Texas 2021 - 87th Regular

Texas House Bill HB3248 Compare Versions

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

Old	New	Differences
1	1	87R5442 JSC-D
2	2	By: González of Dallas H.B. No. 3248
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of the cultivation, manufacture,
8	8	processing, distribution, sale, testing, transportation, delivery,
9	9	transfer, possession, use, and taxation of cannabis and cannabis
10	10	products and local regulation of cannabis establishments;
11	11	authorizing the imposition of fees; requiring an occupational
12	12	license; creating a criminal offense; imposing a tax.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Subtitle C, Title 6, Health and Safety Code, is
15	15	amended by adding Chapter 491 to read as follows:
16	16	CHAPTER 491. REGULATION OF CANNABIS
17	17	SUBCHAPTER A. GENERAL PROVISIONS
18	18	Sec. 491.0001. DEFINITIONS. In this chapter:
19	19	(1) "Adult" means an individual 21 years of age or
20	20	older.
21	21	(2) "Cannabis" means the plant Cannabis sativa L.,
22	22	whether growing or not, the seeds of that plant, and every compound,
23	23	manufacture, salt, derivative, mixture, or preparation of that
24	24	plant or its seeds. The term includes cannabis concentrate. The
25	25	term does not include:
26	26	(A) the mature stalks of the plant or fiber
27	27	produced from the stalks;
28	28	(B) oil or cake made from the seeds of the plant;
29	29	(C) a compound, manufacture, salt, derivative,
30	30	mixture, or preparation of the mature stalks, fiber, oil, or cake;
31	31	or
32	32	(D) the sterilized seeds of the plant that are
33	33	incapable of beginning germination.
34	34	(3) "Cannabis concentrate" means the resin extracted
35	35	from a part of the plant Cannabis sativa L. or a compound,
36	36	manufacture, salt, derivative, mixture, or preparation of the
37	37	resin.
38	38	(4) "Cannabis establishment" means an entity licensed
39	39	by the department under this chapter to process and dispense
40	40	cannabis and cannabis products to an adult.
41	41	(5) "Cannabis grower" means an entity licensed by the
42	42	department to cultivate cannabis for sale and distribution to a
43	43	cannabis establishment.
44	44	(6) "Cannabis product" means a product that contains
45	45	cannabis and is intended for use or consumption by humans,
46	46	including as an edible product or as a topical product, ointment,
47	47	oil, or tincture. The term includes products that consist of
48	48	cannabis and other ingredients.
49	49	(7) "Cannabis-related drug paraphernalia" means
50	50	equipment, a product, or material that is used or intended for use
51	51	in:
52	52	(A) planting, propagating, cultivating, growing,
53	53	harvesting, manufacturing, compounding, converting, producing,
54	54	processing, preparing, testing, analyzing, packaging, repackaging,
55	55	storing, or containing cannabis or a cannabis product; or
56	56	(B) introducing cannabis or a cannabis product
57	57	into the human body.
58	58	(8) "Cannabis secure transporter" means an entity
59	59	licensed by the department under this chapter to transport cannabis
60	60	from a cannabis grower to a cannabis establishment.
61	61	(9) "Cannabis testing facility" means an entity
62	62	licensed by the department under this chapter to analyze the safety
63	63	and potency of cannabis and cannabis products.
64	64	(10) "Commission" means the Texas Commission of
65	65	Licensing and Regulation.
66	66	(11) "Cultivate" means to propagate, breed, grow,
67	67	harvest, dry, cure, or separate parts of the cannabis plant by
68	68	manual or mechanical means.
69	69	(12) "Department" means the Texas Department of
70	70	Licensing and Regulation.
71	71	(13) "Executive director" means the executive
72	72	director of the department.
73	73	(14) "Marihuana" has the meaning assigned by Section
74	74	481.002.
75	75	(15) "Process" means to separate or otherwise prepare
76	76	parts of the cannabis plant and to compound, blend, extract,
77	77	infuse, or otherwise make or prepare cannabis concentrate or
78	78	cannabis products.
79	79	SUBCHAPTER B. PROTECTIONS FROM LEGAL ACTION RELATED TO CANNABIS
80	80	Sec. 491.0051. AUTHORIZED CONDUCT: PERSONAL USE OF
81	81	CANNABIS. An adult is authorized under this chapter to:
82	82	(1) use, possess, and transport not more than 2.5
83	83	ounces of cannabis, except that not more than 15 grams of that
84	84	amount may be in the form of cannabis concentrate;
85	85	(2) transfer without remuneration to another adult not
86	86	more than 2.5 ounces of cannabis, except that not more than 15 grams
87	87	of that amount may be in the form of cannabis concentrate and
88	88	provided that the transfer is not advertised or promoted to the
89	89	public;
90	90	(3) possess, store, or process on the premises of the
91	91	adult's private residence not more than 10 ounces of cannabis,
92	92	provided that the amount in excess of 2.5 ounces is stored in a
93	93	container or area equipped with locks or other security devices
94	94	that restrict access to the container or area;
95	95	(4) use, possess, process, transport, or transfer to
96	96	another adult without remuneration an amount of cannabis products
97	97	specified by rule of the commission as the allowable amount of
98	98	cannabis for purposes of this subdivision; and
99	99	(5) use, possess, transport, or transfer to another
100	100	adult without remuneration cannabis-related drug paraphernalia.
