Texas 2019 86th Regular

Texas Senate Bill SB400 Introduced / Bill

Filed 01/22/2019

                    86R1388 JSC-F
 By: West S.B. No. 400


 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 terminal illnesses and the licensing of dispensing
 organizations and cannabis testing facilities; authorizing a fee.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1. CHANGES TO CHAPTER 169, OCCUPATIONS CODE
 SECTION 1.01.  The heading to Chapter 169, Occupations Code,
 is amended to read as follows:
 CHAPTER 169. AUTHORITY TO PRESCRIBE MEDICAL [LOW-THC] CANNABIS TO
 CERTAIN PATIENTS FOR COMPASSIONATE USE
 SECTION 1.02.  Section 169.001, Occupations Code, is amended
 by amending Subdivisions (2), (3), and (4) and adding Subdivisions
 (2-a), (2-b), (3-a), and (6) to read as follows:
 (2)  "Debilitating epileptic condition" ["Intractable
 epilepsy"] means epilepsy or other neurological [a seizure]
 disorder, or the treatment of epilepsy or other neurological
 disorder that, as diagnosed by a board-certified neurologist,
 produces serious, debilitating, or life-threatening [in which the
 patient's seizures have been treated by two or more appropriately
 chosen and maximally titrated antiepileptic drugs that have failed
 to control the] seizures.
 (2-a)  "Debilitating medical condition" means cancer,
 glaucoma, a debilitating epileptic condition, acquired immune
 deficiency syndrome, amyotrophic lateral sclerosis, Crohn's
 disease, Parkinson's disease, Huntington's disease, or multiple
 sclerosis;
 (2-b)  "Higher concentration 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 contains more than 0.5 percent by weight of
 tetrahydrocannabinols and any concentration of cannabidiol.
 (3)  "Low-THC 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
 contains:
 (A)  not more than 0.5 percent by weight of
 tetrahydrocannabinols; and
 (B)  not less than 15 [10] percent by weight of
 cannabidiol.
 (3-a)  "Medical cannabis" means low-THC cannabis or
 higher concentration cannabis.
 (4)  "Medical use" means the ingestion by a means of
 administration other than by smoking of a prescribed amount of
 medical [low-THC] cannabis by a person for whom medical [low-THC]
 cannabis is prescribed under this chapter.
 (6)  "Terminal illness" means an advanced stage of a
 disease with an unfavorable prognosis that, without
 life-sustaining procedures, will soon result in death or a state of
 permanent unconsciousness from which recovery is unlikely.
 SECTION 1.03.  Section 169.003, Occupations Code, is amended
 to read as follows:
 Sec. 169.003.  PRESCRIPTION OF LOW-THC CANNABIS.  A
 physician [described by Section 169.002] may prescribe low-THC
 cannabis to alleviate a patient's debilitating medical condition
 [seizures] if:
 (1)  the patient is a permanent resident of the state;
 (2)  the physician complies with the registration
 requirements of Section 169.004; and
 (3)  the physician certifies to the department that:
 (A)  the patient is diagnosed with a debilitating
 medical condition [intractable epilepsy];
 (B)  the physician determines the risk of the
 medical use of low-THC cannabis by the patient is reasonable in
 light of the potential benefit for the patient; and
 (C)  a second physician [qualified to prescribe
 low-THC cannabis under Section 169.002] has concurred with the
 determination under Paragraph (B), and the second physician's
 concurrence is recorded in the patient's medical record.
 SECTION 1.04.  Chapter 169, Occupations Code, is amended by
 adding Section 169.0035 to read as follows:
 Sec. 169.0035.  PRESCRIPTION OF HIGHER CONCENTRATION
 CANNABIS TO PATIENTS WITH TERMINAL ILLNESS. A physician may
 prescribe higher concentration cannabis to a patient if:
 (1)  the patient is a permanent resident of the state;
 (2)  the physician complies with the registration
 requirements of Section 169.004; and
 (3)  the physician certifies to the department that:
 (A)  the patient is diagnosed with a terminal
 illness;
 (B)  the physician determines the risk of the
 medical use of higher concentration cannabis by the patient is
 reasonable in light of the potential benefit for the patient; and
 (C)  a second physician has concurred with the
 determination under Paragraph (B), and the second physician's
 concurrence is recorded in the patient's medical record.
