By: Perry S.B. No. 2952               A BILL TO BE ENTITLED   AN ACT   relating to the regulation of hemp and nonconsumable hemp products;   increasing a criminal penalty; increasing a civil penalty and   providing other penalties; requiring an occupational license;   imposing and authorizing certain fees.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 12.020(c), Agriculture Code, is amended   to read as follows:          (c)  The provisions of law subject to this section and the   applicable penalty amounts are as follows:       Provision Amount of Penalty   Chapters 13, 14A, 18, 19, 41, 46, 61, 72, 73, not more than $5,000   74, 76, 94, 95, 101, 102, 103, 122, 123, 125,     132, and 134       Subchapters A, B, and C, Chapter 71 not more than $5,000   Chapter 14 not more than $10,000   Chapter 1951, Occupations Code not more than $5,000   Chapter 153, Natural Resources     Code not more than $5,000   Section 91.009 not more than $5,000.          SECTION 2.  Section 121.002, Agriculture Code, is amended to   read as follows:          Sec. 121.002.  LEGISLATIVE FINDINGS; INTENT. (a) The   legislature finds that nothing in 7 U.S.C. Section 1639p:                (1)  preempts or limits any law of this state that:                      (A)  regulates the production of hemp; or                      (B)  is more stringent than 7 U.S.C. Section 1639o   et. seq.; or                (2)  prohibits the production of hemp in this state, if   the production of hemp is not otherwise prohibited by this state.          (b)  It is the intent of the legislature that this state have   primary regulatory authority over the production of hemp in this   state.          (c)  It is the intent of the legislature that the statutory   definition of hemp shall not include any material that is not itself   naturally created in the plant Cannabis sativa L.          (d)  It is the intent of the legislature that the word   "derivatives" in the definition of hemp shall refer only to first   order derivatives of the plant Cannabis sativa L.          SECTION 3.  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)  Chapters [Chapter] 122 and 123; and                (3)  Chapter 443, Health and Safety Code.          SECTION 4.  Section 122.001, Agriculture Code, is amended to   read as follows:          Sec. 122.001.  DEFINITIONS.  In this chapter:                (1)  "Cultivate" means to plant, irrigate, cultivate,   or harvest a hemp plant.                (2)  "Delta-9 tetrahydrocannabinol concentration"   shall be established by:                      (A)  a procedure for testing a sample using post   decarboxylation, such that all delta-9 tetrahydrocannabinolic acid   in the sample, where applicable, has been converted to delta-9   tetrahydrocannabinol, thereby identifying the total percentage by   weight of delta-9 tetrahydrocannabinol, on a dry weight basis; or                       (B)  a procedure for testing a sample using a   conversion factor, by identifying the sum of the percentage by   weight, on a dry weight basis where applicable, of delta-9   tetrahydrocannabinolic acid multiplied by 0.877 plus the   percentage by weight, on a dry weight basis where applicable, of   delta-9 tetrahydrocannabinol, to calculate the total percentage by   weight of delta-9 tetrahydrocannabinol, on a dry weight basis.                (3)  "Disposal" means an activity that irreversibly   transitions a non-compliant substance into a non-retrievable and   non-ingestible form that is unfit to enter the stream of commerce.                (4)  "Dry weight basis" means a basis for expressing   the percentage of a chemical in a substance after removing the   moisture from the substance.                 (5)  "Governing person" has the meaning assigned by   Section 1.002, Business Organizations Code.                (6) [(3)]  "Handle" means to possess, manipulate, or   store a hemp plant:                      (A)  at a licensed location [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 licensed location   [premises owned, operated, or controlled by a license holder] to:                            (i)  a licensed location of [premises owned,   operated, or controlled by] another license holder; [or]                            (ii)  a person licensed under Chapter 123;   or                            (iii)  a person licensed under Chapter 443,   Health and Safety Code.                (7) [(4)]  "Hemp" has the meaning assigned by Section   121.001.                (8) [(5)]  "Institution of higher education" has the   meaning assigned by Section 61.003, Education Code.                (9) [(6)]  "License" means a hemp grower's license   issued under Subchapter C.                (10) [(7)]  "License holder" means an individual or   business entity holding a license.                (11)  "Licensed location" means a premises at which a   license holder operates a license issued under this chapter.                 (12) [(8)]  "Nonconsumable hemp product" means a   product that contains hemp, other than a consumable hemp product as   defined by Section 443.001, Health and Safety Code. The term   includes cloth, cordage, fiber, fuel, paint, paper, particleboard,   and plastics containing [derived from] hemp.                (13) [(9)]  "Plot" means a contiguous area in a field,   greenhouse, or indoor growing structure containing the same variety   or cultivar of hemp throughout the area.                (14)  "Tetrahydrocannabinol" means any   tetrahydrocannabinol, including its salts, isomers, and salts of   isomers whenever the existence of such salts, isomers, or salts of   isomers is possible within the specific chemical designation.                (15)  "Total tetrahydrocannabinol concentration" shall   be established by:                      (A)  a procedure for testing a sample using post   decarboxylation, such that all tetrahydrocannabinolic acids in the   sample, where applicable, have been converted to   tetrahydrocannabinols, thereby identifying the total percentage by   weight of tetrahydrocannabinols, on a dry weight basis; or                       (B)  a procedure for testing a sample using a   conversion factor, by identifying the sum of the percentage by   weight, on a dry weight basis where applicable, of   tetrahydrocannabinolic acids multiplied by 0.877 plus the   percentage by weight, on a dry weight basis where applicable, of   tetrahydrocannabinols, to calculate the total percentage by weight   of tetrahydrocannabinols, on a dry weight basis.          SECTION 5.  Subchapter A, Chapter 122, Agriculture Code, is   amended by adding Section 122.005 to read as follows:          Sec. 122.005.  APPLICABILITY OF CHAPTER. This chapter does   not apply to a patient, organization, person, product, or activity   regulated under Chapter 487, Health and Safety Code.          SECTION 6.  Sections 122.052(a) and (b), Agriculture Code,   are amended to read as follows:          (a)  The department shall set and collect:                (1)  an application fee for an initial license in an   amount not to exceed $100;                (2)  a license renewal fee in an amount not to exceed   $100;                (3)  a participation fee for each location described by   Section 122.103 [122.103(a)(1) and each location added after the   application is submitted] in an amount not to exceed $100;                (4)  a site modification fee for each change to a   location described by Section 122.103 [122.103(a)(1)] in an amount   not to exceed $500; [and]                (5)  a collection and testing fee for each preharvest   test or postharvest test if performed by the department in an amount   not to exceed $300; and                (6)  any other fee the department determines necessary.          (b)  [A fee set by the department under this section may not   exceed the amount necessary to administer this chapter.] The   comptroller may authorize the department to collect a fee described   by Subsection (a) in an amount greater than the maximum amount   provided by that subsection if necessary to cover the department's   costs of administering this chapter.          SECTION 7.  Sections 122.053(b), (c), and (d), Agriculture   Code, are amended to read as follows:          (b)  The department may enter onto land described by Section   122.103 [122.103(a)(1)], conduct inspections, and collect and test   plant samples.          (c)  Using [participation] fees set and collected under   Section 122.052 [122.052(a)(3)], the department shall pay the cost   of inspections under this section.          (d)  The Department of Public Safety or a state or local law   enforcement agency may inspect, collect samples from, or test   plants from any portion of a plot to ensure compliance with this   chapter. A license holder shall allow the Department of Public   Safety or a state or local law enforcement agency access to the plot   and the property on which the plot is located for purposes of this   subsection.          SECTION 8.  Section 122.054, Agriculture Code, is amended to   read as follows:          Sec. 122.054.  SAMPLE COLLECTION AND TESTING. (a) The   department may collect samples and perform testing or contract with   a laboratory for the performance of that collection and testing on   behalf of the department. A test performed by a laboratory on   behalf of the department is considered to be performed by the   department for purposes of this chapter.          (b)  Testing for delta-9 tetrahydrocannabinol concentration   performed under this section must consider the conversion of any   quantifiable tetrahydrocannabinolic acid into   tetrahydrocannabinol.          (c)  A test result showing a delta-9 tetrahydrocannabinol   concentration of more than 0.3 percent is conclusive evidence that   the substance represented by the sample is not compliant and is   therefore not hemp.          SECTION 9.  Sections 122.055(a) and (b), Agriculture Code,   are amended to read as follows:          (a)  The department shall develop a shipping certificate or   cargo manifest which the department shall issue to a license holder   in connection with the transportation of a shipment of hemp [plant   material] originating in this state, other than sterilized seeds   that are incapable of beginning germination.          (b)  A certificate or manifest developed under Subsection   (a) must include a unique identifying number for the shipment and   the department's contact information to allow law enforcement   during a roadside inspection of a motor vehicle transporting the   shipment to verify that the shipment consists of hemp [cultivated]   in compliance with this chapter.          SECTION 10.  Section 122.101(a), Agriculture Code, is   amended to read as follows:          (a)  Except as provided by Subsection (b), a person [or the   person's agent] may not cultivate or handle hemp in this state [or   transport hemp outside of this state] unless the person holds a   license under this subchapter.          SECTION 11.  Section 122.102, Agriculture Code, is amended   by adding Subsection (c) to read as follows:          (c)  An individual who is not a legal citizen of the United   States of America may not:                (1)  hold a license under this subchapter; or                (2)  be a governing person or owner of a business entity   that holds a license under this subchapter.          SECTION 12.  Section 122.103, Agriculture Code, is amended   by amending Subsection (a) and adding Subsections (d) and (e) 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)  the application fee; [and]                (4)  a description of the intended use and crop type of   the hemp plant the applicant intends to cultivate, which must be   described as:                      (A)  an industrial use, which must be further   described as one of the following crop types:                            (i)  "grain hemp crop";                            (ii)  "fiber hemp crop";                            (iii)  "seed hemp crop"; or                            (iv)  a hybrid of the crop types described by   Subparagraphs (i)-(iii); or                      (B)  a cannabinoid use, which must be further   described as one of the following crop types:                            (i)  "floral hemp crop"; or                            (ii)  "other hemp crop";                (5)  a description of the growing conditions of the   location where the applicant intends to cultivate or handle hemp,   which must be described as:                      (A)  "under protection"; or                      (B)  "in the open"; and                (6)  any other information required by department rule.          (d)  The department may only issue a license to an applicant   for a location that is at least one-half acre and with a requirement   to plant not less than:                      (A)  for a location that is in the open, 300   plants; or                      (B)  for a location that is under protection, 100   plants.          (e)  The department may not:                (1)  consider an incomplete application; or                (2)  issue a license to a person with a history of   willful noncompliance of any laws related to hemp in any   jurisdiction.          SECTION 13.  Section 122.152, Agriculture Code, is amended   by amending Subsection (b) and adding Subsection (e) to read as   follows:          (b)  A laboratory is eligible for registration if the   laboratory:                (1)  is registered with the Federal Drug Enforcement   Agency; and                (2)  submits to the department proof of accreditation   by an independent accreditation body in accordance with   International Organization for Standardization ISO/IEC 17025 or a   comparable or successor standard and any required fee.          (e)  The department shall revoke a laboratory's registration   if the department identifies a pattern of inconsistent results in   the laboratory's testing.          SECTION 14.  