86R5967 JSC-D
By: Lucio III H.B. No. 2563
A BILL TO BE ENTITLED
AN ACT
relating to the establishment and duties of the Texas Medical
Cannabis Council.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 411, Government Code, is amended by
adding Subchapter Q to read as follows:
SUBCHAPTER Q. TEXAS MEDICAL CANNABIS COUNCIL
Sec. 411.461. DEFINITIONS. In this subchapter:
(1) "Advisory committee" means the Medical Cannabis
Regulation Advisory Committee.
(2) "Council" means the Texas Medical Cannabis
Council.
(3) "Dispensing organization" and "low-THC cannabis"
have the meanings assigned by Section 487.001, Health and Safety
Code.
(4) "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, that
is used for medical purposes.
Sec. 411.462. RULES. The director shall adopt any rules
necessary to implement this subchapter.
Sec. 411.463. TEXAS MEDICAL CANNABIS COUNCIL; PURPOSES.
The Texas Medical Cannabis Council is established to:
(1) create and expedite innovation in the area of
cannabis research;
(2) enhance the potential for medical or scientific
breakthroughs in cannabis medicine and the safe, secure cultivation
of cannabis;
(3) attract, create, or expand research capabilities
of public or private institutions of higher education and other
public or private entities to promote a substantial increase in
cannabis research and the creation of high-quality new jobs in this
state;
(4) conduct a continuing study of the laws relating to
cannabis and report the council's findings and recommendations on
an annual basis; and
(5) facilitate statewide access to safe and effective
medical cannabis for residents of this state.
Sec. 411.464. ADMINISTRATIVE ATTACHMENT. (a) The council
is administratively attached to the department.
(b) The council shall work with the department to transition
to a stand-alone council.
Sec. 411.465. COUNCIL MEMBERSHIP. The department, the
Department of State Health Services, the comptroller of public
accounts, the Department of Agriculture, the Texas Medical Board,
the Texas Board of Nursing, the Texas State Board of Pharmacy, the
State Board of Veterinary Medical Examiners, and the Texas
Department of Licensing and Regulation shall each appoint a member
to the council.
Sec. 411.466. EXECUTIVE DIRECTOR. (a) The council shall
hire an executive director. The executive director shall perform
the duties required by this subchapter or designated by the
council.
(b) The executive director must have a demonstrated ability
to lead and develop academic, commercial, and governmental
partnerships and coalitions.
Sec. 411.467. OFFICERS. (a) The executive director shall
hire a chief science officer, a chief medical officer, and a chief
compliance officer.
(b) The chief science officer and chief medical officer
shall report directly to the executive director and assist the
executive director in outreach to further cannabis research and
safe, effective use of cannabis for medical purposes.
(c) The chief compliance officer shall monitor and report to
the council, the legislature, and law enforcement regarding
compliance with this subchapter and rules adopted under this
subchapter.
Sec. 411.468. FUNDING; GRANTS. (a) The council may accept
donations for research under this subchapter.
(b) The council may provide grants for:
(1) research into the use of medical cannabis and
health outcomes; and
(2) scientific public education and outreach to
educate youth on the risks of using cannabis for nonmedical
purposes and without the supervision of a health care provider.
Sec. 411.469. ANNUAL PUBLIC REPORT; INTERNET POSTING. Not
later than January 31 of each year, the council shall submit to the
lieutenant governor, the speaker of the house of representatives,
the governor, and the standing advisory committee of each house of
the legislature with primary jurisdiction over council matters and
post on the council's Internet website a report outlining the
council's activities, research accomplishments, and future program
directions. The report must include:
(1) the number, type, recipient, and location of
licenses awarded for dispensing organizations for low-THC
cannabis;
(2) the amount of fees collected and the licenses on
which the fees were assessed;
(3) the amount of low-THC cannabis provided in
accordance with Chapter 487, Health and Safety Code, and the prices
charged for that cannabis;
(4) the number and dollar amounts of any research and
facilities grants provided by the council;
(5) an assessment of the availability of funding for
cannabis research;
(6) a summary of findings of research funded by the
council, including promising new research areas;
(7) the council's administrative expenses;
(8) the use of any other funding mechanism;
(9) any anticipated savings in drug costs to the
state's health care costs that would result from the provision of
medical cannabis;
(10) a statement of the council's compliance program
activities, including any proposed legislation or other
recommendations identified through the activities; and
(11) for the previous calendar year, a list of any
conflicts of interest under this subchapter or rules adopted under
this subchapter or any other ethical issue identified by the
council or the chief compliance officer.
Sec. 411.470. INDEPENDENT FINANCIAL AUDIT FOR REVIEW BY
COMPTROLLER. (a) The council shall annually commission an
independent financial audit of the council's activities from a
certified public accounting firm.
(b) The council shall provide the audit to the comptroller.
The comptroller shall review and evaluate the audit and annually
issue a public report of that review.
(c) The comptroller shall make recommendations concerning
the council's financial practices and performance.
