Texas 2021 - 87th Regular

Texas Senate Bill SB1345 Compare Versions

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

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1	1	2021S0150-1 03/03/21
2	2	By: Eckhardt S.B. No. 1345
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, and use of cannabis and cannabis products;
10	10	authorizing the imposition of fees; requiring an occupational
11	11	license; creating a criminal offense.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subtitle C, Title 6, Health and Safety Code, is
14	14	amended by adding Chapter 491 to read as follows:
15	15	CHAPTER 491. REGULATION OF CANNABIS
16	16	SUBCHAPTER A. GENERAL PROVISIONS
17	17	Sec. 491.0001. 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-related drug paraphernalia" means
49	49	equipment, a product, or material that is used or intended for use
50	50	in:
51	51	(A) planting, propagating, cultivating, growing,
52	52	harvesting, manufacturing, compounding, converting, producing,
53	53	processing, preparing, testing, analyzing, packaging, repackaging,
54	54	storing, or containing cannabis or a cannabis product; or
55	55	(B) introducing cannabis or a cannabis product
56	56	into the human body.
57	57	(8) "Cannabis secure transporter" means an entity
58	58	licensed by the department under this chapter to transport cannabis
59	59	from a cannabis grower to a cannabis establishment.
60	60	(9) "Cannabis testing facility" means an entity
61	61	licensed by the department under this chapter to analyze the safety
62	62	and potency of cannabis and cannabis products.
63	63	(10) "Commission" means the Texas Commission of
64	64	Licensing and Regulation.
65	65	(11) "Cultivate" means to propagate, breed, grow,
66	66	harvest, dry, cure, or separate parts of the cannabis plant by
67	67	manual or mechanical means.
68	68	(12) "Department" means the Texas Department of
69	69	Licensing and Regulation.
70	70	(13) "Executive director" means the executive
71	71	director of the department.
72	72	(14) "Marihuana" has the meaning assigned by Section
73	73	481.002.
74	74	(15) "Process" means to separate or otherwise prepare
75	75	parts of the cannabis plant and to compound, blend, extract,
76	76	infuse, or otherwise make or prepare cannabis concentrate or
77	77	cannabis products.
78	78	SUBCHAPTER B. PROTECTIONS FROM LEGAL ACTION RELATED TO CANNABIS
79	79	Sec. 491.0051. AUTHORIZED CONDUCT: PERSONAL USE OF
80	80	CANNABIS. An adult is authorized under this chapter to:
81	81	(1) use, possess, and transport not more than 2.5
82	82	ounces of cannabis, except that not more than 15 grams of that
83	83	amount may be in the form of cannabis concentrate;
84	84	(2) transfer without remuneration to another adult not
85	85	more than 2.5 ounces of cannabis, except that not more than 15 grams
86	86	of that amount may be in the form of cannabis concentrate and
87	87	provided that the transfer is not advertised or promoted to the
88	88	public;
89	89	(3) cultivate for personal use not more than 12
90	90	cannabis plants in an area on the premises of the adult's private
91	91	residence, provided that the cultivation occurs in an enclosed area
92	92	that is:
93	93	(A) equipped with locks or other security devices
94	94	that restrict access to the area; and
95	95	(B) not visible from a public place without the
96	96	use of aircraft or optical aids;
97	97	(4) possess, store, or process on the premises of the
98	98	adult's private residence not more than:
99	99	(A) the amount of cannabis produced from cannabis
100	100	plants cultivated on the premises, provided that:
101	101	(i) not more than 12 cannabis plants are
102	102	possessed, cultivated, or processed on the premises at one time;
103	103	and
104	104	(ii) any amount of cannabis in excess of 2.5
105	105	ounces is stored in a container or area equipped with locks or other
106	106	security devices that restrict access to the contents of the
107	107	container or area; and
108	108	(B) 10 ounces of cannabis that were not produced
109	109	from cannabis plants cultivated on the premises, provided that the
110	110	amount in excess of 2.5 ounces is stored in a container or area
111	111	described by Paragraph (A)(ii);
112	112	(5) use, possess, process, transport, or transfer to
113	113	another adult without remuneration an amount of cannabis products
114	114	specified by rule of the commission as the allowable amount of
115	115	cannabis for purposes of this subdivision; and
116	116	(6) use, possess, transport, or transfer to another
117	117	adult without remuneration cannabis-related drug paraphernalia.
