HB 1325 required the Texas Department of Agriculture (TDA) and the Department of State and Health Services (DSHS) to draft rules to support the Texas Hemp Program. Each agency will have jurisdiction over different aspects of this program. TDA will regulate the growing and processing of hemp and DSHS will regulate all consumable hemp products from manufacturing to retail sales. This is a critical regulatory component to this new industry which is expected to begin in the summer of 2020.
TEXAS DEPARTMENT OF AGRICULTURE
As of March 16th, license applications for hemp growers in the state of Texas are available by the TDA online at www.texasagriculture.gov.
The agency is requiring those that plan to produce, handle, or sample and collect hemp at any location in the State of Texas to obtain a license through the department. Each applicant must pay the required annual fee of $100 for each application, renewal or modification of a license.
Those wishing to obtain a license will be ineligible if they are: (1) under the age of 18, or (2) a person who is or has been convicted of a felony relating to a controlled substance under federal law or the law of any state (before the 10th anniversary of the date of the conviction).
Each applicant shall provide the following information for each license application:
full name, Texas address, telephone number, and email address;
if the applicant is submitting an application on behalf of an entity, the full name of the entity, the principal Texas business location address, the full names, titles, addresses, and emails of key participants, the full name, title, and email of the applicant who will have signing authority, and the Texas taxpayer ID number.
Once the applicant’s license is approved, the license holder will apply for a producer’s or handler’s permit to plant an area known as a “lot” in hemp. This license will require the information below:
street address and geospatial location including GPS for each facility where hemp will be cultivated or stored;
proof of ownership or control over the location where hemp will be cultivated or stored;
anticipated dates of cultivation; and
all other information required by the TDA.
Those looking to be a hemp processing entity will be required to register with TDA. Official dates will be posted soon.
DEPARTMENT OF STATE AND HEALTH SERVICES
The DSHS is currently drafting their rules which will establish licenses for consumable hemp products and registration for the retail sales of consumable hemp products containing cannabidiol (CBD) that may not contain more than 0.3 percent concentration of tetrahydrocannabinol (THC). Seeing as there are many by-products from the hemp plant, these regulations will be key to our industry and economy.
Now that TDA has finalized their rules and the state plan has been approved by USDA, DSHS will undertake the following:
create a manufacturing licensure program for consumable hemp products;
provide a registration process for retailers selling consumable hemp products containing CBD; and
align with DPS on random testing for consumable hemp products containing CBD sold at retail.
Both agencies will be critical to the regulatory components that will affect the Texas Hemp industry. To inquire about the process of obtaining a license from either agency email, info@baw.com.
Booth & Associates, P.C. is a law firm that focuses on legal and legislative areas involving agriculture, hemp, surface water and groundwater supplies, water rates and contracts, water permitting and property rights in water, and environmental issues that include wastewater, waste management and materials management. Our regulatory and legislative practice keeps us at the forefront of state law and agency policy in these and a range of other areas.