Texas 2019 - 86th Regular

Texas House Bill HB3340 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R7472 GCB-D
2	2	By: J. Johnson of Dallas H.B. No. 3340
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to authorizing the possession, use, cultivation,
8	8	distribution, transportation, and delivery of medical cannabis for
9	9	medical use by patients with post-traumatic stress disorder and the
10	10	licensing of medical cannabis dispensing organizations;
11	11	authorizing fees.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subtitle C, Title 6, Health and Safety Code, is
14	14	amended by adding Chapter 488 to read as follows:
15	15	CHAPTER 488. USE OF CANNABIS FOR MEDICAL PURPOSES
16	16	SUBCHAPTER A. GENERAL PROVISIONS
17	17	Sec. 488.001. DEFINITIONS. In this chapter:
18	18	(1) "Department" means the Department of Public
19	19	Safety.
20	20	(2) "Director" means the public safety director of the
21	21	department.
22	22	(3) "Dispensing organization" means an organization
23	23	licensed by the department to cultivate, process, and dispense
24	24	medical cannabis to a patient for whom medical use is recommended
25	25	under Chapter 169A, Occupations Code.
26	26	(4) "Medical cannabis" and "medical use" have the
27	27	meanings assigned by Section 169A.001, Occupations Code.
28	28	SUBCHAPTER B. DUTIES OF DEPARTMENT
29	29	Sec. 488.051. DUTIES OF DEPARTMENT. The department shall
30	30	administer this chapter.
31	31	Sec. 488.052. RULES. (a) The director shall adopt any
32	32	rules necessary for the administration and enforcement of this
33	33	chapter.
34	34	(b) The director shall adopt rules imposing fees under this
35	35	chapter in amounts sufficient to cover the cost of administering
36	36	this chapter.
37	37	Sec. 488.053. LICENSING OF DISPENSING ORGANIZATIONS AND
38	38	REGISTRATION OF CERTAIN ASSOCIATED INDIVIDUALS. (a) The
39	39	department shall:
40	40	(1) issue or renew a license under Subchapter C to
41	41	operate as a dispensing organization to each applicant who
42	42	satisfies the requirements established under this chapter for
43	43	licensure as a dispensing organization; and
44	44	(2) register directors, managers, and employees under
45	45	Subchapter D of each dispensing organization.
46	46	(b) The department shall enforce compliance of license
47	47	holders and registrants and shall adopt procedures for suspending
48	48	or 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. 488.054. MEDICAL USE REGISTRY. (a) The department
51	51	shall establish and maintain a secure online medical use registry
52	52	that contains:
53	53	(1) the name of each physician who registers as the
54	54	physician recommending medical use for a patient under Section
55	55	169A.003, Occupations Code, and the name and date of birth of the
56	56	patient; and
57	57	(2) the amount of medical cannabis dispensed to each
58	58	patient.
59	59	(b) The department shall ensure the registry:
60	60	(1) is designed to prevent more than one physician
61	61	from registering as the physician recommending medical use for a
62	62	single patient;
63	63	(2) is accessible to law enforcement agencies and
64	64	dispensing organizations for the purpose of verifying whether a
65	65	patient is one for whom medical use is recommended under Chapter
66	66	169A, Occupations Code; and
67	67	(3) allows a physician recommending medical use under
68	68	Chapter 169A, Occupations Code, to input safety and efficacy data
69	69	derived from the treatment of patients for whom medical use is
70	70	recommended.
71	71	SUBCHAPTER C. LICENSING TO OPERATE AS DISPENSING ORGANIZATION
72	72	Sec. 488.101. LICENSE REQUIRED. A person may not operate as
73	73	a dispensing organization without a license issued by the
74	74	department under this subchapter.
