On April 29, 2021, the Texas House of Representatives approved Texas House Bill 1535 (“HB 1535”), a bill that would expand Texas’ medical cannabis program. The Senate must now pass this bill before it can be signed into law and further advance Texas’ marijuana reform legislation. On April 30, 202, Texas House Bill 441 (“HB 441”) was also passed by the Texas House of Representatives; however, this bill faces an uphill climb in the Senate. If HB 441 is passed by the Senate and signed into law, this bill would reduce the criminal penalty for possessing small amounts of marijuana. These two bills indicate significant progress in Texas cannabis legislation but still face an uncertain fate in the Senate. Below, we break down what these reform bills mean for the marijuana community in Texas.
In June of 2019, the state of Texas passed HB 1325, which, in part, authorizes and directs the Texas Department of State Health Services (“DSHS”) to enact rules regarding the processing and manufacturing of smokable hemp products. See Tex. Health & Safety Code § 443.204(4). In August of 2020, DSHS banned the processing, manufacturing, distribution, and retail sale of smokable hemp products throughout the state of Texas. See Tex. Admin. Code § 300.104. With its excessive regulations, DSHS essentially stifled the smokable hemp market in Texas, forcing existing companies, such as Crown Distributing LLC (“Crown”), to move their businesses out of state.
The Agricultural Improvement Act of 2018 (the “2018 Farm Bill”) established that hemp is to be treated similarly to other legal agricultural commodities and traded in standard interstate commerce as a raw material. However, the 2018 Farm Bill governs only state production programs and specifically permits states to enact more stringent regulations than those contained in the Bill. As a result, legal hemp has facilitated the emergence of a wide array of consumer products and uses. Specifically, smokable hemp has made a significant presence in the cannabis and hemp markets and continues to grow despite the increasing legality of other forms of cannabis that often include higher concentrations of tetrahydrocannabinol (“THC”). Below, we discuss the smokable hemp industry and the legal challenges it faces as it comes to fruition.
Yesterday, our office filed a lawsuit against the Texas Department of State Health Services (“DSHS”) on behalf of our client, Crown Distributing LLC (“Crown”), challenging the smokable hemp bans in Texas. A copy of our filed Petition can be accessed here.
If you joined us for Parts I through III of this Series, you will know that the Texas Department of State Health Services (“DSHS”) published its proposed rules to govern the Texas consumable hemp program (the “DSHS Proposed Rules”) in the Texas Register on May 8, 2020. The DSHS Proposed Rules are open for public comment for 31 days, meaning the public comment period closes on June 7, 2020. To provide comment on any of the draft rules, you can submit your comments directly to DSHS via email to [email protected]. When emailing comments, you will need to indicate “Comments on Proposed Rule 19R074 Hemp Program” in the subject line. Written comments may also be submitted to Rod Moline, Ph.D., R.S., Section Director, Mail Code 1987, Texas Department of State Health Services, P.O. Box 149347, Austin, Texas 78714-9347.
On June 10, 2019, Texas Governor Greg Abbott signed HB 1325, legislation pertaining to hemp growth and consumable hemp products, into law in the state of Texas. To conform with Texas Health and Safety Code, Chapter 443, as amended by HB 1325, Texas Department of State Health Services (“DSHS”) has published its proposed rules to govern the Texas consumable hemp program (the “DSHS Proposed Rules”) in the Texas Register. Under the DSHS Proposed Rules, a “consumable hemp product” is defined as
Under the Final Interim USDA Hemp Production plan, several rules, requirements, and regulations pave the way for those looking to start a legal hemp farm after approval of their relevant State’s hemp-growth plan. Below, we’ve compiled four fundamentals to growing hemp, including hemp licensing, growing conditions, testing, and record-keeping, to help ensure compliance and facilitate a legal operation.
After learning the licensing requirements in Part I of this Series and the complex rules and regulations on the sampling and testing of hemp in Part II, it is now time to turn our attention to the USDA plan’s matters of compliance, violations, license suspension and revocation, and mandatory recordkeeping.
As a hemp producer, if you violate the USDA plan, it is important not to panic. Instead, focus on remedying this situation by complying with the corrective action plan or other enforcement actions imposed by USDA.
Now that you have read Part I of the USDAHemp Production Plan series on the license requirements for hemp producers, it is critical to understand USDA’s methods and regulations for the sampling and testing of hemp for tetrahydrocannabinol (“THC”) concentration levels. Keep in mind: “tetrahydrocannabinol” and “delta-9 tetrahydrocannabinol” are interchangeable phrases for THC.