Texas 2019 - 86th Regular

Texas Senate Bill SB400 Compare Versions

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

Old	New	Differences
1	1	86R1388 JSC-F
2	2	By: West S.B. No. 400
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 certain debilitating medical
10	10	conditions and terminal illnesses and the licensing of dispensing
11	11	organizations and cannabis testing facilities; authorizing a fee.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	ARTICLE 1. CHANGES TO CHAPTER 169, OCCUPATIONS CODE
14	14	SECTION 1.01. The heading to Chapter 169, Occupations Code,
15	15	is amended to read as follows:
16	16	CHAPTER 169. AUTHORITY TO PRESCRIBE MEDICAL [LOW-THC] CANNABIS TO
17	17	CERTAIN PATIENTS FOR COMPASSIONATE USE
18	18	SECTION 1.02. Section 169.001, Occupations Code, is amended
19	19	by amending Subdivisions (2), (3), and (4) and adding Subdivisions
20	20	(2-a), (2-b), (3-a), and (6) to read as follows:
21	21	(2) "Debilitating epileptic condition" ["Intractable
22	22	epilepsy"] means epilepsy or other neurological [a seizure]
23	23	disorder, or the treatment of epilepsy or other neurological
24	24	disorder that, as diagnosed by a board-certified neurologist,
25	25	produces serious, debilitating, or life-threatening [in which the
26	26	patient's seizures have been treated by two or more appropriately
27	27	chosen and maximally titrated antiepileptic drugs that have failed
28	28	to control the] seizures.
29	29	(2-a) "Debilitating medical condition" means cancer,
30	30	glaucoma, a debilitating epileptic condition, acquired immune
31	31	deficiency syndrome, amyotrophic lateral sclerosis, Crohn's
32	32	disease, Parkinson's disease, Huntington's disease, or multiple
33	33	sclerosis;
34	34	(2-b) "Higher concentration cannabis" means the plant
35	35	Cannabis sativa L., and any part of that plant or any compound,
36	36	manufacture, salt, derivative, mixture, preparation, resin, or oil
37	37	of that plant that contains more than 0.5 percent by weight of
38	38	tetrahydrocannabinols and any concentration of cannabidiol.
39	39	(3) "Low-THC cannabis" means the plant Cannabis sativa
40	40	L., and any part of that plant or any compound, manufacture, salt,
41	41	derivative, mixture, preparation, resin, or oil of that plant that
42	42	contains:
43	43	(A) not more than 0.5 percent by weight of
44	44	tetrahydrocannabinols; and
45	45	(B) not less than 15 [10] percent by weight of
46	46	cannabidiol.
47	47	(3-a) "Medical cannabis" means low-THC cannabis or
48	48	higher concentration cannabis.
49	49	(4) "Medical use" means the ingestion by a means of
50	50	administration other than by smoking of a prescribed amount of
51	51	medical [low-THC] cannabis by a person for whom medical [low-THC]
52	52	cannabis is prescribed under this chapter.
53	53	(6) "Terminal illness" means an advanced stage of a
54	54	disease with an unfavorable prognosis that, without
55	55	life-sustaining procedures, will soon result in death or a state of
56	56	permanent unconsciousness from which recovery is unlikely.
57	57	SECTION 1.03. Section 169.003, Occupations Code, is amended
58	58	to read as follows:
59	59	Sec. 169.003. PRESCRIPTION OF LOW-THC CANNABIS. A
60	60	physician [described by Section 169.002] may prescribe low-THC
61	61	cannabis to alleviate a patient's debilitating medical condition
62	62	[seizures] if:
63	63	(1) the patient is a permanent resident of the state;
64	64	(2) the physician complies with the registration
65	65	requirements of Section 169.004; and
66	66	(3) the physician certifies to the department that:
67	67	(A) the patient is diagnosed with a debilitating
68	68	medical condition [intractable epilepsy];
69	69	(B) the physician determines the risk of the
70	70	medical use of low-THC cannabis by the patient is reasonable in
71	71	light of the potential benefit for the patient; and
72	72	(C) a second physician [qualified to prescribe
73	73	low-THC cannabis under Section 169.002] has concurred with the
74	74	determination under Paragraph (B), and the second physician's
75	75	concurrence is recorded in the patient's medical record.
