State Capital Highlights

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State Capital Highlights

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Top officials attempt to clarify

new hemp law for prosecutors

AUSTIN—Some district and county attorneys reportedly have begun to dismiss misdemeanor marijuana possession cases following the Texas Legislature’s passage of House Bill 1325, a law creating a legal path for the cultivation and marketing of hemp and hemp products. Gov. Greg Abbott, Lt. Gov. Dan Patrick, House Speaker Dennis Bonnen, and Attorney General Ken Paxton on July 18 sent a letter informing prosecutors that the Texas law, which takes effect Sept. 1, adopts the definition that differentiates between hemp and marijuana in the 2018 Farm Bill passed by Congress last year.

The farm bill, which delegates authority over the regulation, production, and sale of hemp to the states, differentiates hemp from marijuana by setting a tetrahydrocannabinol (THC) threshold concentration of 0.3 percent for hemp and anything above 0.3 percent for marijuana. HB 1325 directs the Texas Department of Agriculture to pass rules requiring hemp producers to be state-licensed and to test their products to ensure 0.3 percent or less THC concentration.

The Texas law also requires a shipping certificate that confirms the product in transport is legally compliant hemp. Failure to have the required certificate during transport is a misdemeanor. Some counties reportedly have raised an issue over the cost of lab testing that must be conducted on hemp to determine if seized samples are legally compliant or not. To address that issue, Abbott, Patrick, Bonnen, and Paxton wrote that prosecutors could use “circumstantial evidence” and, “As more companies enter the testing marketplace, the costs of the tests will certainly decline.”

Economy adds jobs in June

The Texas economy added 45,000 seasonally-adjusted nonfarm jobs, the Texas Workforce Commission announced in a July 19 news release. Also, the unemployment rate fell to 3.4 percent in June, the lowest rate recorded since 1976, when the state started tracking the unemployment rate. The previous low unemployment rate of 3.5 percent was recorded in May. “June’s unemployment rate is a historic win for employers and workers across the state,” said TWC Chair and Commissioner Representing Employers Ruth R. Hughs. “It is a reflection of our excellent businesses, skilled workforce, and the hard work of every Texan.” The trade, transportation, and utilities industry led job growth in June, adding 10,500 jobs. Leisure and hospitality was second, adding 10,000 jobs. The Midland Metropolitan Statistical Area recorded the lowest unemployment rate among Texas MSAs in June with a non-seasonally-adjusted rate of 2.1 percent, followed by the Amarillo, Austin-Round Rock and Odessa MSAs, each of which recorded a rate of 2.7 to tie for second place.