SB 3

S.B. No. 3
  AN ACT
  relating to the regulation of products derived from hemp, including
  consumable hemp products and the hemp-derived cannabinoids
  contained in those products; requiring occupational licenses and
  permits; imposing fees; creating criminal offenses; authorizing an
  administrative penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 443.001, Health and Safety Code, is
  amended by amending Subdivision (1) and adding Subdivision (8-a) to
  read as follows:
               (1)  "Consumable hemp product" means food, a drug, a
  device, or a cosmetic, as those terms are defined by Section
  431.002, that contains hemp or one or more hemp-derived
  cannabinoids, including cannabidiol or cannabigerol.
               (8-a)  "Minor" means a person under 21 years of age.
         SECTION 2.  Chapter 443, Health and Safety Code, is amended
  by adding Subchapter A-1 to read as follows:
  SUBCHAPTER A-1.  NONAPPLICABILITY
         Sec. 443.021.  LOW-THC CANNABIS.  This chapter does not
  apply to low-THC cannabis regulated under Chapter 487.
         Sec. 443.022.  RESEARCH.  This chapter does not apply to
  research on hemp conducted by:
               (1)  a medical school, as defined by Section 61.501,
  Education Code;
               (2)  a hospital licensed under Chapter 241; or
               (3)  an institution of higher education or private or
  independent institution of higher education, as defined by Section
  61.003, Education Code.
         SECTION 3.  Subchapter C, Chapter 443, Health and Safety
  Code, is amended by adding Section 443.1035 to read as follows:
         Sec. 443.1035.  LICENSING FEES.  (a)  An applicant for a
  license under this subchapter shall pay an initial licensing fee to
  the department in the amount of $10,000 for each location where the
  applicant intends to process hemp or manufacture a consumable hemp
  product.
         (b)  Before the department may renew a license as provided by
  Section 443.104, a license holder shall pay a renewal fee to the
  department in the amount of $10,000 for each location where the
  applicant intends to process hemp or manufacture a consumable hemp
  product.
         SECTION 4.  Section 443.104(b), Health and Safety Code, is
  amended to read as follows:
         (b)  The department shall renew a license if the license
  holder:
               (1)  is not ineligible to hold the license under
  Section 443.102;
               (2)  has not violated this chapter or a rule adopted
  under this chapter;
               (3)  submits to the department any license renewal fee;
  and
               (4) [(3)]  does not owe any outstanding fees to the
  department.
         SECTION 5.  Subchapter C, Chapter 443, Health and Safety
  Code, is amended by adding Section 443.106 to read as follows:
         Sec. 443.106.  RESTRICTION ON MANUFACTURE OF CERTAIN
  CONSUMABLE HEMP PRODUCTS.  A license holder may not manufacture a
  consumable hemp product that contains any amount of a cannabinoid
  other than cannabidiol or cannabigerol.
         SECTION 6.  Section 443.151, Health and Safety Code, is
  amended by amending Subsections (a), (b), and (d) and adding
  Subsections (d-1) and (d-2) to read as follows:
         (a)  A consumable hemp product must be tested as provided
  by[:
               [(1)]  Subsections (b), [and] (c), and[; or
               [(2)  Subsection] (d).
         (b)  Before a hemp plant is processed or otherwise used in
  the manufacture of a consumable hemp product, a sample representing
  the plant must be tested, as required by the executive
  commissioner, to determine:
               (1)  the concentration and identity of the [various]
  cannabinoids in the plant; and
               (2)  the presence or quantity of heavy metals,
  pesticides, microbial contamination, and any other substance
  prescribed by the department.
         (d)  Before [Except as otherwise provided by Subsection (e),
  before] a consumable hemp product is sold at retail or otherwise
  introduced into commerce in this state, a sample representing the
  hemp product must be tested:
               (1)  by a laboratory that is:
                     (A)  located in this state;
                     (B)  registered with the United States Drug
  Enforcement Administration; and
                     (C)  accredited by an accreditation body in
  accordance with International Organization for Standardization
  ISO/IEC 17025 or a comparable or successor standard to determine
  the identity and [delta-9 tetrahydrocannabinol] concentration of
  any cannabinoids contained in the product; and
               (2)  by an appropriate laboratory to determine that the
  product does not contain a substance described by Subsection (b)(2)
  [(b)] or (c) in a quantity prohibited for purposes of those
  subsections.
