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Texas Senate Bill SB2040

Texas 2021 - 87th Regular

Texas Senate Bill SB2040 Compare Versions

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11 87R9471 JSC-F
22 By: Menéndez S.B. No. 2040
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to authorizing the possession, use, cultivation,
88 distribution, delivery, sale, and research of medical cannabis for
99 medical use by patients with certain medical conditions and the
1010 licensing of medical cannabis organizations; authorizing fees.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 ARTICLE 1. FINDINGS AND PURPOSE
1313 SECTION 1.01. LEGISLATIVE FINDINGS; PURPOSE. The
1414 legislature finds that:
1515 (1) scientific evidence suggests that medical
1616 cannabis is one potential therapy that may mitigate suffering,
1717 enhance quality of life, and offer potential treatment of certain
1818 medical conditions;
1919 (2) Texas patients should have reasonable statewide
2020 access to medical cannabis subject to safeguards for public health
2121 and safety;
2222 (3) a seriously ill patient who engages in medical use
2323 of cannabis on a treating practitioner's advice should not be
2424 arrested, incarcerated, or otherwise punished for violation of drug
2525 laws;
2626 (4) where patients are suffering from certain medical
2727 conditions, they and their physicians should have a right to try
2828 medical cannabis as an alternative medicine through a safe and
2929 regulated program; and
3030 (5) Texas has a wealth of esteemed research
3131 institutions from medical to agricultural that can greatly
3232 contribute to the advancement of research on the safe cultivation,
3333 manufacturing, and use of medical cannabis.
3434 ARTICLE 2. MEDICAL CANNABIS RESEARCH PROGRAM
3535 SECTION 2.01. Subtitle A, Title 6, Health and Safety Code,
3636 is amended by adding Chapter 444 to read as follows:
3737 CHAPTER 444. MEDICAL CANNABIS RESEARCH PROGRAM
3838 SUBCHAPTER A. GENERAL PROVISIONS
3939 Sec. 444.001. SHORT TITLE. This chapter may be cited as the
4040 Medical Cannabis Research Act.
4141 Sec. 444.002. DEFINITIONS. In this chapter:
4242 (1) "Advisory board" means the medical cannabis
4343 research advisory board established under this chapter.
4444 (2) "License" means a medical cannabis research
4545 license issued by the department under Subchapter C.
4646 (3) "License holder" means a person who holds a
4747 medical cannabis research license.
4848 (4) "Medical cannabis" has the meaning assigned by
4949 Section 169.001, Occupations Code.
5050 SUBCHAPTER B. MEDICAL CANNABIS RESEARCH ADVISORY BOARD
5151 Sec. 444.051. ESTABLISHMENT OF ADVISORY BOARD. (a) A
5252 medical cannabis research advisory board is established to perform
5353 functions and duties under this chapter.
5454 (b) The executive commissioner shall assist the advisory
5555 board as provided by this chapter.
5656 Sec. 444.052. MEMBERSHIP. (a) The advisory board members
5757 are appointed by the governor and serve staggered six-year terms,
5858 with the terms of one-third of the members expiring on August 31 of
5959 each odd-numbered year.
6060 (b) The advisory board shall be composed of the following 12
6161 members:
6262 (1) a licensed physician certified by the American
6363 Board of Internal Medicine and certified in the subspecialty of
6464 medical oncology;
6565 (2) a licensed physician certified by the American
6666 Board of Psychiatry;
6767 (3) a licensed physician certified by the American
6868 Board of Surgery;
6969 (4) a licensed physician certified by the American
7070 Board of Psychiatry and Neurology;
7171 (5) a licensed physician certified by the American
7272 Board of Family Medicine;
7373 (6) a licensed physician certified in neurology with a
7474 special qualification in child neurology;
7575 (7) a licensed physician specializing in pain
7676 management certified by the American Board of Anesthesiology, the
7777 American Board of Neurology, or the American Board of Physical
7878 Medicine and Rehabilitation;
7979 (8) a licensed pharmacist;
8080 (9) a licensed advanced practice registered nurse
8181 specializing in palliative care certified by the Hospice and
8282 Palliative Credentialing Center or a licensed physician
8383 specializing in palliative care certified by a member board of the
8484 American Board of Medical Specialties, the American Osteopathic
8585 Association, or the Hospice Medical Director Certification Board;
8686 (10) a representative from a Texas medical specialty
8787 organization;
8888 (11) a licensed attorney with experience in law
8989 pertaining to the practice of medicine and cannabis regulation; and
9090 (12) a person who represents medical cannabis patient
9191 interests.
