bill rewrites the state hemp program

The text as introduced · 2,080 words

89R968 MP-F

By: Cain
H.B. No. 1113

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, 2025.