         (d-1)  The testing required under Subsection (d) must use
  post-decarboxylation, high-performance liquid chromatography, or a
  similar method that includes the conversion of
  tetrahydrocannabolic acid into tetrahydrocannabinol to determine
  the total tetrahydrocannabinol concentration in a tested product.
         (d-2)  A person that tests a consumable hemp product under
  Subsection (d) shall report the test results to the department in
  the form and manner required by the department.
         SECTION 7.  Sections 443.152(a) and (c), Health and Safety
  Code, are amended to read as follows:
         (a)  A consumable hemp product that contains any amount of a
  cannabinoid other than cannabidiol or cannabigerol [has a delta-9
  tetrahydrocannabinol concentration of more than 0.3 percent] may
  not be sold at retail or otherwise introduced into commerce in this
  state.
         (c)  A license holder shall make available to a seller of a
  consumable hemp product processed or manufactured by the license
  holder the results of testing required by Section 443.151.  The
  results may accompany a shipment to the seller or be made available
  to the seller electronically.  If the results are not able to be
  made available, the seller may have the testing required under
  Section 443.151 performed on the product and shall make the results
  available to a consumer and the department.
         SECTION 8.  Sections 443.202(b) and (c), Health and Safety
  Code, are amended to read as follows:
         (b)  Notwithstanding any other law, a person may not sell,
  offer for sale, possess, distribute, or transport a cannabinoid
  oil[, including cannabidiol oil,] in this state:
               (1)  if the oil contains any material extracted or
  derived from the plant Cannabis sativa L., other than from hemp
  produced in compliance with 7 U.S.C. Chapter 38, Subchapter VII;
  and
               (2)  unless a sample representing the oil has been
  tested by a laboratory that is accredited by an independent
  accreditation body in accordance with International Organization
  for Standardization ISO/IEC 17025 or a comparable or successor
  standard and found to not contain any amount of a cannabinoid other
  than cannabidiol or cannabigerol [have a delta-9
  tetrahydrocannabinol concentration of not more than 0.3 percent].
         (c)  The department [and the Department of Public Safety]
  shall establish a process for the [random] testing of cannabinoid
  oil[, including cannabidiol oil,] at various retail and other
  establishments that sell, offer for sale, distribute, or use the
  oil to ensure that the oil:
               (1)  does not contain harmful ingredients;
               (2)  is produced in compliance with 7 U.S.C. Chapter
  38, Subchapter VII; and
               (3)  does not contain any amount of a cannabinoid other
  than cannabidiol or cannabigerol [has a delta-9
  tetrahydrocannabinol concentration of not more than 0.3 percent].
         SECTION 9.  The heading to Section 443.2025, Health and
  Safety Code, is amended to read as follows:
         Sec. 443.2025.  REGISTRATION REQUIRED FOR RETAILERS OF
  CERTAIN CONSUMABLE HEMP PRODUCTS.
         SECTION 10.  Section 443.2025, Health and Safety Code, is
  amended by amending Subsections (b), (d), and (f) and adding
  Subsection (h) to read as follows:
         (b)  A person may not sell consumable hemp products
  containing a cannabinoid [cannabidiol] at retail in this state
  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 at retail].
         (f)  The owner of a location at which consumable hemp
  products are sold shall annually pay to the department a
  registration fee in the amount of $20,000 for each location owned by
  the person at which those products are sold [The department by rule
  may adopt a registration fee schedule that establishes reasonable
  fee amounts for the registration of:
               [(1)  a single location at which consumable hemp
  products containing cannabidiol are sold; and
               [(2)  multiple locations at which consumable hemp
  products containing cannabidiol are sold under a single
  registration].
         (h)  A person may not sell consumable hemp products unless
  the person has provided to the department written consent from the
  person or the property owner, if the person 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 consumable hemp products are sold to conduct a
  physical inspection or to ensure compliance with this chapter and
  rules adopted under this chapter.