Section 122.202, Agriculture Code, is amended   by amending Subsection (b) and adding Subsections (c), (d), and (e)   to read as follows:          (b)  Except as provided by this section, if [If] the results   of a preharvest and, if applicable, postharvest test performed on a   sample show a delta-9 tetrahydrocannabinol concentration of more   than 0.3 percent on a dry weight basis,[:                [(1)]  the license holder shall dispose of or destroy   all plants represented by the sample:                (1) [(A)]  in the manner prescribed by federal law;   [or]                (2)  using a reverse distributor registered with the   Federal Drug Enforcement Agency [(B) in a manner approved by the   department that does not conflict with federal law]; or                (3)  at the licensed location, if:                      (A)  the license holder notifies the department of   the license holder's intent to dispose of or destroy the plants;                      (B)  the department approves of the disposal or   destruction; and                      (C)  the license holder submits documentation to   the department of the disposal or destruction in the manner   prescribed by the department, including by submitting videos or   photographs of the disposal or destruction or by allowing a   department representative to witness the disposal or destruction.          (c)  A license holder may remediate plants represented by a   preharvest sample described by Subsection (b) if:                (1)  [(2)  if] the department determines the plants   represented by the sample reached that concentration solely as a   result of negligence;                (2)  the type of hemp seed planted by the license holder   was:                      (A)  certified or approved under Section 122.252   as "grain hemp crop", "fiber hemp crop", "seed hemp crop" or a   hybrid of such crop types; and                      (B)  reported as "grain hemp crop", "fiber hemp   crop", "seed hemp crop" or a hybrid of such crop types on the   license holder's application for a license under Section 122.103;                (3)  the license holder is contracted to sell the   plants to a nonconsumable hemp product manufacturer in this state;   and                (4)  the license holder fulfills any other department   requirements [, the license holder is subject to Section 122.403(c)   and may:                      [(A) trim the plants until the delta-9   tetrahydrocannabinol concentration of the plants is not more than   0.3 percent on a dry weight basis and dispose of the noncompliant   parts of the plants in a manner approved by the department;                      [(B) process the plants into fiber with a delta-9   tetrahydrocannabinol concentration of not more than 0.3 percent on   a dry weight basis and dispose of any remaining parts of the plants   in a manner approved by the department; or                      [(C) take any other corrective action consistent   with federal regulations adopted under 7 U.S.C. Chapter 38,   Subchapter VII].          (d)  A license holder described by Subsection (c) may   remediate the plants by:                (1)  separating and disposing of or destroying flower   or floral material, including buds and trichomes, and retaining the   stalks, fibers, grain, or seed of the plants;                (2)  properly raking and retting the plants for a   minimum of 30 days to dispose of or destroy flower or floral   material; or                (3)  remediating in another similar method that   disposes of or destroys any flower or floral material containing   tetrahydrocannabinol and that is approved by the department.          (e)  Plants remediated under this section must undergo   postharvest testing to ensure the plants have a delta-9   tetrahydrocannabinol concentration of not more than 0.3 percent   before the hemp enters the stream of commerce.          SECTION 15.  Subchapter E, Chapter 122, Agriculture Code, is   amended by adding Section 122.203 to read as follows:          Sec. 122.203.  PLANTING AND HARVESTING VERIFICATION. (a)   Not later than the 30th day after a license holder plants hemp   authorized under the license, the license holder shall submit to   the department, in the manner prescribed by the department:                (1)  the amount, type, and variety of each hemp seed   planted; and                (2)  a description of the plot where the seeds were   planted.          (b)  Not later than the 30th day after a license holder   harvests hemp plants, the license holder shall submit to the   department, in the manner prescribed by the department:                (1)  the amount, type, and variety of each hemp plant   harvested; and                (2)  a description of the plot where the plants were   harvested.          (c)  The department may conduct an inspection of a location   indicated on any document submitted under this section.          SECTION 16.  