118	118	Sec. 491.0052. AUTHORIZED CONDUCT: RETAIL CANNABIS
119	119	OPERATIONS. This chapter authorizes the conduct of:
120	120	(1) a cannabis grower director, manager, or employee
121	121	who, acting within the scope of the grower's license:
122	122	(A) cultivates cannabis or produces cannabis
123	123	products for sale or transfer to a cannabis establishment; and
124	124	(B) possesses cannabis or cannabis-related drug
125	125	paraphernalia;
126	126	(2) a cannabis establishment director, manager, or
127	127	employee who, acting within the scope of the establishment's
128	128	license, possesses cannabis or cannabis products or transfers or
129	129	sells cannabis, cannabis products, or cannabis-related drug
130	130	paraphernalia to an adult;
131	131	(3) a cannabis secure transporter director, manager,
132	132	or employee who, acting within the scope of the secure
133	133	transporter's license, transports, transfers, or delivers cannabis
134	134	or cannabis products from a cannabis grower to a cannabis
135	135	establishment; and
136	136	(4) a cannabis testing facility director, manager, or
137	137	employee who, acting within the scope of the facility's license,
138	138	possesses or tests cannabis, cannabis products, or
139	139	cannabis-related drug paraphernalia.
140	140	Sec. 491.0053. PROTECTION FROM LEGAL ACTION FOR AUTHORIZED
141	141	CONDUCT. (a) A person is not subject to arrest, prosecution,
142	142	forfeiture of property, or penalty in any manner or denial of any
143	143	right or privilege, including any civil penalty or disciplinary
144	144	action by a court or occupational or professional licensing board
145	145	or bureau solely due to conduct authorized under Section 491.0051
146	146	or 491.0052.
147	147	(b) The fact that a person engages in conduct authorized by
148	148	Section 491.0051 or 491.0052 does not in itself constitute grounds
149	149	for denying, limiting, or restricting conservatorship or
150	150	possession of or access to a child under Title 5, Family Code.
151	151	Sec. 491.0054. PROHIBITION OF CANNABIS ON PRIVATE PROPERTY;
152	152	EXCEPTION. (a) Except as otherwise provided by Subsection (b), a
153	153	person may prohibit or restrict the possession, consumption,
154	154	cultivation, distribution, processing, sale, or display of
155	155	cannabis or cannabis products on property the person owns,
156	156	occupies, or manages.
157	157	(b) A person may not prohibit a residential tenant under a
158	158	lease agreement from possessing cannabis, cannabis products, or
159	159	cannabis-related drug paraphernalia or consuming cannabis by means
160	160	other than smoking on the premises.
161	161	Sec. 491.0055. CONDUCT NOT AUTHORIZED UNDER THIS CHAPTER.
162	162	This chapter does not authorize the following conduct:
163	163	(1) operating a motor vehicle while intoxicated or
164	164	otherwise violating Chapter 49, Penal Code;
165	165	(2) smoking or otherwise consuming cannabis in:
166	166	(A) a motor vehicle while the vehicle is on a
167	167	public road;
168	168	(B) an aircraft, while the aircraft is in flight
169	169	or in a public area;
170	170	(C) a watercraft, while the watercraft is on a
171	171	public waterway; or
172	172	(D) a public place, unless:
173	173	(i) the public place is an area designated
174	174	by the applicable political subdivision as an area where using
175	175	cannabis is permissible; and
176	176	(ii) the area described by Subparagraph (i)
177	177	is not accessible to persons younger than 21 years of age;
178	178	(3) possessing or consuming cannabis or cannabis
179	179	products or possessing cannabis-related drug paraphernalia:
180	180	(A) on the premises of a public or private
181	181	child-care facility, prekindergarten, or primary or secondary
182	182	school;
183	183	(B) on a school bus that serves a facility or
184	184	school described by Paragraph (A); or
185	185	(C) on the premises of a correctional facility,
186	186	as defined by Article 18A.251, Code of Criminal Procedure, or a
187	187	civil commitment facility; or
188	188	(4) separating resin from the cannabis plant by butane
189	189	extraction or another method that uses a substance with a
190	190	flashpoint below 100 degrees Fahrenheit in a public place or motor
191	191	vehicle or within the curtilage of a residential structure.
