Texas 2015 - 84th Regular

Texas House Bill HB892 Compare Versions

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1	1	84R21487 GCB-F
2	2	By: Klick, Zerwas, Zedler, Coleman, H.B. No. 892
3	3	Sheffield, et al.
4	4	Substitute the following for H.B. No. 892:
5	5	By: Crownover C.S.H.B. No. 892
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the medical use of low-THC cannabis and the regulation
11	11	of related organizations and individuals; requiring a dispensing
12	12	organization to obtain a license to dispense low-THC cannabis and
13	13	any employee of a dispensing organization to obtain a registration;
14	14	authorizing fees.
15	15	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	SECTION 1. Subtitle C, Title 6, Health and Safety Code, is
17	17	amended by adding Chapter 487 to read as follows:
18	18	CHAPTER 487. TEXAS COMPASSIONATE-USE ACT
19	19	SUBCHAPTER A. GENERAL PROVISIONS
20	20	Sec. 487.001. DEFINITIONS. In this chapter:
21	21	(1) "Department" means the Department of Public
22	22	Safety.
23	23	(2) "Director" means the public safety director of the
24	24	department.
25	25	(3) "Dispensing organization" means an organization
26	26	licensed by the department to cultivate, process, and dispense
27	27	low-THC cannabis to a patient for whom low-THC cannabis is
28	28	prescribed under Chapter 169, Occupations Code.
29	29	(4) "Low-THC cannabis" has the meaning assigned by
30	30	Section 169.001, Occupations Code.
31	31	SUBCHAPTER B. DUTIES OF DEPARTMENT
32	32	Sec. 487.051. DUTIES OF DEPARTMENT. The department shall
33	33	administer this chapter.
34	34	Sec. 487.052. RULES. The director shall adopt any rules
35	35	necessary for the administration and enforcement of this chapter,
36	36	including rules imposing fees under this chapter in amounts
37	37	sufficient to cover the cost of administering this chapter.
38	38	Sec. 487.053. LICENSING OF DISPENSING ORGANIZATIONS AND
39	39	REGISTRATION OF CERTAIN ASSOCIATED INDIVIDUALS. (a) The
40	40	department shall:
41	41	(1) issue or renew a license to operate as a dispensing
42	42	organization to each applicant who satisfies the requirements
43	43	established under this chapter; and
44	44	(2) register directors, managers, and employees of
45	45	each dispensing organization.
46	46	(b) The department shall enforce compliance of licensees
47	47	and registrants and shall adopt procedures for suspending or
48	48	revoking a license or registration issued under this chapter and
49	49	for renewing a license or registration issued under this chapter.
50	50	Sec. 487.054. COMPASSIONATE-USE REGISTRY. (a) The
51	51	department shall establish and maintain a secure online
52	52	compassionate-use registry that contains:
53	53	(1) the name of each physician who registers as the
54	54	prescriber for a patient under Section 169.003, Occupations Code,
55	55	the name and date of birth of the patient, the dosage prescribed,
56	56	the means of administration ordered, and the total amount of
57	57	low-THC cannabis required to fill the patient's prescription; and
58	58	(2) a record of each amount of low-THC cannabis
59	59	dispensed by a dispensing organization to a patient under a
60	60	prescription.
61	61	(b) The department shall ensure the registry:
62	62	(1) is designed to prevent more than one qualified
63	63	physician from registering as the prescriber for a single patient;
64	64	(2) is accessible to law enforcement agencies and
65	65	dispensing organizations for the purpose of verifying whether a
66	66	patient is one for whom low-THC cannabis is prescribed and whether
67	67	the patient's prescriptions have been filled; and
68	68	(3) allows a physician qualified to prescribe low-THC
69	69	cannabis under Section 169.002, Occupations Code, to input safety
70	70	and efficacy data derived from the treatment of patients for whom
71	71	low-THC cannabis is prescribed under Chapter 169, Occupations Code.
72	72	SUBCHAPTER C. LICENSE TO OPERATE AS DISPENSING ORGANIZATION
73	73	Sec. 487.101. LICENSE REQUIRED. A license issued by the
74	74	department under this chapter is required to operate a dispensing
75	75	organization.