Section 122.252, Agriculture Code, is amended   by amending Subsection (d) and adding Subsection (e) to read as   follows:          (d)  The department shall maintain and make available to the   general public [license holders] a list of hemp seeds certified or   approved under this section. The list must be published on the   department's Internet website, updated regularly, and include for   each approved seed:                (1)  an identification number for each seed;                (2)  the sex, source, and photoperiod of each seed;                (3)  the intended use and crop type produced by the   seed, described as:                      (A)  an industrial use, which must be further   described as one of the following crop types:                            (i)  "grain hemp crop";                            (ii)  "fiber hemp crop";                            (iii)  "seed hemp crop"; or                            (iv)  a hybrid of the crop types described by   Subparagraphs (i)-(iii); or                      (B)  a cannabinoid use, which must be further   described as one of the following crop types:                            (i)  "floral hemp crop"; or                            (ii)  "other hemp crop";                (4)  any other information the department determines   relevant to differentiate between seed types; and                (5)  to the extent possible, information and best   practices to ensure hemp grown and harvested from the seed complies   with this chapter.          (e)  If a variety of hemp seed approved or certified by the   department under this section produces multiple harvest batches   that yield a delta-9 tetrahydrocannabinol concentration of more   than 0.3 percent, the department shall:                (1)  for a variety of hemp seed that produces plants   that have a delta-9 tetrahydrocannabinol concentration of more than   0.3 percent but not more than 1.0 percent when harvested, suspend   the approval or certification of the seed and conduct a review to   evaluate if the seed should be removed from the list of approved or   certified hemp seeds; or                (2)  for a variety of hemp seed that produces plants   that have a delta-9 tetrahydrocannabinol concentration of more than   1.0 percent when harvested, remove the seed from the list of   approved or certified hemp seeds.          SECTION 17.  Chapter 122, Agriculture Code, is amended by   adding Subchapter G-1 to read as follows:   SUBCHAPTER G-1. DISTRIBUTION AND SALE          Sec. 122.3011.  HEMP RESTRICTIONS. A person may not   distribute, deliver, sell, purchase, or otherwise introduce into   the stream of commerce in this state hemp:                (1)  that has not been tested in accordance with the   requirements of Subchapter D; and                (2)  that is not accompanied by documentation that   includes:                      (A)  the company name and physical address for the   location where the hemp was produced;                      (B)  the delta-9 tetrahydrocannabinol   concentration of the hemp; and                      (C)  the total tetrahydrocannabinol concentration   of the hemp.          SECTION 18.  Section 122.354, Agriculture Code, is amended   to read as follows:          Sec. 122.354.  DEPARTMENT RULES. The department, in   consultation with the Department of Public Safety, shall adopt   rules regulating the transportation of hemp in this state to ensure   that illegal marihuana and illegal marihuana extract are [is] not   transported into, [or] through, or out of this state disguised as   legal hemp.          SECTION 19.  Section 122.356, Agriculture Code, is amended   to read as follows:          Sec. 122.356.  DOCUMENTATION AND OTHER SHIPPING   REQUIREMENTS. (a) A person may not transport or receive 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 produced [cultivated] in an area where that   plan applies; and                (2)  is accompanied by a label clearly identifying the   hemp as hemp and:                      (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 produced, the delta-9   tetrahydrocannabinol concentration of the hemp, the total   tetrahydrocannabinol concentration of the hemp, [cultivated] and a   statement that the hemp was produced in compliance with 7 U.S.C.   Section 1639p or 7 U.S.C. Section 1639q [7 U.S.C. Chapter 38,   Subchapter VII], if the hemp originated outside this state.          (b)  A person transporting hemp [plant material] in this   state:                (1)  may not concurrently transport any cargo that is   not hemp [plant material]; and                (2)  shall furnish the documentation required by this   section to the department or any peace officer on request.          (c)  A person may not transport or receive hemp in this state   if the hemp is not accompanied by a label that includes:                (1)  contact information of the department;                (2)  the date and time of the departure of the hemp   shipment from the place of origin for the hemp;                (3)  the quantity and form of hemp being transported;                (4)  the delta-9 tetrahydrocannabinol concentration of   the hemp;                 (5)  the total tetrahydrocannabinol concentration of   the hemp; and                (6)  any other information required by the department   or the Department of Public Safety.          SECTION 20.  Sections 122.358(c) and (d), Agriculture Code,   are amended to read as follows:          (c)  If a peace officer has probable cause to believe that a   person transporting hemp in this state is also transporting   marihuana, marihuana extract, a controlled substance analogue, or a   controlled substance, as defined by Section 481.002, Health and   Safety Code, or any other illegal substance under state or federal   law, the peace officer may seize and impound the hemp along with the   controlled or illegal substance.          (d)  This subchapter does not limit or restrict a peace   officer from enforcing to the fullest extent the laws of this state   regulating marihuana, marihuana extract, controlled substance   analogues, and controlled substances, as defined by Section   481.002, Health and Safety Code.          SECTION 21.  Section 122.359(a), Agriculture Code, is   amended to read as follows:          (a)  A person who violates Section 122.356 is liable to this   state for a civil penalty in an amount not to exceed $5,000 [$500]   for each violation.          SECTION 22.  Section 122.360(b), Agriculture Code, is   amended to read as follows:          (b)  An offense under this section is a Class B misdemeanor   [punishable by a fine of not more than $1,000].          SECTION 23.  Sections 122.403(a) and (c), Agriculture Code,   are amended 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 Section 122.404 and 7 U.S.C. Section 1639p(e).          (c)  A license holder who violates this chapter by   cultivating plants with a delta-9 tetrahydrocannabinol   concentration of more than 0.3 percent on a dry weight basis solely   as a result of negligence [described by Section 122.202(b)(2)]:                (1)  must comply with an enhanced testing protocol   developed by the department;                (2)  shall pay a fee in the amount not exceeding $1,000   [of $500] for each violation to cover the department's costs of   administering the enhanced testing protocol; and                (3)  shall be included on a list maintained by the   department of license holders with negligent violations, which is   public information for purposes of Chapter 552, Government Code.          SECTION 24.  Subchapter I, Chapter 122, Agriculture Code, is   amended by adding Section 122.405 to read as follows:          Sec. 122.405.  FORFEITURE. A person who sells or   distributes a substance with a delta-9 tetrahydrocannabinol   concentration of more than 0.3 percent on a dry weight basis is   subject to forfeiture of contraband under Chapter 59, Code of   Criminal Procedure, and Chapter 481, Health and Safety Code.          SECTION 25.  Subtitle F, Title 5, Agriculture Code, is   amended by adding Chapter 123 to read as follows:   CHAPTER 123. MANUFACTURE, DISTRIBUTION, AND SALE OF NONCONSUMABLE   HEMP PRODUCTS   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 123.001.  DEFINITIONS. In this chapter:                (1)  "Consumable hemp product" has the meaning assigned   by Section 443.001, Health and Safety Code.                (2)  "Dry weight basis" has the meaning assigned by   Section 122.001.                (3)  "Hemp" has the meaning assigned by Section   121.001.                (4)  "Institution of higher education" has the meaning   assigned by Section 61.003, Education Code.                (5)  "License" means a nonconsumable hemp product   manufacturer's license issued under this chapter.                (6)  "License holder" means an individual or business   entity holding a nonconsumable hemp product manufacturer's license   under this chapter.                (7)  "Nonconsumable hemp product" has the meaning   assigned by Section 122.001.                (8)  "Smoking" has the meaning assigned by Section   443.001, Health and Safety Code.                (9)  "Tetrahydrocannabinol" has the meaning assigned   by Section 122.001.          Sec. 123.002.  LEGISLATIVE INTENT. It is the intent of the   legislature to create a robust market for the production of fiber   hemp crops and the manufacturing of nonconsumable hemp products in   this state.          Sec. 123.003.  