Texas 2021 - 87th Regular

Texas House Bill HB447 Compare Versions

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1	1	By: Moody H.B. No. 447
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the regulation of the cultivation, manufacture,
7	7	distribution, sale, testing, possession, and use of cannabis and
8	8	cannabis products; authorizing the imposition of taxes and fees;
9	9	requiring an occupational license; creating a criminal offense.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle C, Title 6, Health and Safety Code, is
12	12	amended by adding Chapter 491 to read as follows:
13	13	CHAPTER 491. REGULATION AND TAXATION OF CANNABIS
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 491.001. SHORT TITLE. This chapter may be cited as the
16	16	Texas Regulation and Taxation of Cannabis Act.
17	17	Sec. 491.002. DEFINITIONS. In this chapter:
18	18	(1) "Adult" means an individual 21 years of age or
19	19	older.
20	20	(2) "Cannabis" means the plant Cannabis sativa L.,
21	21	whether growing or not, the seeds of that plant, and every compound,
22	22	manufacture, salt, derivative, mixture, or preparation of that
23	23	plant or its seeds. The term includes cannabis concentrate. The
24	24	term does not include:
25	25	(A) the mature stalks of the plant or fiber
26	26	produced from the stalks;
27	27	(B) oil or cake made from the seeds of the plant;
28	28	(C) a compound, manufacture, salt, derivative,
29	29	mixture, or preparation of the mature stalks, fiber, oil, or cake;
30	30	or
31	31	(D) the sterilized seeds of the plant that are
32	32	incapable of beginning germination.
33	33	(3) "Cannabis concentrate" means the resin extracted
34	34	from a part of the plant Cannabis sativa L. or a compound,
35	35	manufacture, salt, derivative, mixture, or preparation of the
36	36	resin.
37	37	(4) "Cannabis establishment" means an entity licensed
38	38	by the department under this chapter to process and dispense
39	39	cannabis and cannabis products to an adult.
40	40	(5) "Cannabis grower" means an entity licensed by the
41	41	department to cultivate cannabis for sale and distribution to a
42	42	cannabis establishment.
43	43	(6) "Cannabis product" means a product that contains
44	44	cannabis and is intended for use or consumption by humans,
45	45	including as an edible product or as a topical product, ointment,
46	46	oil, or tincture. The term includes products that consist of
47	47	cannabis and other ingredients.
48	48	(7) "Cannabis secure transporter" means an entity
49	49	licensed by the department under this chapter to transport cannabis
50	50	from a cannabis grower to a cannabis establishment.
51	51	(8) "Cannabis testing facility" means an entity
52	52	licensed by the department under this chapter to analyze the safety
53	53	and potency of cannabis and cannabis products.
54	54	(9) "Commission" means the Texas Commission of
55	55	Licensing and Regulation.
56	56	(10) "Cultivate" means to propagate, breed, grow,
57	57	harvest, dry, cure, or separate parts of the cannabis plant by
58	58	manual or mechanical means.
59	59	(11) "Department" means the Texas Department of
60	60	Licensing and Regulation.
61	61	(12) "Executive director" means the executive
62	62	director of the department.
63	63	(13) "Process" means to separate or otherwise prepare
64	64	parts of the cannabis plant and to compound, blend, extract,
65	65	infuse, or otherwise make or prepare cannabis concentrate or
66	66	cannabis products.
67	67	SUBCHAPTER B. PROTECTIONS FROM LEGAL ACTION RELATED TO CANNABIS
68	68	Sec. 491.051. AUTHORIZED CONDUCT: PERSONAL USE OF CANNABIS.
