Texas 2021 - 87th Regular

Texas House Bill HB809 Compare Versions

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11 87R964 GCB-D
22 By: Johnson of Dallas H.B. No. 809
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44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to authorizing the possession, use, cultivation,
88 distribution, transportation, and delivery of medical cannabis for
99 medical use by patients with post-traumatic stress disorder and the
1010 licensing of medical cannabis dispensing organizations;
1111 authorizing fees.
1212 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1313 SECTION 1. Subtitle C, Title 6, Health and Safety Code, is
1414 amended by adding Chapter 487A to read as follows:
1515 CHAPTER 487A. USE OF CANNABIS FOR MEDICAL PURPOSES
1616 SUBCHAPTER A. GENERAL PROVISIONS
1717 Sec. 487A.001. DEFINITIONS. In this chapter:
1818 (1) "Department" means the Department of Public
1919 Safety.
2020 (2) "Director" means the public safety director of the
2121 department.
2222 (3) "Dispensing organization" means an organization
2323 licensed by the department to cultivate, process, and dispense
2424 medical cannabis to a patient for whom medical use is recommended
2525 under Chapter 169A, Occupations Code.
2626 (4) "Medical cannabis" and "medical use" have the
2727 meanings assigned by Section 169A.001, Occupations Code.
2828 SUBCHAPTER B. DUTIES OF DEPARTMENT
2929 Sec. 487A.051. DUTIES OF DEPARTMENT. The department shall
3030 administer this chapter.
3131 Sec. 487A.052. RULES. (a) The director shall adopt any
3232 rules necessary for the administration and enforcement of this
3333 chapter.
3434 (b) The director shall adopt rules imposing fees under this
3535 chapter in amounts sufficient to cover the cost of administering
3636 this chapter.
3737 Sec. 487A.053. LICENSING OF DISPENSING ORGANIZATIONS AND
3838 REGISTRATION OF CERTAIN ASSOCIATED INDIVIDUALS. (a) The
3939 department shall:
4040 (1) issue or renew a license under Subchapter C to
4141 operate as a dispensing organization to each applicant who
4242 satisfies the requirements established under this chapter for
4343 licensure as a dispensing organization; and
4444 (2) register directors, managers, and employees under
4545 Subchapter D of each dispensing organization.
4646 (b) Subject to Section 411.503, Government Code, the
4747 department shall enforce compliance of license holders and
4848 registrants and shall adopt procedures for suspending or revoking a
4949 license or registration issued under this chapter and for renewing
5050 a license or registration issued under this chapter.
5151 Sec. 487A.054. MEDICAL USE REGISTRY. (a) The department
5252 shall establish and maintain a secure online medical use registry
5353 that contains:
5454 (1) the name of each physician who registers as the
5555 physician recommending medical use for a patient under Section
5656 169A.003, Occupations Code, and the name and date of birth of the
5757 patient; and
5858 (2) the amount of medical cannabis dispensed to each
5959 patient.
6060 (b) The department shall ensure the registry:
6161 (1) is designed to prevent more than one physician
6262 from registering as the physician recommending medical use for a
6363 single patient;
6464 (2) is accessible to law enforcement agencies and
6565 dispensing organizations for the purpose of verifying whether a
6666 patient is one for whom medical use is recommended under Chapter
6767 169A, Occupations Code; and
6868 (3) allows a physician recommending medical use under
6969 Chapter 169A, Occupations Code, to input safety and efficacy data
7070 derived from the treatment of patients for whom medical use is
7171 recommended.
7272 SUBCHAPTER C. LICENSING TO OPERATE AS DISPENSING ORGANIZATION
7373 Sec. 487A.101. LICENSE REQUIRED. A person may not operate
7474 as a dispensing organization without a license issued by the
7575 department under this subchapter.
7676 Sec. 487A.102. ELIGIBILITY FOR LICENSE. An applicant for a
7777 license to operate as a dispensing organization is eligible for the
7878 license if:
7979 (1) as determined by the department, the applicant
8080 possesses:
8181 (A) the technical and technological ability to
8282 cultivate and produce medical cannabis;
8383 (B) the ability to secure:
8484 (i) the resources and personnel necessary
8585 to operate as a dispensing organization; and
8686 (ii) premises reasonably located to allow
8787 patients listed on the medical use registry access to the
8888 organization through existing infrastructure;
8989 (C) the ability to maintain accountability for
9090 the raw materials, the finished product, and any by-products used
9191 or produced in the cultivation or production of medical cannabis to
9292 prevent unlawful access to or unlawful diversion or possession of
9393 those materials, products, or by-products; and
9494 (D) the financial ability to maintain operations
9595 for not less than two years from the date of application;
9696 (2) each director, manager, or employee of the
9797 applicant is registered under Subchapter D; and
9898 (3) the applicant satisfies any additional criteria
9999 determined by the director to be necessary to safely implement this
100100 chapter.