LOCAL REGULATION PROHIBITED. A municipality,   county, or other political subdivision may not enact, adopt, or   enforce a rule, ordinance, order, resolution, or other regulation   that prohibits the processing of hemp for use in the manufacturing   of a nonconsumable hemp product, or the manufacturing or sale of   nonconsumable hemp products as authorized by this chapter.          Sec. 123.004.  SEVERABILITY. (a) A provision of this   chapter or its application to any person or circumstance is invalid   if the secretary of the United States Department of Agriculture   determines that 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.          (b)  The invalidity of a provision or application under   Subsection (a) does not affect the other provisions or applications   of this chapter that can be given effect without the invalid   provision or application, and to this end the provisions of this   chapter are declared to be severable.   SUBCHAPTER B. POWERS AND DUTIES          Sec. 123.051.  DEPARTMENT RULES AND PROCEDURES. (a) The   department shall adopt rules and procedures necessary to implement,   administer, and enforce this chapter.          (b)  Rules adopted under Subsection (a) must comply with:                (1)  a state plan submitted to and approved by the   secretary of the United States Department of Agriculture under   Section 121.003; and                (2)  7 U.S.C. Chapter 38, Subchapter VII, and federal   regulations adopted under that subchapter.          Sec. 123.052.  DESIGNATION OF CONSUMABLE HEMP PRODUCT. (a)   The executive commissioner of the Health and Human Services   Commission may designate a substance that contains hemp as a   consumable hemp product if the executive commissioner determines   that the substance qualifies as a consumable hemp product under   Section 443.001, Health and Safety Code.          (b)  A designation or modification of a designation made by   the executive commissioner of the Health and Human Services   Commission under this section is final and binding.          (c)  A consumable hemp product designated under this section   is governed under Chapter 443, Health and Safety Code.          (d)  A designation under this section is not subject to   Chapter 2001, Government Code.          Sec. 123.053.  INDUSTRIAL HEMP STANDARDS. (a) The   department shall adopt standards for the production of hemp for   industrial purposes.           (b)  The department may work with an institution of higher   education or certified third party to adopt and administer   responsible hemp standards for the production and distribution of   hemp for industrial purposes, as well as the manufacturing of   nonconsumable hemp products.    SUBCHAPTER C. NONCONSUMABLE HEMP PRODUCT MANUFACTURER'S LICENSE          Sec. 123.101.  LICENSE REQUIRED; LIMITATIONS. A person may   not process hemp for use in a nonconsumable hemp product or   manufacture a nonconsumable hemp product in this state unless the   person holds a license under this subchapter.          Sec. 123.102.  LICENSE 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                (2)  be a governing person or owner of a business entity   that holds a license under this subchapter.          (b)  A person licensed under Chapter 443, Health and Safety   Code, may not be issued or hold a license under this subchapter.          (c)  An individual who is not a legal citizen of the United   States of America may not:                (1)  hold a license under this subchapter; or                (2)  be a governing person or owner of a business entity   that holds a license under this subchapter.          Sec. 123.103.  APPLICATION; ISSUANCE. A person may apply   for a license by submitting an application in the manner prescribed   by the department. The application must be accompanied by:                (1)  the physical address, including the county, of the   location where the applicant intends to process hemp for use in a   nonconsumable product or manufacture nonconsumable hemp products;   and                (2)  any other information the department requires by   rule.          Sec. 123.104.  TERM; RENEWAL. (a) A license is valid for   one year and may be renewed as provided by this section.          (b)  The department shall renew a license if the license   holder:                (1)  is eligible to hold the license; and                (2)  does not owe any outstanding fee to the   department.          Sec. 123.105.  REVOCATION. The department may suspend or   revoke a license if the license holder fails to comply with this   chapter or a department rule.          Sec. 123.106.  FEES. The department by rule shall establish   a fee schedule for this chapter, including an application fee and an   annual renewal fee each in the amount not to exceed $10,000.   SUBCHAPTER D. TESTING OF NONCONSUMABLE HEMP PRODUCTS          Sec. 123.151.  