69	69	(a) An adult is authorized under this chapter to:
70	70	(1) use, possess, and transport not more than 2.5
71	71	ounces of cannabis, except that not more than 15 grams of that
72	72	amount may be in the form of cannabis concentrate;
73	73	(2) transfer without remuneration to another adult not
74	74	more than 2.5 ounces of cannabis, except that not more than 15 grams
75	75	of that amount may be in the form of cannabis concentrate and
76	76	provided that the transfer is not advertised or promoted to the
77	77	public;
78	78	(3) cultivate for personal use not more than 12
79	79	cannabis plants in an area on the premises of the adult's private
80	80	residence, provided that the cultivation occurs in an enclosed area
81	81	that is:
82	82	(A) equipped with locks or other security devices
83	83	that restrict access to the area; and
84	84	(B) not visible from a public place without the
85	85	use of aircraft or optical aids;
86	86	(4) possess, store, or process on the premises of the
87	87	adult's private residence not more than:
88	88	(A) the amount of cannabis produced from plants
89	89	cultivated on the premises, provided that:
90	90	(i) not more than the 12 cannabis plants are
91	91	possessed, cultivated, or processed on the premises at one time;
92	92	and
93	93	(ii) any amount of cannabis in excess of 2.5
94	94	ounces is stored in a container or area equipped with locks or other
95	95	security devices that restrict access to the contents of the
96	96	container or area; and
97	97	(B) 10 ounces of cannabis that was not produced
98	98	from plants cultivated on the premises, provided that the amount in
99	99	excess of 2.5 ounces is stored in a container or area described by
100	100	Paragraph (A)(ii);
101	101	(5) use, possess, process, transport, or transfer to
102	102	another adult without remuneration, an amount of cannabis products
103	103	specified by rule of the commission as the allowable amount of
104	104	cannabis for purposes of this subdivision; and
105	105	(6) use, possess, transport, or transfer to another
106	106	adult without remuneration, cannabis-related drug paraphernalia.
107	107	Sec. 491.052. AUTHORIZED CONDUCT: RETAIL CANNABIS
108	108	OPERATIONS. This chapter authorizes the conduct of:
109	109	(1) a cannabis grower director, manager, or employee
110	110	who, acting within the scope of the grower's license:
111	111	(A) cultivates cannabis or produces cannabis
112	112	products for sale or transfer to a cannabis establishment; and
113	113	(B) possesses cannabis or cannabis-related drug
114	114	paraphernalia;
115	115	(2) a cannabis establishment director, manager, or
116	116	employee who, acting within the scope of the establishment's
117	117	license, possesses cannabis or cannabis products or transfers or
118	118	sells cannabis, cannabis products, or cannabis-related drug
119	119	paraphernalia to an adult;
120	120	(3) a cannabis secure transporter director, manager,
121	121	or employee who, acting within the scope of the secure
122	122	transporter's license, transports or transfers cannabis or
123	123	cannabis products from a cannabis grower to a cannabis
124	124	establishment; and
125	125	(4) a cannabis testing facility director, manager, or
126	126	employee who, acting within the scope of the facility's license,
127	127	possesses, tests, or transports cannabis, cannabis products, or
128	128	cannabis-related drug paraphernalia.
129	129	Sec. 491.053. PROTECTION FROM LEGAL ACTION FOR AUTHORIZED
130	130	CONDUCT. (a) A person is not subject to arrest, prosecution,
131	131	forfeiture of property, or penalty in any manner or denial of any
132	132	right or privilege, including any civil penalty or disciplinary
133	133	action by a court or occupational or professional licensing board
134	134	or bureau solely due to conduct authorized under Section 491.051 or
135	135	491.052.
136	136	(b) The fact that a person engages in conduct authorized by
137	137	Section 491.051 or 491.052 does not in itself constitute grounds
138	138	for denying, limiting, or restricting conservatorship or
139	139	possession of or access to a child under Title 5, Family Code.
140	140	Sec. 491.054. PROHIBITION OF CANNABIS ON PRIVATE PROPERTY;
141	141	EXCEPTION. (a) Except as otherwise provided by Subsection (b), a
142	142	person may prohibit or restrict the possession, consumption,
143	143	cultivation, distribution, processing, sale, or display of
144	144	cannabis or cannabis products on property the person owns,
145	145	occupies, or manages.