101101 Sec. 487A.103. APPLICATION. (a) A person may apply for an
102102 initial or renewal license under this subchapter by submitting a
103103 form prescribed by the department along with the application fee in
104104 an amount set by the director.
105105 (b) The application must include the name and address of the
106106 applicant, the name and address of each of the applicant's
107107 directors, managers, and employees, and any other information
108108 considered necessary by the department to determine the applicant's
109109 eligibility for the license.
110110 Sec. 487A.104. ISSUANCE, RENEWAL, OR DENIAL OF LICENSE.
111111 (a) The department shall issue or renew a license under this
112112 subchapter only if:
113113 (1) the department determines the applicant meets the
114114 eligibility requirements described by Section 487A.102; and
115115 (2) issuance or renewal of the license is necessary to
116116 ensure reasonable statewide access to, and the availability of,
117117 medical cannabis for patients registered in the medical use
118118 registry for whom medical cannabis is recommended under Chapter
119119 169A, Occupations Code.
120120 (b) If the department denies the issuance or renewal of a
121121 license under Subsection (a), the applicant is entitled to a
122122 hearing. Chapter 2001, Government Code, applies to a proceeding
123123 under this section.
124124 (c) A license issued or renewed under this section expires
125125 as determined by the department in accordance with Section 411.511,
126126 Government Code.
127127 Sec. 487A.105. CRIMINAL HISTORY BACKGROUND CHECK. (a) An
128128 applicant for the issuance or renewal of a license under this
129129 subchapter shall provide the department with the applicant's name
130130 and the name of each of the applicant's directors, managers, and
131131 employees.
132132 (b) Before a dispensing organization under this subchapter
133133 hires a manager or employee for the organization, the license
134134 holder must provide the department with the name of the prospective
135135 manager or employee. The license holder may not transfer the
136136 license to another person before that prospective applicant and the
137137 applicant's directors, managers, and employees pass a criminal
138138 history background check and are registered as required by
139139 Subchapter D.
140140 (c) The department shall conduct a criminal history
141141 background check on each individual whose name is provided to the
142142 department under Subsection (a) or (b). The director by rule shall:
143143 (1) require each individual whose name is provided to
144144 the department under Subsection (a) or (b) to submit a complete set
145145 of fingerprints to the department on a form prescribed by the
146146 department for purposes of a criminal history background check
147147 under this section; and
148148 (2) establish criteria for determining whether an
149149 individual passes the criminal history background check for the
150150 purposes of this section.
151151 (d) After conducting a criminal history background check
152152 under this section, the department shall notify the relevant
153153 applicant or organization and the individual who is the subject of
154154 the criminal history background check as to whether the individual
155155 passed the criminal history background check.
156156 Sec. 487A.106. DUTY TO MAINTAIN ELIGIBILITY. Each license
157157 holder under this subchapter must maintain compliance at all times
158158 with the eligibility requirements described by Section 487A.102.
159159 Sec. 487A.107. DUTIES RELATING TO DISPENSING MEDICAL
160160 CANNABIS. (a) Before dispensing medical cannabis to a person for
161161 whom medical use is recommended under Chapter 169A, Occupations
162162 Code, the dispensing organization must verify that the person is
163163 listed as a patient in the medical use registry.
164164 (b) After dispensing medical cannabis to a patient for whom
165165 medical use is recommended under Chapter 169A, Occupations Code,
166166 the dispensing organization shall record in the medical use
167167 registry the form and quantity of the medical cannabis dispensed
168168 and the date and time of dispensation.
169169 Sec. 487A.108. LICENSE SUSPENSION OR REVOCATION. (a) The
170170 department may at any time suspend or revoke a license issued under
171171 this subchapter if the department determines that the license
172172 holder has not maintained the eligibility requirements described by
173173 Section 487A.102 or has failed to comply with a duty imposed under
174174 this chapter.
175175 (b) The director shall give written notice to the license
176176 holder of a license suspension or revocation under this section and
177177 the grounds for the suspension or revocation. The notice must be
178178 sent by certified mail, return receipt requested.