         SECTION 11.  Subchapter E, Chapter 443, Health and Safety
  Code, is amended by adding Section 443.2026 to read as follows:
         Sec. 443.2026.  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
  to a retailer: 
               (1)  submits an application for the consumable hemp
  product to be registered with the department; and
               (2)  receives approval that the product is compliant
  with this chapter, registered, and approved for sale in this state.
         (b)  The department shall issue a unique product
  registration number to each consumable hemp product approved by the
  department.
         (c)  A manufacturer applying to register a consumable hemp
  product under this section shall pay an application fee to the
  department in the amount of $500 for each consumable hemp product.
         (d)  The department shall maintain an updated product
  registration list on the department's public Internet website,
  which must include front and back identifying pictures of each
  registered product.
         (e)  Each consumable hemp product, including the container
  and package, if applicable, must be labeled with: 
               (1)  a QR code that links:
                     (A)  to the department's product registration
  list under Subsection (d); and
                     (B)  to the identifying picture of the product
  provided on registration of the product with the department under
  Subsection (d) for the purpose of confirming registration of the
  product and allowing verification of the product by law
  enforcement; and
               (2)  the following message placed adjacent to the
  required QR code on the label: "SCAN QR CODE BEFORE PURCHASE".
         (f)  The department may not approve for sale a consumable
  hemp product that:
               (1)  contains any artificial or synthetic
  cannabinoids; or
               (2)  contains or is mixed with any alcohol, tobacco,
  nicotine, kratom, kava, mushrooms, or a derivative of any of those
  items.
         (g)  A person commits an offense if the person distributes,
  delivers, sells, purchases, possesses, or uses a consumable hemp
  product that is not registered with the department as provided by
  this section.
         (h)  An offense under this section is a Class B misdemeanor.
         (i)  A person is presumed to know a consumable hemp product
  is prohibited under this chapter if the product is not listed on the
  department's Internet website as required by Subsection (d) or does
  not have a valid QR code under Subsection (e).
         (j)  The executive commissioner shall adopt rules to
  implement and administer this section.
         SECTION 12.  Section 443.203, Health and Safety Code, is
  amended to read as follows:
         Sec. 443.203.  DECEPTIVE TRADE PRACTICE.  (a)  A person who
  sells, offers for sale, or distributes a consumable hemp product
  [cannabinoid oil, including cannabidiol oil,] that the person
  claims is processed or manufactured in compliance with this chapter
  commits a false, misleading, or deceptive act or practice
  actionable under Subchapter E, Chapter 17, Business & Commerce
  Code, if the product [oil] is not processed or manufactured in
  accordance with this chapter.
         (b)  A person who sells, offers for sale, or distributes a
  consumable hemp product [cannabinoid oil] commits a false,
  misleading, or deceptive act or practice actionable under
  Subchapter E, Chapter 17, Business & Commerce Code, if [the oil]:
               (1)  the product contains harmful ingredients;
               (2)  the product is not produced in compliance with 7
  U.S.C. Chapter 38, Subchapter VII; [or]
               (3)  the product contains any amount of a cannabinoid
  other than cannabidiol or cannabigerol; or
               (4)  the product's packaging or advertising indicates
  that the product is for medical use [has a delta-9
  tetrahydrocannabinol concentration of more than 0.3 percent].
         SECTION 13.  Section 443.204, Health and Safety Code, is
  amended to read as follows:
         Sec. 443.204.  RULES RELATED TO SALE OF CONSUMABLE HEMP
  PRODUCTS.  Rules adopted by the executive commissioner regulating
  the sale of consumable hemp products must to the extent allowable by
  federal law reflect the following principles:
               (1)  hemp-derived [cannabinoids, including]
  cannabidiol and cannabigerol[,] are not considered controlled
  substances or adulterants;
               (2)  products containing [one or more] hemp-derived
  [cannabinoids, such as] cannabidiol or cannabigerol[,] intended
  for ingestion are considered foods, not controlled substances or
  adulterated products; and
               (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].
