Cain Hemp Bill’s Foreign-Owner Ban Has A Green Card Hole

The text as introduced · 2,859 words

By: Cain
H.B. No. 4242

A BILL TO BE ENTITLED

AN ACT

relating to the production, sale, distribution, delivery, and

regulation of hemp; creating a criminal offense.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 443, Health and Safety

Code, is amended by adding Section 443.005 to read as follows:

Sec. 443.005. CONSUMABLE HEMP PRODUCTS ACCOUNT. (a) The

consumable hemp products account is an account in the general

revenue fund administered by the department.

(b) The account consists of:

(1) appropriations of money to the account by the

legislature;

(2) public or private gifts, grants, or donations,

including federal funds, received for the account;

(3) fees collected under this chapter or under Chapter

431 as it applies to consumable hemp products;

(4) interest and income earned on the investment of

money in the account;

(5) penalties for violations of this chapter as it

applies to consumable hemp products; and

(6) funds from any other source deposited in the

account.

(c) The department may accept appropriations and gifts,

grants, or donations from any source to administer and enforce this

chapter as it applies to consumable hemp products. Money received

under this subsection shall be deposited in the account.

(d) Money in the account may be appropriated only to the

department for the administration and enforcement of this chapter

as it applies to consumable hemp products.

SECTION 2. Section 443.103, Health and Safety Code, is

amended to read as follows:

Sec. 443.103. APPLICATION; ISSUANCE. An individual or

establishment may apply for a license under this subchapter by

submitting an application to the department on a form and in the

manner prescribed by the department. The application [ must be

accompanied by ] shall include :

(1) the physical address [ a legal description ] of each

location where the applicant intends to process hemp or manufacture

consumable hemp products [ and the global positioning system

coordinates for the perimeter of each location ];

(2) written consent from the applicant or the property

owner if the applicant is not the property owner allowing the

department, the Department of Public Safety, and any other state or

local law enforcement agency to enter onto the [ all ] premises

during normal business hours [ where hemp is processed or consumable

hemp products are manufactured ] to conduct a physical inspection or

to ensure compliance with this chapter and rules adopted under this

chapter;

(3) any reasonable fees to cover the cost of the

processing of the application; [ required by the department to be

submitted with the application; ] and

(4) any other relevant information required by

department rule.

SECTION 3. Subchapter C, Chapter 443, Health and Safety

Code, is amended by adding Section 443.106 to read as follows:

Sec. 443.106. EXPEDITED LICENSING PROCESS. The department

by rule may provide an expedited licensing process for the renewal

of a license in good standing or the purchaser of a business by a

qualifying party of a currently licensed business.

SECTION 4. Section 443.151, Health and Safety Code, is

repealed and replaced in its entirety as follows:

Sec. 443.151. TESTING REQUIRED. (a) To ensure consumer

safety, consumable hemp must be tested as provided by this section.

(b) Before a consumable hemp product may be distributed or

sold as a final product, including hemp plant material, a sample

representing the final product must be tested, as required by the

executive commissioner, to determine:

(1) the concentration of various cannabinoids,

including delta-9 tetrahydrocannabinol;

(2) the presence or quantity of heavy metals,

pesticides, microbial contaminants, mycotoxins, harmful

microorganisms and pathogens, and residual solvents;

(3) the presence of any synthetic cannabinoids meaning

a substance included in Penalty Group 2-A under Section 481.1031 of

the Health and Safety Code; and any other substance prescribed by

the department.

(c) All cannabinoid testing required under this Chapter

must be performed by a laboratory that is accredited by an

accreditation body in accordance with International Organization

for Standardization ISO/IEC 17025 or a comparable or successor

standard to determine the delta-9 tetrahydrocannabinol

concentration of the product.

SECTION 5. Section 443.152, Health and Safety Code, is

amended by adding Subsection (d) to read as follows:

(d) The executive commissioner by rule may exclude a

substance from the testing required under Section 443.151 that is

generally recognized as having no risk of contaminating a finished

consumable hemp product, including a microorganism or other

substance that is inevitably destroyed or removed while processing

or manufacturing the product.

