall put the license number   issued under this section on each certificate of analysis issued by   the laboratory.          Sec. 443A.005.  RESTRICTIONS ON LABORATORY OWNERSHIP OR   INTEREST. (a) A licensed hemp manufacturer, distributor, brewer,   or retailer may not be an owner or manager of a hemp testing   laboratory.          (b)  If a laboratory is publicly traded, a licensed hemp   manufacturer, distributor, brewer, or retailer may not have more   than a 1 percent ownership interest in the laboratory.          Sec. 443A.006.  RULEMAKING. The department shall adopt   rules addressing:                (1)  acceptable testing practices, including testing   standards, compliance with certified good manufacturing processes,   quality control analyses, equipment certification and calibration,   and chemical identification;                (2)  an allowable variance rate for determining the   amount or potency of tetrahydrocannabinols or other cannabinoids in   natural hemp flower, hemp biomass, a consumable hemp product, or a   hemp beverage;                (3)  the threshold for "trace amounts of   tetrahydrocannabinols," including individual or total   tetrahydrocannabinol content, considering current laboratory   testing standards and capabilities;                (4)  corrective measures, root cause analyses,   quarantines of suspect batches, fair notice of unintentional or   negligent violations, destruction of failed batches, documentation   requirements, random hemp testing laboratory assurance checks, and   data-driven quality assurance checks;                (5)  the proper procedure and documentation for   destruction or disposal of natural hemp flower or hemp biomass or of   any extracts or manufactured product that testing shows may not be   sold or introduced into commerce in this state; and                (6)  any other subject the commission considers   necessary to implement this chapter.          Sec. 443A.007.  TESTING REQUIRED. (a) Natural hemp flower,   hemp biomass, a consumable hemp product, or a hemp beverage must be   tested as provided by this section.          (b)  Before natural hemp flower or hemp biomass is processed,   sold, or otherwise used in the manufacture of a consumable hemp   product or hemp beverage, a sample representing the flower or   biomass must be tested, as required by the department, to   determine:                (1)  the presence and concentration of various   cannabinoids;                (2)  the presence and quantity of residual solvents,   heavy metals, pesticides, harmful pathogens, and any other   substance prescribed by commission rule; and                (3)  that the sample contains acceptable levels of the   substances described by Subdivisions (1) and (2) as set by   commission rule.          (c)  The tetrahydrocannabinol testing procedure for natural   hemp flower or hemp biomass under this section must use   post-decarboxylation or a similar method that includes the   conversion of tetrahydrocannabinolic acid into delta-9   tetrahydrocannabinol as described by 7 C.F.R. Part 990.          (d)  Before material extracted from hemp by processing,   other than work in progress, is sold as or offered for sale as a   consumable hemp product or hemp beverage, the material must be   tested as required by the commission to determine:                (1)  the presence of harmful microorganisms; and                (2)  the presence or quantity of:                      (A)  any residual solvents used in processing, if   applicable; and                      (B)  any other substance prescribed by department   rule.          (e)  Before a consumable hemp product or hemp beverage is   sold at retail or otherwise introduced into commerce in this state,   a sample representing each batch of the product or beverage must be   tested to determine that the product or beverage does not contain a   substance described by Subsection (b) or (d) in a quantity   prohibited for purposes of those subsections.          (f)  Upon completion of a test required by Subsection (d) or   (e), the results of the test must be provided to the department in   the manner prescribed by rule.          Sec. 443A.008.  PROVISION OF TEST RESULTS. (a) A person   licensed under Chapter 122, Agriculture Code, shall provide to a   license holder who is processing hemp harvested by the person or   otherwise using that hemp to manufacture a consumable hemp product   or hemp beverage the results of a test conducted under that chapter,   if available, as proof that the delta-9 tetrahydrocannabinol   concentration of the hemp does not exceed 0.3 percent.          (b)  A license holder shall make available to a seller of a   consumable hemp product or hemp beverage processed or manufactured   by the license holder the results of testing required by Section   443A.007. The results may accompany a shipment to the seller or be   made available to the seller electronically. If the results are not   made available, the seller may have the testing required under   Section 443A.007 performed on the product or beverage and shall   make the results available to a consumer.          Sec. 443A.009.  CERTIFICATE OF PRODUCT APPROVAL. (a) The   department shall by rule develop a process by which the holder of a   manufacturer's or brewer's license can apply for a certificate of   product approval for a consumable hemp product or hemp beverage.          (b)  Upon approving a consumable hemp product or hemp   beverage for sale or introduction into commerce in this state, the   department shall issue a certificate of product approval for the   product or beverage and deliver an electronic copy to the   applicant.          (c)  The certificate of product approval issued for a   consumable hemp product or hemp beverage under Subsection (b) must   contain:                (1)  the name and address of the applicant for the   certificate of product approval;                (2)  the trade name of the product and the product type;                (3)  the name and license number for the hemp testing   laboratory that tested the product or beverage;                (4)  the amount of each detectable cannabinoid   contained in the product or beverage; and                (5)  a certification that the contents of the product   or beverage are in compliance with the applicable limit established   by Section 59.10 or 320.005, as applicable.          SECTION 107.  Section 60.002, Occupations Code, is amended   to read as follows:          Sec. 60.002.  REQUIREMENTS FOR DIGITAL LICENSES. A   licensing authority that issues an occupational license may issue a   digital license to a license holder. If the licensing authority   issues a digital license, the digital license must comply with the   following requirements:                (1)  the digital license must be in a secure format and   readily accessible by the license holder through an Internet   website and on a wireless communication device;                (2)  the public must be able to view a license holder's   digital license through an Internet website or by using a QR code as   defined by Section 1.04, Alcoholic Beverage [443.001, Health and   Safety] Code; and                (3)  if the authority contracts with a vendor for the   issuance of a digital license, the digital license must be in a   format in which the vendor and authority can verify the validity of   the license.          SECTION 108.  Subchapter A, Chapter 183, Tax Code, is   amended by adding Section 183.002 to read as follows:          Sec. 183.002.  CERTAIN HEMP BEVERAGES. For purposes of this   chapter and Section 151.308, a mixed beverage includes a hemp   beverage as defined by Section 1.04, Alcoholic Beverage Code.          SECTION 109.  Section 543.004(a), Transportation Code, is   amended to read as follows:          (a)  An officer shall issue a written notice to appear if:                (1)  the offense charged is:                      (A)  speeding;                      (B)  the use of a wireless communication device   under Section 545.4251; or                      (C)  a violation of an [the] open container law   under[,] Section 49.031, Penal Code, or Section 340.107, Alcoholic   Beverage Code; and                (2)  the person makes a written promise to appear in   court as provided by Section 543.005.          SECTION 110.  Section 545.420(e), Transportation Code, is   amended to read as follows:          (e)  An offense under Subsection (a) is a Class A misdemeanor   if it is shown on the trial of the offense that:                (1)  the person has previously been convicted one time   of an offense under that subsection; or                (2)  the person, at the time of the offense:                      (A)  was operating the vehicle while intoxicated,   as defined by Section 49.01, Penal Code; or                      (B)  was in possession of an open container, as   defined by Section 49.031, Penal Code, or Section 340.107,   Alcoholic Beverage Code.          SECTION 111.  The following are repealed effective January   1, 2026:                (1)  Chapter 443, Health and Safety Code;                (2)  Section 431.001(c);                (3)  Section 122.151(b), Agriculture Code; and                (4)  Section 122.152, Agriculture Code.          SECTION 112.  As soon as practicable after the effective   date of this Act, the Texas Department of Agriculture, the Texas   Alcoholic Beverage Commission, and the Department of State Health   Services shall adopt rules as required by this Act.          SECTION 113.  (a) On January 1, 2026, the following are   transferred from the Department of State Health Services to the   Texas Alcoholic Beverage Commission:                (1)  the powers, duties, and functions of the   Department of State Health Services under Title 7, Alcoholic   Beverage Code, as added by this Act; and                (2)  all property and records in the custody of the   Department of State Health Services that are related to a power,   duty, or function transferred under this Act and all funds   appropriated by the legislature for that power, duty, or function.          (b)  A rule, form, policy, procedure, or decision of the   Department of State Health Services related to a power, duty, or   function transferred under this Act continues in effect as a rule,   form, policy, procedure, or decision of the Texas Alcoholic   Beverage Commission and remains in effect until amended or replaced   by that agency. Notwithstanding any other law, beginning September   1, 2025, the Texas Alcoholic Beverage Commission may propose rules,   forms, policies, and procedures related to a function to be   transferred to the commission under this Act.          SECTION 114.  Effective November January 1, 2026, a person   holding a license, permit, or registration issued under Chapter   443, Health and Safety Code, may continue to operate under that   license, permit, or registration until that license, permit, or   registration expires. The Department of State Health Services may   not renew a license, permit, or registration unless it complies   with this Act.          SECTION 115.  If some or all of the provisions of this Act   are ever temporarily or permanently restrained or enjoined by   judicial order, all other provisions of Texas law regulating or   restricting hemp, consumable hemp products, and hemp beverages   shall be enforced as though the restrained or enjoined provisions   had not been adopted; provided, however, that whenever the   temporary or permanent restraining order or injunction is stayed or   dissolved, or otherwise ceases to have effect, the provisions shall   have full force and effect.          SECTION 116.  (a) This Act takes effect January 1, 2026.