146	146	(b) A person may not prohibit a residential tenant under a
147	147	lease agreement from possessing cannabis, cannabis products, or
148	148	cannabis-related drug paraphernalia or consuming cannabis by means
149	149	other than smoking on the premises.
150	150	Sec. 491.055. CONDUCT NOT AUTHORIZED UNDER THIS CHAPTER.
151	151	This chapter does not authorize the following conduct:
152	152	(1) operating a motor vehicle while intoxicated or
153	153	otherwise violating Chapter 49, Penal Code;
154	154	(2) smoking or otherwise consuming cannabis in:
155	155	(A) a motor vehicle while the vehicle is on a
156	156	public road;
157	157	(B) an aircraft, while the aircraft is in flight
158	158	or in a public area;
159	159	(C) a watercraft, while the watercraft is on a
160	160	public waterway; or
161	161	(D) a public place, unless:
162	162	(i) the public place is an area designated
163	163	by a political subdivision as an area where using cannabis is
164	164	permissible; and
165	165	(ii) the area described by Subparagraph (i)
166	166	is not accessible to persons younger than 21 years of age;
167	167	(3) possessing or consuming cannabis or cannabis
168	168	products or possessing cannabis-related drug paraphernalia:
169	169	(A) on the premises of a public or private child
170	170	care facility, prekindergarten, or primary or secondary school;
171	171	(B) on a school bus that serves a facility or
172	172	school described by Paragraph (A); or
173	173	(C) on the premises of a correctional facility,
174	174	as defined by Article 18A.251, Code of Criminal Procedure, or a
175	175	civil commitment facility; or
176	176	(4) the separation of resin from the cannabis plant by
177	177	butane extraction or another method that uses a substance with a
178	178	flashpoint below 100 degrees Fahrenheit in a public place or motor
179	179	vehicle or within the curtilage of a residential structure.
180	180	SUBCHAPTER C. DUTIES OF DEPARTMENT
181	181	Sec. 491.101. DUTIES OF DEPARTMENT. The department shall
182	182	administer this chapter.
183	183	Sec. 491.102. RULES; FEES. (a) The commission shall adopt
184	184	all necessary rules for the administration and enforcement of this
185	185	chapter, including rules imposing fees under this chapter in
186	186	amounts sufficient to cover the cost of administering this chapter.
187	187	(b) The commission by rule shall set application and license
188	188	fees under this chapter in amounts sufficient to administer this
189	189	chapter and may annually adjust the fees for inflation.
190	190	(c) The department shall deposit a fee collected under this
191	191	chapter to the credit of the cannabis regulation fund established
192	192	under Section 491.255.
193	193	(d) The commission shall adopt rules for the reasonable
194	194	regulation of cannabis growers and cannabis establishments,
195	195	including rules that:
196	196	(1) restrict the use of dangerous pesticides;
197	197	(2) regulate the packaging and labeling of cannabis
198	198	products available at a cannabis establishment;
199	199	(3) restrict advertising and display of cannabis and
200	200	cannabis products;
201	201	(4) restrict the maximum amount of
202	202	tetrahydrocannabinol that may be contained in a cannabis product
203	203	sold to a consumer;
204	204	(5) require recordkeeping and monitoring to track the
205	205	transfer of cannabis and cannabis products between license holders;
206	206	and
207	207	(6) require security measures provided that the
208	208	security measures do not restrict the cultivation of cannabis
209	209	outdoors or in greenhouses.
210	210	Sec. 491.103. TESTING, PACKAGING, AND LABELING STANDARDS.
211	211	(a) The commission by rule shall establish standards for:
212	212	(1) the operation of cannabis testing facilities;
213	213	(2) the testing of cannabis and cannabis products; and
214	214	(3) packaging and labeling requirements for cannabis
215	215	and cannabis products.