101	101	Sec. 491.0052. AUTHORIZED CONDUCT: RETAIL CANNABIS
102	102	OPERATIONS. This chapter authorizes the conduct of:
103	103	(1) a cannabis grower director, manager, or employee
104	104	who, acting within the scope of the grower's license:
105	105	(A) cultivates cannabis or produces cannabis
106	106	products for sale or transfer to a cannabis establishment; and
107	107	(B) possesses cannabis or cannabis-related drug
108	108	paraphernalia;
109	109	(2) a cannabis establishment director, manager, or
110	110	employee who, acting within the scope of the establishment's
111	111	license, possesses cannabis or cannabis products or transfers or
112	112	sells cannabis, cannabis products, or cannabis-related drug
113	113	paraphernalia to an adult;
114	114	(3) a cannabis secure transporter director, manager,
115	115	or employee who, acting within the scope of the secure
116	116	transporter's license, transports, transfers, or delivers cannabis
117	117	or cannabis products from a cannabis grower to a cannabis
118	118	establishment; and
119	119	(4) a cannabis testing facility director, manager, or
120	120	employee who, acting within the scope of the facility's license,
121	121	possesses or tests cannabis, cannabis products, or
122	122	cannabis-related drug paraphernalia.
123	123	Sec. 491.0053. PROTECTION FROM LEGAL ACTION FOR AUTHORIZED
124	124	CONDUCT. (a) A person is not subject to arrest, prosecution,
125	125	forfeiture of property, or penalty in any manner or denial of any
126	126	right or privilege, including any civil penalty or disciplinary
127	127	action by a court or occupational or professional licensing board
128	128	or bureau solely due to conduct authorized under Section 491.0051
129	129	or 491.0052.
130	130	(b) The fact that a person engages in conduct authorized by
131	131	Section 491.0051 or 491.0052 does not in itself constitute grounds
132	132	for denying, limiting, or restricting conservatorship or
133	133	possession of or access to a child under Title 5, Family Code.
134	134	Sec. 491.0054. PROHIBITION OF CANNABIS ON PRIVATE PROPERTY;
135	135	EXCEPTION. (a) Except as otherwise provided by Subsection (b), a
136	136	person may prohibit or restrict the possession, consumption,
137	137	cultivation, distribution, processing, sale, or display of
138	138	cannabis or cannabis products on property the person owns,
139	139	occupies, or manages.
140	140	(b) A person may not prohibit a residential tenant under a
141	141	lease agreement from possessing cannabis, cannabis products, or
142	142	cannabis-related drug paraphernalia or consuming cannabis by means
143	143	other than smoking on the premises.
144	144	Sec. 491.0055. CONDUCT NOT AUTHORIZED UNDER THIS CHAPTER.
145	145	This chapter does not authorize the following conduct:
146	146	(1) operating a motor vehicle while intoxicated or
147	147	otherwise violating Chapter 49, Penal Code;
148	148	(2) smoking or otherwise consuming cannabis in:
149	149	(A) a motor vehicle while the vehicle is on a
150	150	public road;
151	151	(B) an aircraft, while the aircraft is in flight
152	152	or in a public area;
153	153	(C) a watercraft, while the watercraft is on a
154	154	public waterway; or
155	155	(D) a public place, unless:
156	156	(i) the public place is an area designated
157	157	by the applicable political subdivision as an area where using
158	158	cannabis is permissible; and
159	159	(ii) the area described by Subparagraph (i)
160	160	is not accessible to persons younger than 21 years of age;
161	161	(3) possessing or consuming cannabis or cannabis
162	162	products or possessing cannabis-related drug paraphernalia:
163	163	(A) on the premises of a public or private
164	164	child-care facility, prekindergarten, or primary or secondary
165	165	school;
166	166	(B) on a school bus that serves a facility or
167	167	school described by Paragraph (A); or
168	168	(C) on the premises of a correctional facility,
169	169	as defined by Article 18A.251, Code of Criminal Procedure, or a
170	170	civil commitment facility; or
171	171	(4) separating resin from the cannabis plant by butane
172	172	extraction or another method that uses a substance with a
173	173	flashpoint below 100 degrees Fahrenheit in a public place or motor
174	174	vehicle or within the curtilage of a residential structure.
175	175	SUBCHAPTER C. DUTIES OF DEPARTMENT
176	176	Sec. 491.0101. DUTIES OF DEPARTMENT. The department shall
177	177	administer this chapter.
178	178	Sec. 491.0102. RULES; FEES. (a) The commission shall adopt
179	179	all necessary rules for the administration and enforcement of this
180	180	chapter, including rules imposing fees under this chapter in
181	181	amounts sufficient to cover the cost of administering this chapter.
182	182	(b) The commission by rule shall set application and license
183	183	fees under this chapter in amounts sufficient to administer this
184	184	chapter and may annually adjust the fees for inflation.
185	185	(c) A fee collected under this chapter shall be deposited to
186	186	the credit of the cannabis regulation account established under
187	187	Section 491.0251.
