85S10392 JSC-D
By: Lucio III H.B. No. 85
A BILL TO BE ENTITLED
AN ACT
relating to authorizing the possession, use, cultivation,
distribution, transportation, and delivery of medical cannabis for
medical use by patients with certain debilitating medical
conditions and the licensing of dispensing organizations and
cannabis testing facilities; authorizing 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 may possess a controlled
substance under this chapter without registering with the Federal
Drug Enforcement Administration:
(1) an agent or employee of a manufacturer,
distributor, analyzer, or dispenser of the controlled substance who
is registered with the Federal Drug Enforcement Administration and
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;
(5) if the substance is tetrahydrocannabinol or one of
its derivatives:
(A) a Department of State Health Services
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 dispensing organization licensed under Chapter
487 that possesses low-THC cannabis; or
(7) a dispensing organization or cannabis testing
facility licensed under Chapter 488 that possesses medical
cannabis.
SECTION 2. Sections 481.111(e) and (f), Health and Safety
Code, are amended to read as follows:
(e) Sections 481.120, 481.121, 481.122, and 481.125 do not
apply to a person who engages in the acquisition, possession,
production, cultivation, delivery, or disposal of a raw material
used in or by-product created by the production or cultivation of
low-THC cannabis or medical cannabis if the person:
(1) for an offense involving possession only of
marihuana or drug paraphernalia, is a patient for whom low-THC
cannabis is prescribed under Chapter 169, Occupations Code, or the
patient's legal guardian, and the person possesses low-THC cannabis
obtained under a valid prescription from a dispensing organization;
[or]
(2) is a director, manager, or employee of a low-THC
cannabis dispensing organization and the person, solely in
performing the person's regular duties at the organization,
acquires, possesses, produces, cultivates, dispenses, or disposes
of:
(A) in reasonable quantities, any low-THC
cannabis or raw materials used in or by-products created by the
production or cultivation of low-THC cannabis; or
(B) any drug paraphernalia used in the
acquisition, possession, production, cultivation, delivery, or
disposal of low-THC cannabis;
(3) for an offense involving possession only of
marihuana or drug paraphernalia, is a patient for whom medical use
is recommended under Chapter 169A, Occupations Code, and the person
possesses no more than the allowable amount of medical cannabis, as
determined under Section 488.002; or
(4) is a director, manager, or employee of a medical
cannabis dispensing organization or cannabis testing facility and
the person, solely in performing the person's regular duties at the
organization or facility, acquires, possesses, produces,
cultivates, dispenses, or disposes of:
(A) in reasonable quantities, any medical
cannabis or raw materials used in or by-products created by the
production or cultivation of medical cannabis; or
(B) any drug paraphernalia used in the
acquisition, possession, production, cultivation, delivery, or
disposal of medical cannabis.
(f) For purposes of Subsection (e):
(1) "Cannabis testing facility" ["Dispensing
organization"] has the meaning assigned by Section 488.001
[487.001].
(2) "Low-THC cannabis" has the meaning assigned by
Section 169.001, Occupations Code.
(3) "Low-THC cannabis dispensing organization" means
a dispensing organization as defined by Section 487.001.
(4) "Medical cannabis" and "medical use" have the
meanings assigned by Section 169A.001, Occupations Code.
(5) "Medical cannabis dispensing organization" means
a dispensing organization as defined by Section 488.001.
SECTION 3. Subtitle C, Title 6, Health and Safety Code, is
amended by adding Chapter 488 to read as follows:
CHAPTER 488. USE OF CANNABIS FOR MEDICAL PURPOSES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 488.001. DEFINITIONS. In this chapter:
(1) "Cannabis testing facility" means an independent
entity licensed by the department under this chapter to analyze the
safety and potency of medical cannabis.
(2) "Debilitating medical condition," "medical
cannabis," and "medical use" have the meanings assigned by Section
169A.001, Occupations Code.
(3) "Department" means the Department of Public
Safety.