216	216	(b) In establishing standards for packaging and labeling
217	217	requirements under Subsection (a)(3), the commission shall require
218	218	that:
219	219	(1) cannabis and cannabis products be packaged in
220	220	opaque, resealable, child-resistant packaging that does not
221	221	resemble and may not be easily confused with typical packaging for
222	222	commercially sold candy;
223	223	(2) cannabis and cannabis products be clearly labeled;
224	224	and
225	225	(3) the label for a cannabis product disclose the
226	226	amount of cannabis contained in that product.
227	227	Sec. 491.104. SECURE TRANSPORTATION OF CANNABIS. The
228	228	commission by rule shall establish standards applicable to cannabis
229	229	secure transporters, including standards to ensure all cannabis
230	230	establishments are properly served.
231	231	Sec. 491.105. CONFLICT OF INTEREST. (a) A person who is
232	232	involved in the implementation, administration, or enforcement of
233	233	this chapter as a member of the commission, an employee of the
234	234	department, or a consultant to the commission or the department may
235	235	not also hold a pecuniary interest in any entity licensed by the
236	236	department under this chapter.
237	237	(b) A person who holds a pecuniary interest in a cannabis
238	238	testing facility or a cannabis secure transporter that holds a
239	239	license issued under this chapter may not hold a pecuniary interest
240	240	in any entity that holds a cannabis establishment or cannabis
241	241	grower license issued under this chapter.
242	242	(c) A person may not hold a pecuniary interest in more than
243	243	five entities that are licensed under this chapter as a cannabis
244	244	grower, except as provided by department rule.
245	245	Sec. 491.106. ANNUAL REPORT. The executive director shall
246	246	annually submit to the governor a report providing the following
247	247	information regarding licensing and regulation under this chapter:
248	248	(1) the number of licenses issued for each class of
249	249	license under this chapter;
250	250	(2) demographic information pertaining to license
251	251	holders;
252	252	(3) a description of any fines imposed on a license
253	253	holder or disciplinary actions taken against a license holder by
254	254	the department; and
255	255	(4) a statement of revenues and expenses of the
256	256	department related to the implementation, administration, and
257	257	enforcement of this chapter.
258	258	SUBCHAPTER D. LICENSING
259	259	Sec. 491.151. LICENSE REQUIRED. A license issued by the
260	260	department under this chapter is required to operate as a cannabis
261	261	grower, cannabis establishment, cannabis secure transporter, or
262	262	cannabis testing facility.
263	263	Sec. 491.152. QUALIFICATIONS FOR LICENSURE. The commission
264	264	by rule shall provide for each class of license issued under this
265	265	chapter qualifications for licensure that are demonstrably related
266	266	to the operations authorized and duties imposed under that class of
267	267	license.
268	268	Sec. 491.153. APPLICATION. (a) A person may apply for an
269	269	initial or renewal license under this chapter by submitting a form
270	270	prescribed by the department along with the application fee in an
271	271	amount set by the commission.
272	272	(b) The application must indicate the class of license
273	273	sought and include the name and address of the applicant, the name
274	274	and address of each of the applicant's directors, managers, and
275	275	employees, and any other information considered necessary by the
276	276	department to determine the applicant's eligibility for the
277	277	license.
278	278	Sec. 491.154. ISSUANCE, RENEWAL, OR DENIAL OF LICENSE. (a)
279	279	The department shall issue or renew a license under this chapter
280	280	only if:
281	281	(1) the department determines the applicant meets the
282	282	qualifications for the class of license sought established under
283	283	Section 491.152; and
284	284	(2) the applicant is in compliance with any applicable
285	285	local regulations.
286	286	(b) If the department denies the issuance or renewal of a
287	287	license under Subsection (a), the department shall give written
288	288	notice of the grounds for denial to the applicant.
289	289	(c) A license issued or renewed under this section expires
290	290	on the second anniversary of the date of issuance or renewal, as
291	291	applicable.