179179 (c) After suspending or revoking a license issued under this
180180 subchapter, the director may seize or place under seal all medical
181181 cannabis and drug paraphernalia owned or possessed by the
182182 dispensing organization. If the director orders the revocation of
183183 the license, a disposition may not be made of the seized or sealed
184184 medical cannabis or drug paraphernalia until the time for
185185 administrative appeal of the order has elapsed or until all appeals
186186 have been concluded. When a revocation order becomes final, all
187187 medical cannabis and drug paraphernalia may be forfeited to the
188188 state as provided under Subchapter E, Chapter 481.
189189 (d) Chapter 2001, Government Code, applies to a proceeding
190190 under this section.
191191 SUBCHAPTER D. REGISTRATION OF CERTAIN INDIVIDUALS
192192 Sec. 487A.151. REGISTRATION REQUIRED. (a) An individual
193193 who is a director, manager, or employee of a dispensing
194194 organization must apply for and obtain a registration under this
195195 section.
196196 (b) An applicant for a registration under this section must:
197197 (1) be at least 18 years of age;
198198 (2) submit a complete set of fingerprints to the
199199 department in the manner required by department rule; and
200200 (3) pass a fingerprint-based criminal history
201201 background check as required by Section 487A.105.
202202 (c) A registration expires on the second anniversary of the
203203 date of the registration's issuance, unless suspended or revoked
204204 under rules adopted under this chapter.
205205 SUBCHAPTER E. DUTIES OF COUNTIES AND MUNICIPALITIES
206206 Sec. 487A.201. COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT
207207 MEDICAL CANNABIS. A municipality, county, or other political
208208 subdivision may not enact, adopt, or enforce a rule, ordinance,
209209 order, resolution, or other regulation that prohibits the
210210 cultivation, production, dispensing, or possession of medical
211211 cannabis, as authorized by this chapter.
212212 SECTION 2. Subtitle B, Title 3, Occupations Code, is
213213 amended by adding Chapter 169A to read as follows:
214214 CHAPTER 169A. AUTHORITY TO RECOMMEND MEDICAL CANNABIS TO PATIENTS
215215 WITH POST-TRAUMATIC STRESS DISORDER
216216 Sec. 169A.001. DEFINITIONS. In this chapter:
217217 (1) "Department" means the Department of Public
218218 Safety.
219219 (2) "Medical cannabis" means the plant Cannabis sativa
220220 L., and any part of that plant or any compound, manufacture, salt,
221221 derivative, mixture, preparation, resin, or oil of that plant.
222222 (3) "Medical use" means the ingestion by a means of
223223 administration other than by smoking of a recommended amount of
224224 medical cannabis by a person for whom medical use is recommended
225225 under this chapter.
226226 (4) "Smoking" means burning or igniting a substance
227227 and inhaling the smoke.
228228 Sec. 169A.002. RECOMMENDATION OF MEDICAL USE. (a) A
229229 physician may recommend medical use in accordance with this chapter
230230 for a patient who is 18 years of age or older and has post-traumatic
231231 stress disorder.
232232 (b) A physician who recommends medical use for a patient
233233 must:
234234 (1) comply with the registration requirements of
235235 Section 169A.003; and
236236 (2) certify to the department that:
237237 (A) the patient has post-traumatic stress
238238 disorder; and
239239 (B) the physician has determined that the risk of
240240 medical use by the patient is reasonable in light of the potential
241241 benefit for the patient.
242242 Sec. 169A.003. RECOMMENDING PHYSICIAN REGISTRATION. (a)
243243 Before a physician may recommend medical use for a patient under
244244 this chapter, the physician must register as the recommending
245245 physician for that patient in the medical use registry maintained
246246 by the department under Section 487A.054, Health and Safety Code.
247247 The physician's registration must indicate:
248248 (1) the physician's name; and
249249 (2) the patient's name and date of birth.
250250 (b) The department may not publish the name of a physician
251251 registered under this section unless permission is expressly
252252 granted by the physician.
253253 Sec. 169A.004. PATIENT TREATMENT PLAN. A physician who
254254 recommends medical use for a patient under this chapter must
255255 maintain a patient treatment plan that indicates:
256256 (1) a plan for monitoring the patient's symptoms; and
257257 (2) a plan for monitoring indicators of tolerance or
258258 reaction to medical cannabis.
259259 SECTION 3. Section 122.103(c), Agriculture Code, is amended
260260 to read as follows:
261261 (c) A qualified applicant who along with the application
262262 submits proof to the department that the applicant holds a license
263263 under Chapter 487 or 487A, Health and Safety Code, is not required
264264 to pay an application fee, and the department shall issue the
265265 license to the applicant within the time prescribed by Subsection
266266 (b).