188	188	(d) The commission shall adopt rules for the reasonable
189	189	regulation of cannabis growers and cannabis establishments,
190	190	including rules that:
191	191	(1) restrict the use of dangerous pesticides;
192	192	(2) regulate the packaging and labeling of cannabis
193	193	products available at a cannabis establishment;
194	194	(3) restrict advertising and display of cannabis and
195	195	cannabis products;
196	196	(4) require recordkeeping and monitoring to track the
197	197	transfer of cannabis and cannabis products between license holders;
198	198	and
199	199	(5) require security measures, provided that the
200	200	security measures do not restrict the cultivation of cannabis
201	201	outdoors or in greenhouses.
202	202	Sec. 491.0103. TESTING, PACKAGING, AND LABELING STANDARDS.
203	203	(a) The commission by rule shall establish standards for:
204	204	(1) the operation of cannabis testing facilities;
205	205	(2) the testing of cannabis and cannabis products; and
206	206	(3) packaging and labeling requirements for cannabis
207	207	and cannabis products.
208	208	(b) In establishing standards for packaging and labeling
209	209	requirements under Subsection (a)(3), the commission shall require
210	210	that:
211	211	(1) cannabis and cannabis products be packaged in
212	212	opaque, resealable, child-resistant packaging that does not
213	213	resemble and may not be easily confused with typical packaging for
214	214	commercially sold candy;
215	215	(2) cannabis and cannabis products be clearly labeled;
216	216	and
217	217	(3) the label for a cannabis product disclose the
218	218	amount of cannabis contained in that product.
219	219	Sec. 491.0104. SECURE TRANSPORTATION OF CANNABIS. The
220	220	commission by rule shall establish standards applicable to cannabis
221	221	secure transporters, including standards to ensure all cannabis
222	222	establishments are properly served.
223	223	Sec. 491.0105. CONFLICT OF INTEREST. (a) A person who is
224	224	involved in the implementation, administration, or enforcement of
225	225	this chapter as a member of the commission, an employee of the
226	226	department, or a consultant to the commission or the department may
227	227	not also hold a pecuniary interest in any entity licensed by the
228	228	department under this chapter.
229	229	(b) A person who holds a pecuniary interest in a cannabis
230	230	testing facility or a cannabis secure transporter who holds a
231	231	license issued under this chapter may not hold a pecuniary interest
232	232	in any entity that holds a cannabis establishment or cannabis
233	233	grower license issued under this chapter.
234	234	(c) A person may not hold a pecuniary interest in more than
235	235	five entities that are licensed under this chapter as a cannabis
236	236	grower, except as provided by department rule.
237	237	Sec. 491.0106. ANNUAL REPORT. The executive director shall
238	238	annually submit to the governor, the executive commissioner of the
239	239	Health and Human Services Commission, and the legislature a report
240	240	providing the following information regarding licensing and
241	241	regulation under this chapter:
242	242	(1) the number of applications received for each class
243	243	of license under this chapter;
244	244	(2) the number of licenses issued for each class of
245	245	license under this chapter;
246	246	(3) demographic information pertaining to license
247	247	holders;
248	248	(4) a description of any fines imposed on a license
249	249	holder or disciplinary actions taken against a license holder by
250	250	the department; and
251	251	(5) a statement of revenues and expenses of the
252	252	department related to the implementation, administration, and
253	253	enforcement of this chapter.
254	254	SUBCHAPTER D. LICENSING
255	255	Sec. 491.0151. LICENSE REQUIRED. A person must hold a
256	256	license issued by the department under this chapter to operate as a
257	257	cannabis grower, cannabis establishment, cannabis secure
258	258	transporter, or cannabis testing facility.
259	259	Sec. 491.0152. QUALIFICATIONS FOR LICENSURE. The
260	260	commission by rule shall provide for each class of license issued
261	261	under this chapter qualifications for licensure that are
262	262	demonstrably related to the operations authorized and duties
263	263	imposed under that class of license.
264	264	Sec. 491.0153. APPLICATION. (a) A person may apply for an
265	265	initial or renewal license under this chapter by submitting a form
266	266	prescribed by the department along with the application fee in an
267	267	amount set by the commission.
268	268	(b) The application must indicate the class of license
269	269	sought and include the name and address of the applicant, the name
270	270	and address of each of the applicant's directors, managers, and
271	271	employees, and any other information considered necessary by the
272	272	department to determine the applicant's eligibility for the
273	273	license.
274	274	Sec. 491.0154. ISSUANCE, RENEWAL, OR DENIAL OF LICENSE.
275	275	(a) The department shall issue or renew a license under this
276	276	chapter only if:
277	277	(1) the department determines the applicant meets the
278	278	qualifications for the class of license sought established under
279	279	Section 491.0152; and
280	280	(2) the applicant is in compliance with any applicable
281	281	local regulations.
282	282	(b) If the department denies the issuance or renewal of a
283	283	license under Subsection (a), the department shall give written
284	284	notice of the grounds for denial to the applicant.
285	285	(c) A license issued or renewed under this section expires
286	286	as determined by the department in accordance with Section 411.511,
287	287	Government Code.
288	288	Sec. 491.0155. DUTY TO MAINTAIN QUALIFICATIONS. A license
289	289	holder shall maintain compliance at all times with the
290	290	qualifications for the applicable class of license established
291	291	under Section 491.0152.
