Prepared by:
Rhiannon Dee Yard, MBA
Founder & CEO, Green Gaia Innovations, LLC
Introduction: The hemp industry in Texas has expanded rapidly since the passage of the 2018 Farm Bill, which legalized the cultivation and sale of hemp products nationwide. However, the regulatory framework for consumable hemp products in Texas remains underdeveloped, creating risks for consumer safety and market integrity. This proposal advocates for stricter regulatory standards, expanded oversight, and enhanced enforcement mechanisms to ensure the Texas hemp market operates with transparency, safety, and accountability.
Enhanced Oversight Through Licensing and Enforcement
Licensing Fees to Fund Hemp Regulation and Compliance: Texas should increase the licensing fees for consumable hemp product retailers and manufacturers. These funds would establish and maintain a dedicated Hemp Regulation and Compliance Department under the Texas Department of Agriculture. This department would be responsible for routine inspections, compliance checks, and product testing, ensuring adherence to state laws and protecting consumer safety.
Proposed Allocation of Funds:
- Hire additional regulators and inspectors for frequent site visits, product testing, and reviewing Certificates of Analysis (COAs) for compliance with THC limits and safety standards.
- Develop and maintain an online compliance portal where retailers and manufacturers submit COAs and other required documentation for product verification.
Compliance Violation Penalties: To encourage compliance and deter non-compliant behaviors, we propose the following three-strike penalty system:
First Violation:
- Immediate confiscation and destruction of non-compliant products (e.g., products exceeding THC limits, lack of full-panel testing).
- A formal warning, requiring submission of a compliance action plan within 30 days.
Second Violation:
- Further confiscation and destruction of non-compliant products.
- Imposition of fines at $500 per non-compliant unit or batch.
Third Violation:
- Confiscation and destruction of products.
- Permanent revocation of the business’s consumable hemp product license, with no eligibility for re-application.
Definition of Non-Compliance: Non-compliance includes:
- Products exceeding 0.3% Delta-9 THC.
- Products lacking full-panel testing for pesticides, microbial contaminants, or heavy metals.
- Inaccurate or missing COAs.
- Failure to meet labeling, packaging, or marketing requirements.
Standards for Alcohol and Tobacco Establishments Selling Consumable Hemp Products
Fair Disclosure to Financial Institutions: Alcohol and tobacco establishments that sell consumable hemp products must provide full disclosure of this activity to their banking institutions. This ensures transparency and creates a level playing field for all businesses operating in the hemp industry, including those without affiliations to the alcohol and tobacco sectors.
Facility Compliance: All facilities selling consumable hemp products, including those within the alcohol and tobacco industry, must ensure compliance with the same rules and regulations governing the hemp industry. This includes:
- Sourcing hemp products from vendors with full-panel testing.
- Ensuring proper COAs accompany each product.
- Meeting labeling, packaging, and safety standards as required by state law. This ensures consumer safety and prevents the sale of non-compliant or misrepresented products within these mixed-use retail environments.
Expansion of Cannabinoid Research and Medical Market
Research Grants and Education Campaigns: This proposal includes the establishment of research grants and education campaigns to support scientific research into cannabinoids, particularly their therapeutic uses. Collaboration with Texas universities, research institutions, and medical professionals will advance studies into cannabinoids and their potential benefits for various medical conditions such as chronic pain, PTSD, and epilepsy.
Protections for Physicians and Parents: In line with the Rohrabacher–Farr Amendment, Texas physicians prescribing cannabinoids should be protected from penalties or license revocation. Similarly, parents administering cannabinoids to their children under medical guidance should not face legal consequences. These protections would encourage responsible medical use of cannabinoids and allow patients to access necessary treatments without fear.
Strengthening Testing and Product Vetting
Full Panel Testing: Texas must require full-panel testing for all consumable hemp products, covering not only THC content but also pesticides, microbial contaminants, and heavy metals. This comprehensive testing will ensure that products on the market are safe for consumer use.
Track and Trace Systems: To further ensure transparency, Texas should adopt a track-and-trace system to monitor hemp products from seed to sale. This system would reduce the risk of contamination, fraud, and “hot” hemp entering the market. All products should be accompanied by a manifest of origin and proof of compliance before being sold in Texas.
Stricter Vetting for Out-of-State Products: All hemp products imported into Texas must meet the same stringent testing and labeling standards as in-state products. Stricter vetting procedures will prevent substandard or unsafe products from entering the Texas market, protecting both consumers and local businesses from fraudulent or non-compliant goods.
Conclusion: The rapid growth of the Texas hemp industry presents significant opportunities but also considerable risks if not properly regulated. By implementing these proposed regulations, Texas can create a safer, more accountable market for consumable hemp products. These changes—such as standardized testing, expanded regulatory oversight, and protections for medical professionals—will enhance consumer safety and support the long-term sustainability of the industry.
With these strengthened standards, Texas can lead the nation in creating a robust, safe, and transparent hemp market, benefiting consumers, businesses, and the state's economy. Ensuring full compliance across all sectors, including alcohol and tobacco establishments, will elevate the entire industry and ensure its integrity for the future.
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