Texas 2019 - 86th Regular

Texas Senate Bill SB865 Compare Versions

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

Old	New	Differences
1	1	86R8990 JSC-D
2	2	By: Watson S.B. No. 865
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 qualifying medical conditions
10	10	and the 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 CERTAIN
213	213	PATIENTS WITH QUALIFYING MEDICAL CONDITIONS
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 that
220	220	contains:
221	221	(A) not more than 5 percent by weight of
222	222	tetrahydrocannabinols; and
223	223	(B) not less than 10 percent by weight of
224	224	cannabidiol.
225	225	(3) "Medical use" means the ingestion by a means of
226	226	administration other than by smoking of a recommended amount of
227	227	medical cannabis by a person for whom medical use is recommended
228	228	under this chapter.
229	229	(4) "Qualifying medical condition" means cancer,
230	230	autism, or post-traumatic stress disorder.
231	231	(5) "Smoking" means burning or igniting a substance
232	232	and inhaling the smoke.
233	233	Sec. 169A.002. RECOMMENDATION OF MEDICAL USE. (a) A
234	234	physician may recommend medical use in accordance with this chapter
235	235	for a patient with a qualifying medical condition.
236	236	(b) A physician who recommends medical use for a patient
237	237	must:
238	238	(1) comply with the registration requirements of
239	239	Section 169A.003; and
240	240	(2) certify to the department that:
241	241	(A) the patient is diagnosed with a qualifying
242	242	medical condition; and
243	243	(B) the physician has determined that the risk of
244	244	medical use by the patient is reasonable in light of the potential
245	245	benefit for the patient.
246	246	Sec. 169A.003. RECOMMENDING PHYSICIAN REGISTRATION.
247	247	Before a physician may recommend medical use for a patient under
248	248	this chapter, the physician must register as the recommending
249	249	physician for that patient in the medical use registry maintained
250	250	by the department under Section 488.054, Health and Safety
251	251	Code. The physician's registration must indicate:
252	252	(1) the physician's name; and
253	253	(2) the patient's name and date of birth.
254	254	Sec. 169A.004. PATIENT TREATMENT PLAN. A physician who
255	255	recommends medical use for a patient under this chapter must
256	256	maintain a patient treatment plan that indicates:
257	257	(1) a plan for monitoring the patient's symptoms; and
258	258	(2) a plan for monitoring indicators of tolerance or
259	259	reaction to medical cannabis.
260	260	SECTION 3. Section 161.001(c), Family Code, is amended to
261	261	read as follows:
262	262	(c) A court may not make a finding under Subsection (b) and
263	263	order termination of the parent-child relationship based on
264	264	evidence that the parent:
265	265	(1) homeschooled the child;
266	266	(2) is economically disadvantaged;
267	267	(3) has been charged with a nonviolent misdemeanor
268	268	offense other than:
269	269	(A) an offense under Title 5, Penal Code;
270	270	(B) an offense under Title 6, Penal Code; or
271	271	(C) an offense that involves family violence, as
272	272	defined by Section 71.004 of this code;
273	273	(4) provided or administered low-THC cannabis to a
274	274	child for whom the low-THC cannabis was prescribed under Chapter
275	275	169, Occupations Code; [or]
276	276	(5) provided or administered medical cannabis to a
277	277	child for whom medical cannabis was recommended under Chapter 169A,
278	278	Occupations Code; or
279	279	(6) declined immunization for the child for reasons of
280	280	conscience, including a religious belief.