192	192	SUBCHAPTER C. DUTIES OF DEPARTMENT
193	193	Sec. 491.0101. DUTIES OF DEPARTMENT. The department shall
194	194	administer this chapter.
195	195	Sec. 491.0102. RULES; FEES. (a) The commission shall adopt
196	196	all necessary rules for the administration and enforcement of this
197	197	chapter, including rules imposing fees under this chapter in
198	198	amounts sufficient to cover the cost of administering this chapter.
199	199	(b) The commission by rule shall set application and license
200	200	fees under this chapter in amounts sufficient to administer this
201	201	chapter and may annually adjust the fees for inflation.
202	202	(c) A fee collected under this chapter shall be deposited to
203	203	the credit of the cannabis regulation account established under
204	204	Section 491.0251.
205	205	(d) The commission shall adopt rules for the reasonable
206	206	regulation of cannabis growers and cannabis establishments,
207	207	including rules that:
208	208	(1) restrict the use of dangerous pesticides;
209	209	(2) regulate the packaging and labeling of cannabis
210	210	products available at a cannabis establishment;
211	211	(3) restrict advertising and display of cannabis and
212	212	cannabis products;
213	213	(4) restrict the maximum amount of
214	214	tetrahydrocannabinol that may be contained in a cannabis product
215	215	sold to a consumer;
216	216	(5) require recordkeeping and monitoring to track the
217	217	transfer of cannabis and cannabis products between license holders;
218	218	and
219	219	(6) require security measures, provided that the
220	220	security measures do not restrict the cultivation of cannabis
221	221	outdoors or in greenhouses.
222	222	Sec. 491.0103. TESTING, PACKAGING, AND LABELING STANDARDS.
223	223	(a) The commission by rule shall establish standards for:
224	224	(1) the operation of cannabis testing facilities;
225	225	(2) the testing of cannabis and cannabis products; and
226	226	(3) packaging and labeling requirements for cannabis
227	227	and cannabis products.
228	228	(b) In establishing standards for packaging and labeling
229	229	requirements under Subsection (a)(3), the commission shall require
230	230	that:
231	231	(1) cannabis and cannabis products be packaged in
232	232	opaque, resealable, child-resistant packaging that does not
233	233	resemble and may not be easily confused with typical packaging for
234	234	commercially sold candy;
235	235	(2) cannabis and cannabis products be clearly labeled;
236	236	and
237	237	(3) the label for a cannabis product disclose the
238	238	amount of cannabis contained in that product.
239	239	Sec. 491.0104. SECURE TRANSPORTATION OF CANNABIS. The
240	240	commission by rule shall establish standards applicable to cannabis
241	241	secure transporters, including standards to ensure all cannabis
242	242	establishments are properly served.
243	243	Sec. 491.0105. CONFLICT OF INTEREST. (a) A person who is
244	244	involved in the implementation, administration, or enforcement of
245	245	this chapter as a member of the commission, an employee of the
246	246	department, or a consultant to the commission or the department may
247	247	not also hold a pecuniary interest in any entity licensed by the
248	248	department under this chapter.
249	249	(b) A person who holds a pecuniary interest in a cannabis
250	250	testing facility or a cannabis secure transporter who holds a
251	251	license issued under this chapter may not hold a pecuniary interest
252	252	in any entity that holds a cannabis establishment or cannabis
253	253	grower license issued under this chapter.
254	254	(c) A person may not hold a pecuniary interest in more than
255	255	five entities that are licensed under this chapter as a cannabis
256	256	grower, except as provided by department rule.