76	76	SECTION 1.04. Chapter 169, Occupations Code, is amended by
77	77	adding Section 169.0035 to read as follows:
78	78	Sec. 169.0035. PRESCRIPTION OF HIGHER CONCENTRATION
79	79	CANNABIS TO PATIENTS WITH TERMINAL ILLNESS. A physician may
80	80	prescribe higher concentration cannabis to a patient if:
81	81	(1) the patient is a permanent resident of the state;
82	82	(2) the physician complies with the registration
83	83	requirements of Section 169.004; and
84	84	(3) the physician certifies to the department that:
85	85	(A) the patient is diagnosed with a terminal
86	86	illness;
87	87	(B) the physician determines the risk of the
88	88	medical use of higher concentration cannabis by the patient is
89	89	reasonable in light of the potential benefit for the patient; and
90	90	(C) a second physician has concurred with the
91	91	determination under Paragraph (B), and the second physician's
92	92	concurrence is recorded in the patient's medical record.
93	93	SECTION 1.05. Sections 169.004 and 169.005, Occupations
94	94	Code, are amended to read as follows:
95	95	Sec. 169.004. MEDICAL [LOW-THC] CANNABIS PRESCRIBER
96	96	REGISTRATION. Before a physician [qualified to prescribe low-THC
97	97	cannabis under Section 169.002] may prescribe or renew a
98	98	prescription for medical [low-THC] cannabis for a patient under
99	99	this chapter, the physician must register as the prescriber for
100	100	that patient in the compassionate-use registry maintained by the
101	101	department under Section 487.054, Health and Safety Code. The
102	102	physician's registration must indicate:
103	103	(1) the physician's name;
104	104	(2) the patient's name and date of birth;
105	105	(3) the nature of the patient's debilitating medical
106	106	condition or terminal illness;
107	107	(4) whether the medical cannabis the physician
108	108	prescribes to the patient is:
109	109	(A) low-THC cannabis; or
110	110	(B) higher concentration cannabis;
111	111	(5) the dosage prescribed to the patient;
112	112	(6) [(4)] the means of administration ordered for the
113	113	patient; and
114	114	(7) [(5)] the total amount of medical [low-THC]
115	115	cannabis required to fill the patient's prescription.
116	116	Sec. 169.005. PATIENT TREATMENT PLAN. A physician
117	117	[described by Section 169.002] who prescribes medical [low-THC]
118	118	cannabis for a patient's medical use under this chapter must
119	119	maintain a patient treatment plan that indicates:
120	120	(1) the dosage, means of administration, and planned
121	121	duration of treatment for the medical [low-THC] cannabis;
122	122	(2) a plan for monitoring the patient's symptoms; and
123	123	(3) a plan for monitoring indicators of tolerance or
124	124	reaction to medical [low-THC] cannabis.
125	125	SECTION 1.06. Section 169.002, Occupations Code, is
126	126	repealed.
127	127	ARTICLE 2. CHANGES TO CHAPTER 487, HEALTH AND SAFETY CODE
128	128	SECTION 2.01. Section 487.001, Health and Safety Code, is
129	129	amended to read as follows:
130	130	Sec. 487.001. DEFINITIONS. In this chapter:
131	131	(1) "Cannabis testing facility" means an independent
132	132	entity licensed by the department under this chapter to analyze the
133	133	safety and potency of medical cannabis.
134	134	(2) "Debilitating medical condition," "higher
135	135	concentration cannabis," "low-THC cannabis," "medical cannabis,"
136	136	and "terminal illness" have the meanings assigned by Section
137	137	169.001, Occupations Code.
138	138	(3) "Department" means the Department of Public
139	139	Safety.
140	140	(4) [(2)] "Director" means the public safety director
141	141	of the department.