76	76	Sec. 487.102. ELIGIBILITY FOR LICENSE. An applicant for a
77	77	license to operate as a dispensing organization is eligible for the
78	78	license if:
79	79	(1) as determined by the department, the applicant
80	80	possesses:
81	81	(A) the technical and technological ability to
82	82	cultivate and produce low-THC cannabis;
83	83	(B) the ability to secure:
84	84	(i) the resources and personnel necessary
85	85	to operate as a dispensing organization; and
86	86	(ii) premises reasonably located to allow
87	87	patients listed on the compassionate-use registry access to the
88	88	organization through existing infrastructure;
89	89	(C) the ability to maintain accountability for
90	90	the raw materials, the finished product, and any by-products used
91	91	or produced in the cultivation or production of low-THC cannabis to
92	92	prevent unlawful access to or unlawful diversion or possession of
93	93	those materials, products, or by-products; and
94	94	(D) the financial ability to maintain operations
95	95	for not less than two years from the date of application;
96	96	(2) each director, manager, or employee of the
97	97	applicant is registered under Subchapter D; and
98	98	(3) the applicant satisfies any additional criteria
99	99	determined by the director to be necessary to safely implement this
100	100	chapter.
101	101	Sec. 487.103. APPLICATION. (a) A person may apply for an
102	102	initial or renewal license to operate as a dispensing organization
103	103	by submitting a form prescribed by the department along with the
104	104	application fee in an amount set by the director.
105	105	(b) The application must include the name and address of the
106	106	applicant, the name and address of each of the applicant's
107	107	directors, managers, and employees, and any other information
108	108	considered necessary by the department to determine the applicant's
109	109	eligibility for the license.
110	110	Sec. 487.104. ISSUANCE, RENEWAL, OR DENIAL OF LICENSE. (a)
111	111	The department shall issue or renew a license to operate as a
112	112	dispensing organization only if:
113	113	(1) the department determines the applicant meets the
114	114	eligibility requirements described by Section 487.102; and
115	115	(2) issuance or renewal of the license is necessary to
116	116	ensure reasonable statewide access to, and the availability of,
117	117	low-THC cannabis for patients registered in the compassionate-use
118	118	registry and for whom low-THC cannabis is prescribed under Chapter
119	119	169, Occupations Code.
120	120	(b) If the department denies the issuance or renewal of a
121	121	license under Subsection (a), the applicant is entitled to a
122	122	hearing. The department shall give written notice of the grounds
123	123	for denial to the applicant at least 30 days before the date of the
124	124	hearing.
125	125	(c) A license issued or renewed under this section expires
126	126	on the second anniversary of the date of issuance or renewal, as
127	127	applicable.
128	128	Sec. 487.105. CRIMINAL HISTORY BACKGROUND CHECK. (a) An
129	129	applicant for the issuance or renewal of a license to operate as a
130	130	dispensing organization shall provide the department with the
131	131	applicant's name and the name of each of the applicant's directors,
132	132	managers, and employees.
133	133	(b) Before a dispensing organization licensee hires a
134	134	manager or employee for the organization, the licensee must provide
135	135	the department with the name of the prospective manager or
136	136	employee. The licensee may not transfer the license to another
137	137	person before that prospective applicant and the applicant's
138	138	directors, managers, and employees pass a criminal history
139	139	background check and are registered as required by Subchapter D.
140	140	(c) The department shall conduct a criminal history
141	141	background check on each individual whose name is provided to the
142	142	department under Subsection (a) or (b). The director by rule shall:
143	143	(1) determine the manner by which an individual is
144	144	required to submit a complete set of fingerprints to the department
145	145	for purposes of a criminal history background check under this
146	146	section; and
147	147	(2) establish criteria for determining whether an
148	148	individual passes the criminal history background check for the
149	149	purposes of this section.
150	150	(d) After conducting a criminal history background check
151	151	under this section, the department shall notify the relevant
152	152	applicant or organization and the individual who is the subject of
153	153	the criminal history background check as to whether the individual
154	154	passed the criminal history background check.
155	155	Sec. 487.106. DUTY TO MAINTAIN ELIGIBILITY. A dispensing
156	156	organization must maintain compliance at all times with the
157	157	eligibility requirements described by Section 487.102.
158	158	Sec. 487.107. DUTIES RELATING TO DISPENSING PRESCRIPTION.
159	159	(a) Before dispensing low-THC cannabis to a person for whom the
160	160	low-THC cannabis is prescribed under Chapter 169, Occupations Code,
161	161	the dispensing organization must verify that the prescription
162	162	presented:
163	163	(1) is for a person listed as a patient in the
164	164	compassionate-use registry;
165	165	(2) matches the entry in the compassionate-use
166	166	registry with respect to the total amount of low-THC cannabis
167	167	required to fill the prescription; and
168	168	(3) has not previously been filled by a dispensing
169	169	organization as indicated by an entry in the compassionate-use
170	170	registry.