292	292	Sec. 491.155. DUTY TO MAINTAIN QUALIFICATIONS. A license
293	293	holder shall maintain compliance at all times with the
294	294	qualifications for the applicable class of license established
295	295	under Section 491.152.
296	296	Sec. 491.156. LICENSE SUSPENSION OR REVOCATION. (a) The
297	297	department may at any time suspend or revoke a license issued under
298	298	this chapter if the department determines that the license holder
299	299	has not maintained the qualifications established under Section
300	300	491.152 or has failed to comply with a duty imposed under this
301	301	chapter.
302	302	(b) The department shall give written notice to a license
303	303	holder of a license suspension or revocation under this section and
304	304	the grounds for the suspension or revocation. The notice must be
305	305	sent by certified mail, return receipt requested.
306	306	(c) After suspending or revoking a license issued under this
307	307	chapter, the department shall notify the Department of Public
308	308	Safety. The public safety director of the Department of Public
309	309	Safety may seize or place under seal all cannabis, cannabis
310	310	products, and cannabis-related drug paraphernalia owned or
311	311	possessed by the license holder. If the license is revoked, a
312	312	disposition may not be made of the seized or sealed cannabis,
313	313	cannabis products, or drug paraphernalia until the time for
314	314	administrative appeal of the order has elapsed or until all appeals
315	315	have been concluded. When a revocation order becomes final, all
316	316	cannabis, cannabis products, and drug paraphernalia may be
317	317	forfeited to the state as provided under Subchapter E, Chapter 481.
318	318	(d) Chapter 2001, Government Code, applies to a proceeding
319	319	under this section.
320	320	Sec. 491.157. CRIMINAL RECORD INFORMATION FOR LICENSE
321	321	APPLICANTS. (a) In addition to satisfying the other requirements
322	322	provided by commission rule under this chapter, an applicant for a
323	323	license under this chapter must submit to the department a complete
324	324	and legible set of fingerprints, on a form prescribed by the
325	325	commission, for the purpose of obtaining criminal history record
326	326	information from the Department of Public Safety and the Federal
327	327	Bureau of Investigation.
328	328	(b) The department may deny a license to an applicant who
329	329	does not comply with the requirement of Subsection (a). Issuance of
330	330	a license by the department is conditioned on the department
331	331	obtaining the applicant's criminal history record information
332	332	under this section.
333	333	(c) A person's conviction for an offense other than an
334	334	offense under Section 481.122, that involves the delivery or
335	335	possession of marihuana, as defined under Section 481.002, does not
336	336	disqualify an applicant for licensure under this chapter.
337	337	SUBCHAPTER E. DUTIES OF LICENSE HOLDERS
338	338	Sec. 491.201. DUTIES RELATING TO DISPENSING CANNABIS OR
339	339	CANNABIS PRODUCTS. Before dispensing cannabis or cannabis products
340	340	to an adult, a cannabis establishment must make reasonable efforts
341	341	to verify that:
342	342	(1) the person receiving the cannabis or cannabis
343	343	product is an adult;
344	344	(2) the cannabis or cannabis product complies with
345	345	department testing and labeling rules; and
346	346	(3) the amount dispensed is not greater than the
347	347	amount of cannabis or cannabis product allowed for personal use as
348	348	provided by Section 491.051.
349	349	Sec. 491.202. DUTIES RELATING TO SECURITY. (a) A license
350	350	holder shall ensure that the cultivation, processing, sale, or
351	351	display of cannabis, cannabis products, and cannabis-related drug
352	352	paraphernalia is not visible from a public place without the use of
353	353	optical aids or aircraft.
354	354	(b) A license holder may not cultivate, process, store, or
355	355	sell cannabis, cannabis products, or cannabis-related drug
356	356	paraphernalia at a location other than the physical address
357	357	approved by the department for the establishment under the license
358	358	issued to the establishment under this chapter.
