H.B. No. 4242 is a legislative measure aimed at regulating the production, sale, distribution, and delivery of consumable hemp products in Texas. It establishes a "Consumable Hemp Products Account" within the general revenue fund, which will be managed by the department and funded through various sources such as legislative appropriations, donations, fees, and penalties. The bill amends existing sections of the Health and Safety Code to streamline the licensing process for hemp businesses, requiring specific information in applications and allowing expedited licensing for qualifying parties. It also mandates testing for contaminants and cannabinoid concentrations, sets labeling requirements, and prohibits misleading packaging, particularly to protect minors.

Additionally, the bill introduces new regulations regarding the sale and marketing of consumable hemp products, including a prohibition on selling these products to individuals under 21 years of age, with individual liability for employees of violating establishments. It outlines acceptable forms of identification for age verification and includes provisions for online sales. The bill restricts the issuance of licenses for hemp production on properties owned by entities or individuals from certain countries, such as China, Iran, North Korea, and Russia. It allows for the possession and sale of existing inventory that meets safety standards before the new regulations take effect. The bill will become effective immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if not.

Statutes affected:
Introduced: Health and Safety Code 443.103, Health and Safety Code 443.151, Health and Safety Code 443.152, Health and Safety Code 443.201, Health and Safety Code 443.2025, Health and Safety Code 443.204, Health and Safety Code 443.205 (Health and Safety Code 443)