 SECTION 1.05.  Sections 169.004 and 169.005, Occupations
 Code, are amended to read as follows:
 Sec. 169.004.  MEDICAL  [LOW-THC] CANNABIS PRESCRIBER
 REGISTRATION.  Before a physician [qualified to prescribe low-THC
 cannabis under Section 169.002] may prescribe or renew a
 prescription for medical [low-THC] cannabis for a patient under
 this chapter, the physician must register as the prescriber for
 that patient in the compassionate-use registry maintained by the
 department under Section 487.054, Health and Safety Code.  The
 physician's registration must indicate:
 (1)  the physician's name;
 (2)  the patient's name and date of birth;
 (3)  the nature of the patient's debilitating medical
 condition or terminal illness;
 (4)  whether the medical cannabis the physician
 prescribes to the patient is:
 (A)  low-THC cannabis; or
 (B)  higher concentration cannabis;
 (5)  the dosage prescribed to the patient;
 (6) [(4)]  the means of administration ordered for the
 patient; and
 (7) [(5)]  the total amount of medical [low-THC]
 cannabis required to fill the patient's prescription.
 Sec. 169.005.  PATIENT TREATMENT PLAN.  A physician
 [described by Section 169.002] who prescribes medical [low-THC]
 cannabis for a patient's medical use under this chapter must
 maintain a patient treatment plan that indicates:
 (1)  the dosage, means of administration, and planned
 duration of treatment for the medical [low-THC] cannabis;
 (2)  a plan for monitoring the patient's symptoms; and
 (3)  a plan for monitoring indicators of tolerance or
 reaction to medical [low-THC] cannabis.
 SECTION 1.06.  Section 169.002, Occupations Code, is
 repealed.
 ARTICLE 2. CHANGES TO CHAPTER 487, HEALTH AND SAFETY CODE
 SECTION 2.01.  Section 487.001, Health and Safety Code, is
 amended to read as follows:
 Sec. 487.001.  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," "higher
 concentration cannabis," "low-THC cannabis," "medical cannabis,"
 and "terminal illness" have the meanings assigned by Section
 169.001, Occupations Code.
 (3)  "Department" means the Department of Public
 Safety.
 (4) [(2)]  "Director" means the public safety director
 of the department.
 (5) [(3)]  "Dispensing organization" means an
 organization licensed by the department to cultivate, process, and
 dispense medical [low-THC] cannabis to a patient for whom medical
 [low-THC] cannabis is prescribed under Chapter 169, Occupations
 Code.
 [(4)     "Low-THC cannabis" has the meaning assigned by
 Section 169.001, Occupations Code.]
 SECTION 2.02.  The heading to Section 487.053, Health and
 Safety Code, is amended to read as follows:
 Sec. 487.053.  LICENSING OF DISPENSING ORGANIZATIONS AND
 CANNABIS TESTING FACILITIES; REGISTRATION OF CERTAIN ASSOCIATED
 INDIVIDUALS.
 SECTION 2.03.  Section 487.053(a), Health and Safety Code,
 is amended to read as follows:
 (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.
 SECTION 2.04.  Section 487.054, Health and Safety Code, is
 amended to read as follows:
 Sec. 487.054.  COMPASSIONATE-USE REGISTRY. (a)  The
 department shall establish and maintain a secure online
 compassionate-use registry that contains:
 (1)  the name of each physician who registers as the
 prescriber for a patient under Section 169.004, Occupations Code,
 and for each patient for whom the physician has registered as the
 prescriber:
 (A)  the patient's name;
 (B)  the patient's [and] date of birth;
 (C)  the nature of the patient's debilitating
 medical condition or terminal illness;
 (D)  whether the medical cannabis the physician
 prescribes to the patient is:
 (i)  low-THC cannabis; or
 (ii)  higher concentration cannabis;
 (E)  [of the patient,] the dosage prescribed;
 (F)  [,] the means of administration ordered;[,]
 and
 (G)  the total amount of medical [low-THC]
 cannabis required to fill the patient's prescription; and
 (2)  a record of each amount of medical [low-THC]
 cannabis dispensed by a dispensing organization to a patient under
 a prescription.