292	292	Sec. 491.0156. LICENSE SUSPENSION OR REVOCATION. (a) The
293	293	department may at any time suspend or revoke a license issued under
294	294	this chapter if the department determines that the license holder
295	295	has not maintained the qualifications established under Section
296	296	491.0152 or has failed to comply with a duty imposed under this
297	297	chapter.
298	298	(b) The department shall give written notice to a license
299	299	holder of a license suspension or revocation under this section and
300	300	the grounds for the suspension or revocation. The notice must be
301	301	sent by certified mail, return receipt requested.
302	302	(c) After suspending or revoking a license issued under this
303	303	chapter, the department shall notify the Department of Public
304	304	Safety. The public safety director of the Department of Public
305	305	Safety may seize or place under seal all cannabis, cannabis
306	306	products, and cannabis-related drug paraphernalia owned or
307	307	possessed by the license holder. If the license is revoked, a
308	308	disposition may not be made of the seized or sealed cannabis,
309	309	cannabis products, or drug paraphernalia until the time for
310	310	administrative appeal of the order has elapsed or until all appeals
311	311	have been concluded. When a revocation order becomes final, all
312	312	cannabis, cannabis products, and drug paraphernalia may be
313	313	forfeited to the state as provided under Subchapter E, Chapter 481.
314	314	(d) Chapter 2001, Government Code, applies to a proceeding
315	315	under this section.
316	316	Sec. 491.0157. CRIMINAL HISTORY BACKGROUND CHECK. (a) In
317	317	addition to satisfying the other requirements provided by
318	318	commission rule under this chapter, an applicant for a license
319	319	under this chapter must submit to the department a complete and
320	320	legible set of fingerprints, on a form prescribed by the
321	321	commission, for the purpose of obtaining criminal history record
322	322	information from the Department of Public Safety and the Federal
323	323	Bureau of Investigation.
324	324	(b) The department may deny a license to an applicant who
325	325	does not comply with the requirement of Subsection (a). Issuance of
326	326	a license by the department is conditioned on the department
327	327	obtaining the applicant's criminal history record information
328	328	under this section.
329	329	(c) The commission by rule shall establish criteria for
330	330	determining whether a person passes the criminal history background
331	331	check for purposes of this section. The rules adopted under this
332	332	section may not disqualify a person for licensure solely for a
333	333	conviction of an offense that involves the possession of marihuana
334	334	or the delivery of marihuana to a person 18 years of age or older.
335	335	SUBCHAPTER E. DUTIES OF LICENSE HOLDERS
336	336	Sec. 491.0201. DUTIES RELATING TO DISPENSING CANNABIS OR
337	337	CANNABIS PRODUCTS. Before dispensing cannabis or cannabis products
338	338	to an adult, a cannabis establishment must make reasonable efforts
339	339	to verify that:
340	340	(1) the person receiving the cannabis or cannabis
341	341	product is an adult;
342	342	(2) the cannabis or cannabis product complies with
343	343	department testing and labeling rules; and
344	344	(3) the amount dispensed is not greater than the
345	345	amount of cannabis or cannabis product allowed for personal use as
346	346	provided by Section 491.0051.
347	347	Sec. 491.0202. DUTIES RELATING TO SECURITY. (a) A license
348	348	holder shall ensure that the cultivation, processing, sale, or
349	349	display of cannabis, cannabis products, and cannabis-related drug
350	350	paraphernalia is not visible from a public place without the use of
351	351	optical aids or aircraft.
352	352	(b) A license holder may not cultivate, process, store, or
353	353	sell cannabis, cannabis products, or cannabis-related drug
354	354	paraphernalia at a location other than the physical address
355	355	approved by the department for the establishment under the license
356	356	issued to the establishment under this chapter.
357	357	(c) A license holder shall adopt reasonable security
358	358	measures necessary to restrict access to areas where cannabis,
359	359	cannabis products, or cannabis-related drug paraphernalia are
360	360	stored and to prevent theft of cannabis, cannabis products, and
361	361	cannabis-related drug paraphernalia.
362	362	Sec. 491.0203. LICENSE HOLDER OPERATIONS. (a) A license
363	363	holder may not employ or otherwise accept the services of a person
364	364	younger than 21 years of age.
365	365	(b) A cannabis establishment may not sell tobacco products,
366	366	as defined by Section 155.001, Tax Code.
367	367	Sec. 491.0204. MONTHLY SALES REPORT. A cannabis
368	368	establishment shall monthly submit a report to the comptroller
369	369	specifying the amount of cannabis sold, the number of cannabis
370	370	products sold, the number and types of cannabis-related drug
371	371	paraphernalia sold, and the amount of money collected in sales by
372	372	the establishment during the preceding month.
373	373	SUBCHAPTER F. FUNDING FOR REGULATION, OVERSIGHT, TESTING, AND
374	374	QUALITY CONTROL
375	375	Sec. 491.0251. CANNABIS REGULATION ACCOUNT. (a) The
376	376	cannabis regulation account is an account in the general revenue
377	377	fund administered by the department.
378	378	(b) The account consists of:
379	379	(1) money deposited to the credit of the account under
380	380	Section 166.0004, Tax Code; and
381	381	(2) fees deposited to the credit of the account under
382	382	Section 491.0102.
383	383	(c) Money in the account may be appropriated only to the
384	384	department for implementing and administering this chapter.