TESTING REQUIRED. (a) Before a   nonconsumable hemp product is sold in this state by a license   holder, one or more samples from a batch of the nonconsumable hemp   product must be tested by a laboratory located in the state that is:                (1)  registered with the Federal Drug Enforcement   Agency; and                (2)  accredited by an accreditation body in accordance   with International Organization for Standardization ISO/IEC 17025   or a comparable or successor standard.          (b)  The department shall adopt rules that require a   laboratory to electronically report any test result conducted under   this section to the department.          (c)  This section does not apply to a nonconsumable hemp   product containing only:                (1)  the mature stalks of the plant Cannabis sativa L.;   or                (2)  fiber produced from the mature stalks of the plant   Cannabis sativa L.          Sec. 123.152.  PROVISIONS RELATED TO TESTING. Any method   for detecting tetrahydrocannabinols must consider the conversion   of tetrahydrocannabinolic acid into tetrahydrocannabinol.   SUBCHAPTER E. MANUFACTURE, TRANSPORTATION, AND SALE OF   NONCONSUMABLE HEMP PRODUCT          Sec. 123.201.  TRANSPORTATION OF NONCONSUMABLE HEMP   PRODUCTS. A person may transport a nonconsumable hemp product   manufactured in compliance with this subchapter.          Sec. 123.202.  INTERSTATE TRANSPORTATION OF PRODUCTS.   Nonconsumable hemp products may only be transported across state   lines in a manner that is consistent with state and federal law.          Sec. 123.203.  RESTRICTIONS ON SALE. (a) A person may not   sell a nonconsumable hemp product if the product contains any   detectable tetrahydrocannabinols.          (b)  All nonconsumable hemp products must be manufactured in   product batches to allow for accurate sampling, testing, packaging,   and labeling.          (c)  A person may not manufacture, distribute, deliver, make   available for sale, purchase, possess, or use a nonconsumable hemp   product in this state that:                (1)  contains harmful ingredients;                (2)  can be used for smoking; or                (3)  contains any detectable tetrahydrocannabinols.          Sec. 123.204.  PACKAGING AND LABELING. Each nonconsumable   hemp product must be labeled with:                (1)  a logo or insignia designed by the department   identifying the product as a nonconsumable hemp product; and                (2)  the name and address of the license holder.          Sec. 123.205.  SALE OF OUT-OF-STATE NONCONSUMABLE HEMP   PRODUCTS. A person may sell a nonconsumable hemp product   manufactured outside of this state if:                (1)  the hemp in the nonconsumable hemp product was   cultivated or processed in compliance with a plan approved by the   United States Department of Agriculture under 7 U.S.C. Section   1639p or established under 7 U.S.C. Section 1639q;                (2)  the nonconsumable hemp product was tested and the   result reported in accordance with the requirements of Section   123.151; and                (3)  the sale does not violate federal law.          SECTION 26.  The following provisions of the Agriculture   Code are repealed:                (1)  Section 122.052(c);                (2)  Section 122.053(e);                (3)  Subchapter G, Chapter 122; and                (4)  Sections 122.358(a) and (b).          SECTION 27.  (a) Not later than December 1, 2025, the   Department of Agriculture shall develop and submit for approval a   state plan to the secretary of the United States Department of   Agriculture as required by Section 121.003, Agriculture Code, as   amended by this Act.          (b)  If the state plan submitted under Subsection (a) of this   section is not approved, as soon as practicable, the Department of   Agriculture shall submit amended state plans as required by Section   121.003, Agriculture Code, as amended by this Act, until the plan is   approved by the secretary of the United States Department of   Agriculture.          (c)  As soon as practicable after a state plan is approved   under Subsection (a) or (b) of this section, the Department of   Agriculture and the Department of State Health Services shall   implement the state plan.          SECTION 28.  (a) As soon as practicable after the effective   date of this Act, the executive commissioner of the Health and Human   Services Commission shall adopt rules necessary to implement the   changes in law made by this Act.          (b)  As soon as practicable after the effective date of this   Act, the commissioner of the Department of Agriculture shall adopt   rules necessary to implement the changes in law made by this Act.          SECTION 29.  This Act takes effect September 1, 2025.