171	171	(b) After dispensing low-THC cannabis to a patient for whom
172	172	the low-THC cannabis is prescribed under Chapter 169, Occupations
173	173	Code, the dispensing organization shall record in the
174	174	compassionate-use registry the form and quantity of low-THC
175	175	cannabis dispensed and the date and time of dispensation.
176	176	Sec. 487.108. LICENSE SUSPENSION OR REVOCATION. (a) The
177	177	department may at any time suspend or revoke a license issued under
178	178	this chapter if the department determines that the licensee has not
179	179	maintained the eligibility requirements described by Section
180	180	487.102 or has failed to comply with a duty imposed under this
181	181	chapter.
182	182	(b) The director shall give written notice to the dispensing
183	183	organization of a license suspension or revocation under this
184	184	section and the grounds for the suspension or revocation. The
185	185	notice must be sent by certified mail, return receipt requested.
186	186	(c) After suspending or revoking a license issued under this
187	187	chapter, the director may seize or place under seal all low-THC
188	188	cannabis and drug paraphernalia owned or possessed by the
189	189	dispensing organization. If the director orders the revocation of
190	190	the license, a disposition may not be made of the seized or sealed
191	191	low-THC cannabis or drug paraphernalia until the time for
192	192	administrative appeal of the order has elapsed or until all appeals
193	193	have been concluded. When a revocation order becomes final, all
194	194	low-THC cannabis and drug paraphernalia may be forfeited to the
195	195	state as provided under Subchapter E, Chapter 481.
196	196	(d) Chapter 2001, Government Code, applies to a proceeding
197	197	under this section.
198	198	SUBCHAPTER D. REGISTRATION OF CERTAIN INDIVIDUALS
199	199	Sec. 487.151. REGISTRATION REQUIRED. (a) An individual
200	200	who is a director, manager, or employee of a dispensing
201	201	organization must apply for and obtain a registration under this
202	202	section.
203	203	(b) An applicant for a registration under this section must:
204	204	(1) be at least 18 years of age;
205	205	(2) submit a complete set of fingerprints to the
206	206	department in the manner required by department rule; and
207	207	(3) pass a fingerprint-based criminal history
208	208	background check as required by Section 487.105.
209	209	(c) A registration expires on the second anniversary of the
210	210	date of the registration's issuance, unless suspended or revoked
211	211	under rules adopted under this chapter.
212	212	SUBCHAPTER E. DUTIES OF COUNTIES AND MUNICIPALITIES
213	213	Sec. 487.201. COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT
214	214	LOW-THC CANNABIS. A municipality, county, or other political
215	215	subdivision may not enact, adopt, or enforce a rule, ordinance,
216	216	order, resolution, or other regulation that prohibits the
217	217	cultivation, production, dispensing, or possession of low-THC
218	218	cannabis, as authorized by this chapter.
219	219	SECTION 2. Section 481.062(a), Health and Safety Code, as
220	220	amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
221	221	2015, is amended to read as follows:
222	222	(a) The following persons are not required to register and
223	223	may possess a controlled substance under this chapter:
224	224	(1) an agent or employee of a registered manufacturer,
225	225	distributor, analyzer, or dispenser of the controlled substance
226	226	acting in the usual course of business or employment;
227	227	(2) a common or contract carrier, a warehouseman, or
228	228	an employee of a carrier or warehouseman whose possession of the
229	229	controlled substance is in the usual course of business or
230	230	employment;
231	231	(3) an ultimate user or a person in possession of the
232	232	controlled substance under a lawful order of a practitioner or in
233	233	lawful possession of the controlled substance if it is listed in
234	234	Schedule V;
235	235	(4) an officer or employee of this state, another
236	236	state, a political subdivision of this state or another state, or
237	237	the United States who is lawfully engaged in the enforcement of a
238	238	law relating to a controlled substance or drug or to a customs law
239	239	and authorized to possess the controlled substance in the discharge
240	240	of the person's official duties; [or]
241	241	(5) if the substance is tetrahydrocannabinol or one of
242	242	its derivatives:
243	243	(A) a Department of State Health Services
244	244	official, a medical school researcher, or a research program
245	245	participant possessing the substance as authorized under
246	246	Subchapter G; or
247	247	(B) a practitioner or an ultimate user possessing
248	248	the substance as a participant in a federally approved therapeutic
249	249	research program that the commissioner has reviewed and found, in
250	250	writing, to contain a medically responsible research protocol; or
251	251	(6) a dispensing organization licensed under Chapter
252	252	487 that possesses low-THC cannabis.