9292 (c) At least two members of the advisory board must be
9393 affiliated with an institution of higher education or private or
9494 independent institution of higher education involved in relevant
9595 research, such as a medical unit, general academic teaching
9696 institution, or other agency of higher education, as defined by
9797 Section 61.003, Education Code.
9898 (d) The governor shall select a presiding officer from the
9999 membership of the advisory board.
100100 (e) The advisory board shall meet at least quarterly at the
101101 call of the presiding officer.
102102 (f) The advisory board may create and appoint one or more
103103 advisory committees composed of patients, law enforcement
104104 officers, researchers, other medical professionals, and other
105105 persons who are knowledgeable about the medical use of cannabis.
106106 (g) Members serve without compensation but are entitled to
107107 reimbursement for actual and necessary expenses incurred in
108108 performing official duties.
109109 Sec. 444.053. DUTIES OF ADVISORY BOARD; REPORT. (a) The
110110 advisory board shall assist the department in evaluating proposals
111111 submitted as part of a license application under Section 444.104.
112112 (b) The advisory board shall conduct a continuing study of
113113 the laws relating to medical cannabis to facilitate statewide
114114 access to safe and effective medical cannabis.
115115 (c) The advisory board shall prepare a report of the board's
116116 findings and recommendations under Subsection (b) and submit the
117117 report to the legislature not later than September 1 of each
118118 even-numbered year.
119119 (d) The advisory board shall consult with the Department of
120120 Public Safety under Section 487.0521(b) on rules monitoring the
121121 safety and efficacy of medical cannabis or medical cannabis
122122 products.
123123 SUBCHAPTER C. MEDICAL CANNABIS RESEARCH LICENSE
124124 Sec. 444.101. ISSUANCE OF LICENSE. The department shall
125125 issue a medical cannabis research license to a person that
126126 authorizes the person to possess, manufacture, cultivate, or
127127 dispense medical cannabis for the limited research purposes
128128 described by Section 444.102.
129129 Sec. 444.102. PURPOSE OF LICENSE. A medical cannabis
130130 research license may be issued for the following limited research
131131 purposes:
132132 (1) conducting objective scientific research into the
133133 safety and efficacy of medical cannabis or other public health
134134 outcomes related to medical cannabis;
135135 (2) developing medical guidelines for the appropriate
136136 administration of medical cannabis to assist physicians and
137137 patients in evaluating the risks and benefits of medical cannabis
138138 and to provide a scientific basis for future policies;
139139 (3) developing quality control, purity, and labeling
140140 standards for medical cannabis;
141141 (4) developing best practices for the safe and
142142 efficient cultivation of medical cannabis;
143143 (5) analyzing genetic and healing properties of
144144 different varieties of cannabis;
145145 (6) conducting genomic, horticultural, or
146146 agricultural research; and
147147 (7) conducting research on cannabis-affiliated
148148 products or systems.
149149 Sec. 444.103. APPLICATION FOR LICENSE. (a) As part of the
150150 application process for a license, an applicant shall submit to the
151151 department and the advisory board a description of the research
152152 that the applicant intends to conduct. The department shall grant
153153 the license if:
154154 (1) the department determines that the application
155155 meets the criteria described by Sections 444.102 and 487.102; and
156156 (2) the advisory board recommends the application for
157157 approval under Section 444.104(b).
158158 (b) The department may not grant a license if the advisory
159159 board does not recommend the application for approval.
160160 Sec. 444.104. REVIEW BY ADVISORY BOARD. (a) The advisory
161161 board shall review each applicant's research project to assess the
162162 following:
163163 (1) the quality, study design, value, or impact of the
164164 project;
165165 (2) whether the research supports the purposes in
166166 Section 444.102;
167167 (3) whether the applicant has the appropriate
168168 personnel, expertise, facilities, infrastructure, funding, and
169169 approvals in place to successfully conduct the project; and
170170 (4) whether the amount of cannabis to be grown by the
171171 applicant is consistent with the scope and goals of the project.
