H.B. No. 4242 aims to establish a comprehensive regulatory framework for the production, sale, distribution, and delivery of hemp products in Texas, while introducing a criminal offense for non-compliance. The bill creates a new "Consumable Hemp Products Account" within the general revenue fund, which will be managed by the department and funded through legislative appropriations, donations, and fees. It also streamlines the licensing process for hemp businesses by requiring specific information in applications and allowing expedited renewals. Additionally, the bill mandates testing of consumable hemp products for contaminants and cannabinoid concentrations, sets labeling requirements, and prohibits misleading packaging, particularly to protect minors.

The legislation further outlines regulations for the sale and marketing of consumable hemp products, including age restrictions that prohibit sales to individuals under 21 years of age, with penalties for violations. Retailers are required to verify the age of consumers through reliable methods. The bill also prevents the issuance of licenses for hemp production on properties owned by entities from certain countries, such as China and Russia, and allows retailers to sell existing inventory that meets safety standards. H.B. No. 4242 is set to take effect immediately upon a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

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)