SECTION 6. Section 443.201, Health and Safety Code, is

amended by adding Subsections (c), (d), and (e) to read as follows:

(c) A person may transport and deliver a consumable hemp

product in compliance with this chapter to a lawful purchaser of the

product. The person transporting the consumable hemp product shall

maintain documentation during transport to demonstrate the

transaction complies with this chapter. The person transporting

and the consumable hemp product is not required to:

(1) obtain a license under Section 443.101, unless the

person processes or manufactures the product delivered; or

(2) register under Section 443.2025, unless the person

sells the product delivered.

(d) A person may not manufacture, transport or sell a

non-compliant consumable hemp product in this state.

(e) To the extent this Section conflicts with Chapter 481,

the Texas Controlled Substances Act, Chapter 481 shall prevail.

SECTION 7. Section 443.2025, Health and Safety Code, is

amended by amending Subsections (b), (d), and (f) and adding

Subsection (d-1) to read as follows:

(b) A person that sells [ may not sell ] or distributes

consumable hemp products [ containing cannabidiol at retail ] in this

state , other than products generally recognized as safe by the

United States Food and Drug Administration, shall register with the

department [ unless the person registers with the department each

location owned, operated, or controlled by the person at which

those products are sold. A person is not required to register a

location associated with an employee or independent contractor

described by Subsection (d) ].

(d) A person is not required to register with the department

under Subsection (b) if the person is:

(1) an employee of a registrant; or

(2) an independent contractor of a registrant who

sells the registrant's products to consumers [ at retail ].

(d-1) unless such employee or independent contractor works

for a person located outside of the state who is not a registrant

and sells or distributes products covered by Subsection (b) in this

state.

(f) The registration shall [ department by rule may adopt a

registration fee schedule that establishes reasonable fee amounts

for the registration of ]:

(1) identify the responsible party to direct

correspondence [ a single location at which consumable hemp products

[containing cannabidiol are sold ]; and

(2) be subject to a nominally reasonable fee [ multiple

locations at which consumable hemp products [containing

cannabidiol] are sold under a single registration ].

SECTION 8. Section 443.204, Health and Safety Code, is

amended by adding Subsection (b) to read as follows:

Sec. 443.204. RULES RELATED TO SALE OF CONSUMABLE HEMP

PRODUCTS. (a) Rules adopted by the executive commissioner

regulating the sale of consumable hemp products must, to the extent

allowable by law, reflect the following principles:

(1) hemp-derived cannabinoids, including cannabidiol,

are not considered controlled substances or adulterants;

(2) products containing one or more hemp-derived

cannabinoids, such as cannabidiol, intended for ingestion are

considered foods, not controlled substances or adulterated

products;

(3) consumable hemp products must be packaged and

labeled in the manner provided by Section 443.205; and

(4) the processing or manufacturing of a consumable

hemp product for smoking is prohibited.

(b) Not later than the 90th day after a change to this

chapter takes effect, the department shall adopt rules to resolve

any conflicts arising from the change. Until such rules are

adopted, the department shall enforce the provisions of this

chapter to the fullest extent possible without exceeding its

authority or conflicting with federal law or other controlling

legal requirements.

SECTION 9. Section 443.205, Health and Safety Code, is

amended to read as follows:

SEC. 443.205 CONSUMER SAFETY [ PACKAGING AND LABELING ]

REQUIREMENTS. (a) before a finished [ Before a ] consumable hemp

product , including hemp plant material, may be distributed or sold,

it [ 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 under this section and with

the following information:

(1) a statement of identify or product name. labeled

in the manner provided by this subchapter, including [section with]

the following information:

(2) [ (1) ] batch or lot identification number;

(3) [ (2) ] Net contents [ batch date ];

(4) [ (3) ] ingredients contained in the product,

including hemp-derived cannabinoids [ product name ];

(5) [ (4) ] major food allergens as identified by the

U.S. Food, Drug, and Cosmetic Act [ a uniform resource locator (URL)

that provides or links to a certificate of analysis for the product

or each hemp-derived ingredient of the product ];

(6) [ (5) ] the name of the product's manufacturer;[ and ]

(7) [ (6) ] a certification that the delta-9

tetrahydrocannabinol concentration of the product or each

hemp-derived ingredient of the product is not more than 0.3

percent ; and

(8) contact information of the manufacturer or

licensed party.