142	142	(5) [(3)] "Dispensing organization" means an
143	143	organization licensed by the department to cultivate, process, and
144	144	dispense medical [low-THC] cannabis to a patient for whom medical
145	145	[low-THC] cannabis is prescribed under Chapter 169, Occupations
146	146	Code.
147	147	[(4) "Low-THC cannabis" has the meaning assigned by
148	148	Section 169.001, Occupations Code.]
149	149	SECTION 2.02. The heading to Section 487.053, Health and
150	150	Safety Code, is amended to read as follows:
151	151	Sec. 487.053. LICENSING OF DISPENSING ORGANIZATIONS AND
152	152	CANNABIS TESTING FACILITIES; REGISTRATION OF CERTAIN ASSOCIATED
153	153	INDIVIDUALS.
154	154	SECTION 2.03. Section 487.053(a), Health and Safety Code,
155	155	is amended to read as follows:
156	156	(a) The department shall:
157	157	(1) issue or renew a license under Subchapter C to
158	158	operate as:
159	159	(A) a dispensing organization to each applicant
160	160	who satisfies the requirements established under this chapter for
161	161	licensure as a dispensing organization; and
162	162	(B) a cannabis testing facility to each applicant
163	163	who satisfies the requirements established under this chapter for
164	164	licensure as a cannabis testing facility; and
165	165	(2) register directors, managers, and employees under
166	166	Subchapter D of each:
167	167	(A) dispensing organization; and
168	168	(B) cannabis testing facility.
169	169	SECTION 2.04. Section 487.054, Health and Safety Code, is
170	170	amended to read as follows:
171	171	Sec. 487.054. COMPASSIONATE-USE REGISTRY. (a) The
172	172	department shall establish and maintain a secure online
173	173	compassionate-use registry that contains:
174	174	(1) the name of each physician who registers as the
175	175	prescriber for a patient under Section 169.004, Occupations Code,
176	176	and for each patient for whom the physician has registered as the
177	177	prescriber:
178	178	(A) the patient's name;
179	179	(B) the patient's [and] date of birth;
180	180	(C) the nature of the patient's debilitating
181	181	medical condition or terminal illness;
182	182	(D) whether the medical cannabis the physician
183	183	prescribes to the patient is:
184	184	(i) low-THC cannabis; or
185	185	(ii) higher concentration cannabis;
186	186	(E) [of the patient,] the dosage prescribed;
187	187	(F) [,] the means of administration ordered;[,]
188	188	and
189	189	(G) the total amount of medical [low-THC]
190	190	cannabis required to fill the patient's prescription; and
191	191	(2) a record of each amount of medical [low-THC]
192	192	cannabis dispensed by a dispensing organization to a patient under
193	193	a prescription.
194	194	(b) The department shall ensure the registry:
195	195	(1) is designed to prevent more than one qualified
196	196	physician from registering as the prescriber for a single patient;
197	197	(2) is accessible to law enforcement agencies and
198	198	dispensing organizations for the purpose of verifying whether a
199	199	patient is one for whom medical [low-THC] cannabis is prescribed
200	200	and whether the patient's prescriptions have been filled; and
201	201	(3) allows a physician [qualified to prescribe low-THC
202	202	cannabis under Section 169.002, Occupations Code,] to input safety
203	203	and efficacy data derived from the treatment of patients for whom
204	204	medical [low-THC] cannabis is prescribed under Chapter 169,
205	205	Occupations Code.
206	206	SECTION 2.05. Subchapter B, Chapter 487, Health and Safety
207	207	Code, is amended by adding Sections 487.055 and 487.056 to read as
208	208	follows:
209	209	Sec. 487.055. DESIGNATION OF CAREGIVER. (a) The department
210	210	shall develop a form for a patient listed in the registry to
211	211	designate one caregiver and one alternate caregiver. A caregiver
212	212	is a person who has significant responsibility for managing the
213	213	well-being of a registered patient.
