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Texas House Bill HB2563

Texas 2019 - 86th Regular

Texas House Bill HB2563 Compare Versions

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11 86R5967 JSC-D
22 By: Lucio III H.B. No. 2563
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the establishment and duties of the Texas Medical
88 Cannabis Council.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Chapter 411, Government Code, is amended by
1111 adding Subchapter Q to read as follows:
1212 SUBCHAPTER Q. TEXAS MEDICAL CANNABIS COUNCIL
1313 Sec. 411.461. DEFINITIONS. In this subchapter:
1414 (1) "Advisory committee" means the Medical Cannabis
1515 Regulation Advisory Committee.
1616 (2) "Council" means the Texas Medical Cannabis
1717 Council.
1818 (3) "Dispensing organization" and "low-THC cannabis"
1919 have the meanings assigned by Section 487.001, Health and Safety
2020 Code.
2121 (4) "Medical cannabis" means the plant Cannabis sativa
2222 L., and any part of that plant or any compound, manufacture, salt,
2323 derivative, mixture, preparation, resin, or oil of that plant, that
2424 is used for medical purposes.
2525 Sec. 411.462. RULES. The director shall adopt any rules
2626 necessary to implement this subchapter.
2727 Sec. 411.463. TEXAS MEDICAL CANNABIS COUNCIL; PURPOSES.
2828 The Texas Medical Cannabis Council is established to:
2929 (1) create and expedite innovation in the area of
3030 cannabis research;
3131 (2) enhance the potential for medical or scientific
3232 breakthroughs in cannabis medicine and the safe, secure cultivation
3333 of cannabis;
3434 (3) attract, create, or expand research capabilities
3535 of public or private institutions of higher education and other
3636 public or private entities to promote a substantial increase in
3737 cannabis research and the creation of high-quality new jobs in this
3838 state;
3939 (4) conduct a continuing study of the laws relating to
4040 cannabis and report the council's findings and recommendations on
4141 an annual basis; and
4242 (5) facilitate statewide access to safe and effective
4343 medical cannabis for residents of this state.
4444 Sec. 411.464. ADMINISTRATIVE ATTACHMENT. (a) The council
4545 is administratively attached to the department.
4646 (b) The council shall work with the department to transition
4747 to a stand-alone council.
4848 Sec. 411.465. COUNCIL MEMBERSHIP. The department, the
4949 Department of State Health Services, the comptroller of public
5050 accounts, the Department of Agriculture, the Texas Medical Board,
5151 the Texas Board of Nursing, the Texas State Board of Pharmacy, the
5252 State Board of Veterinary Medical Examiners, and the Texas
5353 Department of Licensing and Regulation shall each appoint a member
5454 to the council.
5555 Sec. 411.466. EXECUTIVE DIRECTOR. (a) The council shall
5656 hire an executive director. The executive director shall perform
5757 the duties required by this subchapter or designated by the
5858 council.
5959 (b) The executive director must have a demonstrated ability
6060 to lead and develop academic, commercial, and governmental
6161 partnerships and coalitions.
6262 Sec. 411.467. OFFICERS. (a) The executive director shall
6363 hire a chief science officer, a chief medical officer, and a chief
6464 compliance officer.
6565 (b) The chief science officer and chief medical officer
6666 shall report directly to the executive director and assist the
6767 executive director in outreach to further cannabis research and
6868 safe, effective use of cannabis for medical purposes.
6969 (c) The chief compliance officer shall monitor and report to
7070 the council, the legislature, and law enforcement regarding
7171 compliance with this subchapter and rules adopted under this
7272 subchapter.
7373 Sec. 411.468. FUNDING; GRANTS. (a) The council may accept
7474 donations for research under this subchapter.
7575 (b) The council may provide grants for:
7676 (1) research into the use of medical cannabis and
7777 health outcomes; and
7878 (2) scientific public education and outreach to
7979 educate youth on the risks of using cannabis for nonmedical
8080 purposes and without the supervision of a health care provider.