(9) Packaged in a container that is:

(a) tamper evident; and

(b) child resistant

(b) The label required by Subsection (a) may be in the form

of:

(1) a uniform resource locator (URL) [ for the

manufacturer's Internet website ] that provides or links to a

certificate of analysis for the product [ the information required

by that subsection ]; and

(2) a QR code or other bar code that may be scanned and

that leads to the information required by that subsection.

(c) The label required by Subsection (a) must appear on each

unit of the product intended for individual retail sale. If the

unit includes inner and outer packaging, the label may appear on any

of that packaging.

(d) This section does not apply to sterilized seeds

incapable of beginning germination.

(e) Before a consumable hemp product may be sold to a

consumer, the product must be either prepackaged or placed at the

time of sale in packaging or a container that is tamper-evident and

child resistant. if the product contains multiple servings or

consists of multiple products purchased in one transaction, the

package or container must be resealable in a manner that allows the

child-resistant mechanism to remain intact.

SECTION 10. Subchapter E, Chapter 443, Health and Safety

Code, is amended by adding Sections 443.2055, 443.2056, 443.208,

443.209, and 443.210 to read as follows:

Sec. 443.2055. CONSUMABLE HEMP PRODUCT AND PACKAGING

ATTRACTIVE TO MINORS. (a) Edible consumable hemp products that

contain or are marketed as containing hemp-derived cannabinoids may

not be in the shape of a human, animal, fruit, or toy or in another

shape known to be marketed to minors.

(b) Packaging of a consumable hemp product may not include:

(1) cartoons, being any drawing or depiction of an

object, person, animal, creature or any similar caricature that

uses comically-exaggerated features; and

(2) attributes human characteristics to animals,

plants, toys or other objects; or

(3) attributes unnatural or extra-human abilities,

such as imperviousness to pain or injury, X-ray vision, tunneling

at very high speeds, or human transformation (i.e.) superheroes; or

(4) images of children.

Sec. 443.2056. MISLEADING PACKAGING PROHIBITED. (a) The

packaging and labeling of consumable hemp products that contain or

are marketed as containing hemp-derived cannabinoids shall not:

(1) depict any statement, artwork, or design that

falsely suggests the product does not contain hemp-derived

cannabinoids;

(2) closely resemble a copyrighted, trademarked, or

widely recognized non-hemp product in a way that could cause

confusion.

Sec. 443.208. SALE OF CONSUMABLE HEMP PRODUCTS TO PERSONS

YOUNGER THAN 21 YEARS OF AGE PROHIBITED; PROOF OF AGE REQUIRED. (a)

A person commits an offense if the person, with criminal

negligence, sells a consumable hemp product that contains or is

marketed as containing hemp-derived cannabinoids, to an individual

under 21 years of age.

(b) An employee of an establishment that sells a consumable

hemp product in violation of Subsection (a), is individually liable

and may be prosecuted for the offense, regardless of whether the

owner or operator of the establishment is also held liable. This

section does not preclude prosecution of the owner or operator of

the establishment if the violation occurred with their knowledge or

due to their failure to exercise reasonable supervision and control

over employees.

(c) An offense under this section is a Class C misdemeanor.

(d) It is a defense to prosecution under Subsection (a) that

the person to whom the consumable hemp product was sold presented to

the defendant apparently valid proof of identification.