         SECTION 14.  Sections 443.205(a) and (c), Health and Safety
  Code, are amended to read as follows:
         (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:
               (1)  labeled in the manner provided by this subchapter,
  including [section with] the following information:
                     (A) [(1)]  batch identification number;
                     (B) [(2)]  batch date;
                     (C) [(3)]  product name;
                     (D) [(4)]  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;
                     (E) [(5)]  the name of the product's
  manufacturer;
                     (F)  the amount of cannabidiol or cannabigerol in
  each serving or unit of the product; and
                     (G) [(6)]  a certification that there is no
  detectable amount of any cannabinoid other than cannabidiol or
  cannabigerol in the product; and
               (2)  prepackaged or placed at the time of sale in
  packaging or a container that is:
                     (A)  tamper-evident;
                     (B)  child-resistant; and
                     (C)  if the product contains multiple servings or
  consists of multiple products purchased in one transaction,
  resealable in a manner that allows the child-resistant mechanism to
  remain intact [the delta-9 tetrahydrocannabinol concentration of
  the product or each hemp-derived ingredient of the product is not
  more than 0.3 percent].
         (c)  The label required by Subsection (a) must appear on the
  outer packaging of each unit of the product intended for individual
  retail sale.  [If that unit includes inner and outer packaging, the
  label may appear on any of that packaging.]
         SECTION 15.  Subchapter E, Chapter 443, Health and Safety
  Code, is amended by adding Sections 443.2055 and 443.2056 to read as
  follows:
         Sec. 443.2055.  OFFENSE: MARKETING OF CONSUMABLE HEMP
  PRODUCT OR PACKAGING IN MANNER ATTRACTIVE TO MINORS.  (a)  A person
  commits an offense if the person markets, advertises, sells, or
  causes to be sold an edible consumable hemp product containing a
  hemp-derived cannabinoid that:
               (1)  is in the shape of a human, animal, fruit, or
  cartoon or in another shape that is attractive to children; 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 attractive to children;
                     (B)  depicts an image of a human, animal, fruit,
  or cartoon or another image that is attractive to children;
                     (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 image of a celebrity; or
                     (F)  includes an image that resembles a food
  product, including candy or juice.
         (b)  In 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, such as
  imperviousness to pain or injury, x-ray vision, tunneling at very
  high speeds, or transformation.
         (c)  An offense under this section is a Class A misdemeanor.
         Sec. 443.2056.  OFFENSE: MISLEADING CONSUMABLE HEMP
  PACKAGING.  (a)  A person commits an offense if the person sells or
  offers for sale a consumable hemp product that contains or is
  marketed as containing hemp-derived cannabinoids in a package that
  depicts any statement, artwork, or design that would likely mislead
  a person to believe:
               (1)  the package does not contain a hemp-derived
  cannabinoid; or
               (2)  the product is intended for medical use, including
  by depicting a green cross.
         (b)  An offense under this section is a Class A misdemeanor.
         SECTION 16.  Section 443.206, Health and Safety Code, is
  amended to read as follows:
         Sec. 443.206.  RETAIL SALE OF OUT-OF-STATE CONSUMABLE HEMP
  PRODUCTS.  Retail sales of consumable hemp products processed or
  manufactured outside of this state may be made in this state when
  the products were processed or manufactured in another state or
  jurisdiction if the products:
               (1)  were manufactured or processed in compliance with:
                     (A) [(1)]  that state's [state] or jurisdiction's
  plan approved by the United States Department of Agriculture under
  7 U.S.C. Section 1639p;
                     (B) [(2)]  a plan established under 7 U.S.C.
  Section 1639q if that plan applies to the state or jurisdiction; or
                     (C) [(3)]  the laws of that state or jurisdiction
  if the products are tested in accordance with, or in a manner
  similar to, Section 443.151;
               (2)  do not contain any amount of a cannabinoid other
  than cannabidiol or cannabigerol; and
               (3)  are packaged and labeled in the manner provided by
  this subchapter.
         SECTION 17.  Chapter 443, Health and Safety Code, is amended
  by adding Subchapters F and G to read as follows:
  SUBCHAPTER F.  CRIMINAL OFFENSES
         Sec. 443.251.  OFFENSE: MANUFACTURE, DELIVERY, OR
  POSSESSION WITH INTENT TO DELIVER OF CERTAIN CONSUMABLE HEMP
  PRODUCTS.  (a)  A person commits an offense if the person knowingly
  manufactures, delivers, or possesses with intent to deliver a
  consumable hemp product that contains any amount of a cannabinoid
  other than cannabidiol or cannabigerol.
         (b)  An offense under this section is a felony of the third
  degree.