214	214	(b) The form must require the patient to provide the full
215	215	name, home address, and date of birth of the patient's caregiver and
216	216	alternate caregiver.
217	217	(c) A patient may designate only one caregiver and one
218	218	alternate caregiver.
219	219	(d) A patient may not designate as the patient's caregiver
220	220	or alternate caregiver a person who:
221	221	(1) is younger than 21 years of age; or
222	222	(2) has been previously convicted of an offense
223	223	punishable as a felony involving the manufacture, delivery, or
224	224	possession of a controlled substance.
225	225	(e) Except as otherwise provided by Subsection (f), a person
226	226	may be a caregiver or alternate caregiver for only one patient at a
227	227	time.
228	228	(f) A person may be a caregiver or alternate caregiver for
229	229	two patients simultaneously, provided that each patient is related
230	230	to the caregiver within the fourth degree of consanguinity or
231	231	affinity, as determined under Chapter 573, Government Code.
232	232	(g) The director shall adopt rules necessary to implement
233	233	this section, including rules allowing a patient to change the
234	234	patient's caregiver or alternate caregiver.
235	235	Sec. 487.056. LABELING REQUIREMENTS. The director by rule
236	236	shall prescribe labeling requirements for medical cannabis. The
237	237	requirements must provide that a label include:
238	238	(1) a product name;
239	239	(2) the name of the manufacturer;
240	240	(3) a batch identification number, batch date, batch
241	241	size, and total quantity produced;
242	242	(4) a list of ingredients;
243	243	(5) an expiration date;
244	244	(6) the potency of the medical cannabis, as measured
245	245	by the percent by weight of tetrahydrocannabinols, cannabidiols,
246	246	and any other psychoactive substances or chemicals determined
247	247	relevant by the department; and
248	248	(7) any additional labeling requirements as provided
249	249	by department rule.
250	250	SECTION 2.06. The heading to Subchapter C, Chapter 487,
251	251	Health and Safety Code, is amended to read as follows:
252	252	SUBCHAPTER C. LICENSING OF [LICENSE TO OPERATE AS] DISPENSING
253	253	ORGANIZATIONS AND CANNABIS TESTING FACILITIES [ORGANIZATION]
254	254	SECTION 2.07. Section 487.101, Health and Safety Code, is
255	255	amended to read as follows:
256	256	Sec. 487.101. LICENSE REQUIRED. A person may not operate as
257	257	a dispensing organization or a cannabis testing facility without
258	258	the appropriate license issued by the department under this
259	259	subchapter [chapter is required to operate a dispensing
260	260	organization].
261	261	SECTION 2.08. Section 487.102, Health and Safety Code, is
262	262	amended to read as follows:
263	263	Sec. 487.102. ELIGIBILITY FOR LICENSE TO OPERATE AS
264	264	DISPENSING ORGANIZATION. An applicant for a license to operate as a
265	265	dispensing organization is eligible for the license if:
266	266	(1) as determined by the department, the applicant
267	267	possesses:
268	268	(A) the technical and technological ability to
269	269	cultivate and produce medical [low-THC] cannabis;
270	270	(B) the ability to secure:
271	271	(i) the resources and personnel necessary
272	272	to operate as a dispensing organization; and
273	273	(ii) premises reasonably located to allow
274	274	patients listed on the compassionate-use registry access to the
275	275	organization through existing infrastructure;
276	276	(C) the ability to maintain accountability for
277	277	the raw materials, the finished product, and any by-products used
278	278	or produced in the cultivation or production of medical [low-THC]
279	279	cannabis to prevent unlawful access to or unlawful diversion or
280	280	possession of those materials, products, or by-products; and
281	281	(D) the financial ability to maintain operations
282	282	for not less than two years from the date of application;
283	283	(2) each director, manager, or employee of the
284	284	applicant is registered under Subchapter D; and
285	285	(3) the applicant satisfies any additional criteria
286	286	determined by the director to be necessary to safely implement this
287	287	chapter.