75	75	Sec. 488.102. ELIGIBILITY FOR LICENSE. An applicant for a
76	76	license to operate as a dispensing organization is eligible for the
77	77	license if:
78	78	(1) as determined by the department, the applicant
79	79	possesses:
80	80	(A) the technical and technological ability to
81	81	cultivate and produce medical cannabis;
82	82	(B) the ability to secure:
83	83	(i) the resources and personnel necessary
84	84	to operate as a dispensing organization; and
85	85	(ii) premises reasonably located to allow
86	86	patients listed on the medical use registry access to the
87	87	organization through existing infrastructure;
88	88	(C) the ability to maintain accountability for
89	89	the raw materials, the finished product, and any by-products used
90	90	or produced in the cultivation or production of medical cannabis to
91	91	prevent unlawful access to or unlawful diversion or possession of
92	92	those materials, products, or by-products; and
93	93	(D) the financial ability to maintain operations
94	94	for not less than two years from the date of application;
95	95	(2) each director, manager, or employee of the
96	96	applicant is registered under Subchapter D; and
97	97	(3) the applicant satisfies any additional criteria
98	98	determined by the director to be necessary to safely implement this
99	99	chapter.
100	100	Sec. 488.103. APPLICATION. (a) A person may apply for an
101	101	initial or renewal license under this subchapter by submitting a
102	102	form prescribed by the department along with the application fee in
103	103	an amount set by the director.
104	104	(b) The application must include the name and address of the
105	105	applicant, the name and address of each of the applicant's
106	106	directors, managers, and employees, and any other information
107	107	considered necessary by the department to determine the applicant's
108	108	eligibility for the license.
109	109	Sec. 488.104. ISSUANCE, RENEWAL, OR DENIAL OF LICENSE. (a)
110	110	The department shall issue or renew a license under this subchapter
111	111	only if:
112	112	(1) the department determines the applicant meets the
113	113	eligibility requirements described by Section 488.102; and
114	114	(2) issuance or renewal of the license is necessary to
115	115	ensure reasonable statewide access to, and the availability of,
116	116	medical cannabis for patients registered in the medical use
117	117	registry and for whom medical cannabis is recommended under Chapter
118	118	169A, Occupations Code.
119	119	(b) If the department denies the issuance or renewal of a
120	120	license under Subsection (a), the applicant is entitled to a
121	121	hearing. The department shall give written notice of the grounds
122	122	for denial to the applicant at least 30 days before the date of the
123	123	hearing.
124	124	(c) A license issued or renewed under this section expires
125	125	on the second anniversary of the date of issuance or renewal, as
126	126	applicable.
127	127	Sec. 488.105. CRIMINAL HISTORY BACKGROUND CHECK. (a) An
128	128	applicant for the issuance or renewal of a license under this
129	129	subchapter shall provide the department with the applicant's name
130	130	and the name of each of the applicant's directors, managers, and
131	131	employees.
132	132	(b) Before a dispensing organization under this subchapter
133	133	hires a manager or employee for the organization, the license
134	134	holder must provide the department with the name of the prospective
135	135	manager or employee. The license holder may not transfer the
136	136	license to another person before that prospective applicant and the
137	137	applicant's directors, managers, and employees pass a criminal
138	138	history background check and are registered as required by
139	139	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. 488.106. DUTY TO MAINTAIN ELIGIBILITY. Each license
156	156	holder under this subchapter must maintain compliance at all times
157	157	with the eligibility requirements described by Section 488.102.
158	158	Sec. 488.107. DUTIES RELATING TO DISPENSING MEDICAL
159	159	CANNABIS. (a) Before dispensing medical cannabis to a person for
160	160	whom medical use is recommended under Chapter 169A, Occupations
161	161	Code, the dispensing organization must verify that the person is
162	162	listed as a patient in the medical use registry.
163	163	(b) After dispensing medical cannabis to a patient for whom
164	164	medical use is recommended under Chapter 169A, Occupations Code,
165	165	the dispensing organization shall record in the medical use
166	166	registry the form and quantity of the medical cannabis dispensed
167	167	and the date and time of dispensation.
168	168	Sec. 488.108. LICENSE SUSPENSION OR REVOCATION. (a) The
169	169	department may at any time suspend or revoke a license issued under
170	170	this subchapter if the department determines that the license
171	171	holder has not maintained the eligibility requirements described by
172	172	Section 488.102 or has failed to comply with a duty imposed under
173	173	this chapter.