 (b)  The department shall ensure the registry:
 (1)  is designed to prevent more than one qualified
 physician from registering as the prescriber 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 [low-THC] cannabis is prescribed
 and whether the patient's prescriptions have been filled; and
 (3)  allows a physician [qualified to prescribe low-THC
 cannabis under Section 169.002, Occupations Code,] to input safety
 and efficacy data derived from the treatment of patients for whom
 medical [low-THC] cannabis is prescribed under Chapter 169,
 Occupations Code.
 SECTION 2.05.  Subchapter B, Chapter 487, Health and Safety
 Code, is amended by adding Sections 487.055 and 487.056 to read as
 follows:
 Sec. 487.055.  DESIGNATION OF CAREGIVER.  (a) The department
 shall develop a form for a patient listed in the registry to
 designate one caregiver and one alternate caregiver.  A caregiver
 is a person who has significant responsibility for managing the
 well-being of a registered patient.
 (b)  The form must require the patient to provide the full
 name, home address, and date of birth of the patient's caregiver and
 alternate caregiver.
 (c)  A patient may designate only one caregiver and one
 alternate caregiver.
 (d)  A patient may not designate as the patient's caregiver
 or alternate caregiver a person who:
 (1)  is younger than 21 years of age; or
 (2)  has been previously convicted of an offense
 punishable as a felony involving the manufacture, delivery, or
 possession of a controlled substance.
 (e)  Except as otherwise provided by Subsection (f), a person
 may be a caregiver or alternate caregiver for only one patient at a
 time.
 (f)  A person may be a caregiver or alternate caregiver for
 two patients simultaneously, provided that each patient is related
 to the caregiver within the fourth degree of consanguinity or
 affinity, as determined under Chapter 573, Government Code.
 (g)  The director shall adopt rules necessary to implement
 this section, including rules allowing a patient to change the
 patient's caregiver or alternate caregiver.
 Sec. 487.056.  LABELING REQUIREMENTS. The director by rule
 shall prescribe labeling requirements for medical cannabis. The
 requirements must provide that a label include:
 (1)  a product name;
 (2)  the name of the manufacturer;
 (3)  a batch identification number, batch date, batch
 size, and total quantity produced;
 (4)  a list of ingredients;
 (5)  an expiration date;
 (6)  the potency of the medical cannabis, as measured
 by the percent by weight of tetrahydrocannabinols, cannabidiols,
 and any other psychoactive substances or chemicals determined
 relevant by the department; and
 (7)  any additional labeling requirements as provided
 by department rule.
 SECTION 2.06.  The heading to Subchapter C, Chapter 487,
 Health and Safety Code, is amended to read as follows:
 SUBCHAPTER C. LICENSING OF [LICENSE TO OPERATE AS] DISPENSING
 ORGANIZATIONS AND CANNABIS TESTING FACILITIES [ORGANIZATION]
 SECTION 2.07.  Section 487.101, Health and Safety Code, is
 amended to read as follows:
 Sec. 487.101.  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 [chapter is required to operate a dispensing
 organization].
 SECTION 2.08.  Section 487.102, Health and Safety Code, is
 amended to read as follows:
 Sec. 487.102.  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 [low-THC] 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 compassionate-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 [low-THC]
 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.
 SECTION 2.09.  Subchapter C, Chapter 487, Health and Safety
 Code, is amended by adding Section 487.1021 to read as follows:
 Sec. 487.1021.  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.
 SECTION 2.10.  Section 487.103, Health and Safety Code, is
 amended by adding Subsection (a-1) to read as follows:
 (a-1)  A person may apply for an initial or renewal license
 to operate as a cannabis testing facility by submitting a form
 prescribed by the department along with the application fee in an
 amount set by the director.
 SECTION 2.11.  Section 487.104(a), Health and Safety Code,
 is amended to read as follows:
 (a)  The department shall issue or renew a license under this
 subchapter [to operate as a dispensing organization] only if:
 (1)  the department determines the applicant meets the
 eligibility requirements described by Section 487.102 or 487.1021,
 as applicable; and
 (2)  issuance or renewal of the license is necessary to
 ensure reasonable statewide access to, and the availability of,
 medical [low-THC] cannabis for patients registered in the
 compassionate-use registry and for whom medical [low-THC] cannabis
 is prescribed under Chapter 169, Occupations Code.
