S.B. No. 5 aims to establish a comprehensive regulatory framework for consumable hemp products in Texas, focusing on safety and compliance. The bill introduces new definitions, such as "consumable hemp product," which encompasses items suitable for human ingestion, absorption, or inhalation, and specifies allowable cannabinoids like cannabidiol and cannabigerol. It requires manufacturers and retailers to obtain licenses, with fees set at $10,000 for processing locations and $20,000 for retail locations. Additionally, consumable hemp products must undergo testing for cannabinoid concentration and contaminants before sale, and the bill prohibits the sale of products containing unauthorized cannabinoids. Manufacturers must register their products, pay a $500 fee for each, and label them with a QR code linking to the department's registration list.

The legislation also includes strict penalties for violations, classifying the distribution or sale of unregistered consumable hemp products as Class B misdemeanors, while marketing these products in ways appealing to minors is classified as a Class A misdemeanor. The bill outlines criminal offenses related to the manufacture and possession of unauthorized cannabinoids, with such offenses classified as felonies. It further establishes guidelines for the retail sale of out-of-state consumable hemp products, ensuring compliance with federal regulations. The Department of Health and Human Services is empowered to enforce these regulations, investigate complaints, and impose fines up to $10,000 for violations. The bill will take effect 91 days after the legislative session concludes, with provisions for the executive commissioner to adopt necessary rules by February 1, 2026.

Statutes affected:
Introduced: Health and Safety Code 431.011, Health and Safety Code 443.001, Health and Safety Code 443.051, Health and Safety Code 443.104, Health and Safety Code 443.151, Health and Safety Code 443.152, 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 443.207 (Health and Safety Code 443, Health and Safety Code 431)
Senate Committee Report: Health and Safety Code 431.011, Health and Safety Code 443.001, Health and Safety Code 443.051, Health and Safety Code 443.104, Health and Safety Code 443.151, Health and Safety Code 443.152, 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 443.207 (Health and Safety Code 443, Health and Safety Code 431)
Engrossed: Health and Safety Code 431.011, Health and Safety Code 443.001, Health and Safety Code 443.051, Health and Safety Code 443.104, Health and Safety Code 443.151, Health and Safety Code 443.152, 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 443.207 (Health and Safety Code 443, Health and Safety Code 431)