174	174	(b) The director shall give written notice to the license
175	175	holder of a license suspension or revocation under this section and
176	176	the grounds for the suspension or revocation. The notice must be
177	177	sent by certified mail, return receipt requested.
178	178	(c) After suspending or revoking a license issued under this
179	179	subchapter, the director may seize or place under seal all medical
180	180	cannabis and drug paraphernalia owned or possessed by the
181	181	dispensing organization. If the director orders the revocation of
182	182	the license, a disposition may not be made of the seized or sealed
183	183	medical cannabis or drug paraphernalia until the time for
184	184	administrative appeal of the order has elapsed or until all appeals
185	185	have been concluded. When a revocation order becomes final, all
186	186	medical cannabis and drug paraphernalia may be forfeited to the
187	187	state as provided under Subchapter E, Chapter 481.
188	188	(d) Chapter 2001, Government Code, applies to a proceeding
189	189	under this section.
190	190	SUBCHAPTER D. REGISTRATION OF CERTAIN INDIVIDUALS
191	191	Sec. 488.151. REGISTRATION REQUIRED. (a) An individual who
192	192	is a director, manager, or employee of a dispensing organization
193	193	must apply for and obtain a registration under this section.
194	194	(b) An applicant for a registration under this section must:
195	195	(1) be at least 18 years of age;
196	196	(2) submit a complete set of fingerprints to the
197	197	department in the manner required by department rule; and
198	198	(3) pass a fingerprint-based criminal history
199	199	background check as required by Section 488.105.
200	200	(c) A registration expires on the second anniversary of the
201	201	date of the registration's issuance, unless suspended or revoked
202	202	under rules adopted under this chapter.
203	203	SUBCHAPTER E. DUTIES OF COUNTIES AND MUNICIPALITIES
204	204	Sec. 488.201. COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT
205	205	MEDICAL CANNABIS. A municipality, county, or other political
206	206	subdivision may not enact, adopt, or enforce a rule, ordinance,
207	207	order, resolution, or other regulation that prohibits the
208	208	cultivation, production, dispensing, or possession of medical
209	209	cannabis, as authorized by this chapter.
210	210	SECTION 2. Subtitle B, Title 3, Occupations Code, is
211	211	amended by adding Chapter 169A to read as follows:
212	212	CHAPTER 169A. AUTHORITY TO RECOMMEND MEDICAL CANNABIS TO PATIENTS
213	213	WITH POST-TRAUMATIC STRESS DISORDER
214	214	Sec. 169A.001. DEFINITIONS. In this chapter:
215	215	(1) "Department" means the Department of Public
216	216	Safety.
217	217	(2) "Medical cannabis" means the plant Cannabis sativa
218	218	L., and any part of that plant or any compound, manufacture, salt,
219	219	derivative, mixture, preparation, resin, or oil of that plant.
220	220	(3) "Medical use" means the ingestion by a means of
221	221	administration other than by smoking of a recommended amount of
222	222	medical cannabis by a person for whom medical use is recommended
223	223	under this chapter.
224	224	(4) "Smoking" means burning or igniting a substance
225	225	and inhaling the smoke.
226	226	Sec. 169A.002. RECOMMENDATION OF MEDICAL USE. (a) A
227	227	physician may recommend medical use in accordance with this chapter
228	228	for a patient who is 18 years of age or older and has post-traumatic
229	229	stress disorder.
230	230	(b) A physician who recommends medical use for a patient
231	231	must:
232	232	(1) comply with the registration requirements of
233	233	Section 169A.003; and
234	234	(2) certify to the department that:
235	235	(A) the patient has post-traumatic stress
236	236	disorder; and
237	237	(B) the physician has determined that the risk of
238	238	medical use by the patient is reasonable in light of the potential
239	239	benefit for the patient.
240	240	Sec. 169A.003. RECOMMENDING PHYSICIAN REGISTRATION.