(4) "Director" means the public safety director of the
department.
(5) "Dispensing organization" means an organization
licensed by the department to cultivate, process, and dispense
medical cannabis to a patient for whom medical use is recommended
under Chapter 169A, Occupations Code.
Sec. 488.002. ALLOWABLE AMOUNT OF MEDICAL CANNABIS. (a)
The allowable amount of medical cannabis for a person for whom
medical use is recommended under Chapter 169, Occupations Code, is:
(1) not more than 2.5 ounces of medical cannabis;
(2) if applicable, a greater amount specified in
accordance with department rules by a recommending physician under
Chapter 169A, Occupations Code, and included with the patient's
registration on the medical use registry established under Section
488.054; or
(3) an amount of oils or products infused with medical
cannabis such that the quantity of tetrahydrocannabinols and
cannabidiol in the oil or product does not exceed the quantity of
those substances contained in the amount of medical cannabis under
Subdivision (1) or (2), as applicable.
(b) Oils and products infused with medical cannabis must be
labeled in accordance with department rules to indicate the
quantity of tetrahydrocannabinols and cannabidiol contained in the
oil or product for purposes of determining compliance with this
section.
SUBCHAPTER B. DUTIES OF DEPARTMENT
Sec. 488.051. DUTIES OF DEPARTMENT. The department shall
administer this chapter.
Sec. 488.052. RULES. (a) The director shall adopt any
rules necessary for the administration and enforcement of this
chapter.
(b) The director shall adopt rules imposing fees under this
chapter in amounts sufficient to cover the cost of administering
this chapter.
(c) The director shall adopt rules in accordance with
Section 488.002 governing the allowable amount of medical cannabis
a physician may recommend for a patient for whom medical use is
recommended under Chapter 169A, Occupations Code.
(d) The director by rule shall adopt labeling requirements
for medical cannabis. In adopting labeling requirements, the
director shall ensure each oil and product infused with medical
cannabis is labeled with the quantity of tetrahydrocannabinols and
cannabidiol contained in the oil or product.
(e) The director shall adopt rules for analyzing the safety
and potency of any medical cannabis made available through a
dispensary.
(f) The director shall adopt rules requiring a dispensing
organization to have an adequate supply of medical cannabis to
compensate for any shortfall by another dispensing organization.
Sec. 488.053. LICENSING OF DISPENSING ORGANIZATIONS AND
CANNABIS TESTING FACILITIES; REGISTRATION OF CERTAIN ASSOCIATED
INDIVIDUALS. (a) The department shall:
(1) issue or renew a license under Subchapter C to
operate as:
(A) a dispensing organization to each applicant
who satisfies the requirements established under this chapter for
licensure as a dispensing organization; and
(B) a cannabis testing facility to each applicant
who satisfies the requirements established under this chapter for
licensure as a cannabis testing facility; and
(2) register directors, managers, and employees under
Subchapter D of each:
(A) dispensing organization; and
(B) cannabis testing facility.
(b) The department shall enforce compliance of licensees
and registrants and shall adopt procedures for suspending or
revoking a license or registration issued under this chapter and
for renewing a license or registration issued under this chapter.
Sec. 488.054. MEDICAL USE REGISTRY. (a) The department
shall establish and maintain a secure online medical use registry
that contains:
(1) the name of each physician who registers as the
physician recommending medical use for a patient under Section
169A.003, Occupations Code, and the name and date of birth of the
patient; and
(2) if applicable, the allowable amount of cannabis
specified by a recommending physician for the patient under Chapter
169A, Occupations Code.
(b) The department shall ensure the registry:
(1) is designed to prevent more than one physician
from registering as the physician recommending medical use for a
single patient;
(2) is accessible to law enforcement agencies and
dispensing organizations for the purpose of verifying whether a
patient is one for whom medical use is recommended under Chapter
169A, Occupations Code; and
(3) allows a physician recommending medical use under
Chapter 169A, Occupations Code, to input safety and efficacy data
derived from the treatment of patients for whom medical use is
recommended.