288	288	SECTION 2.09. Subchapter C, Chapter 487, Health and Safety
289	289	Code, is amended by adding Section 487.1021 to read as follows:
290	290	Sec. 487.1021. ELIGIBILITY FOR LICENSE TO OPERATE AS
291	291	CANNABIS TESTING FACILITY. An applicant for a license to operate as
292	292	a cannabis testing facility is eligible for the license if:
293	293	(1) as determined by the department, the applicant
294	294	possesses:
295	295	(A) the ability to secure the resources and
296	296	personnel necessary to operate as a cannabis testing facility; and
297	297	(B) the financial ability to maintain operations
298	298	for not less than two years from the date of application;
299	299	(2) each director, manager, or employee of the
300	300	applicant is registered under Subchapter D; and
301	301	(3) the applicant satisfies any additional criteria
302	302	determined by the director to be necessary for the operation of a
303	303	cannabis testing facility.
304	304	SECTION 2.10. Section 487.103, Health and Safety Code, is
305	305	amended by adding Subsection (a-1) to read as follows:
306	306	(a-1) A person may apply for an initial or renewal license
307	307	to operate as a cannabis testing facility by submitting a form
308	308	prescribed by the department along with the application fee in an
309	309	amount set by the director.
310	310	SECTION 2.11. Section 487.104(a), Health and Safety Code,
311	311	is amended to read as follows:
312	312	(a) The department shall issue or renew a license under this
313	313	subchapter [to operate as a dispensing organization] only if:
314	314	(1) the department determines the applicant meets the
315	315	eligibility requirements described by Section 487.102 or 487.1021,
316	316	as applicable; and
317	317	(2) issuance or renewal of the license is necessary to
318	318	ensure reasonable statewide access to, and the availability of,
319	319	medical [low-THC] cannabis for patients registered in the
320	320	compassionate-use registry and for whom medical [low-THC] cannabis
321	321	is prescribed under Chapter 169, Occupations Code.
322	322	SECTION 2.12. Sections 487.105(a) and (b), Health and
323	323	Safety Code, are amended to read as follows:
324	324	(a) An applicant for the issuance or renewal of a license
325	325	under this subchapter [to operate as a dispensing organization]
326	326	shall provide the department with the applicant's name and the name
327	327	of each of the applicant's directors, managers, and employees.
328	328	(b) Before a license holder under this subchapter
329	329	[dispensing organization licensee] hires a manager or employee for
330	330	the organization or facility, the license holder [licensee] must
331	331	provide the department with the name of the prospective manager or
332	332	employee. The license holder [licensee] may not transfer the
333	333	license to another person before that prospective applicant and the
334	334	applicant's directors, managers, and employees pass a criminal
335	335	history background check and are registered as required by
336	336	Subchapter D.
337	337	SECTION 2.13. Sections 487.106 and 487.107, Health and
338	338	Safety Code, are amended to read as follows:
339	339	Sec. 487.106. DUTY TO MAINTAIN ELIGIBILITY. Each license
340	340	holder under this subchapter [A dispensing organization] must
341	341	maintain compliance at all times with the eligibility requirements
342	342	described by Section 487.102 or 487.1021, as applicable.
343	343	Sec. 487.107. DUTIES RELATING TO DISPENSING PRESCRIPTION.
344	344	(a) Before dispensing medical [low-THC] cannabis to a person for
345	345	whom the medical [low-THC] cannabis is prescribed under Chapter
346	346	169, Occupations Code, the dispensing organization must verify that
347	347	the prescription presented:
348	348	(1) is for a person listed as a patient in the
349	349	compassionate-use registry;
350	350	(2) matches the entry in the compassionate-use
351	351	registry with respect to the total amount of medical [low-THC]
352	352	cannabis required to fill the prescription; and
353	353	(3) has not previously been filled by a dispensing
354	354	organization as indicated by an entry in the compassionate-use
355	355	registry.