241	241	Before a physician may recommend medical use for a patient under
242	242	this chapter, the physician must register as the recommending
243	243	physician for that patient in the medical use registry maintained
244	244	by the department under Section 488.054, Health and Safety
245	245	Code. The physician's registration must indicate:
246	246	(1) the physician's name; and
247	247	(2) the patient's name and date of birth.
248	248	Sec. 169A.004. PATIENT TREATMENT PLAN. A physician who
249	249	recommends medical use for a patient under this chapter must
250	250	maintain a patient treatment plan that indicates:
251	251	(1) a plan for monitoring the patient's symptoms; and
252	252	(2) a plan for monitoring indicators of tolerance or
253	253	reaction to medical cannabis.
254	254	SECTION 3. Section 481.062(a), Health and Safety Code, is
255	255	amended to read as follows:
256	256	(a) The following persons may possess a controlled
257	257	substance under this chapter without registering with the Federal
258	258	Drug Enforcement Administration:
259	259	(1) an agent or employee of a manufacturer,
260	260	distributor, analyzer, or dispenser of the controlled substance who
261	261	is registered with the Federal Drug Enforcement Administration and
262	262	acting in the usual course of business or employment;
263	263	(2) a common or contract carrier, a warehouseman, or
264	264	an employee of a carrier or warehouseman whose possession of the
265	265	controlled substance is in the usual course of business or
266	266	employment;
267	267	(3) an ultimate user or a person in possession of the
268	268	controlled substance under a lawful order of a practitioner or in
269	269	lawful possession of the controlled substance if it is listed in
270	270	Schedule V;
271	271	(4) an officer or employee of this state, another
272	272	state, a political subdivision of this state or another state, or
273	273	the United States who is lawfully engaged in the enforcement of a
274	274	law relating to a controlled substance or drug or to a customs law
275	275	and authorized to possess the controlled substance in the discharge
276	276	of the person's official duties;
277	277	(5) if the substance is tetrahydrocannabinol or one of
278	278	its derivatives:
279	279	(A) a Department of State Health Services
280	280	official, a medical school researcher, or a research program
281	281	participant possessing the substance as authorized under
282	282	Subchapter G; or
283	283	(B) a practitioner or an ultimate user possessing
284	284	the substance as a participant in a federally approved therapeutic
285	285	research program that the commissioner has reviewed and found, in
286	286	writing, to contain a medically responsible research protocol; [or]
287	287	(6) a dispensing organization licensed under Chapter
288	288	487 that possesses low-THC cannabis; or
289	289	(7) a dispensing organization licensed under Chapter
290	290	488 that possesses medical cannabis.
291	291	SECTION 4. Sections 481.111(e) and (f), Health and Safety
292	292	Code, are amended to read as follows:
293	293	(e) Sections 481.120, 481.121, 481.122, and 481.125 do not
294	294	apply to a person who engages in the acquisition, possession,
295	295	production, cultivation, delivery, or disposal of a raw material
296	296	used in or by-product created by the production or cultivation of
297	297	low-THC cannabis or medical cannabis if the person:
298	298	(1) for an offense involving possession only of
299	299	marihuana or drug paraphernalia, is a patient for whom low-THC
300	300	cannabis is prescribed under Chapter 169, Occupations Code, or the
301	301	patient's legal guardian, and the person possesses low-THC cannabis
302	302	obtained under a valid prescription from a dispensing organization;
303	303	[or]
304	304	(2) is a director, manager, or employee of a low-THC
305	305	cannabis dispensing organization and the person, solely in
306	306	performing the person's regular duties at the organization,
307	307	acquires, possesses, produces, cultivates, dispenses, or disposes
308	308	of:
309	309	(A) in reasonable quantities, any low-THC
310	310	cannabis or raw materials used in or by-products created by the
311	311	production or cultivation of low-THC cannabis; or
312	312	(B) any drug paraphernalia used in the
313	313	acquisition, possession, production, cultivation, delivery, or
314	314	disposal of low-THC cannabis;
315	315	(3) for an offense involving possession only of
316	316	marihuana or drug paraphernalia, is a patient for whom medical use
317	317	is recommended under Chapter 169A, Occupations Code; or
318	318	(4) is a director, manager, or employee of a medical
319	319	cannabis dispensing organization and the person, solely in
320	320	performing the person's regular duties at the organization,
321	321	acquires, possesses, produces, cultivates, dispenses, or disposes
322	322	of:
323	323	(A) in reasonable quantities, any medical
324	324	cannabis or raw materials used in or by-products created by the
325	325	production or cultivation of medical cannabis; or
326	326	(B) any drug paraphernalia used in the
327	327	acquisition, possession, production, cultivation, delivery, or
328	328	disposal of medical cannabis.
