By: Cain, Rosenthal, King of Uvalde, Toth, H.B. No. 2818       Bernal, et al.     A BILL TO BE ENTITLED   AN ACT   relating to the production and regulation of hemp; providing an   administrative penalty; requiring a permit to conduct certain   research involving hemp; authorizing a fee; creating a criminal   offense.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 41.002(1), Agriculture Code, is amended   to read as follows:                (1)  "Agricultural commodity" means an agricultural,   horticultural, viticultural, or vegetable product, bees and honey,   planting seed, rice, hemp, livestock or livestock product, or   poultry or poultry product, produced in this state, either in its   natural state or as processed by the producer. The term does not   include flax.          SECTION 2.  Section 121.003, Agriculture Code, is amended by   adding Subsection (e) to read as follows:          (e)  Not later than the 120th day after the date a change to a   state statute, federal statute, or federal regulation takes effect,   the department shall submit to the secretary of the United States   Department of Agriculture any amendments to the state plan   necessary to incorporate and implement the change.          SECTION 3.  Section 122.001, Agriculture Code, is amended by   amending Subdivision (5) and adding Subdivision (8-a) to read as   follows:                (5)  "Institution of higher education" and "private or   independent institution of higher education" have [has] the   meanings [meaning] assigned by Section 61.003, Education Code.                (8-a)  "Nonprofit research entity" means a research   entity that is a nonprofit corporation, nonprofit association, or   other entity that is organized solely for one or more of the   purposes specified by Section 2.002, Business Organizations Code.          SECTION 4.  Subchapter A, Chapter 122, Agriculture Code, is   amended by adding Section 122.005 to read as follows:          Sec. 122.005.  HEMP RESEARCH PERMIT. (a) The department   shall issue a hemp research permit to an institution of higher   education, private or independent institution of higher education,   or nonprofit research entity in this state that requests the   permit.  The entity must submit to the department a fee in an amount   equal to the application fee for a license, as provided by Section   122.052.          (b)  Notwithstanding any provision of this chapter or   department rule other than Subsection (c), a hemp research permit   holder:                (1)  is not required to obtain from the department a lot   crop permit or other permit for each location where hemp is grown;                (2)  is not required to obtain preharvest testing under   Section 122.153 before harvesting plants, except as provided by   Subsection (c);                (3)  may cultivate and handle varieties of hemp seed   and plants that are not certified or approved under Section   122.252;                (4)  may collect and research feral hemp; and                (5)  is not subject to Section 122.403(c) or (d).          (c)  A hemp research permit holder may only sell or transfer   hemp to another person if the variety of the hemp is certified or   approved under Section 122.252 and the sale or transfer occurs at   least six months after the hemp is harvested.          (d)  A hemp research permit holder may conduct research   involving hemp in conjunction with a license holder at a facility   designated by the license holder for research use only.          (e)  Subsections (b) and (c) apply to a license holder and   facility described by Subsection (d).          SECTION 5.  Section 122.051, Agriculture Code, is amended by   adding Subsections (c) and (d) to read as follows:          (c)  Not later than the 90th day after the date a change to   this chapter, a federal statute, or a federal regulation takes   effect, the department shall propose any rules necessary to   incorporate and implement the change.          (d)  This chapter, Chapter 121, and any rule adopted by the   department to incorporate or implement a federal statute or federal   regulation may not be construed in a manner that is inconsistent   with 7 U.S.C. Chapter 38, Subchapter VII, or any other applicable   federal law or rule.          SECTION 6.  Section 122.055, Agriculture Code, is amended by   adding Subsection (c-1) to read as follows:          (c-1)  The department by rule may adopt a different shipping   certificate, cargo manifest, or other requirement for the shipment   or transportation of a sample of hemp to:                (1)  a testing laboratory; or                (2)  another destination if the sample contains not   more than an amount of hemp as determined by the department by rule   and is accompanied by the results of a laboratory test indicating   the delta-9 tetrahydrocannabinol concentration of the lot or plot   from which the sample was taken.          SECTION 7.  Section 122.102, Agriculture Code, is amended to   read as follows:          Sec. 122.102.  LICENSE AND HEMP RESEARCH PERMIT   INELIGIBILITY. (a) An individual who is or has been convicted of a   felony relating to a controlled substance under federal law or the   law of any state may not, before the 10th anniversary of the date of   the conviction:                (1)  hold a license under this subchapter or a hemp   research permit under Subchapter A; or                (2)  be a governing person of a business entity or   nonprofit research entity that holds a license under this   subchapter or a hemp research permit under Subchapter A.          (b)  The department may not issue a license under this   subchapter or a hemp research permit under Subchapter A to a person   who materially falsifies any information contained in an   application submitted to the department under Section 122.005 or   122.103.          SECTION 8.  Section 122.151, Agriculture Code, is amended by   adding Subsection (g) to read as follows:          (g)  A laboratory that performs testing required by this   chapter shall report the delta-9 tetrahydrocannabinol   concentration, the total tetrahydrocannabinol concentration, and   the concentration of any other cannabinoid federally regulated   under 7 U.S.C. Chapter 38, Subchapter VII, of the sample on a dry   weight basis and the measurement of uncertainty in the test result.     The measurement of uncertainty must comply with International   Organization for Standardization ISO/IEC 17025 or a comparable or   successor standard and any provisions of federal law governing the   measurement of uncertainty.          SECTION 9.  Subchapter E, Chapter 122, Agriculture Code, is   amended by adding Section 122.203 to read as follows:          Sec. 122.203.  HARVEST WHILE LICENSE SUSPENDED OR REVOKED.   (a) A person whose license is suspended or revoked after planting   hemp plants may obtain preharvest or postharvest testing under   Subchapter D and may harvest the plants under Section 122.201 in the   same manner as a license holder.          (b)  The department by rule shall establish fair and   objective standards for determining whether a person whose license   is suspended or revoked may use or sell plants harvested under   Subsection (a), based on the circumstances of the suspension or   revocation.  Based on those rules, the department may prohibit a   person from selling or using plants harvested under Subsection (a)   while the person's license is suspended or revoked.          (c)  A person whose license is reinstated may sell or use   plants harvested under Subsection (a) as provided by Section   122.202.          SECTION 10.  The heading to Subchapter F, Chapter 122,   Agriculture Code, is amended to read as follows:   SUBCHAPTER F.  HEMP SEED AND PLANTS          SECTION 11.  Section 122.252, Agriculture Code, is amended   to read as follows:          Sec. 122.252.  CERTIFICATION OR APPROVAL OF SEED AND PLANT   VARIETIES.  (a)  Subject to Subsection (b), the [The] department or   an entity authorized to certify seed and plants under Chapter 62   shall identify and certify or approve varieties of seed and plants   confirmed to produce hemp.          (b)   The department or entity may not certify or approve a   variety of hemp seed or plant if the variety [seed] is tested and   confirmed to produce a plant that has delta-9 tetrahydrocannabinol   concentration of more than 0.3 percent on a dry weight basis. For   purposes of this subsection, the department may partner with a   private entity or an institution of higher education to test seed   and plant varieties for the purpose of certification or approval   under this section.          (c)  The department may authorize the importation of hemp   seed and plant varieties certified in accordance with the law of   another state or jurisdiction that requires as a condition of   certification that hemp be produced in compliance with:                (1)  that state or jurisdiction's plan approved by the   United States Department of Agriculture under 7 U.S.C. Section   1639p; or                (2)  a plan established under 7 U.S.C. Section 1639q if   that plan applies in the state or jurisdiction.          (d)  The department shall maintain and make available to   license holders a list of hemp seed and plant varieties [seeds]   certified or approved under this section.          SECTION 12.  Subchapter F, Chapter 122, Agriculture Code, is   amended by adding Section 122.254 to read as follows:          Sec. 122.254.  SEEDLINGS AND OTHER IMMATURE PLANTS. (a)  A   person may transport into this state, and a license holder may   obtain and cultivate, immature plants propagated outside this state   if the plants are accompanied by shipping documentation that:                (1)  complies with any requirements of the state of   origin;                (2)  indicates the grower of the immature plants is   licensed by the state of origin;                (3)  lists the recipient license holder in this state   and the recipient's license number; and                (4)  shows that the variety of the immature plants is   certified or approved under Section 122.252.          (b)  A license holder may obtain and cultivate immature   plants propagated in this state by another license holder if the   plants are accompanied by the shipping certificate or cargo   manifest required by Section 122.055 that shows that the variety of   the immature plants is certified or approved under Section 122.252.     The immature plants are not subject to preharvest testing under   Section 122.153.  The license holder shall maintain records, as   required by the department, that match the lot crop permit number   issued by the department for the location where the immature plants   were propagated with the lot crop number for the location where the   plants were cultivated.          (c)  A license holder may transplant immature plants   propagated by the license holder from one plot to another plot   controlled by the license holder.  The department by rule shall   waive the requirement that a license holder obtain a lot crop permit   for and may not require a license holder to pay any fee for a   greenhouse or other location used to propagate immature plants if   the plants are transplanted to another plot controlled by the   license holder and are not sold or transferred to another person.     The department by rule may waive the requirement that a person   obtain a shipping certificate or cargo manifest to transplant   immature plants from one plot to another plot operated by the   license holder.          (d)  The department by rule shall define "immature plant."          SECTION 13.  Section 122.403, Agriculture Code, is amended   by amending Subsection (a) and adding Subsection (e) to read as   follows:          (a)  If the department determines that a license holder   negligently violated this chapter or a rule adopted under this   chapter, the department shall enforce the violation in the manner   provided by 7 U.S.C. Section 1639p(e) and 7 C.F.R. Section 990.6.          (e)  A license holder is not subject to more than one   negligent violation related to cultivation per calendar year.          SECTION 14.  Subchapter I, Chapter 122, Agriculture Code, is   amended by adding Sections 122.4034 and 122.4035 to read as   follows:          Sec. 122.4034.  ADMINISTRATIVE PENALTY FOR CULTIVATING HEMP   WITHOUT A LICENSE. On determining that a person violated Section   122.101, the department may:                (1)  issue a written warning to the person;                (2)  impose an administrative penalty in the amount of   $500; and                (3)  require the person to obtain a license.          Sec. 122.4035.  PENALTY FOR CULTIVATING HEMP WITHOUT A   LICENSE; CRIMINAL OFFENSE. (a) A person commits an offense if the   person:                (1)  violates Section 122.101; and                (2)  has received an administrative penalty under   Section 122.4034 for a previous violation of Section 122.101.           (b)  An offense under this section is a Class C misdemeanor,   except that the offense is:                (1)  a Class B misdemeanor if it is shown on the trial   of the offense that the person has previously been convicted one   time of an offense under this section; and                (2)  a Class A misdemeanor if it is shown on the trial   of the offense that the person has previously been convicted two or   more times of an offense under this section.          SECTION 15.  Section 122.403, Agriculture Code, as amended   by this Act, and Sections 122.4034 and 122.4035, Agriculture Code,   as added by this Act, apply only to conduct that occurs on or after   the effective date of this Act. Conduct that occurred before that   date is governed by the law in effect when the conduct occurred, and   the former law is continued in effect for that purpose.          SECTION 16.  This Act takes effect September 1, 2023.