8181 Sec. 411.469. ANNUAL PUBLIC REPORT; INTERNET POSTING. Not
8282 later than January 31 of each year, the council shall submit to the
8383 lieutenant governor, the speaker of the house of representatives,
8484 the governor, and the standing advisory committee of each house of
8585 the legislature with primary jurisdiction over council matters and
8686 post on the council's Internet website a report outlining the
8787 council's activities, research accomplishments, and future program
8888 directions. The report must include:
8989 (1) the number, type, recipient, and location of
9090 licenses awarded for dispensing organizations for low-THC
9191 cannabis;
9292 (2) the amount of fees collected and the licenses on
9393 which the fees were assessed;
9494 (3) the amount of low-THC cannabis provided in
9595 accordance with Chapter 487, Health and Safety Code, and the prices
9696 charged for that cannabis;
9797 (4) the number and dollar amounts of any research and
9898 facilities grants provided by the council;
9999 (5) an assessment of the availability of funding for
100100 cannabis research;
101101 (6) a summary of findings of research funded by the
102102 council, including promising new research areas;
103103 (7) the council's administrative expenses;
104104 (8) the use of any other funding mechanism;
105105 (9) any anticipated savings in drug costs to the
106106 state's health care costs that would result from the provision of
107107 medical cannabis;
108108 (10) a statement of the council's compliance program
109109 activities, including any proposed legislation or other
110110 recommendations identified through the activities; and
111111 (11) for the previous calendar year, a list of any
112112 conflicts of interest under this subchapter or rules adopted under
113113 this subchapter or any other ethical issue identified by the
114114 council or the chief compliance officer.
115115 Sec. 411.470. INDEPENDENT FINANCIAL AUDIT FOR REVIEW BY
116116 COMPTROLLER. (a) The council shall annually commission an
117117 independent financial audit of the council's activities from a
118118 certified public accounting firm.
119119 (b) The council shall provide the audit to the comptroller.
120120 The comptroller shall review and evaluate the audit and annually
121121 issue a public report of that review.
122122 (c) The comptroller shall make recommendations concerning
123123 the council's financial practices and performance.
124124 Sec. 411.471. CANNABIS MEDICAL REGULATION ADVISORY
125125 COMMITTEE; MEMBERSHIP. (a) The Cannabis Medical Regulation
126126 Advisory Committee consists of the following members:
127127 (1) two members of the senate from different political
128128 parties, appointed by the lieutenant governor;
129129 (2) two members of the house of representatives from
130130 different political parties, appointed by the speaker of the house;
131131 and
132132 (3) the following members, appointed by the council:
133133 (A) two members of the public who support the use
134134 of cannabis for medical purposes and who are or were patients or the
135135 parent of a patient who found relief from the use of medical
136136 cannabis, at least one of whom represents the interests of persons
137137 with disabilities;
138138 (B) an expert in drug addiction and public health
139139 policy;
140140 (C) three physicians licensed in this state,
141141 including one family practitioner and one specialist in a condition
142142 for which low-THC cannabis may be prescribed under Chapter 487,
143143 Health and Safety Code;
144144 (D) a nurse licensed in this state who has
145145 experience in hospice care, nominated by a state research
146146 institution or trade association;
147147 (E) a pharmacist licensed in this state,
148148 nominated by a state research institution or trade association;
149149 (F) a scientist who has experience in the science
150150 of cannabis, nominated by a state research institution;
151151 (G) a district attorney or county attorney with
152152 criminal jurisdiction;
153153 (H) a representative of municipal law
154154 enforcement;
155155 (I) a sheriff;
156156 (J) an attorney who is knowledgeable about
157157 medical cannabis laws in the United States;
158158 (K) an individual with experience in
159159 horticulture, recommended by the Department of Agriculture;
160160 (L) an expert in laboratory sciences and
161161 toxicology; and
162162 (M) a member of the public with demonstrated
163163 expertise and credentials in public health policy.
164164 (b) The advisory committee shall appoint from its members a
165165 presiding officer.
166166 Sec. 411.472. DUTIES OF ADVISORY COMMITTEE. The advisory
167167 committee shall:
168168 (1) consider any matter submitted to the advisory
169169 committee by the council;
170170 (2) on its own initiative, recommend to the council
171171 guidelines and rules and any changes to guidelines and rules that
172172 the advisory committee considers important or necessary for the
173173 council's review and consideration; and
174174 (3) advise the council on legislation and proposed
175175 rules.