267267 SECTION 4. Section 411.0891(a), Government Code, is amended
268268 to read as follows:
269269 (a) Subject to Section 411.087, the department is
270270 authorized to obtain and use criminal history record information
271271 maintained by the Federal Bureau of Investigation or the department
272272 that relates to a person who:
273273 (1) is an applicant for or holds a registration issued
274274 by the director under Subchapter C, Chapter 481, Health and Safety
275275 Code, that authorizes the person to manufacture, distribute,
276276 analyze, or conduct research with a controlled substance;
277277 (2) is an applicant for or holds a registration issued
278278 by the department under Chapter 487 or 487A, Health and Safety Code,
279279 to be a director, manager, or employee of a dispensing
280280 organization, as defined by Section 487.001 or 487A.001, Health and
281281 Safety Code;
282282 (3) is an applicant for or holds an authorization
283283 issued by the department under Section 521.2476, Transportation
284284 Code, to do business in this state as a vendor of ignition interlock
285285 devices;
286286 (4) is an applicant for or holds certification by the
287287 department as an inspection station or an inspector under
288288 Subchapter G, Chapter 548, Transportation Code, holds an inspection
289289 station or inspector certificate issued under that subchapter, or
290290 is the owner of an inspection station operating under that chapter;
291291 or
292292 (5) is an applicant for or holds a certificate of
293293 registration issued by the department under Chapter 1956,
294294 Occupations Code, to act as a metal recycling entity.
295295 SECTION 5. Section 411.502, Government Code, is amended to
296296 read as follows:
297297 Sec. 411.502. APPLICABILITY. This subchapter applies to a
298298 program, and persons regulated under the program, administered by
299299 the department under the following laws, including rules adopted
300300 under those laws:
301301 (1) Section 411.0625;
302302 (2) Chapter 487, Health and Safety Code;
303303 (3) Chapter 487A, Health and Safety Code;
304304 (4) Chapter 1702, Occupations Code;
305305 (5) [(4)] Chapter 1956, Occupations Code;
306306 (6) [(5)] Section 521.2476, Transportation Code; and
307307 (7) [(6)] Subchapter G, Chapter 548, Transportation
308308 Code.
309309 SECTION 6. Section 481.062(a), Health and Safety Code, is
310310 amended to read as follows:
311311 (a) The following persons may possess a controlled
312312 substance under this chapter without registering with the Federal
313313 Drug Enforcement Administration:
314314 (1) an agent or employee of a manufacturer,
315315 distributor, analyzer, or dispenser of the controlled substance who
316316 is registered with the Federal Drug Enforcement Administration and
317317 acting in the usual course of business or employment;
318318 (2) a common or contract carrier, a warehouseman, or
319319 an employee of a carrier or warehouseman whose possession of the
320320 controlled substance is in the usual course of business or
321321 employment;
322322 (3) an ultimate user or a person in possession of the
323323 controlled substance under a lawful order of a practitioner or in
324324 lawful possession of the controlled substance if it is listed in
325325 Schedule V;
326326 (4) an officer or employee of this state, another
327327 state, a political subdivision of this state or another state, or
328328 the United States who is lawfully engaged in the enforcement of a
329329 law relating to a controlled substance or drug or to a customs law
330330 and authorized to possess the controlled substance in the discharge
331331 of the person's official duties;
332332 (5) if the substance is tetrahydrocannabinol or one of
333333 its derivatives:
334334 (A) a Department of State Health Services
335335 official, a medical school researcher, or a research program
336336 participant possessing the substance as authorized under
337337 Subchapter G; or
338338 (B) a practitioner or an ultimate user possessing
339339 the substance as a participant in a federally approved therapeutic
340340 research program that the commissioner has reviewed and found, in
341341 writing, to contain a medically responsible research protocol; [or]
342342 (6) a dispensing organization licensed under Chapter
343343 487 that possesses low-THC cannabis; or
344344 (7) a dispensing organization licensed under Chapter
345345 487A that possesses medical cannabis.