(c) A patient must be a permanent resident of this state to
be included in the registry. The department may issue an
identification card to a patient listed in the registry.
SUBCHAPTER C. LICENSING OF DISPENSING ORGANIZATIONS AND CANNABIS
TESTING FACILITIES
Sec. 488.101. LICENSE REQUIRED. A person may not operate as
a dispensing organization or a cannabis testing facility without
the appropriate license issued by the department under this
subchapter.
Sec. 488.102. ELIGIBILITY FOR LICENSE TO OPERATE AS
DISPENSING ORGANIZATION. An applicant for a license to operate as a
dispensing organization is eligible for the license if:
(1) as determined by the department, the applicant
possesses:
(A) the technical and technological ability to
cultivate and produce medical cannabis;
(B) the ability to secure:
(i) the resources and personnel necessary
to operate as a dispensing organization; and
(ii) premises reasonably located to allow
patients listed on the medical use registry access to the
organization through existing infrastructure;
(C) the ability to maintain accountability for
the raw materials, the finished product, and any by-products used
or produced in the cultivation or production of medical cannabis to
prevent unlawful access to or unlawful diversion or possession of
those materials, products, or by-products; and
(D) the financial ability to maintain operations
for not less than two years from the date of application;
(2) each director, manager, or employee of the
applicant is registered under Subchapter D; and
(3) the applicant satisfies any additional criteria
determined by the director to be necessary to safely implement this
chapter.
Sec. 488.1021. ELIGIBILITY FOR LICENSE TO OPERATE AS
CANNABIS TESTING FACILITY. An applicant for a license to operate as
a cannabis testing facility is eligible for the license if:
(1) as determined by the department, the applicant
possesses:
(A) the ability to secure the resources and
personnel necessary to operate as a cannabis testing facility; and
(B) the financial ability to maintain operations
for not less than two years from the date of application;
(2) each director, manager, or employee of the
applicant is registered under Subchapter D; and
(3) the applicant satisfies any additional criteria
determined by the director to be necessary for the operation of a
cannabis testing facility.
Sec. 488.103. APPLICATION. (a) A person may apply for an
initial or renewal license under this subchapter by submitting a
form prescribed by the department along with the application fee in
an amount set by the director.
(b) The application must include the name and address of the
applicant, the name and address of each of the applicant's
directors, managers, and employees, and any other information
considered necessary by the department to determine the applicant's
eligibility for the license.
Sec. 488.104. ISSUANCE, RENEWAL, OR DENIAL OF LICENSE.
(a) The department shall issue or renew a license under this
subchapter only if:
(1) the department determines the applicant meets the
eligibility requirements described by Section 488.102 or 488.1021,
as applicable; and
(2) issuance or renewal of the license is necessary to
ensure reasonable statewide access to, and the availability of,
medical cannabis for patients registered in the medical use
registry and for whom medical cannabis is recommended under Chapter
169A, Occupations Code.
(b) If the department denies the issuance or renewal of a
license under Subsection (a), the applicant is entitled to a
hearing. The department shall give written notice of the grounds
for denial to the applicant at least 30 days before the date of the
hearing.
(c) A license issued or renewed under this section expires
on the second anniversary of the date of issuance or renewal, as
applicable.
Sec. 488.105. CRIMINAL HISTORY BACKGROUND CHECK. (a) An
applicant for the issuance or renewal of a license under this
subchapter shall provide the department with the applicant's name
and the name of each of the applicant's directors, managers, and
employees.
(b) Before a license holder under this subchapter hires a
manager or employee for the organization or facility, the license
holder must provide the department with the name of the prospective
manager or employee. The license holder may not transfer the
license to another person before that prospective applicant and the
applicant's directors, managers, and employees pass a criminal
history background check and are registered as required by
Subchapter D.