385	385	Sec. 491.0252. CANNABIS TESTING AND QUALITY CONTROL
386	386	ACCOUNT. (a) The cannabis testing and quality control account is
387	387	an account in the general revenue fund administered by the
388	388	Department of Public Safety.
389	389	(b) The account consists of money deposited to the credit of
390	390	the account under Section 166.0004, Tax Code.
391	391	(c) Money in the account may be appropriated only to the
392	392	Department of Public Safety for monitoring compliance with testing
393	393	and quality control requirements imposed on license holders by this
394	394	chapter or by commission rules adopted under this chapter.
395	395	Sec. 491.0253. CANNABIS ESTABLISHMENT REGULATION AND
396	396	OVERSIGHT LOCAL SHARE ACCOUNT; PAYMENT FROM ACCOUNT. (a) In this
397	397	section:
398	398	(1) "Account" means the cannabis establishment
399	399	regulation and oversight local share account created under this
400	400	section.
401	401	(2) "Fiscal year" means the fiscal year of a
402	402	qualifying local government.
403	403	(3) "Qualifying local government" means a
404	404	municipality or county in which at least one cannabis establishment
405	405	is located during any portion of the applicable fiscal year.
406	406	(b) The cannabis establishment regulation and oversight
407	407	local share account is an account in the general revenue fund
408	408	administered by the comptroller.
409	409	(c) The account consists of money deposited to the credit of
410	410	the account under Section 166.0004, Tax Code.
411	411	(d) Money in the account may be used by the comptroller only
412	412	to make a cannabis establishment regulation assistance payment to a
413	413	qualifying local government in the manner provided by this section.
414	414	(e) To serve the state purpose of ensuring that local
415	415	governments in which cannabis establishments are located may
416	416	effectively participate in the regulation and oversight of those
417	417	establishments, a qualifying local government is entitled to a
418	418	cannabis establishment regulation assistance payment from the
419	419	state for each fiscal year that the local government is a qualifying
420	420	local government.
421	421	(f) Except as provided by Subsection (j), the amount of the
422	422	cannabis establishment regulation assistance payment to which a
423	423	qualifying local government is entitled for a fiscal year is equal
424	424	to the cost incurred by the local government to enforce regulations
425	425	adopted under Subchapter G.
426	426	(g) Not later than April 1 of the year following the end of a
427	427	fiscal year for which a qualifying local government is entitled to a
428	428	cannabis establishment regulation assistance payment, the
429	429	qualifying local government may submit an application to the
430	430	comptroller to receive a cannabis establishment regulation
431	431	assistance payment for that fiscal year. The application must be
432	432	made on a form prescribed by the comptroller. The comptroller may
433	433	require the qualifying local government to submit any information
434	434	the comptroller needs to determine the amount of the cannabis
435	435	establishment regulation assistance payment to which the
436	436	qualifying local government is entitled.
437	437	(h) A qualifying local government that does not submit an
438	438	application to the comptroller by the date prescribed by Subsection
439	439	(g) is not entitled to a cannabis establishment regulation
440	440	assistance payment for the fiscal year for which that deadline
441	441	applies.
442	442	(i) The comptroller shall review each application by a local
443	443	government to determine whether the local government is entitled to
444	444	a cannabis establishment regulation assistance payment. If the
445	445	comptroller determines that the local government is entitled to the
446	446	payment, the comptroller shall remit the payment using available
447	447	money in the account to the qualifying local government not later
448	448	than the 30th day after the date the application for the payment is
449	449	made.
450	450	(j) If at the time a cannabis establishment regulation
451	451	assistance payment must be remitted to a qualifying local
452	452	government under Subsection (i) the comptroller determines the
453	453	available amount in the account is insufficient to make the
454	454	payment, the comptroller may reduce the amount of the payment to the
455	455	qualifying local government. If more than one payment must be
456	456	remitted at a time when the available amount in the account is
457	457	insufficient to make those payments, the comptroller shall make
458	458	reduced payments to each qualifying local government. The
459	459	comptroller shall allocate the reductions in the amount of the
460	460	payments in a manner that is proportionate to the number of cannabis
461	461	establishments in each qualifying local government.
462	462	(k) The comptroller shall adopt rules necessary to
463	463	implement this section.
464	464	SUBCHAPTER G. LOCAL REGULATION AND OVERSIGHT
465	465	Sec. 491.0301. DEFINITION. In this subchapter, "health
466	466	authority" has the meaning assigned by Section 431.002.
467	467	Sec. 491.0302. LOCAL AUTHORIZATION REQUIRED. A license
468	468	holder under this chapter may not operate in a county or
469	469	municipality without an order or ordinance adopted by the county or
470	470	municipality, as applicable, authorizing the operation of cannabis
471	471	growers, cannabis establishments, cannabis secure transporters, or
472	472	cannabis testing facilities in the county or municipality.
473	473	Sec. 491.0303. LOCAL REGULATION. A county or municipality
474	474	that authorizes the operation of cannabis growers, cannabis
475	475	establishments, or cannabis testing facilities in the county or
476	476	municipality may adopt regulations consistent with this chapter
477	477	governing the hours of operation, location, manner of conducting
478	478	business, and number of cannabis growers, cannabis establishments,
479	479	cannabis secure transporters, or cannabis testing facilities.