         (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. 443.252.  OFFENSE: POSSESSION OF CERTAIN CONSUMABLE
  HEMP PRODUCTS.  (a)  A person commits an offense if the person
  knowingly or intentionally possesses a consumable hemp product that
  contains any amount of a cannabinoid other than cannabidiol or
  cannabigerol.
         (b)  It is a defense to prosecution under this section that
  the actor:
               (1)  requested emergency medical assistance in
  response to the person's own possible overdose or the possible
  overdose of another person; and
               (2)  if the person requested emergency medical
  assistance for the possible overdose of another person:
                     (A)  remained on the scene until medical
  assistance arrived; and
                     (B)  cooperated with medical assistance and law
  enforcement personnel on the scene.
         (c)  An offense under this section is a Class C misdemeanor,
  except that if it is shown on the trial of the offense that at the
  time of the offense the actor has been previously convicted of an
  offense under this section two or more times, the offense is a
  misdemeanor punishable by:
               (1)  a fine of not less than $250 and not more than
  $2,000;
               (2)  confinement in jail for a term not to exceed 180
  days; or
               (3)  both the fine and the confinement.
         (d)  The court shall order:
               (1)  a person placed on deferred disposition for or
  convicted of an offense under this section to:
                     (A)  perform community service for:
                           (i)  not less than 8 or more than 12 hours if
  the person has not been previously convicted of an offense under
  this section; or
                           (ii)  not less than 20 or more than 40 hours
  if the person has been previously convicted of an offense under this
  section; and
                     (B)  successfully complete a substance misuse
  education program under Section 521.374(a)(1), Transportation
  Code, that is regulated by the Texas Department of Licensing and
  Regulation under Chapter 171, Government Code; and
               (2)  the Department of Public Safety to suspend the
  driver's license or permit of a person convicted of an offense under
  this section or, if the person does not have a driver's license or
  permit, to deny the issuance of a driver's license or permit for:
                     (A)  30 days, if the person has not been
  previously convicted of an offense under this section;
                     (B)  60 days, if the person has been previously
  convicted once of an offense under this section; or
                     (C)  180 days, if the person has been previously
  convicted twice or more of an offense under this section.
         (e)  A driver's license suspension under Subsection (d)(2)
  takes effect on the 11th day after the date the person is convicted.
         (f)  A person who has been previously convicted of an offense
  under this section two or more times is not eligible to receive
  deferred disposition or deferred adjudication for an offense under
  this section.
         (g)  Community service ordered under Subsection (d) must be
  related to education about or prevention of misuse of drugs if a
  program or service providing that education or prevention is
  available in the county in which the court is located.  If a program
  or service providing that education or prevention is not available
  in the county, the court may order community service appropriate
  for rehabilitative purposes.  The education program under
  Subsection (d)(1)(B) is in addition to community service ordered
  under this section.
         (h)  For the purpose of determining whether a person has been
  previously convicted of an offense under this section:
               (1)  an adjudication under Title 3, Family Code, that
  the person engaged in conduct described by this section is
  considered a conviction of an offense under this section; and
               (2)  an order of deferred disposition for an offense
  alleged under this section is considered a conviction of an offense
  under this section.
         (i)  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. 443.253.  OFFENSE: SALE OR DISTRIBUTION OF CERTAIN
  CONSUMABLE HEMP PRODUCTS TO PERSONS YOUNGER THAN 21 YEARS OF AGE;
  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 a person who is younger than 21 years of age.
         (b)  An employee of the owner of a store in which consumable
  hemp products that contain or are marketed as containing
  hemp-derived cannabinoids are sold at retail is criminally
  responsible and subject to prosecution for an offense under this
  section that occurs in connection with a sale by the employee.
         (c)  An offense under this section is a Class A 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)  The owner of a store in which consumable hemp products
  that contain or are marketed as containing hemp-derived
  cannabinoids are sold, or an employee of the owner, may not display
  consumable hemp products for sale adjacent to products that are
  legal for children to consume.
         Sec. 443.254.  OFFENSE: MANUFACTURE, DISTRIBUTION, OR SALE
  OF CONSUMABLE HEMP PRODUCTS FOR SMOKING.  (a)  A person commits an
  offense if the person manufactures, distributes, sells, or offers
  for sale a consumable hemp product for smoking.
