WILD WEST FICTION – TEXAS HAS REGULATIONS

Texas law provides an in-depth regulatory framework governing the manufacturing, processing, distribution, and retail sale of consumable hemp products. These regulations, detailed in the Texas Health and Safety Code (HSC) Chapter 443 and Texas Administrative Code (TAC) Chapter 300, outline comprehensive licensing, testing, labeling, and enforcement requirements. Here’s a closer look at the regulations, including relevant TAC provisions:

1. Definitions and Scope (HSC §443.001; TAC §300.101)

Texas defines a “consumable hemp product” as any food, drug, device, or cosmetic containing hemp or hemp-derived cannabinoids like cannabidiol (CBD). This definition aligns with federal standards and specifies that consumable hemp products must contain less than 0.3% delta-9 THC on a dry weight basis (HSC §443.001(1); TAC §300.101). This scope establishes that all consumable hemp products are subject to Texas’ regulatory oversight, including manufacturing, distribution, and retailing guidelines.

2. Licensing Requirements (HSC §§443.101-443.104; TAC §§300.201-300.202)

Texas mandates that any person or business involved in the manufacturing, processing, or distribution of consumable hemp products must obtain and hold a license from the Texas Department of State Health Services (DSHS). According to Health and Safety Code §443.101 and TAC §300.201, license applicants must submit:

• Application Process: The applicant must submit a completed application, facility GPS coordinates, written consent for inspections, and a fingerprint-based criminal background check (HSC §443.103; TAC §300.201).

• License Validity and Renewal: Licenses are valid for one year, with a renewal process requiring fee payment, compliance with testing, and no outstanding violations. Late renewals incur a penalty fee (TAC §300.202).

• Ineligibility: Applicants with controlled substance-related felony convictions within the past ten years are barred from obtaining licenses (HSC §443.102).

3. Testing Standards (HSC §§443.151-443.152; TAC §§300.301-300.303)

All consumable hemp products in Texas must comply with stringent testing requirements before they enter the market. Testing, detailed in Health and Safety Code §443.151 and TAC §300.301-302, must be performed by an ISO/IEC 17025-accredited laboratory to assess: and ensure product safety and compliance:3

• Mandatory Testing: Consumable hemp products must undergo laboratory testing for cannabinoid profiles (THC content), residual solvents, heavy metals, pesticides, and pathogens. Testing must be conducted by an ISO/IEC 17025-accredited lab (HSC §443.151; TAC §300.301).

• THC Limit: The delta-9 THC concentration in consumable hemp must not exceed 0.3% by dry weight, as verified by the Certificate of Analysis (COA) accompanying the product (TAC §300.301(b).

• Random Testing: The DSHS may conduct random tests at retail or distribution facilities to ensure ongoing compliance with safety and THC standards (TAC §300.302(c).

4. Labeling and Packaging Requirements (HSC §§443.205-443.206; TAC §§300.402-300.403)

To ensure transparency and consumer safety, Texas has strict labeling rules for consumable hemp products. Under Health and Safety Code §443.205 and TAC §300.402, each product must display:

• Required Information: Each product must display the batch number and date, product name, manufacturer’s name and contact, a THC compliance certification, and a QR code or URL linking to the COA (HSC §443.205; TAC §300.402).

• Additional Labeling for Food Products: Food-based hemp products must adhere to FDA labeling rules, including ingredient lists, allergen declarations, and nutrition facts in accordance with 21 CFR Part 101 (TAC §300.402(c)).

• Retail Display Requirements: Each product’s labeling must be visible on retail packaging. Labels must appear on each unit intended for individual sale and must contain up-to-date test data (TAC §300.402). The label must be visible on all retail units, and additional labeling requirements apply to food-based hemp products in accordance with FDA regulations (21 CFR Part 101).

5. Retail Sale and Registration Requirements (HSC §443.2025; TAC §§300.501-300.502)

Retailers selling consumable hemp products containing CBD must register each location with the DSHS, as specified in Health and Safety Code §443.2025 and TAC §300.501. Retail registration applies to each location separately and requires an annual renewal. Retailers are also responsible for ensuring out-of-state products comply with USDA-approved or Texas-aligned standards, verified by test results and compliant labeling upon request by the DSHS for each retail location:

• Registration Process: The retailer must apply online, submitting required business details and paying a $150 fee per location. Registration must be renewed annually, with a late fee for delayed renewals (TAC §300.501).

• Compliance for Out-of-State Products: Retailers selling out-of-state consumable hemp products must ensure that these products are compliant with Texas standards and USDA-approved plans. Proof of compliance with testing standards is required if requested by DSHS (TAC §300.403).

6. Distribution, Transportation, and Exportation Rules (HSC §443.207; TAC §300.404)

Hemp products processed or manufactured in Texas may legally be transported across state lines and exported in compliance with federal law, as stated in Health and Safety Code §443.207 and TAC §300.404. Retailers and distributors must ensure products are tested and compliant with 7 U.S.C. Chapter 38, Subchapter VII, to qualify for legal interstate transport:

• Interstate Compliance: Products must meet all federal and state guidelines, allowing compliant transport under the USDA’s regulatory framework (HSC §443.207).

• Exportation Standards: Exported products must be legally compliant with both U.S. law and the regulations of foreign jurisdictions where the products are intended for sale (TAC §300.404).

7. Prohibited Acts and Enforcement Mechanisms (HSC §§443.203-443.204; TAC §§300.601-300.606)

Texas regulations prohibit unlicensed manufacturing, distribution, or retail of consumable hemp products. Violations of licensing, labeling, and testing requirements lead to penalties, such as fines, administrative actions, product seizures, and, in severe cases, product destruction. Key enforcement provisions include:

• Penalties and Violations: Unlicensed manufacturing, improper labeling, or failure to comply with testing requirements incurs administrative penalties, which can include fines, product embargo, and destruction of misbranded or adulterated products (HSC §443.203; TAC §§300.601, 300.604).

• Deceptive Trade Practices: Selling non-compliant or mislabeled products constitutes a deceptive trade practice, actionable under the Texas Business & Commerce Code. Offenders may face fines and civil penalties (HSC §443.203).

• Product Seizure and Destruction: Adulterated or mislabeled products can be embargoed, and, if confirmed non-compliant, destroyed at the expense of the product’s owner (TAC §§300.603-300.604).

8. Consumer Protection and Product Safety (HSC §§443.203-443.205; TAC §300.602)

The statutes establish consumer protections by treating misleading claims or unsafe products as deceptive trade practices actionable under the Texas Business & Commerce Code (Health and Safety Code §443.203). Texas authorities also perform random sampling and inspections at retail locations to ensure compliance, providing a safeguard against hazardous or mislabeled hemp products in the state:

• Public Safety Inspections: DSHS conducts inspections and random testing at retail locations to detect and address non-compliant products. Retailers must remedy violations within ten business days when informed of potential violations by DSHS (TAC §300.606).

• Corrective Labeling: For products detained due to labeling errors, the court may allow correction and reintroduction into commerce after verification by DSHS (TAC §300.605).5

• Deceptive Labeling and Health Safety: Products found to contain harmful ingredients or inaccurately labeled THC levels are barred from sale, with violators facing additional scrutiny for repeat offenses (HSC §443.204).

These Texas statutes, incorporating both the Texas Health and Safety Code and Texas Administrative Code, establish a robust legal framework for managing the safety, compliance, and commercial transparency of consumable hemp products within the state. This regulatory framework supports federal compliance, thus avoiding any unnecessary litigation, while addressing consumer safety and the operational standards of the hemp industry in Texas.