480	480	Sec. 491.0304. PUBLIC HEALTH INSPECTIONS. A health
481	481	authority may, on presenting appropriate credentials to the license
482	482	holder or employee of the cannabis establishment:
483	483	(1) enter at reasonable times the premises of a
484	484	cannabis establishment;
485	485	(2) enter a vehicle being used to transport cannabis;
486	486	or
487	487	(3) inspect at reasonable times, within reasonable
488	488	limits, and in a reasonable manner, the establishment or vehicle
489	489	and all equipment, finished and unfinished materials, containers,
490	490	and labeling of any item.
491	491	Sec. 491.0305. COMPLAINTS. (a) A county, municipality, or
492	492	health authority, as applicable, shall maintain a record of any
493	493	complaints made regarding the operations of a cannabis
494	494	establishment.
495	495	(b) A county, municipality, or health authority, as
496	496	applicable, shall investigate a complaint or refer the complaint to
497	497	the department, as appropriate.
498	498	SUBCHAPTER H. SALE OR DISTRIBUTION OF CANNABIS OR CANNABIS PRODUCT
499	499	TO MINORS PROHIBITED
500	500	Sec. 491.0351. DEFINITION. In this subchapter, "minor"
501	501	means a person younger than 21 years of age.
502	502	Sec. 491.0352. SALE OR DISTRIBUTION OF CANNABIS OR CANNABIS
503	503	PRODUCT TO MINORS PROHIBITED; PROOF OF AGE REQUIRED. (a) A person
504	504	commits an offense if the person, under the authority of this
505	505	chapter:
506	506	(1) sells, gives, or causes to be sold or given
507	507	cannabis or cannabis products to a minor; or
508	508	(2) sells, gives, or causes to be sold or given
509	509	cannabis or cannabis products to another person who intends to
510	510	deliver the cannabis or cannabis products to a minor.
511	511	(b) If an offense under this section occurs in connection
512	512	with a sale by an employee of the owner of a cannabis establishment,
513	513	the employee is criminally responsible for the offense and is
514	514	subject to prosecution.
515	515	(c) An offense under this section is a Class C misdemeanor.
516	516	(d) It is a defense to prosecution under Subsection (a)(1)
517	517	that the person to whom the cannabis or cannabis products were sold
518	518	or given presented to the defendant apparently valid proof of
519	519	identification.
520	520	(e) A proof of identification satisfies the requirements of
521	521	Subsection (d) if it contains a physical description and photograph
522	522	consistent with the person's appearance, purports to establish that
523	523	the person is 21 years of age or older, and was issued by a
524	524	governmental agency. The proof of identification may include a
525	525	driver's license issued by this state or another state, a passport,
526	526	or an identification card issued by a state or the federal
527	527	government.
528	528	SECTION 2. Section 122.103(c), Agriculture Code, is amended
529	529	to read as follows:
530	530	(c) A qualified applicant who along with the application
531	531	submits proof to the department that the applicant holds a license
532	532	under Chapter 487 or 491, Health and Safety Code, is not required to
533	533	pay an application fee, and the department shall issue the license
534	534	to the applicant within the time prescribed by Subsection (b).
535	535	SECTION 3. Section 411.0891(a), Government Code, is amended
536	536	to read as follows:
537	537	(a) Subject to Section 411.087, the department is
538	538	authorized to obtain and use criminal history record information
539	539	maintained by the Federal Bureau of Investigation or the department
540	540	that relates to a person who:
541	541	(1) is an applicant for or holds a registration issued
542	542	by the director under Subchapter C, Chapter 481, Health and Safety
543	543	Code, that authorizes the person to manufacture, distribute,
544	544	analyze, or conduct research with a controlled substance;
545	545	(2) is an applicant for or holds a registration issued
546	546	by the department under Chapter 487, Health and Safety Code, to be a
547	547	director, manager, or employee of a dispensing organization, as
548	548	defined by Section 487.001, Health and Safety Code;
549	549	(2-a) is an applicant for or holds a license issued
550	550	under Chapter 491, Health and Safety Code, to be a cannabis grower,
551	551	cannabis establishment, cannabis secure transporter, or cannabis
552	552	testing facility, as defined by Section 491.0001, Health and Safety
553	553	Code;
554	554	(3) is an applicant for or holds an authorization
555	555	issued by the department under Section 521.2476, Transportation
556	556	Code, to do business in this state as a vendor of ignition interlock
557	557	devices;
558	558	(4) is an applicant for or holds certification by the
559	559	department as an inspection station or an inspector under
560	560	Subchapter G, Chapter 548, Transportation Code, holds an inspection
561	561	station or inspector certificate issued under that subchapter, or
562	562	is the owner of an inspection station operating under that chapter;
563	563	or
564	564	(5) is an applicant for or holds a certificate of
565	565	registration issued by the department under Chapter 1956,
566	566	Occupations Code, to act as a metal recycling entity.