253	253	SECTION 3. Section 481.111, Health and Safety Code, is
254	254	amended by adding Subsections (e) and (f) to read as follows:
255	255	(e) Sections 481.120, 481.121, 481.122, and 481.125 do not
256	256	apply to a person who engages in the acquisition, possession,
257	257	production, cultivation, delivery, or disposal of a raw material
258	258	used in or by-product created by the production or cultivation of
259	259	low-THC cannabis if the person:
260	260	(1) for an offense involving possession only of
261	261	marihuana or drug paraphernalia, is a patient for whom low-THC
262	262	cannabis is prescribed under Chapter 169, Occupations Code, or the
263	263	patient's legal guardian, and the person possesses low-THC cannabis
264	264	obtained under a valid prescription from a dispensing organization;
265	265	or
266	266	(2) is a director, manager, or employee of a
267	267	dispensing organization and the person, solely in performing the
268	268	person's regular duties at the organization, acquires, possesses,
269	269	produces, cultivates, dispenses, or disposes of:
270	270	(A) in reasonable quantities, any low-THC
271	271	cannabis or raw materials used in or by-products created by the
272	272	production or cultivation of low-THC cannabis; or
273	273	(B) any drug paraphernalia used in the
274	274	acquisition, possession, production, cultivation, delivery, or
275	275	disposal of low-THC cannabis.
276	276	(f) For purposes of Subsection (e):
277	277	(1) "Dispensing organization" has the meaning
278	278	assigned by Section 487.001.
279	279	(2) "Low-THC cannabis" has the meaning assigned by
280	280	Section 169.001, Occupations Code.
281	281	SECTION 4. Subtitle B, Title 3, Occupations Code, is
282	282	amended by adding Chapter 169 to read as follows:
283	283	CHAPTER 169. AUTHORITY TO PRESCRIBE LOW-THC CANNABIS TO CERTAIN
284	284	PATIENTS FOR COMPASSIONATE USE
285	285	Sec. 169.001. DEFINITIONS. In this chapter:
286	286	(1) "Department" means the Department of Public
287	287	Safety.
288	288	(2) "Intractable epilepsy" means a seizure disorder in
289	289	which the patient's seizures have been treated by two or more
290	290	appropriately chosen and maximally titrated antiepileptic drugs
291	291	that have failed to control the seizures.
292	292	(3) "Low-THC cannabis" means the plant Cannabis sativa
293	293	L., and any part of that plant or any compound, manufacture, salt,
294	294	derivative, mixture, preparation, resin, or oil of that plant that
295	295	contains:
296	296	(A) not more than 0.5 percent by weight of
297	297	tetrahydrocannabinols; and
298	298	(B) not less than 10 percent by weight of
299	299	cannabidiol.
300	300	(4) "Medical use" means the ingestion by a means of
301	301	administration other than by smoking of a prescribed amount of
302	302	low-THC cannabis by a person for whom low-THC cannabis is
303	303	prescribed under this chapter.
304	304	(5) "Smoking" means burning or igniting a substance
305	305	and inhaling the smoke.
306	306	Sec. 169.002. PHYSICIAN QUALIFIED TO PRESCRIBE LOW-THC
307	307	CANNABIS. (a) Only a physician qualified as provided by this
308	308	section may prescribe low-THC cannabis in accordance with this
309	309	chapter.
310	310	(b) A physician is qualified to prescribe low-THC cannabis
311	311	to a patient with intractable epilepsy if the physician:
312	312	(1) is licensed under this subtitle;
313	313	(2) dedicates a significant portion of clinical
314	314	practice to the evaluation and treatment of epilepsy; and
315	315	(3) is certified:
316	316	(A) by the American Board of Psychiatry and
317	317	Neurology in:
318	318	(i) epilepsy; or
319	319	(ii) neurology or neurology with special
320	320	qualification in child neurology and is otherwise qualified for the
321	321	examination for certification in epilepsy; or
322	322	(B) in neurophysiology by:
323	323	(i) the American Board of Psychiatry and
324	324	Neurology; or
325	325	(ii) the American Board of Clinical
326	326	Neurophysiology.