281	281	SECTION 4. Section 262.116(a), Family Code, is amended to
282	282	read as follows:
283	283	(a) The Department of Family and Protective Services may not
284	284	take possession of a child under this subchapter based on evidence
285	285	that the parent:
286	286	(1) homeschooled the child;
287	287	(2) is economically disadvantaged;
288	288	(3) has been charged with a nonviolent misdemeanor
289	289	offense other than:
290	290	(A) an offense under Title 5, Penal Code;
291	291	(B) an offense under Title 6, Penal Code; or
292	292	(C) an offense that involves family violence, as
293	293	defined by Section 71.004 of this code;
294	294	(4) provided or administered low-THC cannabis to a
295	295	child for whom the low-THC cannabis was prescribed under Chapter
296	296	169, Occupations Code; [or]
297	297	(5) provided or administered medical cannabis to a
298	298	child for whom medical cannabis was recommended under Chapter 169A,
299	299	Occupations Code; or
300	300	(6) declined immunization for the child for reasons of
301	301	conscience, including a religious belief.
302	302	SECTION 5. Section 481.062(a), Health and Safety Code, is
303	303	amended to read as follows:
304	304	(a) The following persons may possess a controlled
305	305	substance under this chapter without registering with the Federal
306	306	Drug Enforcement Administration:
307	307	(1) an agent or employee of a manufacturer,
308	308	distributor, analyzer, or dispenser of the controlled substance who
309	309	is registered with the Federal Drug Enforcement Administration and
310	310	acting in the usual course of business or employment;
311	311	(2) a common or contract carrier, a warehouseman, or
312	312	an employee of a carrier or warehouseman whose possession of the
313	313	controlled substance is in the usual course of business or
314	314	employment;
315	315	(3) an ultimate user or a person in possession of the
316	316	controlled substance under a lawful order of a practitioner or in
317	317	lawful possession of the controlled substance if it is listed in
318	318	Schedule V;
319	319	(4) an officer or employee of this state, another
320	320	state, a political subdivision of this state or another state, or
321	321	the United States who is lawfully engaged in the enforcement of a
322	322	law relating to a controlled substance or drug or to a customs law
323	323	and authorized to possess the controlled substance in the discharge
324	324	of the person's official duties;
325	325	(5) if the substance is tetrahydrocannabinol or one of
326	326	its derivatives:
327	327	(A) a Department of State Health Services
328	328	official, a medical school researcher, or a research program
329	329	participant possessing the substance as authorized under
330	330	Subchapter G; or
331	331	(B) a practitioner or an ultimate user possessing
332	332	the substance as a participant in a federally approved therapeutic
333	333	research program that the commissioner has reviewed and found, in
334	334	writing, to contain a medically responsible research protocol; [or]
335	335	(6) a dispensing organization licensed under Chapter
336	336	487 that possesses low-THC cannabis; or
337	337	(7) a dispensing organization licensed under Chapter
338	338	488 that possesses medical cannabis.
339	339	SECTION 6. Sections 481.111(e) and (f), Health and Safety
340	340	Code, are amended to read as follows:
341	341	(e) Sections 481.120, 481.121, 481.122, and 481.125 do not
342	342	apply to a person who engages in the acquisition, possession,
343	343	production, cultivation, delivery, or disposal of a raw material
344	344	used in or by-product created by the production or cultivation of
345	345	low-THC cannabis or medical cannabis if the person:
346	346	(1) for an offense involving possession only of
347	347	marihuana or drug paraphernalia, is a patient for whom low-THC
348	348	cannabis is prescribed under Chapter 169, Occupations Code, or the
349	349	patient's legal guardian, and the person possesses low-THC cannabis
350	350	obtained under a valid prescription from a dispensing organization;
351	351	[or]
352	352	(2) is a director, manager, or employee of a low-THC
353	353	cannabis dispensing organization and the person, solely in
354	354	performing the person's regular duties at the organization,
355	355	acquires, possesses, produces, cultivates, dispenses, or disposes
356	356	of:
357	357	(A) in reasonable quantities, any low-THC
358	358	cannabis or raw materials used in or by-products created by the
359	359	production or cultivation of low-THC cannabis; or
360	360	(B) any drug paraphernalia used in the
361	361	acquisition, possession, production, cultivation, delivery, or
362	362	disposal of low-THC cannabis;
363	363	(3) for an offense involving possession only of
364	364	marihuana or drug paraphernalia, is a patient for whom medical use
365	365	is recommended under Chapter 169A, Occupations Code; or
366	366	(4) is a director, manager, or employee of a medical
367	367	cannabis dispensing organization and the person, solely in
368	368	performing the person's regular duties at the organization,
369	369	acquires, possesses, produces, cultivates, dispenses, or disposes
370	370	of:
371	371	(A) in reasonable quantities, any medical
372	372	cannabis or raw materials used in or by-products created by the
373	373	production or cultivation of medical cannabis; or
374	374	(B) any drug paraphernalia used in the
375	375	acquisition, possession, production, cultivation, delivery, or
376	376	disposal of medical cannabis.