567	567	SECTION 4. Section 411.502, Government Code, is amended to
568	568	read as follows:
569	569	Sec. 411.502. APPLICABILITY. This subchapter applies to a
570	570	program, and persons regulated under the program, administered by
571	571	the department under the following laws, including rules adopted
572	572	under those laws:
573	573	(1) Section 411.0625;
574	574	(2) Chapter 487, Health and Safety Code;
575	575	(2-a) Chapter 491, Health and Safety Code;
576	576	(3) Chapter 1702, Occupations Code;
577	577	(4) Chapter 1956, Occupations Code;
578	578	(5) Section 521.2476, Transportation Code; and
579	579	(6) Subchapter G, Chapter 548, Transportation Code.
580	580	SECTION 5. Section 443.202(a), Health and Safety Code, is
581	581	amended to read as follows:
582	582	(a) This section does not apply to low-THC cannabis
583	583	regulated under Chapter 487 or cannabis regulated under Chapter
584	584	491.
585	585	SECTION 6. Section 443.2025(a), Health and Safety Code, is
586	586	amended to read as follows:
587	587	(a) This section does not apply to low-THC cannabis
588	588	regulated under Chapter 487 or cannabis regulated under Chapter
589	589	491.
590	590	SECTION 7. Section 481.062, Health and Safety Code, is
591	591	amended to read as follows:
592	592	Sec. 481.062. EXEMPTIONS. (a) The following persons are
593	593	not required to register and may possess a controlled substance
594	594	under this chapter [without registering with the Federal Drug
595	595	Enforcement Administration]:
596	596	(1) an agent or employee of a registered manufacturer,
597	597	distributor, analyzer, or dispenser of the controlled substance
598	598	[who is registered with the Federal Drug Enforcement Administration
599	599	and] acting in the usual course of business or employment;
600	600	(2) a common or contract carrier, a warehouseman, or
601	601	an employee of a carrier or warehouseman whose possession of the
602	602	controlled substance is in the usual course of business or
603	603	employment;
604	604	(3) an ultimate user or a person in possession of the
605	605	controlled substance under a lawful order of a practitioner or in
606	606	lawful possession of the controlled substance if it is listed in
607	607	Schedule V;
608	608	(4) an officer or employee of this state, another
609	609	state, a political subdivision of this state or another state, or
610	610	the United States who is lawfully engaged in the enforcement of a
611	611	law relating to a controlled substance or drug or to a customs law
612	612	and authorized to possess the controlled substance in the discharge
613	613	of the person's official duties;
614	614	(5) if the substance is tetrahydrocannabinol or one of
615	615	its derivatives:
616	616	(A) a Department of State Health Services
617	617	official, a medical school researcher, or a research program
618	618	participant possessing the substance as authorized under
619	619	Subchapter G; or
620	620	(B) a practitioner or an ultimate user possessing
621	621	the substance as a participant in a federally approved therapeutic
622	622	research program that the commissioner has reviewed and found, in
623	623	writing, to contain a medically responsible research protocol; [or]
624	624	(6) a dispensing organization licensed under Chapter
625	625	487 that possesses low-THC cannabis;
626	626	(7) a cannabis grower, cannabis establishment,
627	627	cannabis secure transporter, or cannabis testing facility licensed
628	628	under Chapter 491 that possesses cannabis or cannabis products; or
629	629	(8) a person who possesses cannabis or cannabis
630	630	products in accordance with Chapter 491.
631	631	(b) In this section, "cannabis" and "cannabis product" have
632	632	the meanings assigned to those terms by Section 491.0001.
633	633	SECTION 8. Section 481.111, Health and Safety Code, is
634	634	amended by adding Subsections (g) and (h) to read as follows:
635	635	(g) Sections 481.113, 481.116, 481.120, 481.121, and
636	636	481.125 do not apply to a person who engages in the acquisition,
637	637	possession, production, processing, cultivation, delivery,
638	638	transportation, disposal, transfer, or use of a raw material used
639	639	in or by-product created by the production or cultivation of
640	640	cannabis or cannabis products if the conduct is expressly
641	641	authorized by Subchapter B, Chapter 491.
642	642	(h) For purposes of Subsection (g), "cannabis" and
643	643	"cannabis product" have the meanings assigned to those terms by
644	644	Section 491.0001.
645	645	SECTION 9. Section 551.004, Occupations Code, is amended by
646	646	amending Subsection (a) and adding Subsection (a-1) to read as
647	647	follows:
648	648	(a) This subtitle does not apply to:
649	649	(1) a practitioner licensed by the appropriate state
650	650	board who supplies a patient of the practitioner with a drug in a
651	651	manner authorized by state or federal law and who does not operate a
652	652	pharmacy for the retailing of prescription drugs;
653	653	(2) a member of the faculty of a college of pharmacy
654	654	recognized by the board who is a pharmacist and who performs the
655	655	pharmacist's services only for the benefit of the college;
656	656	(3) a person who procures prescription drugs for
657	657	lawful research, teaching, or testing and not for resale;
658	658	(4) a home and community support services agency that
659	659	possesses a dangerous drug as authorized by Section 142.0061,
660	660	142.0062, or 142.0063, Health and Safety Code; [or]
661	661	(5) a dispensing organization[, as defined by Section
662	662	487.001, Health and Safety Code,] that cultivates, processes, and
663	663	dispenses low-THC cannabis, as authorized by Chapter 487, Health
664	664	and Safety Code, to a patient listed in the compassionate-use
665	665	registry established under that chapter;
666	666	(6) a cannabis grower, cannabis establishment,
667	667	cannabis secure transporter, or cannabis testing facility licensed
668	668	under Chapter 491, Health and Safety Code, that cultivates,
669	669	manufactures, processes, distributes, delivers sells, tests,
670	670	transports, or dispenses cannabis or a cannabis product as
671	671	authorized by that chapter; or
672	672	(7) a person who transfers cannabis without
673	673	remuneration as authorized by Section 491.0051, Health and Safety
674	674	Code.