257	257	Sec. 491.0106. ANNUAL REPORT. The executive director shall
258	258	annually submit to the governor a report providing the following
259	259	information regarding licensing and regulation under this chapter:
260	260	(1) the number of applications received for each class
261	261	of license under this chapter;
262	262	(2) the number of licenses issued for each class of
263	263	license under this chapter;
264	264	(3) demographic information pertaining to license
265	265	holders;
266	266	(4) a description of any fines imposed on a license
267	267	holder or disciplinary actions taken against a license holder by
268	268	the department; and
269	269	(5) a statement of revenues and expenses of the
270	270	department related to the implementation, administration, and
271	271	enforcement of this chapter.
272	272	SUBCHAPTER D. LICENSING
273	273	Sec. 491.0151. LICENSE REQUIRED. A person must hold a
274	274	license issued by the department under this chapter to operate as a
275	275	cannabis grower, cannabis establishment, cannabis secure
276	276	transporter, or cannabis testing facility.
277	277	Sec. 491.0152. QUALIFICATIONS FOR LICENSURE. The
278	278	commission by rule shall provide for each class of license issued
279	279	under this chapter qualifications for licensure that are
280	280	demonstrably related to the operations authorized and duties
281	281	imposed under that class of license.
282	282	Sec. 491.0153. APPLICATION. (a) A person may apply for an
283	283	initial or renewal license under this chapter by submitting a form
284	284	prescribed by the department along with the application fee in an
285	285	amount set by the commission.
286	286	(b) The application must indicate the class of license
287	287	sought and include the name and address of the applicant, the name
288	288	and address of each of the applicant's directors, managers, and
289	289	employees, and any other information considered necessary by the
290	290	department to determine the applicant's eligibility for the
291	291	license.
292	292	Sec. 491.0154. ISSUANCE, RENEWAL, OR DENIAL OF LICENSE.
293	293	(a) The department shall issue or renew a license under this
294	294	chapter only if:
295	295	(1) the department determines the applicant meets the
296	296	qualifications for the class of license sought established under
297	297	Section 491.0152; and
298	298	(2) the applicant is in compliance with any applicable
299	299	local regulations.
300	300	(b) If the department denies the issuance or renewal of a
301	301	license under Subsection (a), the department shall give written
302	302	notice of the grounds for denial to the applicant.
303	303	(c) A license issued or renewed under this section expires
304	304	as determined by the department in accordance with Section 411.511,
305	305	Government Code.
306	306	Sec. 491.0155. DUTY TO MAINTAIN QUALIFICATIONS. A license
307	307	holder shall maintain compliance at all times with the
308	308	qualifications for the applicable class of license established
309	309	under Section 491.0152.
310	310	Sec. 491.0156. LICENSE SUSPENSION OR REVOCATION. (a) The
311	311	department may at any time suspend or revoke a license issued under
312	312	this chapter if the department determines that the license holder
313	313	has not maintained the qualifications established under Section
314	314	491.0152 or has failed to comply with a duty imposed under this
315	315	chapter.
316	316	(b) The department shall give written notice to a license
317	317	holder of a license suspension or revocation under this section and
318	318	the grounds for the suspension or revocation. The notice must be
319	319	sent by certified mail, return receipt requested.
320	320	(c) After suspending or revoking a license issued under this
321	321	chapter, the department shall notify the Department of Public
322	322	Safety. The public safety director of the Department of Public
323	323	Safety may seize or place under seal all cannabis, cannabis
324	324	products, and cannabis-related drug paraphernalia owned or
325	325	possessed by the license holder. If the license is revoked, a
326	326	disposition may not be made of the seized or sealed cannabis,
327	327	cannabis products, or drug paraphernalia until the time for
328	328	administrative appeal of the order has elapsed or until all appeals
329	329	have been concluded. When a revocation order becomes final, all
330	330	cannabis, cannabis products, and drug paraphernalia may be
331	331	forfeited to the state as provided under Subchapter E, Chapter 481.
332	332	(d) Chapter 2001, Government Code, applies to a proceeding
333	333	under this section.
