Texas 2015 - 84th Regular

Texas Senate Bill SB339 Compare Versions

Version 1 (Old)

Version 2 (New)

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