359	359	(c) A license holder shall adopt reasonable security
360	360	measures necessary to restrict access to areas where cannabis or
361	361	cannabis products are stored and to prevent theft of cannabis and
362	362	cannabis products.
363	363	Sec. 491.203. LICENSE HOLDER OPERATIONS. (a) A license
364	364	holder may not employ or otherwise accept the services of a person
365	365	younger than 21 years of age.
366	366	(b) A cannabis establishment may not sell tobacco products,
367	367	as defined by Section 155.001, Tax Code.
368	368	Sec. 491.204. MONTHLY SALES REPORT. A cannabis
369	369	establishment shall monthly submit a report to the comptroller
370	370	specifying the amount of cannabis sold, the number of cannabis
371	371	products sold, and the amount of money collected in sales by the
372	372	establishment during the preceding month.
373	373	SUBCHAPTER F. TAXES
374	374	Sec. 491.251. SALES TAX. Cannabis and cannabis products
375	375	are taxable items subject to the sales tax imposed by Chapter 151,
376	376	Tax Code.
377	377	Sec. 491.252. CANNABIS TAX IMPOSED. (a) A tax is imposed
378	378	on each sale of cannabis or a cannabis product by a cannabis
379	379	establishment.
380	380	(b) The rate of the tax is 10 percent of the sales price of
381	381	the cannabis or cannabis product.
382	382	(c) The tax imposed by this section is administered,
383	383	collected, and enforced in the same manner as the tax under Chapter
384	384	151 is administered, collected, and enforced.
385	385	(d) The tax imposed by this section is in addition to any
386	386	other tax imposed by law.
387	387	Sec. 491.253. ALLOCATION OF CANNABIS TAX. (a) The
388	388	comptroller shall allocate the net revenue derived from the tax
389	389	imposed by this subchapter as follows:
390	390	(1) 10 percent as a local share to municipalities in
391	391	which cannabis establishments are located, allocated among those
392	392	municipalities as provided by Subsection (b);
393	393	(2) 10 percent as a local share to counties in which
394	394	cannabis establishments are located, allocated among those
395	395	counties as provided by Subsection (c);
396	396	(3) one percent to the cannabis testing and quality
397	397	control fund established under Section 491.254;
398	398	(4) the amount certified to the comptroller by the
399	399	commission under Section 491.255 to the fund established under that
400	400	section; and
401	401	(5) the remainder to the public school teachers fund
402	402	established under Section 491.256.
403	403	(b) In determining the local share for each municipality in
404	404	which one or more cannabis establishments are located, the
405	405	comptroller shall allocate funds under Subsection (a)(1) in
406	406	proportion to the number of cannabis establishments located in each
407	407	municipality.
408	408	(c) In determining the local share for each county in which
409	409	one or more cannabis establishments are located, the comptroller
410	410	shall allocate funds under Subsection (a)(2) in proportion to the
411	411	number of cannabis establishments located in each county.
412	412	Sec. 491.254. CANNABIS TESTING AND QUALITY CONTROL FUND.
413	413	(a) The cannabis testing and quality control fund is established
414	414	outside the treasury and is administered by the public safety
415	415	director of the Department of Public Safety.
416	416	(b) The public safety director shall use money in the fund
417	417	available to enable Department of Public Safety crime laboratory
418	418	facilities to test cannabis and cannabis products on request by the
419	419	executive director, for the purposes of assisting the department in
420	420	monitoring compliance with testing and quality control
421	421	requirements imposed on license holders under this chapter or by
422	422	commission rules adopted under this chapter.
423	423	(c) Interest and income from the assets of the trust fund
424	424	shall be credited to and deposited in the fund.
425	425	Sec. 491.255. CANNABIS REGULATION FUND. (a) The cannabis
426	426	regulation fund is established outside the treasury and is
427	427	administered by the commission.
428	428	(b) The commission shall make money in the fund available to
429	429	the department for implementing and administering this chapter.