356	356	(b) After dispensing medical [low-THC] cannabis to a
357	357	patient for whom the medical [low-THC] cannabis is prescribed under
358	358	Chapter 169, Occupations Code, the dispensing organization shall
359	359	record in the compassionate-use registry the form and quantity of
360	360	medical [low-THC] cannabis dispensed and the date and time of
361	361	dispensation.
362	362	SECTION 2.14. Sections 487.108(a), (b), and (c), Health and
363	363	Safety Code, are amended to read as follows:
364	364	(a) The department may at any time suspend or revoke a
365	365	license issued under this subchapter [chapter] if the department
366	366	determines that the license holder [licensee] has not maintained
367	367	the eligibility requirements described by Section 487.102 or
368	368	487.1021, as applicable, or has failed to comply with a duty imposed
369	369	under this subchapter [chapter].
370	370	(b) The director shall give written notice to the license
371	371	holder [dispensing organization] of a license suspension or
372	372	revocation under this section and the grounds for the suspension or
373	373	revocation. The notice must be sent by certified mail, return
374	374	receipt requested.
375	375	(c) After suspending or revoking a license issued under this
376	376	subchapter [chapter], the director may seize or place under seal
377	377	all medical [low-THC] cannabis and drug paraphernalia owned or
378	378	possessed by the dispensing organization or cannabis testing
379	379	facility. If the director orders the revocation of the license, a
380	380	disposition may not be made of the seized or sealed medical
381	381	[low-THC] cannabis or drug paraphernalia until the time for
382	382	administrative appeal of the order has elapsed or until all appeals
383	383	have been concluded. When a revocation order becomes final, all
384	384	medical [low-THC] cannabis and drug paraphernalia may be forfeited
385	385	to the state as provided under Subchapter E, Chapter 481.
386	386	SECTION 2.15. Section 487.151, Health and Safety Code, is
387	387	amended by adding Subsection (a-1) to read as follows:
388	388	(a-1) An individual who is a director, manager, or employee
389	389	of a cannabis testing facility must apply for and obtain a
390	390	registration under this section.
391	391	SECTION 2.16. Section 487.201, Health and Safety Code, is
392	392	amended to read as follows:
393	393	Sec. 487.201. COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT
394	394	MEDICAL [LOW-THC] CANNABIS. A municipality, county, or other
395	395	political subdivision may not enact, adopt, or enforce a rule,
396	396	ordinance, order, resolution, or other regulation that prohibits
397	397	the cultivation, production, dispensing, testing, or possession of
398	398	medical [low-THC] cannabis, as authorized by this chapter.
399	399	ARTICLE 3. CONFORMING CHANGES
400	400	SECTION 3.01. Section 161.001(c), Family Code, is amended
401	401	to read as follows:
402	402	(c) A court may not make a finding under Subsection (b) and
403	403	order termination of the parent-child relationship based on
404	404	evidence that the parent:
405	405	(1) homeschooled the child;
406	406	(2) is economically disadvantaged;
407	407	(3) has been charged with a nonviolent misdemeanor
408	408	offense other than:
409	409	(A) an offense under Title 5, Penal Code;
410	410	(B) an offense under Title 6, Penal Code; or
411	411	(C) an offense that involves family violence, as
412	412	defined by Section 71.004 of this code;
413	413	(4) provided or administered medical [low-THC]
414	414	cannabis to a child for whom the medical [low-THC] cannabis was
415	415	prescribed under Chapter 169, Occupations Code; or
416	416	(5) declined immunization for the child for reasons of
417	417	conscience, including a religious belief.
418	418	SECTION 3.02. Section 262.116(a), Family Code, is amended
419	419	to read as follows:
420	420	(a) The Department of Family and Protective Services may not
421	421	take possession of a child under this subchapter based on evidence
422	422	that the parent:
423	423	(1) homeschooled the child;
424	424	(2) is economically disadvantaged;
425	425	(3) has been charged with a nonviolent misdemeanor
426	426	offense other than:
427	427	(A) an offense under Title 5, Penal Code;
428	428	(B) an offense under Title 6, Penal Code; or
429	429	(C) an offense that involves family violence, as
430	430	defined by Section 71.004 of this code;
431	431	(4) provided or administered medical [low-THC]
432	432	cannabis to a child for whom the medical [low-THC] cannabis was
433	433	prescribed under Chapter 169, Occupations Code; or
434	434	(5) declined immunization for the child for reasons of
435	435	conscience, including a religious belief.
