Senate Bill 3 Substituted and Overhauled by House Committee

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• All CHPs, Hemp Beverages, and their respective COAs must be registered by the manufacturer ($100) and approved by TABC for sale in the state. A list of approved products will be made available on the TABC website.
• All ingredients for CHPs must originate from within the United States unless approved by TABC.
• All ingredients must be organic and cannot include GMOs.
• No artificial dyes or artificial products unless approved by TABC.

Hemp Beverages

• On-Premise Purchase/Consumption Limit: 10mg D9THC per day when served on-premise.
• Off-Premise/To-Go Purchase Limit: 10mg/ounce for multi-serving container up to 750ml or 1mg/ounce for pre-mixed hemp cocktail in containers larger than 750ml (but not more than 1.5 liters).
• Cannot be mixed with alcohol, caffeine, tobacco, nicotine, kratom, kava, psychoactive mushrooms, or derivatives of those items.
• Hemp beverages are included in the definitions (and regulations) of alcoholic and malt beverages. The production of hemp beverages is considered to be the same as brewing malt beverages.

Edibles

• Limit: 10mg/serving and 1gram/container. 
• Edible products such as gummies, pills, or mints so long as the packaging is not attractive to children.

Tinctures

• Limit: 2.5mg/milliliter (one dropper) and 75mg/container.

Natural Hemp Flower

• Full spectrum allowed with a limit of 0.3% total THC by dry weight.
• No ingredients may be added to the flower.
• A person may only possess one ounce of flower.
• Only Texas-grown hemp flower may be distributed and sold in Texas.

Topicals

• Legal with no specific limitations.

Vaping Products Prohibited: Consumable hemp products may not be in a form of hemp-infused oils or other substances packaged for inhaling by heating the product.

Converted Cannabinoids Restricted: "Converted cannabinoid" means a chemical

substance purposely created by converting a phytocannabinoid into a different compound that is intended to mimic a phytocannabinoid or to interact with the endocannabinoid system, except for delta-9 tetrahydrocannabinol. The term does not include a cannabinoid that is approved by the commission.

Synthetic Cannabinoids Prohibited: "Synthetic cannabinoid" means a man-made chemical substance created by using chemical synthesis, chemical modification, chemical conversion, in-vitro biosynthesis, or bioconversion that is intended to mimic a phytocannabinoid, or is intended to or able to interact with the endocannabinoid system.

Packaging may not be attractive to children, must be tamper evident and child resistant, and may not bear any resemblance to (or be stocked near) soda, candy, snacks, medicine, or other food products that are widely distributed and familiar to the public. 

Hemp beverage labels must include:

• net contents in terms of ounces of liquid, 
• percentage and total amount in milligrams of each cannabinoid contained in beverage, 
• a warning that consumption of the beverage impairs a person’s ability to drive a car or operate machinery, may cause health problems, and may result in a positive drug test, 
• a warning that the consumer should consult a physician before consuming THC or cannabis products during pregnancy as doing so is not recommended for healthy mothers, and 
• a warning that consuming alcohol and hemp beverages together may result in unanticipated severe levels of intoxication.

• Hemp Beverage Training
• Consumable Hemp Product Training
• Hemp Delivery Driver Training

• 2 cents tax per 2.5 mg of Delta 9 
  • ½ will go to TABC for implementation, ¼ will go to accredited crime labs, ¼ to support opioid and narcotic response services by law enforcement.
• 2% of taxes due can be retained by the licensee for record keeping, furnishing bonds and accounting for the remittance of tax due.
• TABC licenses to test, manufacture, distribute, sell, carry or deliver consumable hemp products are valid for 2 years before they must be renewed.
• CHP Licenses and Fees:
  • Manufacturer - $3,000
  • Out of state manufacturer - $5,000
  • Distributor - $1,500 
  • Off-premise hemp retailer - $2,000
  • On-premise hemp retailer - $4,000
  • Hemp carrier - $1,100
  • Consumer delivery - $10,000
• A person may hold more than one license type.
• Prohibits retailers from being mobile.
• Hemp retailers may not sell gasoline, alcohol, tobacco, or nicotine products.
• Manufacturers and retailers may sell direct-to-consumer, including delivery and mail order.
• Those with the following permits may apply for a hemp beverage permit, which allows them to engage in specifically allowed hemp beverage activities:
  • Package Store - $1,800
  • Mixed Beverage - $ 2,650
  • Private Club Registration - $2,650
  • Carriers - $1,100
  • Consumer Delivery - $10,000
  • Brewer - $5,000
  • Non-resident Brewers - $5,000
  • General Distributors - $5,000
  • Branch Distributors - $5,000
  • Brewpub - $1,100
  • Hemp Retailer - $500
    • Hemp Beverage retailers are required to post warning signs on premises with the following information in English and Spanish: (1) consumption of a hemp beverage will result in a positive drug test; (2) a person should not drive or operate machinery if under the influence of a hemp beverage; (3) consuming alcohol and hemp beverages together may result in unanticipated severe levels of intoxication; and (4) consult your physician before consuming THC or cannabis products during pregnancy as doing so is not recommended for healthy mothers.

• Must be 21 to purchase CHPs or hemp beverages.
• Consumer’s age must be verified with DPS approved software. 
• Prohibits sales and delivery of hemp within 300 feet of a school, church, public playground, day-care center, child-care center, homeless shelter or substance abuse treatment center – Class B misdemeanor
• False lab test – third degree felony
• Selling synthetic or converted cannabinoids – state jail felony
• Knowingly possessing synthetic, or more than 1 oz – Class A misdemeanor
• Counties may vote to be a dry county for consumable hemp and hemp beverage sales, but may not prohibit manufacturing or adopt stricter hemp regulations than the state.

• Before a hemp plant or biomass is processed, sold into the stream of commerce, or otherwise used in the manufacture of a CHP or hemp beverage, a sample representing the plant must be tested to determine the concentration of cannabinoids, presence of residual solvents, heavy metals, pesticides, harmful pathogens and other substances.
• University labs may test hemp, hemp beverages, and CHPs.
• Testing labs must be accredited with the International Organization for Standardization, registered with DEA, and located in Texas.
• TABC will work with DPS to test random CHP samples.
• A hemp testing lab must be licensed by DSHS until January 1, 2027, and by TABC on and after January 1, 2027.
• A hemp testing lab must be independent and comply with good manufacturing processes.
• The THC testing procedure for natural hemp flower must include a valid testing methodology that uses postdecarboxylation or other similarly reliable method. The testing methodology must consider the potential conversion of THCA into D9THC.

Purpose: To assist the commission in rule-making and the development of a rigorous licensing and enforcement system for hemp beverages and consumable hemp products, the commission may establish an advisory working group.

Membership: The working group must include representatives from the Department of State Health Services and the Department of Public Safety. The working group must include at least one person from each of the following categories: local law enforcement, a scientist familiar with cannabis lab testing issues, an attorney familiar with cannabis regulation, a hemp retailer, a hemp products manufacturer, a hemp beverage manufacturer, and a hemp beverage brand.