334	334	Sec. 491.0157. CRIMINAL HISTORY BACKGROUND CHECK. (a) In
335	335	addition to satisfying the other requirements provided by
336	336	commission rule under this chapter, an applicant for a license
337	337	under this chapter must submit to the department a complete and
338	338	legible set of fingerprints, on a form prescribed by the
339	339	commission, for the purpose of obtaining criminal history record
340	340	information from the Department of Public Safety and the Federal
341	341	Bureau of Investigation.
342	342	(b) The department may deny a license to an applicant who
343	343	does not comply with the requirement of Subsection (a). Issuance of
344	344	a license by the department is conditioned on the department
345	345	obtaining the applicant's criminal history record information
346	346	under this section.
347	347	(c) The commission by rule shall establish criteria for
348	348	determining whether a person passes the criminal history background
349	349	check for purposes of this section. The rules adopted under this
350	350	section may not disqualify a person for licensure solely for a
351	351	conviction of an offense that involves the possession of marihuana
352	352	or the delivery of marihuana to a person 18 years of age or older.
353	353	SUBCHAPTER E. DUTIES OF LICENSE HOLDERS
354	354	Sec. 491.0201. DUTIES RELATING TO DISPENSING CANNABIS OR
355	355	CANNABIS PRODUCTS. Before dispensing cannabis or cannabis products
356	356	to an adult, a cannabis establishment must make reasonable efforts
357	357	to verify that:
358	358	(1) the person receiving the cannabis or cannabis
359	359	product is an adult;
360	360	(2) the cannabis or cannabis product complies with
361	361	department testing and labeling rules; and
362	362	(3) the amount dispensed is not greater than the
363	363	amount of cannabis or cannabis product allowed for personal use as
364	364	provided by Section 491.0051.
365	365	Sec. 491.0202. DUTIES RELATING TO SECURITY. (a) A license
366	366	holder shall ensure that the cultivation, processing, sale, or
367	367	display of cannabis, cannabis products, and cannabis-related drug
368	368	paraphernalia is not visible from a public place without the use of
369	369	optical aids or aircraft.
370	370	(b) A license holder may not cultivate, process, store, or
371	371	sell cannabis, cannabis products, or cannabis-related drug
372	372	paraphernalia at a location other than the physical address
373	373	approved by the department for the establishment under the license
374	374	issued to the establishment under this chapter.
375	375	(c) A license holder shall adopt reasonable security
376	376	measures necessary to restrict access to areas where cannabis,
377	377	cannabis products, or cannabis-related drug paraphernalia are
378	378	stored and to prevent theft of cannabis, cannabis products, and
379	379	cannabis-related drug paraphernalia.
380	380	Sec. 491.0203. LICENSE HOLDER OPERATIONS. (a) A license
381	381	holder may not employ or otherwise accept the services of a person
382	382	younger than 21 years of age.
383	383	(b) A cannabis establishment may not sell tobacco products,
384	384	as defined by Section 155.001, Tax Code.
385	385	Sec. 491.0204. MONTHLY SALES REPORT. A cannabis
386	386	establishment shall monthly submit a report to the comptroller
387	387	specifying the amount of cannabis sold, the number of cannabis
388	388	products sold, the number and types of cannabis-related drug
389	389	paraphernalia sold, and the amount of money collected in sales by
390	390	the establishment during the preceding month.
391	391	SUBCHAPTER F. FUNDING FOR REGULATION
392	392	Sec. 491.0251. CANNABIS REGULATION ACCOUNT. (a) The
393	393	cannabis regulation account is an account in the general revenue
394	394	fund administered by the department.
395	395	(b) The account consists of fees deposited to the credit of
396	396	the account under Section 491.0102.
397	397	(c) Money in the account may be appropriated only to the
398	398	department for implementing and administering this chapter.
399	399	SUBCHAPTER G. LOCAL REGULATION
400	400	Sec. 491.0301. LOCAL AUTHORIZATION REQUIRED. A license
401	401	holder under this chapter may not operate in a county without the
402	402	authorization of an election held under this subchapter.
