Relating to the creation of the Texas Hemp Council; regulation of products derived from hemp, including consumable hemp products and hemp beverages and the hemp-derived cannabinoids contained in those products; requiring occupational licenses and permits; imposing fees; creating criminal offenses; authorizing civil penalties; imposing taxes.

89th Legislature, 2nd Called Session (2025) Introduced by Briscoe Cain

Texas bill creates state licensing system and taxes for hemp-derived cannabinoid products while establishing regulatory oversight and criminal penalties for violations.

Filed

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Legislative bill overview

HB 309 establishes a Texas Hemp Council to regulate hemp-derived products, including consumable hemp products and hemp beverages containing cannabinoids (such as delta-8, delta-10, and other hemp-derived compounds). The bill creates a licensing and permitting system for manufacturers and sellers, imposes regulatory fees and taxes, and establishes criminal and civil penalties for violations.

Why is this important

Hemp-derived cannabinoid products represent a rapidly growing market that currently operates in a regulatory gray area in Texas. This bill would formalize oversight of an industry that has expanded significantly since federal hemp legalization, potentially protecting consumers through quality standards while generating state revenue and creating a framework that other states may reference.

Potential points of contention

Industry compliance costs: Licensing, permitting, and tax requirements could increase operational costs for small businesses and producers, potentially favoring larger corporations

Consumer access and pricing: Regulatory fees and taxes may increase product prices and reduce availability of hemp-derived cannabinoids compared to current unregulated market

Definition ambiguity: The bill's treatment of various hemp-derived cannabinoids and their potency limits could be unclear, creating enforcement challenges and disputes over which products qualify as legal

Criminal penalties scope: Establishing new criminal offenses requires clear definitions to avoid prosecuting retailers and consumers for unintentional violations