327	327	Sec. 169.003. PRESCRIPTION OF LOW-THC CANNABIS. A
328	328	physician described by Section 169.002 may prescribe low-THC
329	329	cannabis to alleviate a patient's seizures if:
330	330	(1) the patient is a permanent resident of the state;
331	331	(2) the physician complies with the registration
332	332	requirements of Section 169.004; and
333	333	(3) the physician certifies to the department that:
334	334	(A) the patient is diagnosed with intractable
335	335	epilepsy;
336	336	(B) the physician determines the risk of the
337	337	medical use of low-THC cannabis by the patient is reasonable in
338	338	light of the potential benefit for the patient; and
339	339	(C) a second physician qualified to prescribe
340	340	low-THC cannabis under Section 169.002 has concurred with the
341	341	determination under Paragraph (B), and the second physician's
342	342	concurrence is recorded in the patient's medical record.
343	343	Sec. 169.004. LOW-THC CANNABIS PRESCRIBER REGISTRATION.
344	344	Before a physician qualified to prescribe low-THC cannabis under
345	345	Section 169.002 may prescribe or renew a prescription for low-THC
346	346	cannabis for a patient under this chapter, the physician must
347	347	register as the prescriber for that patient in the
348	348	compassionate-use registry maintained by the department under
349	349	Section 487.054, Health and Safety Code. The physician's
350	350	registration must indicate:
351	351	(1) the physician's name;
352	352	(2) the patient's name and date of birth;
353	353	(3) the dosage prescribed to the patient;
354	354	(4) the means of administration ordered for the
355	355	patient; and
356	356	(5) the total amount of low-THC cannabis required to
357	357	fill the patient's prescription.
358	358	Sec. 169.005. PATIENT TREATMENT PLAN. A physician
359	359	described by Section 169.002 who prescribes low-THC cannabis for a
360	360	patient's medical use under this chapter must maintain a patient
361	361	treatment plan that indicates:
362	362	(1) the dosage, means of administration, and planned
363	363	duration of treatment for the low-THC cannabis;
364	364	(2) a plan for monitoring the patient's symptoms; and
365	365	(3) a plan for monitoring indicators of tolerance or
366	366	reaction to low-THC cannabis.
367	367	SECTION 5. Section 551.004(a), Occupations Code, is amended
368	368	to read as follows:
369	369	(a) This subtitle does not apply to:
370	370	(1) a practitioner licensed by the appropriate state
371	371	board who supplies a patient of the practitioner with a drug in a
372	372	manner authorized by state or federal law and who does not operate a
373	373	pharmacy for the retailing of prescription drugs;
374	374	(2) a member of the faculty of a college of pharmacy
375	375	recognized by the board who is a pharmacist and who performs the
376	376	pharmacist's services only for the benefit of the college;
377	377	(3) a person who procures prescription drugs for
378	378	lawful research, teaching, or testing and not for resale; [or]
379	379	(4) a home and community support services agency that
380	380	possesses a dangerous drug as authorized by Section 142.0061,
381	381	142.0062, or 142.0063, Health and Safety Code; or
382	382	(5) a dispensing organization, as defined by Section
383	383	487.001, Health and Safety Code, that cultivates, processes, and
384	384	dispenses low-THC cannabis, as authorized by Chapter 487, Health
385	385	and Safety Code, to a patient listed in the compassionate-use
386	386	registry established under that chapter.
387	387	SECTION 6. (a) Not later than December 1, 2015, the public
388	388	safety director of the Department of Public Safety shall adopt
389	389	rules as required to implement, administer, and enforce Chapter
390	390	487, Health and Safety Code, as added by this Act, including rules
391	391	to establish the compassionate-use registry required by that
392	392	chapter.
393	393	(b) Not later than September 1, 2017, the Department of
394	394	Public Safety shall license at least three dispensing organizations
395	395	in accordance with Section 487.053, Health and Safety Code, as
396	396	added by this Act, provided at least three applicants for a license
397	397	to operate as a dispensing organization have met the requirements
398	398	for approval provided by Subchapter C, Chapter 487, Health and
399	399	Safety Code, as added by this Act.
400	400	SECTION 7. This Act takes effect immediately if it receives
401	401	a vote of two-thirds of all the members elected to each house, as
402	402	provided by Section 39, Article III, Texas Constitution. If this
403	403	Act does not receive the vote necessary for immediate effect, this
404	404	Act takes effect September 1, 2015.