403	403	Sec. 491.0302. ELECTION. (a) The commissioners court of a
404	404	county may order an election to approve the operation of cannabis
405	405	growers, cannabis establishments, or cannabis testing facilities
406	406	in the county.
407	407	(b) A commissioners court of a county shall hold the
408	408	election on the first authorized uniform election date prescribed
409	409	by Chapter 41, Election Code, that allows sufficient time for
410	410	compliance with any requirements established by law.
411	411	(c) The ballot in the election shall be printed to provide
412	412	for voting for or against the proposition: "Authorizing (cannabis
413	413	growers, cannabis establishments, or cannabis testing facilities,
414	414	as applicable) to operate in (name of county)."
415	415	Sec. 491.0303. LOCAL REGULATION. A county that authorizes
416	416	the operation of cannabis growers, cannabis establishments, or
417	417	cannabis testing facilities in the county may adopt regulations
418	418	consistent with this chapter governing the hours of operation,
419	419	location, manner of conducting business, and number of cannabis
420	420	growers, cannabis establishments, or cannabis testing facilities.
421	421	SUBCHAPTER H. SALE OR DISTRIBUTION OF CANNABIS OR CANNABIS PRODUCT
422	422	TO MINORS PROHIBITED
423	423	Sec. 491.0351. DEFINITION. In this subchapter, "minor"
424	424	means a person younger than 21 years of age.
425	425	Sec. 491.0352. SALE OR DISTRIBUTION OF CANNABIS OR CANNABIS
426	426	PRODUCT TO MINORS PROHIBITED; PROOF OF AGE REQUIRED. (a) A person
427	427	commits an offense if the person, under the authority of this
428	428	chapter:
429	429	(1) sells, gives, or causes to be sold or given
430	430	cannabis or cannabis products to a minor; or
431	431	(2) sells, gives, or causes to be sold or given
432	432	cannabis or cannabis products to another person who intends to
433	433	deliver the cannabis or cannabis products to a minor.
434	434	(b) If an offense under this section occurs in connection
435	435	with a sale by an employee of the owner of a cannabis establishment,
436	436	the employee is criminally responsible for the offense and is
437	437	subject to prosecution.
438	438	(c) An offense under this section is a Class C misdemeanor.
439	439	(d) It is a defense to prosecution under Subsection (a)(1)
440	440	that the person to whom the cannabis or cannabis products were sold
441	441	or given presented to the defendant apparently valid proof of
442	442	identification.
443	443	(e) A proof of identification satisfies the requirements of
444	444	Subsection (d) if it contains a physical description and photograph
445	445	consistent with the person's appearance, purports to establish that
446	446	the person is 21 years of age or older, and was issued by a
447	447	governmental agency. The proof of identification may include a
448	448	driver's license issued by this state or another state, a passport,
449	449	or an identification card issued by a state or the federal
450	450	government.
451	451	SECTION 2. Section 122.103(c), Agriculture Code, is amended
452	452	to read as follows:
453	453	(c) A qualified applicant who along with the application
454	454	submits proof to the department that the applicant holds a license
455	455	under Chapter 487 or 491, Health and Safety Code, is not required to
456	456	pay an application fee, and the department shall issue the license
457	457	to the applicant within the time prescribed by Subsection (b).
458	458	SECTION 3. Section 411.0891(a), Government Code, is amended
459	459	to read as follows:
460	460	(a) Subject to Section 411.087, the department is
461	461	authorized to obtain and use criminal history record information
462	462	maintained by the Federal Bureau of Investigation or the department
463	463	that relates to a person who:
464	464	(1) is an applicant for or holds a registration issued
465	465	by the director under Subchapter C, Chapter 481, Health and Safety
466	466	Code, that authorizes the person to manufacture, distribute,
467	467	analyze, or conduct research with a controlled substance;
468	468	(2) is an applicant for or holds a registration issued
469	469	by the department under Chapter 487, Health and Safety Code, to be a
470	470	director, manager, or employee of a dispensing organization, as
471	471	defined by Section 487.001, Health and Safety Code;
472	472	(2-a) is an applicant for or holds a license issued by
473	473	the department under Chapter 491, Health and Safety Code, to be a
474	474	cannabis grower, cannabis establishment, cannabis secure
475	475	transporter, or cannabis testing facility, as those terms are
476	476	defined by Section 491.0001, Health and Safety Code;
477	477	(3) is an applicant for or holds an authorization
478	478	issued by the department under Section 521.2476, Transportation
479	479	Code, to do business in this state as a vendor of ignition interlock
480	480	devices;
481	481	(4) is an applicant for or holds certification by the
482	482	department as an inspection station or an inspector under
483	483	Subchapter G, Chapter 548, Transportation Code, holds an inspection
484	484	station or inspector certificate issued under that subchapter, or
485	485	is the owner of an inspection station operating under that chapter;
486	486	or
487	487	(5) is an applicant for or holds a certificate of
488	488	registration issued by the department under Chapter 1956,
489	489	Occupations Code, to act as a metal recycling entity.