Sec. 411.471. CANNABIS MEDICAL REGULATION ADVISORY
COMMITTEE; MEMBERSHIP. (a) The Cannabis Medical Regulation
Advisory Committee consists of the following members:
(1) two members of the senate from different political
parties, appointed by the lieutenant governor;
(2) two members of the house of representatives from
different political parties, appointed by the speaker of the house;
and
(3) the following members, appointed by the council:
(A) two members of the public who support the use
of cannabis for medical purposes and who are or were patients or the
parent of a patient who found relief from the use of medical
cannabis, at least one of whom represents the interests of persons
with disabilities;
(B) an expert in drug addiction and public health
policy;
(C) three physicians licensed in this state,
including one family practitioner and one specialist in a condition
for which low-THC cannabis may be prescribed under Chapter 487,
Health and Safety Code;
(D) a nurse licensed in this state who has
experience in hospice care, nominated by a state research
institution or trade association;
(E) a pharmacist licensed in this state,
nominated by a state research institution or trade association;
(F) a scientist who has experience in the science
of cannabis, nominated by a state research institution;
(G) a district attorney or county attorney with
criminal jurisdiction;
(H) a representative of municipal law
enforcement;
(I) a sheriff;
(J) an attorney who is knowledgeable about
medical cannabis laws in the United States;
(K) an individual with experience in
horticulture, recommended by the Department of Agriculture;
(L) an expert in laboratory sciences and
toxicology; and
(M) a member of the public with demonstrated
expertise and credentials in public health policy.
(b) The advisory committee shall appoint from its members a
presiding officer.
Sec. 411.472. DUTIES OF ADVISORY COMMITTEE. The advisory
committee shall:
(1) consider any matter submitted to the advisory
committee by the council;
(2) on its own initiative, recommend to the council
guidelines and rules and any changes to guidelines and rules that
the advisory committee considers important or necessary for the
council's review and consideration; and
(3) advise the council on legislation and proposed
rules.
Sec. 411.473. SUBCOMMITTEES. The presiding officer of the
advisory committee may appoint subcommittees to expedite the work
of the council. The presiding officer shall appoint:
(1) a subcommittee on public health to develop
recommendations on:
(A) products;
(B) labeling;
(C) marketing and advertising;
(D) related public health issues;
(E) potency, which may include a recommended
maximum limit for individual doses of medical cannabis products;
and
(F) packaging, which may include the development
and implementation of a public health warning to appear on medical
cannabis products;
(2) a subcommittee on public safety and community
mitigation to develop recommendations on law enforcement,
property, business, and consumer issues; and
(3) a subcommittee on the cannabis industry to develop
recommendations on cultivation, processing, manufacturing,
transportation, distribution, seed-to-sale tracking, and market
stability.
Sec. 411.474. COUNCIL STUDIES AND RESEARCH. The council,
in consultation with the advisory committee, shall conduct studies
and shall:
(1) collect data on the reported health care outcomes
and any adverse events in the use of medical cannabis;
(2) develop educational components for health care
provider education on the use of medical cannabis;
(3) develop agricultural best practices for the safe
cultivation of cannabis and innovations for a variety of strains of
cannabis;
(4) create testing protocols and objective
measurements for safety;
(5) develop standard packaging and labeling for
medical cannabis and medical cannabis products, ensuring
accessibility for users with disabilities;
(6) create medical cannabis warning labels based on
the latest scientific research; and
(7) create recommendations for safety and
identification measures to ensure that unauthorized persons do not
access medical cannabis.
Sec. 411.475. MEETINGS; QUORUM. (a) The advisory
committee meets at the call of the presiding officer.
(b) To take action at a meeting, a majority of the members of
the advisory committee present and voting shall constitute a
quorum.
Sec. 411.476. REIMBURSEMENT. Members of the advisory
committee serve without compensation but are entitled to
reimbursement for travel expenses and other actual and necessary
expenses incurred in the performance of official duties, as
provided by the General Appropriations Act.
Sec. 411.477. COUNCIL CONFLICT OF INTEREST. A person is
ineligible to serve on the council if the person:
(1) has a direct or indirect financial, ownership, or
management interest, including ownership of any stocks, bonds, or
other similar financial instruments, in any state licensed medical
cannabis business;
(2) is related within the second degree by
consanguinity or affinity, as determined under Chapter 573, to an
individual who holds a medical cannabis license in this state or in
another state;
(3) is an elected official of a state or local
government;
(4) receives or shares in, directly or indirectly, the
receipts or proceeds of a medical cannabis grower, processor, or
dispensing organization licensed in any state; or
(5) has a beneficial interest in any contract for the
manufacture or sale of medical cannabis or the provision of any
independent consulting services in connection with any medical
cannabis license issued by this state or another state.
Sec. 411.478. ADVISORY COMMITTEE CONFLICTS OF INTEREST;
DISCLOSURE. A member of the advisory committee may have an interest
in a cannabis business but must disclose that interest on any
application and to the council's chief compliance officer.
SECTION 2. As soon as practicable after the effective date
of this Act:
(1) the director of the Department of Public Safety
shall adopt rules as necessary to implement Subchapter Q, Chapter
411, Government Code, as added by this Act; and
(2) the applicable state agencies shall appoint
members to the Texas Medical Cannabis Council under Section
411.465, Government Code, as added by this Act.
SECTION 3. This Act takes effect September 1, 2019.