346346 SECTION 7. Sections 481.111(e) and (f), Health and Safety
347347 Code, are amended to read as follows:
348348 (e) Sections 481.120, 481.121, 481.122, and 481.125 do not
349349 apply to a person who engages in the acquisition, possession,
350350 production, cultivation, delivery, or disposal of a raw material
351351 used in or by-product created by the production or cultivation of
352352 low-THC cannabis or medical cannabis if the person:
353353 (1) for an offense involving possession only of
354354 marihuana or drug paraphernalia, is a patient for whom low-THC
355355 cannabis is prescribed under Chapter 169, Occupations Code, or the
356356 patient's legal guardian, and the person possesses low-THC cannabis
357357 obtained under a valid prescription from a dispensing organization;
358358 [or]
359359 (2) is a director, manager, or employee of a low-THC
360360 cannabis dispensing organization and the person, solely in
361361 performing the person's regular duties at the organization,
362362 acquires, possesses, produces, cultivates, dispenses, or disposes
363363 of:
364364 (A) in reasonable quantities, any low-THC
365365 cannabis or raw materials used in or by-products created by the
366366 production or cultivation of low-THC cannabis; or
367367 (B) any drug paraphernalia used in the
368368 acquisition, possession, production, cultivation, delivery, or
369369 disposal of low-THC cannabis;
370370 (3) for an offense involving possession only of
371371 marihuana or drug paraphernalia, is a patient for whom medical use
372372 is recommended under Chapter 169A, Occupations Code; or
373373 (4) is a director, manager, or employee of a medical
374374 cannabis dispensing organization and the person, solely in
375375 performing the person's regular duties at the organization,
376376 acquires, possesses, produces, cultivates, dispenses, or disposes
377377 of:
378378 (A) in reasonable quantities, any medical
379379 cannabis or raw materials used in or by-products created by the
380380 production or cultivation of medical cannabis; or
381381 (B) any drug paraphernalia used in the
382382 acquisition, possession, production, cultivation, delivery, or
383383 disposal of medical cannabis.
384384 (f) For purposes of Subsection (e):
385385 (1) ["Dispensing organization" has the meaning
386386 assigned by Section 487.001.
387387 [(2)] "Low-THC cannabis" has the meaning assigned by
388388 Section 169.001, Occupations Code.
389389 (2) "Low-THC cannabis dispensing organization" means
390390 a dispensing organization as defined by Section 487.001.
391391 (3) "Medical cannabis" and "medical use" have the
392392 meanings assigned by Section 169A.001, Occupations Code.
393393 (4) "Medical cannabis dispensing organization" means
394394 a dispensing organization as defined by Section 487A.001.
395395 SECTION 8. Section 551.004, Occupations Code, is amended by
396396 amending Subsection (a) and adding Subsection (a-1) to read as
397397 follows:
398398 (a) This subtitle does not apply to:
399399 (1) a practitioner licensed by the appropriate state
400400 board who supplies a patient of the practitioner with a drug in a
401401 manner authorized by state or federal law and who does not operate a
402402 pharmacy for the retailing of prescription drugs;
403403 (2) a member of the faculty of a college of pharmacy
404404 recognized by the board who is a pharmacist and who performs the
405405 pharmacist's services only for the benefit of the college;
406406 (3) a person who procures prescription drugs for
407407 lawful research, teaching, or testing and not for resale;
408408 (4) a home and community support services agency that
409409 possesses a dangerous drug as authorized by Section 142.0061,
410410 142.0062, or 142.0063, Health and Safety Code; [or]
411411 (5) a low-THC cannabis dispensing organization[, as
412412 defined by Section 487.001, Health and Safety Code,] that
413413 cultivates, processes, and dispenses low-THC cannabis, as
414414 authorized by a license issued under Subchapter C, Chapter 487,
415415 Health and Safety Code, to a patient listed in the
416416 compassionate-use registry established under that chapter; or
417417 (6) a medical cannabis dispensing organization that
418418 cultivates, processes, and dispenses medical cannabis, as
419419 authorized by a license issued under Subchapter C, Chapter 487A,
420420 Health and Safety Code, to a patient listed in the medical use
421421 registry established under that chapter.
422422 (a-1) For purposes of Subsections (a)(5) and (6):
423423 (1) "Low-THC cannabis dispensing organization" means
424424 a dispensing organization as defined by Section 487.001, Health and
425425 Safety Code.
426426 (2) "Medical cannabis dispensing organization" means
427427 a dispensing organization as defined by Section 487A.001, Health
428428 and Safety Code.
429429 SECTION 9. Not later than January 1, 2022, the public safety
430430 director of the Department of Public Safety shall adopt rules as
431431 required to implement, administer, and enforce Chapter 487A, Health
432432 and Safety Code, as added by this Act, including rules to establish
433433 the medical use registry required by that chapter.
434434 SECTION 10. This Act takes effect immediately if it
435435 receives a vote of two-thirds of all the members elected to each
436436 house, as provided by Section 39, Article III, Texas Constitution.
437437 If this Act does not receive the vote necessary for immediate
438438 effect, this Act takes effect September 1, 2021.