377	377	(f) For purposes of Subsection (e):
378	378	(1) ["Dispensing organization" has the meaning
379	379	assigned by Section 487.001.
380	380	[(2)] "Low-THC cannabis" has the meaning assigned by
381	381	Section 169.001, Occupations Code.
382	382	(2) "Low-THC cannabis dispensing organization" means
383	383	a dispensing organization as defined by Section 487.001.
384	384	(3) "Medical cannabis" and "medical use" have the
385	385	meanings assigned by Section 169A.001, Occupations Code.
386	386	(4) "Medical cannabis dispensing organization" means
387	387	a dispensing organization as defined by Section 488.001.
388	388	SECTION 7. Section 551.004, Occupations Code, is amended by
389	389	amending Subsection (a) and adding Subsection (a-1) to read as
390	390	follows:
391	391	(a) This subtitle does not apply to:
392	392	(1) a practitioner licensed by the appropriate state
393	393	board who supplies a patient of the practitioner with a drug in a
394	394	manner authorized by state or federal law and who does not operate a
395	395	pharmacy for the retailing of prescription drugs;
396	396	(2) a member of the faculty of a college of pharmacy
397	397	recognized by the board who is a pharmacist and who performs the
398	398	pharmacist's services only for the benefit of the college;
399	399	(3) a person who procures prescription drugs for
400	400	lawful research, teaching, or testing and not for resale;
401	401	(4) a home and community support services agency that
402	402	possesses a dangerous drug as authorized by Section 142.0061,
403	403	142.0062, or 142.0063, Health and Safety Code; [or]
404	404	(5) a low-THC cannabis dispensing organization[, as
405	405	defined by Section 487.001, Health and Safety Code,] that
406	406	cultivates, processes, and dispenses low-THC cannabis, as
407	407	authorized by a license issued under Subchapter C, Chapter 487,
408	408	Health and Safety Code, to a patient listed in the
409	409	compassionate-use registry established under that chapter; or
410	410	(6) a medical cannabis dispensing organization that
411	411	cultivates, processes, and dispenses medical cannabis, as
412	412	authorized by a license issued under Subchapter C, Chapter 488,
413	413	Health and Safety Code, to a patient listed in the medical use
414	414	registry established under that chapter.
415	415	(a-1) For purposes of Subsections (a)(5) and (6):
416	416	(1) "Low-THC cannabis dispensing organization" means
417	417	a dispensing organization as defined by Section 487.001, Health and
418	418	Safety Code.
419	419	(2) "Medical cannabis dispensing organization" means
420	420	a dispensing organization as defined by Section 488.001, Health and
421	421	Safety Code.
422	422	SECTION 8. Not later than January 1, 2020, the public safety
423	423	director of the Department of Public Safety shall adopt rules as
424	424	required to implement, administer, and enforce Chapter 488, Health
425	425	and Safety Code, as added by this Act, including rules to establish
426	426	the medical use registry required by that chapter.
427	427	SECTION 9. This Act takes effect immediately if it receives
428	428	a vote of two-thirds of all the members elected to each house, as
429	429	provided by Section 39, Article III, Texas Constitution. If this
430	430	Act does not receive the vote necessary for immediate effect, this
431	431	Act takes effect September 1, 2019.