(c) The department shall conduct a criminal history
background check on each individual whose name is provided to the
department under Subsection (a) or (b). The director by rule shall:
(1) determine the manner by which an individual is
required to submit a complete set of fingerprints to the department
for purposes of a criminal history background check under this
section; and
(2) establish criteria for determining whether an
individual passes the criminal history background check for the
purposes of this section.
(d) After conducting a criminal history background check
under this section, the department shall notify the relevant
applicant or organization or facility and the individual who is the
subject of the criminal history background check as to whether the
individual passed the criminal history background check.
Sec. 488.106. DUTY TO MAINTAIN ELIGIBILITY. Each license
holder under this subchapter must maintain compliance at all times
with the eligibility requirements described by Section 488.102 or
488.1021, as applicable.
Sec. 488.107. DUTIES RELATING TO DISPENSING MEDICAL
CANNABIS. (a) Before dispensing medical cannabis to a person for
whom medical use is recommended under Chapter 169A, Occupations
Code, the dispensing organization must verify that the person is
listed as a patient in the medical use registry.
(b) After dispensing medical cannabis to a patient for whom
medical use is recommended under Chapter 169A, Occupations Code,
the dispensing organization shall record in the medical use
registry the form and quantity of the medical cannabis dispensed
and the date and time of dispensation.
Sec. 488.108. LICENSE SUSPENSION OR REVOCATION. (a) The
department may at any time suspend or revoke a license issued under
this subchapter if the department determines that the license
holder has not maintained the eligibility requirements described by
Section 488.102 or 488.1021, as applicable, or has failed to comply
with a duty imposed under this chapter.
(b) The director shall give written notice to the license
holder of a license suspension or revocation under this section and
the grounds for the suspension or revocation. The notice must be
sent by certified mail, return receipt requested.
(c) After suspending or revoking a license issued under this
subchapter, the director may seize or place under seal all medical
cannabis and drug paraphernalia owned or possessed by the
dispensing organization or cannabis testing facility. If the
director orders the revocation of the license, a disposition may
not be made of the seized or sealed medical cannabis or drug
paraphernalia until the time for administrative appeal of the order
has elapsed or until all appeals have been concluded. When a
revocation order becomes final, all medical cannabis and drug
paraphernalia may be forfeited to the state as provided under
Subchapter E, Chapter 481.
(d) Chapter 2001, Government Code, applies to a proceeding
under this section.
SUBCHAPTER D. REGISTRATION OF CERTAIN INDIVIDUALS
Sec. 488.151. REGISTRATION REQUIRED. (a) An individual who
is a director, manager, or employee of a dispensing organization
must apply for and obtain a registration under this section.
(a-1) An individual who is a director, manager, or employee
of a cannabis testing facility must apply for and obtain a
registration under this section.
(b) An applicant for a registration under this section must:
(1) be at least 18 years of age;
(2) submit a complete set of fingerprints to the
department in the manner required by department rule; and
(3) pass a fingerprint-based criminal history
background check as required by Section 488.105.
(c) A registration expires on the second anniversary of the
date of the registration's issuance, unless suspended or revoked
under rules adopted under this chapter.
SUBCHAPTER E. DUTIES OF COUNTIES AND MUNICIPALITIES
Sec. 488.201. COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT
MEDICAL CANNABIS. A municipality, county, or other political
subdivision may not enact, adopt, or enforce a rule, ordinance,
order, resolution, or other regulation that prohibits the
cultivation, production, dispensing, testing, or possession of
medical cannabis, as authorized by this chapter.
SECTION 4. Subtitle B, Title 3, Occupations Code, is
amended by adding Chapter 169A to read as follows:
CHAPTER 169A. AUTHORITY TO RECOMMEND MEDICAL CANNABIS TO CERTAIN
PATIENTS WITH DEBILITATING MEDICAL CONDITIONS
Sec. 169A.001. DEFINITIONS. In this chapter:
(1) "Debilitating medical condition" means terminal
cancer, multiple sclerosis, autism, or Parkinson's disease.