436	436	SECTION 3.03. Section 481.062(a), Health and Safety Code,
437	437	is amended to read as follows:
438	438	(a) The following persons may possess a controlled
439	439	substance under this chapter without registering with the Federal
440	440	Drug Enforcement Administration:
441	441	(1) an agent or employee of a manufacturer,
442	442	distributor, analyzer, or dispenser of the controlled substance who
443	443	is registered with the Federal Drug Enforcement Administration and
444	444	acting in the usual course of business or employment;
445	445	(2) a common or contract carrier, a warehouseman, or
446	446	an employee of a carrier or warehouseman whose possession of the
447	447	controlled substance is in the usual course of business or
448	448	employment;
449	449	(3) an ultimate user or a person in possession of the
450	450	controlled substance under a lawful order of a practitioner or in
451	451	lawful possession of the controlled substance if it is listed in
452	452	Schedule V;
453	453	(4) an officer or employee of this state, another
454	454	state, a political subdivision of this state or another state, or
455	455	the United States who is lawfully engaged in the enforcement of a
456	456	law relating to a controlled substance or drug or to a customs law
457	457	and authorized to possess the controlled substance in the discharge
458	458	of the person's official duties;
459	459	(5) if the substance is tetrahydrocannabinol or one of
460	460	its derivatives:
461	461	(A) a Department of State Health Services
462	462	official, a medical school researcher, or a research program
463	463	participant possessing the substance as authorized under
464	464	Subchapter G; or
465	465	(B) a practitioner or an ultimate user possessing
466	466	the substance as a participant in a federally approved therapeutic
467	467	research program that the commissioner has reviewed and found, in
468	468	writing, to contain a medically responsible research protocol; or
469	469	(6) a dispensing organization or cannabis testing
470	470	facility licensed under Subchapter C, Chapter 487, that possesses
471	471	medical [low-THC] cannabis.
472	472	SECTION 3.04. Sections 481.111(e) and (f), Health and
473	473	Safety Code, are amended to read as follows:
474	474	(e) Sections 481.120, 481.121, 481.122, and 481.125 do not
475	475	apply to a person who engages in the acquisition, possession,
476	476	production, cultivation, delivery, or disposal of a raw material
477	477	used in or by-product created by the production or cultivation of
478	478	medical [low-THC] cannabis if the person:
479	479	(1) for an offense involving possession only of
480	480	marihuana or drug paraphernalia:
481	481	(A) [,] is a patient for whom medical [low-THC]
482	482	cannabis is prescribed under Chapter 169, Occupations Code, [or]
483	483	the patient's legal guardian, or the patient's designated caregiver
484	484	or alternate caregiver; and
485	485	(B) [the person] possesses medical [low-THC]
486	486	cannabis obtained under a valid prescription from a dispensing
487	487	organization; or
488	488	(2) is a director, manager, or employee of a
489	489	dispensing organization or cannabis testing facility and the
490	490	person, solely in performing the person's regular duties at the
491	491	organization or facility, acquires, possesses, produces,
492	492	cultivates, dispenses, or disposes of:
493	493	(A) in reasonable quantities, any medical
494	494	[low-THC] cannabis or raw materials used in or by-products created
495	495	by the production or cultivation of medical [low-THC] cannabis; or
496	496	(B) any drug paraphernalia used in the
497	497	acquisition, possession, production, cultivation, delivery, or
498	498	disposal of medical [low-THC] cannabis.
499	499	(f) For purposes of Subsection (e):
500	500	(1) "Cannabis testing facility" and "dispensing
501	501	organization" have the meanings ["Dispensing organization" has the
502	502	meaning] assigned by Section 487.001.
