83R10862 JSC-F By: Williams S.B. No. 1641 A BILL TO BE ENTITLED AN ACT relating to regulation of the manufacture, distribution, and disposition of controlled substances, precursors, and chemical laboratory apparatus; providing penalties; providing for a change in fees. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 481.062(a), Health and Safety Code, is amended to read as follows: (a) The following persons are not required to register and may possess a controlled substance under this chapter: (1) an agent or employee of a registered manufacturer, distributor, analyzer, or dispenser of the controlled substance acting in the usual course of business or employment; (2) a common or contract carrier, a warehouseman, or an employee of a carrier or warehouseman whose possession of the controlled substance is in the usual course of business or employment; (3) an ultimate user or a person in possession of the controlled substance under a lawful order of a practitioner or in lawful possession of the controlled substance if it is listed in Schedule V; (4) an officer or employee of this state, another state, a political subdivision of this state or another state, or the United States who is lawfully engaged in the enforcement of a law relating to a controlled substance or drug or to a customs law and authorized to possess the controlled substance in the discharge of the person's official duties; [or] (5) if the substance is tetrahydrocannabinol or one of its derivatives: (A) a Texas Department of Health official, a medical school researcher, or a research program participant possessing the substance as authorized under Subchapter G; or (B) a practitioner or an ultimate user possessing the substance as a participant in a federally approved therapeutic research program that the commissioner has reviewed and found, in writing, to contain a medically responsible research protocol; or (6) a person for whom registration with the United States Drug Enforcement Administration is waived under 21 C.F.R. Section 1301.22. SECTION 2. Sections 481.063(b) and (e), Health and Safety Code, are amended to read as follows: (b) The director may not issue a registration to a person to manufacture, distribute, analyze, dispense, or conduct research with a controlled substance unless the director receives: (1) a consent form signed by the person granting the director the right to inspect records as required by this chapter; and (2) a complete set of the person's fingerprints in the form and manner prescribed by the department. (e) An application for registration to manufacture, distribute, analyze, dispense, or conduct research with a controlled substance may be denied on a finding that the applicant: (1) has furnished material information in an application filed under this chapter that the applicant knows is false or fraudulent; (2) has been convicted of or placed on community supervision or other probation for: (A) a felony; (B) a violation of this chapter or of Chapters 482-485; or (C) an offense reasonably related to the registration sought; (3) has voluntarily surrendered or has had suspended, denied, or revoked a registration or application for registration to manufacture, distribute, analyze, or dispense controlled substances under the Federal Controlled Substances Act; (4) has had suspended, probated, or revoked a registration or a practitioner's license under the laws of this state or another state; (5) has intentionally or knowingly failed to establish and maintain effective security controls against diversion of controlled substances into other than legitimate medical, scientific, or industrial channels as provided by federal regulations or laws, this chapter, or a rule adopted under this chapter; (6) has intentionally or knowingly failed to maintain records required to be kept by this chapter or a rule adopted under this chapter; (7) has refused to allow an inspection authorized by this chapter or a rule adopted under this chapter; (8) has intentionally or knowingly violated this chapter or a rule adopted under this chapter; [or] (9) has voluntarily surrendered a registration that has not been reinstated; or (10) has submitted an application fee that is dishonored or reversed and the person has not cured the defect after reasonable notice and opportunity were provided. SECTION 3. Section 481.064(a), Health and Safety Code, is amended to read as follows: (a) The director may charge a nonrefundable fee [of not more than $25] before processing an application for annual registration and may charge a late fee [of not more than $50] for each application for renewal the department receives after the date the registration expires. The director by rule shall set the amounts of the fees at the amounts that are necessary to cover the cost of administering and enforcing this subchapter. Except as provided by Subsection (b), registrants shall pay the fees to the director. Not later than 60 days before the date the registration expires, the director shall send a renewal notice to the registrant at the last known address of the registrant according to department records. SECTION 4. Section 481.127(a), Health and Safety Code, is amended to read as follows: (a) A person commits an offense if the person knowingly gives, permits, or obtains unauthorized access to information submitted to the director under Section 481.074(g) or 481.075. SECTION 5. Section 481.301, Health and Safety Code, is amended to read as follows: Sec. 481.301. IMPOSITION OF PENALTY. The department may impose an administrative penalty on a person who violates Section 481.061, 481.066, 481.067, 481.069, 481.070, 481.071, 481.072, 481.073, 481.074, 481.075, 481.077, 481.0771, 481.078, 481.080, or 481.081 or a rule or order adopted under any of those sections. SECTION 6. (a) Sections 481.063(b) and 481.064(a), Health and Safety Code, as amended by this Act, apply only to a registration that is issued or renewed on or after the effective date of this Act. A registration issued or renewed before the effective date of this Act is governed by the law in effect on the date the registration was issued or renewed, and the former law is continued in effect for that purpose. (b) Section 481.063(e), Health and Safety Code, as amended by this Act, applies only to an application for registration, including a renewal application, submitted on or after the effective date of this Act. An application submitted before the effective date of this Act is governed by the law in effect on the date the application was submitted, and the former law is continued in effect for that purpose. (c) Section 481.301, Health and Safety Code, as amended by this Act, applies only to a violation that occurs on or after the effective date of this Act. A violation that occurs before that date is governed by the law in effect on the date the violation occurred, and the former law is continued in effect for that purpose. SECTION 7. This Act takes effect September 1, 2013.