(2) "Department" means the Department of Public
Safety.
(3) "Medical cannabis" means the plant Cannabis sativa
L., and any part of that plant or any compound, manufacture, salt,
derivative, mixture, preparation, resin, or oil of that plant.
(4) "Medical use" means the ingestion by a means of
administration other than by smoking of a recommended amount of
medical cannabis by a person for whom medical use is recommended
under this chapter.
(5) "Smoking" means burning or igniting a substance
and inhaling the smoke.
Sec. 169A.002. RECOMMENDATION OF MEDICAL USE. (a) A
physician may recommend medical use in accordance with this chapter
for a patient with a debilitating medical condition.
(b) A physician who recommends medical use for a patient
must:
(1) comply with the registration requirements of
Section 169A.003; and
(2) certify to the department that:
(A) the patient is diagnosed with a debilitating
medical condition; and
(B) the physician has determined that the risk of
medical use by the patient is reasonable in light of the potential
benefit for the patient.
Sec. 169A.003. RECOMMENDING PHYSICIAN REGISTRATION.
Before a physician may recommend medical use for a patient under
this chapter, the physician must register as the recommending
physician for that patient in the medical use registry maintained
by the department under Section 488.054, Health and Safety
Code. The physician's registration must indicate:
(1) the physician's name;
(2) the patient's name and date of birth; and
(3) the allowable amount of medical cannabis
recommended for the patient, if the physician recommends an
allowable amount greater than the amount provided by Section
488.002(a)(1), Health and Safety Code.
Sec. 169A.004. PATIENT TREATMENT PLAN. A physician who
recommends medical use for a patient under this chapter must
maintain a patient treatment plan that indicates:
(1) a plan for monitoring the patient's symptoms; and
(2) a plan for monitoring indicators of tolerance or
reaction to medical cannabis.
SECTION 5. Section 551.004, Occupations Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) This subtitle does not apply to:
(1) a practitioner licensed by the appropriate state
board who supplies a patient of the practitioner with a drug in a
manner authorized by state or federal law and who does not operate a
pharmacy for the retailing of prescription drugs;
(2) a member of the faculty of a college of pharmacy
recognized by the board who is a pharmacist and who performs the
pharmacist's services only for the benefit of the college;
(3) a person who procures prescription drugs for
lawful research, teaching, or testing and not for resale;
(4) a home and community support services agency that
possesses a dangerous drug as authorized by Section 142.0061,
142.0062, or 142.0063, Health and Safety Code; [or]
(5) a low-THC cannabis dispensing organization[, as
defined by Section 487.001, Health and Safety Code,] that
cultivates, processes, and dispenses low-THC cannabis, as
authorized by a license issued under Subchapter C, Chapter 487,
Health and Safety Code, to a patient listed in the
compassionate-use registry established under that chapter;
(6) a medical cannabis dispensing organization that
cultivates, processes, and dispenses medical cannabis, as
authorized by a license issued under Subchapter C, Chapter 488,
Health and Safety Code, to a patient listed in the medical use
registry established under that chapter; or
(7) a cannabis testing facility that analyzes the
safety and potency of medical cannabis, as authorized by a license
issued under Subchapter C, Chapter 488, Health and Safety Code.
(a-1) For purposes of Subsections (a)(5), (6), and (7):
(1) "Cannabis testing facility" has the meaning
assigned by Section 488.001, Health and Safety Code.
(2) "Low-THC cannabis dispensing organization" means
a dispensing organization as defined by Section 487.001, Health and
Safety Code.
(3) "Medical cannabis dispensing organization" means
a dispensing organization as defined by Section 488.001, Health and
Safety Code.
SECTION 6. Not later than January 1, 2018, the public safety
director of the Department of Public Safety shall adopt rules as
required to implement, administer, and enforce Chapter 488, Health
and Safety Code, as added by this Act, including rules to establish
the medical use registry required by that chapter.
SECTION 7. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect on the 91st day after the last day of the
legislative session.