329	329	(f) For purposes of Subsection (e):
330	330	(1) ["Dispensing organization" has the meaning
331	331	assigned by Section 487.001.
332	332	[(2)] "Low-THC cannabis" has the meaning assigned by
333	333	Section 169.001, Occupations Code.
334	334	(2) "Low-THC cannabis dispensing organization" means
335	335	a dispensing organization as defined by Section 487.001.
336	336	(3) "Medical cannabis" and "medical use" have the
337	337	meanings assigned by Section 169A.001, Occupations Code.
338	338	(4) "Medical cannabis dispensing organization" means
339	339	a dispensing organization as defined by Section 488.001.
340	340	SECTION 5. Section 551.004, Occupations Code, is amended by
341	341	amending Subsection (a) and adding Subsection (a-1) to read as
342	342	follows:
343	343	(a) This subtitle does not apply to:
344	344	(1) a practitioner licensed by the appropriate state
345	345	board who supplies a patient of the practitioner with a drug in a
346	346	manner authorized by state or federal law and who does not operate a
347	347	pharmacy for the retailing of prescription drugs;
348	348	(2) a member of the faculty of a college of pharmacy
349	349	recognized by the board who is a pharmacist and who performs the
350	350	pharmacist's services only for the benefit of the college;
351	351	(3) a person who procures prescription drugs for
352	352	lawful research, teaching, or testing and not for resale;
353	353	(4) a home and community support services agency that
354	354	possesses a dangerous drug as authorized by Section 142.0061,
355	355	142.0062, or 142.0063, Health and Safety Code; [or]
356	356	(5) a low-THC cannabis dispensing organization[, as
357	357	defined by Section 487.001, Health and Safety Code,] that
358	358	cultivates, processes, and dispenses low-THC cannabis, as
359	359	authorized by a license issued under Subchapter C, Chapter 487,
360	360	Health and Safety Code, to a patient listed in the
361	361	compassionate-use registry established under that chapter; or
362	362	(6) a medical cannabis dispensing organization that
363	363	cultivates, processes, and dispenses medical cannabis, as
364	364	authorized by a license issued under Subchapter C, Chapter 488,
365	365	Health and Safety Code, to a patient listed in the medical use
366	366	registry established under that chapter.
367	367	(a-1) For purposes of Subsections (a)(5) and (6):
368	368	(1) "Low-THC cannabis dispensing organization" means
369	369	a dispensing organization as defined by Section 487.001, Health and
370	370	Safety Code.
371	371	(2) "Medical cannabis dispensing organization" means
372	372	a dispensing organization as defined by Section 488.001, Health and
373	373	Safety Code.
374	374	SECTION 6. Not later than January 1, 2020, the public safety
375	375	director of the Department of Public Safety shall adopt rules as
376	376	required to implement, administer, and enforce Chapter 488, Health
377	377	and Safety Code, as added by this Act, including rules to establish
378	378	the medical use registry required by that chapter.
379	379	SECTION 7. This Act takes effect immediately if it receives
380	380	a vote of two-thirds of all the members elected to each house, as
381	381	provided by Section 39, Article III, Texas Constitution. If this
382	382	Act does not receive the vote necessary for immediate effect, this
383	383	Act takes effect September 1, 2019.