 SECTION 2.12.  Sections 487.105(a) and (b), Health and
 Safety Code, are amended to read as follows:
 (a)  An applicant for the issuance or renewal of a license
 under this subchapter [to operate as a dispensing organization]
 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
 [dispensing organization licensee] hires a manager or employee for
 the organization or facility, the license holder [licensee] must
 provide the department with the name of the prospective manager or
 employee.  The license holder [licensee] 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.
 SECTION 2.13.  Sections 487.106 and 487.107, Health and
 Safety Code, are amended to read as follows:
 Sec. 487.106.  DUTY TO MAINTAIN ELIGIBILITY.  Each license
 holder under this subchapter [A dispensing organization] must
 maintain compliance at all times with the eligibility requirements
 described by Section 487.102 or 487.1021, as applicable.
 Sec. 487.107.  DUTIES RELATING TO DISPENSING PRESCRIPTION.
 (a)  Before dispensing medical [low-THC] cannabis to a person for
 whom the medical [low-THC] cannabis is prescribed under Chapter
 169, Occupations Code, the dispensing organization must verify that
 the prescription presented:
 (1)  is for a person listed as a patient in the
 compassionate-use registry;
 (2)  matches the entry in the compassionate-use
 registry with respect to the total amount of medical [low-THC]
 cannabis required to fill the prescription; and
 (3)  has not previously been filled by a dispensing
 organization as indicated by an entry in the compassionate-use
 registry.
 (b)  After dispensing medical [low-THC] cannabis to a
 patient for whom the medical [low-THC] cannabis is prescribed under
 Chapter 169, Occupations Code, the dispensing organization shall
 record in the compassionate-use registry the form and quantity of
 medical [low-THC] cannabis dispensed and the date and time of
 dispensation.
 SECTION 2.14.  Sections 487.108(a), (b), and (c), Health and
 Safety Code, are amended to read as follows:
 (a)  The department may at any time suspend or revoke a
 license issued under this subchapter [chapter] if the department
 determines that the license holder [licensee] has not maintained
 the eligibility requirements described by Section 487.102 or
 487.1021, as applicable, or has failed to comply with a duty imposed
 under this subchapter [chapter].
 (b)  The director shall give written notice to the license
 holder [dispensing organization] 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 [chapter], the director may seize or place under seal
 all medical [low-THC] 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
 [low-THC] 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 [low-THC] cannabis and drug paraphernalia may be forfeited
 to the state as provided under Subchapter E, Chapter 481.
 SECTION 2.15.  Section 487.151, Health and Safety Code, is
 amended by adding Subsection (a-1) to read as follows:
 (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.
 SECTION 2.16.  Section 487.201, Health and Safety Code, is
 amended to read as follows:
 Sec. 487.201.  COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT
 MEDICAL [LOW-THC] 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 [low-THC] cannabis, as authorized by this chapter.
 ARTICLE 3. CONFORMING CHANGES
 SECTION 3.01.  Section 161.001(c), Family Code, is amended
 to read as follows:
 (c)  A court may not make a finding under Subsection (b) and
 order termination of the parent-child relationship based on
 evidence that the parent:
 (1)  homeschooled the child;
 (2)  is economically disadvantaged;
 (3)  has been charged with a nonviolent misdemeanor
 offense other than:
 (A)  an offense under Title 5, Penal Code;
 (B)  an offense under Title 6, Penal Code; or
 (C)  an offense that involves family violence, as
 defined by Section 71.004 of this code;
 (4)  provided or administered medical [low-THC]
 cannabis to a child for whom the medical [low-THC] cannabis was
 prescribed under Chapter 169, Occupations Code; or
 (5)  declined immunization for the child for reasons of
 conscience, including a religious belief.