490	490	SECTION 4. Section 411.502, Government Code, is amended to
491	491	read as follows:
492	492	Sec. 411.502. APPLICABILITY. This subchapter applies to a
493	493	program, and persons regulated under the program, administered by
494	494	the department under the following laws, including rules adopted
495	495	under those laws:
496	496	(1) Section 411.0625;
497	497	(2) Chapter 487, Health and Safety Code;
498	498	(2-a) Chapter 491, Health and Safety Code;
499	499	(3) Chapter 1702, Occupations Code;
500	500	(4) Chapter 1956, Occupations Code;
501	501	(5) Section 521.2476, Transportation Code; and
502	502	(6) Subchapter G, Chapter 548, Transportation Code.
503	503	SECTION 5. Section 443.202(a), Health and Safety Code, is
504	504	amended to read as follows:
505	505	(a) This section does not apply to low-THC cannabis
506	506	regulated under Chapter 487 or cannabis regulated under Chapter
507	507	491.
508	508	SECTION 6. Section 443.2025(a), Health and Safety Code, is
509	509	amended to read as follows:
510	510	(a) This section does not apply to low-THC cannabis
511	511	regulated under Chapter 487 or cannabis regulated under Chapter
512	512	491.
513	513	SECTION 7. Section 481.062, Health and Safety Code, is
514	514	amended to read as follows:
515	515	Sec. 481.062. EXEMPTIONS. (a) The following persons are
516	516	not required to register and may possess a controlled substance
517	517	under this chapter [without registering with the Federal Drug
518	518	Enforcement Administration]:
519	519	(1) an agent or employee of a registered manufacturer,
520	520	distributor, analyzer, or dispenser of the controlled substance
521	521	[who is registered with the Federal Drug Enforcement Administration
522	522	and] acting in the usual course of business or employment;
523	523	(2) a common or contract carrier, a warehouseman, or
524	524	an employee of a carrier or warehouseman whose possession of the
525	525	controlled substance is in the usual course of business or
526	526	employment;
527	527	(3) an ultimate user or a person in possession of the
528	528	controlled substance under a lawful order of a practitioner or in
529	529	lawful possession of the controlled substance if it is listed in
530	530	Schedule V;
531	531	(4) an officer or employee of this state, another
532	532	state, a political subdivision of this state or another state, or
533	533	the United States who is lawfully engaged in the enforcement of a
534	534	law relating to a controlled substance or drug or to a customs law
535	535	and authorized to possess the controlled substance in the discharge
536	536	of the person's official duties;
537	537	(5) if the substance is tetrahydrocannabinol or one of
538	538	its derivatives:
539	539	(A) a Department of State Health Services
540	540	official, a medical school researcher, or a research program
541	541	participant possessing the substance as authorized under
542	542	Subchapter G; or
543	543	(B) a practitioner or an ultimate user possessing
544	544	the substance as a participant in a federally approved therapeutic
545	545	research program that the commissioner has reviewed and found, in
546	546	writing, to contain a medically responsible research protocol; [or]
547	547	(6) a dispensing organization licensed under Chapter
548	548	487 that possesses low-THC cannabis;
549	549	(7) a cannabis grower, cannabis establishment,
550	550	cannabis secure transporter, or cannabis testing facility licensed
551	551	under Chapter 491 that possesses cannabis or cannabis products; or
552	552	(8) a person who possesses cannabis or cannabis
553	553	products in accordance with Chapter 491.