176176 Sec. 411.473. SUBCOMMITTEES. The presiding officer of the
177177 advisory committee may appoint subcommittees to expedite the work
178178 of the council. The presiding officer shall appoint:
179179 (1) a subcommittee on public health to develop
180180 recommendations on:
181181 (A) products;
182182 (B) labeling;
183183 (C) marketing and advertising;
184184 (D) related public health issues;
185185 (E) potency, which may include a recommended
186186 maximum limit for individual doses of medical cannabis products;
187187 and
188188 (F) packaging, which may include the development
189189 and implementation of a public health warning to appear on medical
190190 cannabis products;
191191 (2) a subcommittee on public safety and community
192192 mitigation to develop recommendations on law enforcement,
193193 property, business, and consumer issues; and
194194 (3) a subcommittee on the cannabis industry to develop
195195 recommendations on cultivation, processing, manufacturing,
196196 transportation, distribution, seed-to-sale tracking, and market
197197 stability.
198198 Sec. 411.474. COUNCIL STUDIES AND RESEARCH. The council,
199199 in consultation with the advisory committee, shall conduct studies
200200 and shall:
201201 (1) collect data on the reported health care outcomes
202202 and any adverse events in the use of medical cannabis;
203203 (2) develop educational components for health care
204204 provider education on the use of medical cannabis;
205205 (3) develop agricultural best practices for the safe
206206 cultivation of cannabis and innovations for a variety of strains of
207207 cannabis;
208208 (4) create testing protocols and objective
209209 measurements for safety;
210210 (5) develop standard packaging and labeling for
211211 medical cannabis and medical cannabis products, ensuring
212212 accessibility for users with disabilities;
213213 (6) create medical cannabis warning labels based on
214214 the latest scientific research; and
215215 (7) create recommendations for safety and
216216 identification measures to ensure that unauthorized persons do not
217217 access medical cannabis.
218218 Sec. 411.475. MEETINGS; QUORUM. (a) The advisory
219219 committee meets at the call of the presiding officer.
220220 (b) To take action at a meeting, a majority of the members of
221221 the advisory committee present and voting shall constitute a
222222 quorum.
223223 Sec. 411.476. REIMBURSEMENT. Members of the advisory
224224 committee serve without compensation but are entitled to
225225 reimbursement for travel expenses and other actual and necessary
226226 expenses incurred in the performance of official duties, as
227227 provided by the General Appropriations Act.
228228 Sec. 411.477. COUNCIL CONFLICT OF INTEREST. A person is
229229 ineligible to serve on the council if the person:
230230 (1) has a direct or indirect financial, ownership, or
231231 management interest, including ownership of any stocks, bonds, or
232232 other similar financial instruments, in any state licensed medical
233233 cannabis business;
234234 (2) is related within the second degree by
235235 consanguinity or affinity, as determined under Chapter 573, to an
236236 individual who holds a medical cannabis license in this state or in
237237 another state;
238238 (3) is an elected official of a state or local
239239 government;
240240 (4) receives or shares in, directly or indirectly, the
241241 receipts or proceeds of a medical cannabis grower, processor, or
242242 dispensing organization licensed in any state; or
243243 (5) has a beneficial interest in any contract for the
244244 manufacture or sale of medical cannabis or the provision of any
245245 independent consulting services in connection with any medical
246246 cannabis license issued by this state or another state.
247247 Sec. 411.478. ADVISORY COMMITTEE CONFLICTS OF INTEREST;
248248 DISCLOSURE. A member of the advisory committee may have an interest
249249 in a cannabis business but must disclose that interest on any
250250 application and to the council's chief compliance officer.
251251 SECTION 2. As soon as practicable after the effective date
252252 of this Act:
253253 (1) the director of the Department of Public Safety
254254 shall adopt rules as necessary to implement Subchapter Q, Chapter
255255 411, Government Code, as added by this Act; and
256256 (2) the applicable state agencies shall appoint
257257 members to the Texas Medical Cannabis Council under Section
258258 411.465, Government Code, as added by this Act.
259259 SECTION 3. This Act takes effect September 1, 2019.