430	430	(c) The commission shall monthly certify to the comptroller
431	431	the amount of money the department expended during the preceding
432	432	month in the implementation and administration of this chapter.
433	433	(d) Interest and income from the assets of the trust fund
434	434	shall be credited to and deposited in the fund.
435	435	Sec. 491.256. PUBLIC SCHOOL TEACHERS FUND. (a) The public
436	436	school teachers fund is established outside the treasury and is
437	437	administered by the comptroller. The comptroller shall deposit:
438	438	(1) half of all money allocated to the fund in a
439	439	teacher retirement support account in the fund; and
440	440	(2) the remainder in a teacher salary support account
441	441	in the fund.
442	442	(b) Each month the comptroller shall transfer the balance of
443	443	the teacher retirement support account to the state contribution
444	444	account of the teacher retirement system trust fund. Money
445	445	transferred to the state contribution account under this section
446	446	may not be considered in computing the amount owed by the state
447	447	under Section 825.404(a), Government Code, and is not considered a
448	448	state contribution for purposes of that section.
449	449	(c) Each month the comptroller shall transfer the balance of
450	450	the teacher salary support account to the commissioner of
451	451	education. Notwithstanding any other law, money transferred to the
452	452	commissioner of education under this section may be used only to
453	453	provide additional state aid under the Foundation School Program to
454	454	public schools to pay for teacher salary increases. The
455	455	commissioner of education may adopt rules as necessary to implement
456	456	this subsection.
457	457	SUBCHAPTER G. LOCAL REGULATION
458	458	Sec. 491.301. PROHIBITED LOCAL REGULATION. A political
459	459	subdivision of this state may not enact, adopt, or enforce a rule,
460	460	ordinance, order, resolution, or other regulation that prohibits or
461	461	unreasonably restricts the cultivation, production, processing,
462	462	dispensing, transportation, or possession of cannabis or cannabis
463	463	products or the operation of a cannabis grower, cannabis
464	464	establishment, cannabis secure transporter, or cannabis testing
465	465	facility as authorized by this chapter.
466	466	Sec. 491.302. PERMISSIBLE LOCAL REGULATION. A political
467	467	subdivision may adopt regulations consistent with this chapter
468	468	governing the hours of operation, location, manner of conducting
469	469	business, and number of cannabis growers, cannabis establishments,
470	470	or cannabis testing facilities.
471	471	SUBCHAPTER H. SALE OR DISTRIBUTION OF CANNABIS OR CANNABIS
472	472	PRODUCT TO MINORS PROHIBITED
473	473	Sec. 491.351. DEFINITION. In this subchapter, "minor"
474	474	means a person younger than 21 years of age.
475	475	Sec. 491.352. SALE OR DISTRIBUTION OF CANNABIS OR CANNABIS
476	476	PRODUCT TO MINORS PROHIBITED; PROOF OF AGE REQUIRED. (a) A person
477	477	commits an offense if the person, under the authority of this
478	478	chapter:
479	479	(1) sells, gives, or causes to be sold or given
480	480	cannabis or cannabis products to a minor; or
481	481	(2) sells, gives, or causes to be sold or given
482	482	cannabis or cannabis products to another person who intends to
483	483	deliver the cannabis or cannabis products to a minor.
484	484	(b) If an offense under this section occurs in connection
485	485	with a sale by an employee of the owner of a cannabis establishment,
486	486	the employee is criminally responsible for the offense and is
487	487	subject to prosecution.
488	488	(c) An offense under this section is a Class C misdemeanor.
489	489	(d) It is a defense to prosecution under Subsection (a)(1)
490	490	that the person to whom the cannabis or cannabis products were sold
491	491	or given presented to the defendant apparently valid proof of
492	492	identification.
493	493	(e) A proof of identification satisfies the requirements of
494	494	Subsection (d) if it contains a physical description and photograph
495	495	consistent with the person's appearance, purports to establish that
496	496	the person is 21 years of age or older, and was issued by a
497	497	governmental agency. The proof of identification may include a
498	498	driver's license issued by this state or another state, a passport,
499	499	or an identification card issued by a state or the federal
500	500	government.
