The bill, S.B. No. 53, establishes a regulatory framework for the production and sale of consumable hemp products and hemp beverages in Texas, mandating the creation of a new state agency to oversee licensing and regulation. It introduces significant amendments to the Agriculture Code and Alcoholic Beverage Code, including the definitions of terms related to hemp products and the imposition of occupational licenses, permits, and associated fees. The bill also outlines civil penalties, criminal offenses, and a new 6.25% sales and use tax on consumable hemp products and hemp beverages, effective January 1, 2027. Notably, it removes references to the Health and Safety Code, transferring relevant responsibilities to the Texas Alcoholic Beverage Commission.

Additionally, the bill establishes an advisory committee to assist in developing regulations and licensing systems, with a comprehensive report due by December 31, 2026. It details the responsibilities of permit holders, including packaging and labeling requirements, age verification for sales, and restrictions on marketing to minors. The legislation also includes provisions for the licensing and operation of hemp manufacturers, distributors, and retailers, emphasizing compliance with safety standards and public health. Overall, the bill aims to create a structured and safe environment for the hemp industry while aligning it with existing alcohol regulations.

Statutes affected:
Introduced: Agriculture Code 121.003, Agriculture Code 122.001, Agriculture Code 122.101, Agriculture Code 122.151, Agriculture Code 122.301, Alcoholic Beverage Code 1.04, Alcoholic Beverage Code 5.05, Alcoholic Beverage Code 5.17, Alcoholic Beverage Code 5.31, Alcoholic Beverage Code 5.32, Alcoholic Beverage Code 5.35, Alcoholic Beverage Code 5.36, Alcoholic Beverage Code 5.362, Alcoholic Beverage Code 5.38, Alcoholic Beverage Code 5.48, Alcoholic Beverage Code 5.57, Alcoholic Beverage Code 11.64, Alcoholic Beverage Code 28.01, Alcoholic Beverage Code 28.1001, Alcoholic Beverage Code 32.155, Alcoholic Beverage Code 41.01, Alcoholic Beverage Code 61.02, Alcoholic Beverage Code 61.13, Alcoholic Beverage Code 61.31, Alcoholic Beverage Code 61.314, Alcoholic Beverage Code 61.381, Alcoholic Beverage Code 61.421, Alcoholic Beverage Code 62.09, Alcoholic Beverage Code 64.01, Alcoholic Beverage Code 64.08, Alcoholic Beverage Code 64.09, Alcoholic Beverage Code 66.11, Alcoholic Beverage Code 74.08, Alcoholic Beverage Code 101.03, Alcoholic Beverage Code 101.31, Alcoholic Beverage Code 101.41, Alcoholic Beverage Code 101.66, Alcoholic Beverage Code 101.67, Alcoholic Beverage Code 101.6701, Alcoholic Beverage Code 305.001, Alcoholic Beverage Code 101.71, Alcoholic Beverage Code 106.02, Alcoholic Beverage Code 106.025, Alcoholic Beverage Code 106.03, Alcoholic Beverage Code 106.04, Alcoholic Beverage Code 106.05, Alcoholic Beverage Code 106.06, Alcoholic Beverage Code 106.07, Alcoholic Beverage Code 106.071, Alcoholic Beverage Code 106.08, Alcoholic Beverage Code 106.115, Alcoholic Beverage Code 106.13, Alcoholic Beverage Code 107.07, Alcoholic Beverage Code 107.11, Alcoholic Beverage Code 109.01, Alcoholic Beverage Code 109.06, Alcoholic Beverage Code 109.21, Alcoholic Beverage Code 203.01, Alcoholic Beverage Code 251.71, Alcoholic Beverage Code 251.73, Election Code 501.001, Election Code 501.021, Election Code 501.023, Election Code 501.024, Election Code 501.025, Election Code 501.027, Election Code 501.028, Election Code 501.034, Election Code 501.035, Election Code 501.107, Election Code 501.109, Election Code 501.151, Election Code 501.154, Government Code 411.110, Health and Safety Code 431.011, Occupations Code 60.002, Subchapter A, Chapter , Tax Code 350.001, Transportation Code 1.04, Transportation Code 545.420, Chapter , Health and Safety Code 340.106 (Alcoholic Beverage Code 5, Alcoholic Beverage Code 62, Alcoholic Beverage Code 203, Alcoholic Beverage Code 109, Subchapter A, Chapter , Tax Code 350, Alcoholic Beverage Code 61, Election Code 501, Alcoholic Beverage Code 74, Alcoholic Beverage Code 28, Alcoholic Beverage Code 106, Alcoholic Beverage Code 101, Alcoholic Beverage Code 41, Alcoholic Beverage Code 107, Alcoholic Beverage Code 251, Alcoholic Beverage Code 66, Chapter , Health and Safety Code 340, Alcoholic Beverage Code 32, Transportation Code 545, Agriculture Code 121, Health and Safety Code 431, Alcoholic Beverage Code 305, Alcoholic Beverage Code 1, Government Code 411, Transportation Code 1, Alcoholic Beverage Code 11, Occupations Code 60, Alcoholic Beverage Code 64, Agriculture Code 122)