 SECTION 3.02.  Section 262.116(a), Family Code, is amended
 to read as follows:
 (a)  The Department of Family and Protective Services may not
 take possession of a child under this subchapter based on evidence
 that the parent:
 (1)  homeschooled the child;
 (2)  is economically disadvantaged;
 (3)  has been charged with a nonviolent misdemeanor
 offense other than:
 (A)  an offense under Title 5, Penal Code;
 (B)  an offense under Title 6, Penal Code; or
 (C)  an offense that involves family violence, as
 defined by Section 71.004 of this code;
 (4)  provided or administered medical [low-THC]
 cannabis to a child for whom the medical [low-THC] cannabis was
 prescribed under Chapter 169, Occupations Code; or
 (5)  declined immunization for the child for reasons of
 conscience, including a religious belief.
 SECTION 3.03.  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 or cannabis testing
 facility licensed under Subchapter C, Chapter 487, that possesses
 medical [low-THC] cannabis.
 SECTION 3.04.  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
 medical [low-THC] cannabis if the person:
 (1)  for an offense involving possession only of
 marihuana or drug paraphernalia:
 (A)  [,] is a patient for whom medical [low-THC]
 cannabis is prescribed under Chapter 169, Occupations Code, [or]
 the patient's legal guardian, or the patient's designated caregiver
 or alternate caregiver; and
 (B)  [the person] possesses medical [low-THC]
 cannabis obtained under a valid prescription from a dispensing
 organization; or
 (2)  is a director, manager, or employee of a
 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
 [low-THC] cannabis or raw materials used in or by-products created
 by the production or cultivation of medical [low-THC] cannabis; or
 (B)  any drug paraphernalia used in the
 acquisition, possession, production, cultivation, delivery, or
 disposal of medical [low-THC] cannabis.
 (f)  For purposes of Subsection (e):
 (1)  "Cannabis testing facility" and "dispensing
 organization" have the meanings ["Dispensing organization"   has the
 meaning] assigned by Section 487.001.
 (2)  "Medical cannabis" ["Low-THC cannabis"] has the
 meaning assigned by Section 169.001, Occupations Code.
 SECTION 3.05.  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 dispensing organization[, as defined by Section
 487.001, Health and Safety Code,] that cultivates, processes, and
 dispenses medical [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; or
 (6)  a cannabis testing facility that analyzes the
 safety and potency of medical cannabis, as authorized by a license
 issued under Subchapter C, Chapter 487, Health and Safety Code.
 (a-1)  For purposes of Subsections (a)(5) and (6), "cannabis
 testing facility" and "dispensing organization" have the meanings
 assigned by Section 487.001, Health and Safety Code.
 ARTICLE 4. STUDY AND REPORT
 SECTION 4.01.  In this article, "department" means the
 Department of Public Safety of the State of Texas.
 SECTION 4.02.  The department, in consultation with a
 nationally accredited research university, shall conduct a study
 regarding whether application and licensing fees for dispensing
 organizations and cannabis testing facilities are impediments to
 the entrance of new dispensing organizations and cannabis testing
 facilities into the market in this state.
 SECTION 4.03.  Not later than December 1, 2020, the
 department shall submit to the legislature a report on the
 conclusions from the study under this article, including any
 legislative recommendations.
 ARTICLE 5. TRANSITIONS AND EFFECTIVE DATE
 SECTION 5.01.  Not later than October 1, 2019, the public
 safety director of the Department of Public Safety shall adopt
 rules as required to implement, administer, and enforce Chapter
 487, Health and Safety Code, as amended by this Act.
 SECTION 5.02.  (a) A license to operate as a dispensing
 organization issued under Chapter 487, Health and Safety Code,
 before the effective date of this Act continues to be valid after
 the effective date of this Act until that license expires.
 (b)  The registration of a director, manager, or employee of
 a dispensing organization under Subchapter D, Chapter 487, Health
 and Safety Code, continues to be valid after the effective date of
 this Act until that registration expires.
 (c)  Not later than March 1, 2020, the Department of Public
 Safety shall begin licensing cannabis testing facilities in
 accordance with Subchapter C, Chapter 487, Health and Safety Code,
 as amended by this Act, provided that the applicants for a license
 have met all requirements for approval under that subchapter.
 SECTION 5.03.  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 September 1, 2019.