503	503	(2) "Medical cannabis" ["Low-THC cannabis"] has the
504	504	meaning assigned by Section 169.001, Occupations Code.
505	505	SECTION 3.05. Section 551.004, Occupations Code, is amended
506	506	by amending Subsection (a) and adding Subsection (a-1) to read as
507	507	follows:
508	508	(a) This subtitle does not apply to:
509	509	(1) a practitioner licensed by the appropriate state
510	510	board who supplies a patient of the practitioner with a drug in a
511	511	manner authorized by state or federal law and who does not operate a
512	512	pharmacy for the retailing of prescription drugs;
513	513	(2) a member of the faculty of a college of pharmacy
514	514	recognized by the board who is a pharmacist and who performs the
515	515	pharmacist's services only for the benefit of the college;
516	516	(3) a person who procures prescription drugs for
517	517	lawful research, teaching, or testing and not for resale;
518	518	(4) a home and community support services agency that
519	519	possesses a dangerous drug as authorized by Section 142.0061,
520	520	142.0062, or 142.0063, Health and Safety Code; [or]
521	521	(5) a dispensing organization[, as defined by Section
522	522	487.001, Health and Safety Code,] that cultivates, processes, and
523	523	dispenses medical [low-THC] cannabis, as authorized by a license
524	524	issued under Subchapter C, Chapter 487, Health and Safety Code, to a
525	525	patient listed in the compassionate-use registry established under
526	526	that chapter; or
527	527	(6) a cannabis testing facility that analyzes the
528	528	safety and potency of medical cannabis, as authorized by a license
529	529	issued under Subchapter C, Chapter 487, Health and Safety Code.
530	530	(a-1) For purposes of Subsections (a)(5) and (6), "cannabis
531	531	testing facility" and "dispensing organization" have the meanings
532	532	assigned by Section 487.001, Health and Safety Code.
533	533	ARTICLE 4. STUDY AND REPORT
534	534	SECTION 4.01. In this article, "department" means the
535	535	Department of Public Safety of the State of Texas.
536	536	SECTION 4.02. The department, in consultation with a
537	537	nationally accredited research university, shall conduct a study
538	538	regarding whether application and licensing fees for dispensing
539	539	organizations and cannabis testing facilities are impediments to
540	540	the entrance of new dispensing organizations and cannabis testing
541	541	facilities into the market in this state.
542	542	SECTION 4.03. Not later than December 1, 2020, the
543	543	department shall submit to the legislature a report on the
544	544	conclusions from the study under this article, including any
545	545	legislative recommendations.
546	546	ARTICLE 5. TRANSITIONS AND EFFECTIVE DATE
547	547	SECTION 5.01. Not later than October 1, 2019, the public
548	548	safety director of the Department of Public Safety shall adopt
549	549	rules as required to implement, administer, and enforce Chapter
550	550	487, Health and Safety Code, as amended by this Act.
551	551	SECTION 5.02. (a) A license to operate as a dispensing
552	552	organization issued under Chapter 487, Health and Safety Code,
553	553	before the effective date of this Act continues to be valid after
554	554	the effective date of this Act until that license expires.
555	555	(b) The registration of a director, manager, or employee of
556	556	a dispensing organization under Subchapter D, Chapter 487, Health
557	557	and Safety Code, continues to be valid after the effective date of
558	558	this Act until that registration expires.
559	559	(c) Not later than March 1, 2020, the Department of Public
560	560	Safety shall begin licensing cannabis testing facilities in
561	561	accordance with Subchapter C, Chapter 487, Health and Safety Code,
562	562	as amended by this Act, provided that the applicants for a license
563	563	have met all requirements for approval under that subchapter.
564	564	SECTION 5.03. This Act takes effect immediately if it
565	565	receives a vote of two-thirds of all the members elected to each
566	566	house, as provided by Section 39, Article III, Texas Constitution.
567	567	If this Act does not receive the vote necessary for immediate
568	568	effect, this Act takes effect September 1, 2019.