554	554	(b) In this section, "cannabis" and "cannabis product" have
555	555	the meanings assigned to those terms by Section 491.0001.
556	556	SECTION 8. Section 481.111, Health and Safety Code, is
557	557	amended by adding Subsections (g) and (h) to read as follows:
558	558	(g) Sections 481.113, 481.116, 481.120, 481.121, and
559	559	481.125 do not apply to a person who engages in the acquisition,
560	560	possession, production, processing, cultivation, delivery,
561	561	transportation, disposal, transfer, or use of a raw material used
562	562	in or by-product created by the production or cultivation of
563	563	cannabis or cannabis products if the conduct is expressly
564	564	authorized by Subchapter B, Chapter 491.
565	565	(h) For purposes of Subsection (g), "cannabis" and
566	566	"cannabis product" have the meanings assigned to those terms by
567	567	Section 491.0001.
568	568	SECTION 9. Section 551.004, Occupations Code, is amended by
569	569	amending Subsection (a) and adding Subsection (a-1) to read as
570	570	follows:
571	571	(a) This subtitle does not apply to:
572	572	(1) a practitioner licensed by the appropriate state
573	573	board who supplies a patient of the practitioner with a drug in a
574	574	manner authorized by state or federal law and who does not operate a
575	575	pharmacy for the retailing of prescription drugs;
576	576	(2) a member of the faculty of a college of pharmacy
577	577	recognized by the board who is a pharmacist and who performs the
578	578	pharmacist's services only for the benefit of the college;
579	579	(3) a person who procures prescription drugs for
580	580	lawful research, teaching, or testing and not for resale;
581	581	(4) a home and community support services agency that
582	582	possesses a dangerous drug as authorized by Section 142.0061,
583	583	142.0062, or 142.0063, Health and Safety Code; [or]
584	584	(5) a dispensing organization[, as defined by Section
585	585	487.001, Health and Safety Code,] that cultivates, processes, and
586	586	dispenses low-THC cannabis, as authorized by Chapter 487, Health
587	587	and Safety Code, to a patient listed in the compassionate-use
588	588	registry established under that chapter;
589	589	(6) a cannabis grower, cannabis establishment,
590	590	cannabis secure transporter, or cannabis testing facility licensed
591	591	under Chapter 491, Health and Safety Code, that cultivates,
592	592	manufactures, processes, distributes, delivers, sells, tests,
593	593	transports, or dispenses cannabis or a cannabis product as
594	594	authorized by that chapter; or
595	595	(7) a person who transfers cannabis without
596	596	remuneration as authorized by Section 491.0051, Health and Safety
597	597	Code.
598	598	(a-1) For purposes of this section:
599	599	(1) "Cannabis," "cannabis establishment," "cannabis
600	600	grower," "cannabis product," "cannabis secure transporter," and
601	601	"cannabis testing facility" have the meanings assigned by Section
602	602	491.0001, Health and Safety Code.
603	603	(2) "Dispensing organization" and "low-THC cannabis"
604	604	have the meanings assigned by Section 487.001, Health and Safety
605	605	Code.
606	606	SECTION 10. (a) Not later than July 1, 2022, the Texas
607	607	Commission of Licensing and Regulation shall adopt rules as
608	608	required to implement, administer, and enforce Chapter 491, Health
609	609	and Safety Code, as added by this Act.
610	610	(b) Not later than November 1, 2022, the Texas Department of
611	611	Licensing and Regulation shall begin licensing cannabis growers,
612	612	cannabis establishments, cannabis secure transporters, and
613	613	cannabis testing facilities in accordance with Chapter 491, Health
614	614	and Safety Code, as added by this Act, provided that the applicants
615	615	for a license have met all requirements for approval under Chapter
616	616	491, Health and Safety Code, as added by this Act.
617	617	SECTION 11. This Act takes effect September 1, 2021.