S.B. No. 3 is a legislative bill designed to regulate consumable hemp products and the cannabinoids they contain, introducing new definitions such as "consumable hemp product" to include food, drugs, devices, or cosmetics with hemp or cannabinoids like cannabidiol and cannabigerol. The bill establishes a registration requirement for manufacturers and retailers, imposing an initial licensing fee of $10,000 and an annual fee of $20,000 per location. It mandates testing for cannabinoid concentration and contaminants, prohibits the manufacture of products containing cannabinoids other than cannabidiol or cannabigerol, and classifies the distribution of unregistered products as Class B misdemeanors. Additionally, it requires labeling with a QR code for verification and outlines penalties for deceptive practices.

The bill amends the Health and Safety Code to classify hemp-derived cannabinoids as non-controlled substances and mandates specific labeling requirements, including batch identification and certification of cannabinoid content. It introduces new offenses related to marketing consumable hemp products, especially those appealing to minors, and prohibits sales for smoking and to individuals under 21. The bill also allows for administrative enforcement and repeals several existing provisions to streamline regulations. It establishes a contested case framework for proceedings and requires the executive commissioner to adopt necessary rules by December 1, 2025. The changes will apply to activities occurring on or after September 1, 2025, with a grace period until January 1, 2026, for existing sellers to register their products.

Statutes affected:
Introduced: Health and Safety Code 443.001, Health and Safety Code 443.104, Health and Safety Code 443.151, Health and Safety Code 443.152, Health and Safety Code 443.202, Health and Safety Code 443.2025, Health and Safety Code 443.203, Health and Safety Code 443.204, Health and Safety Code 443.205, Health and Safety Code 443.206 (Health and Safety Code 443)
Senate Committee Report: Health and Safety Code 443.001, Health and Safety Code 443.104, Health and Safety Code 443.151, Health and Safety Code 443.152, Health and Safety Code 443.202, Health and Safety Code 443.2025, Health and Safety Code 443.203, Health and Safety Code 443.204, Health and Safety Code 443.205, Health and Safety Code 443.206 (Health and Safety Code 443)
Engrossed: Health and Safety Code 443.001, Health and Safety Code 443.104, Health and Safety Code 443.151, Health and Safety Code 443.152, Health and Safety Code 443.202, Health and Safety Code 443.2025, Health and Safety Code 443.203, Health and Safety Code 443.204, Health and Safety Code 443.205, Health and Safety Code 443.206 (Health and Safety Code 443)