(e) A proof of identification satisfies the requirements of

Subsection (d) if it contains a physical description and photograph

consistent with the person's appearance, purports to establish that

the person is 21 years of age or older, and was issued by a

governmental agency. The proof of identification may include a

driver's license issued by this state or another state, a passport,

or an identification card issued by a state or the federal

government.

(f) It is an exception to the application of Subsection (a)

that the person to whom the consumable hemp product was sold is at

least 18 years of age and presented at the time of purchase a valid

military identification card of the United States military forces

or the state military forces.

(g) A person who owns, manages, or operates an Internet

website that contains an e-commerce platform on which consumable

hemp products, including hemp plant material, that contain or are

marketed as containing hemp-derived cannabinoids are sold at retail

or offered for retail sale must:

(1) require a consumer accessing the e-commerce

platform to state affirmatively that the person is at least 21 years

of age; and

(2) verify a consumer's age prior to completing a

purchase on the e-commerce platform by:

(A) using a reliable online age verification

service; or

(B) obtaining and examining a copy of a valid

government-issued identification.

Sec. 443.209. SALE OF CERTAIN CONSUMABLE HEMP PRODUCTS TO

PERSONS YOUNGER THAN 21 YEARS OF AGE. (a) The department by rule

shall adopt a list of hemp-derived cannabinoids that are exempt

from the requirements of Sections 443.205(a)(9), 443.205(e),

443.2055, and 443.208.

(b) The list adopted under Subsection (a):

(1) must include cannabidiol and cannabigerol; and

(2) may include cannabinoid quantity thresholds.

(c) Notwithstanding Subsection (a), Sections

443.205(a)(9), 443.2055, and 443.208 apply to any consumable hemp

product that contains:

(1) a hemp-derived cannabinoid not included on the

list adopted under Subsection (a); or

(2) a quantity of a hemp-derived cannabinoid that

exceeds any applicable threshold established under Subsection

(b)(2).

Sec. 443.210. APPLICABILITY OF PENALTIES TO CERTAIN

RETAILERS. Notwithstanding another provision of this subchapter, a

retailer of consumable hemp products is not liable for a penalty

under this subchapter if the retailer proves by a preponderance of

the evidence that the violation was unintentional and due to the

retailer's good faith reliance on a representation made by a

manufacturer, processor, or distributor of consumable hemp

products.

SECTION 11. Subchapter C, Chapter 122, Agriculture Code,

Section 122.102 is amended by adding subsection(c) to read as

follows:

(c) Except as provided by subdivision (d) and

notwithstanding any other law, The department may not issue a

license under this subchapter to produce hemp on real property

owned by any of the following:

(1) a governmental entity of China, Iran, North Korea,

or Russia;

(2) a company or other entity that is:

(A) headquartered in China, Iran, North Korea, or

Russia;

(B) directly or indirectly under the control of

the government of China, Iran, North Korea, or Russia; or

(C) owned by or under the control of one or more

individuals who are citizens of China, Iran, North Korea, or

Russia;

(3) a company or other entity that is owned by or under

the control of a company or entity described by Subdivision (2); or

(4) an individual who is a citizen of China, Iran,

North Korea, or Russia.

(d) This subsection does not apply to an individual who is a

citizen or lawful permanent resident of the United States,

including an individual who is a citizen of a foreign country.

SECTION 12. Notwithstanding any other law, a retailer may

possess, transport, or sell a consumable hemp product that becomes

part of the retailer's inventory before rules required to implement

the changes in law made by this Act become effective unless the

product:

(1) is unsafe for consumption based on the presence or

quantity of heavy metals, pesticides, harmful microorganisms, or

residual solvents; or

(2) has a delta-9 tetrahydrocannabinol concentration

that exceeds 0.3% delta-9 tetrahydrocannabinol by dry weight.

SECTION 13. This Act takes effect immediately if it

receives a vote of two-thirds of all the members elected to each

house, as provided by Section 39, Article III, Texas Constitution.

If this Act does not receive the vote necessary for immediate

effect, this Act takes effect September 1, 2025