675	675	(a-1) For purposes of this section:
676	676	(1) "Cannabis," "cannabis establishment," "cannabis
677	677	grower," "cannabis product," "cannabis secure transporter," and
678	678	"cannabis testing facility" have the meanings assigned by Section
679	679	491.0001, Health and Safety Code.
680	680	(2) "Dispensing organization" and "low-THC cannabis"
681	681	have the meanings assigned by Section 487.001, Health and Safety
682	682	Code.
683	683	SECTION 10. Section 151.313(c), Tax Code, is amended to
684	684	read as follows:
685	685	(c) A product is a drug or medicine for purposes of this
686	686	section if the product:
687	687	(1) is intended for use in the diagnosis, cure,
688	688	mitigation, treatment, or prevention of disease, illness, injury,
689	689	or pain;
690	690	(2) is applied to the human body or is a product that a
691	691	human ingests or inhales;
692	692	(3) is not an appliance or device; [and]
693	693	(4) is not food; and
694	694	(5) is not cannabis or a cannabis product, as those
695	695	terms are defined by Section 491.0001, Health and Safety Code.
696	696	SECTION 11. Section 151.314, Tax Code, is amended by adding
697	697	Subsection (i) to read as follows:
698	698	(i) The exemption provided by Subsection (a) does not apply
699	699	to a cannabis product, as defined by Section 491.0001, Health and
700	700	Safety Code.
701	701	SECTION 12. Section 151.316, Tax Code, is amended by adding
702	702	Subsection (e) to read as follows:
703	703	(e) The exemption provided by Subsection (a)(5) does not
704	704	apply to cannabis, as defined by Section 491.0001, Health and
705	705	Safety Code.
706	706	SECTION 13. Subtitle E, Title 2, Tax Code, is amended by
707	707	adding Chapter 166 to read as follows:
708	708	CHAPTER 166. TAX ON CANNABIS AND RELATED PRODUCTS
709	709	Sec. 166.0001. DEFINITIONS. In this chapter, "cannabis"
710	710	and "cannabis product" have the meanings assigned by Section
711	711	491.0001, Health and Safety Code.
712	712	Sec. 166.0002. CANNABIS SALES TAX. (a) A tax is imposed on
713	713	each sale in this state of cannabis and cannabis products.
714	714	(b) The tax rate is 10 percent of the sales price of cannabis
715	715	or a cannabis product.
716	716	Sec. 166.0003. APPLICATION OF OTHER PROVISIONS OF CODE.
717	717	(a) The tax imposed under this chapter is in addition to the taxes
718	718	imposed under Chapter 151.
719	719	(b) Except as provided by this chapter:
720	720	(1) the tax imposed under this chapter is
721	721	administered, imposed, collected, and enforced in the same manner
722	722	as the taxes under Chapter 151 are administered, imposed,
723	723	collected, and enforced; and
724	724	(2) the provisions of Chapter 151 applicable to the
725	725	sales tax imposed under Subchapter C, Chapter 151, apply to the tax
726	726	imposed under this chapter.
727	727	Sec. 166.0004. DISPOSITION OF PROCEEDS. The comptroller
728	728	shall deposit the proceeds from the tax imposed under this chapter
729	729	as follows:
730	730	(1) 10 percent to the credit of the cannabis
731	731	regulation account under Section 491.0251, Health and Safety Code;
732	732	(2) 10 percent to the credit of the cannabis testing
733	733	and quality control account under Section 491.0252, Health and
734	734	Safety Code;
735	735	(3) 20 percent to the credit of the cannabis
736	736	establishment regulation and oversight local share account under
737	737	Section 491.0253, Health and Safety Code; and
738	738	(4) the remainder to the credit of the foundation
739	739	school fund.
740	740	SECTION 14. (a) Not later than July 1, 2022, the Texas
741	741	Commission of Licensing and Regulation shall adopt rules as
742	742	required to implement, administer, and enforce Chapter 491, Health
743	743	and Safety Code, as added by this Act.
744	744	(b) Not later than November 1, 2022, the Texas Department of
745	745	Licensing and Regulation shall begin licensing cannabis growers,
746	746	cannabis establishments, cannabis secure transporters, and
747	747	cannabis testing facilities in accordance with Chapter 491, Health
748	748	and Safety Code, as added by this Act, provided that the applicants
749	749	for a license have met all requirements for approval under Chapter
750	750	491, Health and Safety Code, as added by this Act.
751	751	SECTION 15. The changes in law made by this Act do not
752	752	affect tax liability accruing before the effective date of this
753	753	Act. That liability continues in effect as if this Act had not been
754	754	enacted, and the former law is continued in effect for the
755	755	collection of taxes due and for civil and criminal enforcement of
756	756	the liability for those taxes.
757	757	SECTION 16. This Act takes effect September 1, 2021.