         (b)  An offense under this section is a Class B misdemeanor.
         Sec. 443.255.  OFFENSE: SALE OR DELIVERY OF CERTAIN
  CONSUMABLE HEMP PRODUCTS NEAR SCHOOL.  (a)  In this section,
  "school" and "premises" have the meanings assigned by Section
  481.134.
         (b)  A person commits an offense if the person sells, offers
  for sale, or delivers a consumable hemp product containing a
  hemp-derived cannabinoid in, on, or within 1,000 feet of the
  premises of a school.
         (c)  An offense under this section is a Class B misdemeanor.
         Sec. 443.256.  OFFENSE: PROVISION OF CERTAIN CONSUMABLE HEMP
  PRODUCT BY COURIER, DELIVERY, OR MAIL SERVICE.  (a)  A person
  commits an offense if the person provides a consumable hemp product
  containing a hemp-derived cannabinoid by courier, delivery, or mail
  service.
         (b)  An offense under this section is a Class A misdemeanor.
         Sec. 443.257.  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 chapter.
         (b)  An offense under this section is a felony of the third
  degree.
         Sec. 443.258.  OFFENSE:  MANUFACTURING OR SELLING WITHOUT
  LICENSE OR REGISTRATION.  (a)  A person commits an offense if the
  person:
               (1)  processes hemp or manufactures a consumable hemp
  product without a license issued under Subchapter C; or
               (2)  sells at retail or offers for sale at retail a
  consumable hemp product without registering as a retailer under
  Section 443.2025.
         (b)  An offense under this section is a felony of the third
  degree.
  SUBCHAPTER G.  ADMINISTRATIVE ENFORCEMENT
         Sec. 443.301.  ENFORCEMENT BY DEPARTMENT.  (a)  The
  department shall receive and investigate complaints concerning
  violations of this chapter by:
               (1)  a license holder under Subchapter C; or
               (2)  a registrant under Section 443.2025.
         (b)  The department may revoke, suspend, or refuse to renew a
  license or registration for a violation of this chapter or a rule
  adopted under this chapter.
         (c)  The department may impose an administrative penalty in
  an amount not to exceed $10,000 against a license holder or
  registrant for each violation of this chapter or a rule adopted
  under this chapter.
         (d)  A proceeding under this section is a contested case
  under Chapter 2001, Government Code.
         SECTION 18.  The following provisions of the Health and
  Safety Code are repealed:
               (1)  Section 443.151(e);
               (2)  Section 443.201; and
               (3)  Sections 443.202(a) and 443.2025(a) and (c).
         SECTION 19.  Not later than December 1, 2025, the executive
  commissioner of the Health and Human Services Commission shall
  adopt the rules required by Section 443.2026, Health and Safety
  Code, as added by this Act.
         SECTION 20.  (a)  Except as otherwise provided by Subsection
  (b) of this section, the changes in law made by this Act apply to the
  manufacture, sale, delivery, or possession of a consumable hemp
  product that occurs on or after the effective date of this Act.  The
  manufacture, sale, delivery, or possession of a consumable hemp
  product that occurs before the effective date of this Act is
  governed by the law in effect on the date the  manufacture, sale,
  delivery, or possession occurred and the former law is continued in
  effect for that purpose.
         (b)  A person selling consumable hemp products on the
  effective date of this Act is not required to register a product
  under Section 443.2026, Health and Safety Code, as added by this
  Act, before January 1, 2026.
         SECTION 21.  This Act takes effect September 1, 2025.
  ______________________________
  ______________________________
     President of the Senate
  Speaker of the House     
         I hereby certify that S.B. No. 3 passed the Senate on
  March 19, 2025, by the following vote:  Yeas 26, Nays 5; and that
  the Senate concurred in House amendments on May 25, 2025, by the
  following vote:  Yeas 25, Nays 6.
  ______________________________
  Secretary of the Senate    
         I hereby certify that S.B. No. 3 passed the House, with
  amendments, on May 22, 2025, by the following vote:  Yeas 87,
  Nays 54, one present not voting.
  ______________________________
  Chief Clerk of the House   
  Approved:
  ______________________________ 
              Date
  ______________________________ 
            Governor