501	501	SECTION 2. Section 481.062, Health and Safety Code, is
502	502	amended to read as follows:
503	503	Sec. 481.062. EXEMPTIONS. (a) The following persons are
504	504	not required to register and may possess a controlled substance
505	505	under this chapter [without registering with the Federal Drug
506	506	Enforcement Administration]:
507	507	(1) an agent or employee of a registered manufacturer,
508	508	distributor, analyzer, or dispenser of the controlled substance
509	509	[who is registered with the Federal Drug Enforcement Administration
510	510	and] acting in the usual course of business or employment;
511	511	(2) a common or contract carrier, a warehouseman, or
512	512	an employee of a carrier or warehouseman whose possession of the
513	513	controlled substance is in the usual course of business or
514	514	employment;
515	515	(3) an ultimate user or a person in possession of the
516	516	controlled substance under a lawful order of a practitioner or in
517	517	lawful possession of the controlled substance if it is listed in
518	518	Schedule V;
519	519	(4) an officer or employee of this state, another
520	520	state, a political subdivision of this state or another state, or
521	521	the United States who is lawfully engaged in the enforcement of a
522	522	law relating to a controlled substance or drug or to a customs law
523	523	and authorized to possess the controlled substance in the discharge
524	524	of the person's official duties;
525	525	(5) if the substance is tetrahydrocannabinol or one of
526	526	its derivatives:
527	527	(A) a Department of State Health Services
528	528	official, a medical school researcher, or a research program
529	529	participant possessing the substance as authorized under
530	530	Subchapter G; or
531	531	(B) a practitioner or an ultimate user possessing
532	532	the substance as a participant in a federally approved therapeutic
533	533	research program that the commissioner has reviewed and found, in
534	534	writing, to contain a medically responsible research protocol; [or]
535	535	(6) a dispensing organization licensed under Chapter
536	536	487 that possesses low-THC cannabis;
537	537	(7) a cannabis grower, cannabis establishment,
538	538	cannabis secure transporter, or cannabis testing facility licensed
539	539	under Chapter 491 that possesses cannabis or cannabis products; or
540	540	(8) a person who possesses cannabis or cannabis
541	541	products in accordance with Chapter 491.
542	542	(b) In this section, "cannabis" and "cannabis product" have
543	543	the meanings assigned to those terms by Section 491.001.
544	544	SECTION 3. Section 481.111, Health and Safety Code, is
545	545	amended by adding Subsections (g) and (h) to read as follows:
546	546	(g) Sections 481.120, 481.121, and 481.125 do not apply to a
547	547	person who engages in the acquisition, possession, production,
548	548	processing, cultivation, delivery, transportation, or disposal of
549	549	a raw material used in or by-product created by the production or
550	550	cultivation of cannabis or cannabis products if the conduct is
551	551	expressly authorized by Subchapter B, Chapter 491.
552	552	(h) For purposes of Subsection (g), "cannabis" and
553	553	"cannabis product" have the meanings assigned to those terms by
554	554	Section 491.001.
555	555	SECTION 4. (a) Not later than July 1, 2022, the Texas
556	556	Commission of Licensing and Regulation shall adopt rules as
557	557	required to implement, administer, and enforce Chapter 491, Health
558	558	and Safety Code, as added by this Act.
559	559	(b) Not later than November 1, 2022, the Texas Department of
560	560	Licensing and Regulation shall begin licensing cannabis growers,
561	561	cannabis establishments, cannabis secure transporters, and
562	562	cannabis testing facilities in accordance with Chapter 491, Health
563	563	and Safety Code, as added by this Act, provided that the applicants
564	564	for a license have met all requirements for approval under Chapter
565	565	491, Health and Safety Code, as added by this Act.
566	566	SECTION 5. This Act takes effect September 1, 2021.