172172 (b) If the advisory board determines that the research
173173 project does meet the requirements of this subchapter and assesses
174174 the criteria to be adequate, the advisory board may recommend that a
175175 license be granted to the applicant for the project.
176176 Sec. 444.105. CONTRACTS. A license holder may contract to
177177 perform research in conjunction with another license holder, a
178178 medical school, as defined by Section 61.501, Education Code, a
179179 hospital licensed under Chapter 241, or an institution of higher
180180 education or private or independent institution of higher education
181181 involved in relevant research, such as a general academic teaching
182182 institution, medical unit, or other agency of higher education, as
183183 defined by Section 61.003, Education Code.
184184 Sec. 444.106. TRANSFER OF CANNABIS TO OTHER LICENSE
185185 HOLDERS. Unless otherwise authorized by the department, a license
186186 holder may only transfer, by sale or donation, cannabis grown or
187187 processed within the license holder's operation to other license
188188 holders or program participants as authorized by department rule.
189189 Sec. 444.107. LIMITATION OF LIABILITY. The growing,
190190 cultivating, possessing, or transferring, by sale or donation, of
191191 cannabis in accordance with this subchapter and the rules adopted
192192 under this subchapter, by a license holder may not be the basis of
193193 criminal or civil liability.
194194 Sec. 444.108. FEES. The executive commissioner shall set
195195 license and renewal fees in an amount sufficient to administer this
196196 chapter.
197197 Sec. 444.109. RULES. The executive commissioner shall, in
198198 consultation with the advisory board and the Public Safety
199199 Commission, adopt rules to implement this chapter, including:
200200 (1) license application requirements;
201201 (2) license renewal requirements, including the
202202 consideration or addition of additional projects by a license
203203 holder;
204204 (3) conditions for license revocation;
205205 (4) security measures to ensure cannabis is not
206206 diverted to purposes other than research;
207207 (5) license holder reporting requirements;
208208 (6) conditions under which cannabis grown by licensed
209209 cannabis cultivators and other product types from licensed cannabis
210210 processors may be donated to license holders; and
211211 (7) additional rules considered necessary by the
212212 executive commissioner.
213213 ARTICLE 3. CHANGES TO TEXAS COMPASSIONATE USE PROGRAM
214214 SECTION 3.01. Section 487.001, Health and Safety Code, is
215215 amended to read as follows:
216216 Sec. 487.001. DEFINITIONS. In this chapter:
217217 (1) "Caregiver" means a person who has a significant
218218 responsibility for managing the well-being of a registered patient
219219 whether a private party or employee of a long-term care facility,
220220 other health care organization, or public institution.
221221 (2) "Department" means the Department of Public
222222 Safety.
223223 (3) [(2)] "Director" means the public safety director
224224 of the department.
225225 [(3) "Dispensing organization" means an organization
226226 licensed by the department to cultivate, process, and dispense
227227 low-THC cannabis to a patient for whom low-THC cannabis is
228228 prescribed under Chapter 169, Occupations Code.]
229229 (4) "Medical [Low-THC] cannabis" has the meaning
230230 assigned by Section 169.001, Occupations Code.
231231 (5) "Medical cannabis organization" means any
232232 organization that cultivates, processes, manufactures,
233233 distributes, researches, tests, dispenses, or conducts other
234234 business regarding medical cannabis as authorized by a license
235235 issued by the department under this chapter to provide medical
236236 cannabis to patients for whom medical cannabis is recommended under
237237 Chapter 169, Occupations Code.
238238 (6) "Medical cannabis product" means a product, other
239239 than cannabis itself, which contains or is derived from cannabis.
240240 The term does not include products derived from hemp as defined by
241241 Section 121.001, Agriculture Code.
242242 (7) "Medical use" has the meaning assigned by Section
243243 169.001, Occupations Code.
244244 SECTION 3.02. Subchapter A, Chapter 487, Health and Safety
245245 Code, is amended by adding Section 487.002 to read as follows:
246246 Sec. 487.002. ALLOWABLE AMOUNT OF MEDICAL CANNABIS. (a)
247247 The allowable amount of medical cannabis for a person for whom
248248 medical use is recommended under Chapter 169, Occupations Code, is
249249 an amount of cannabis in any form approved by the physician
250250 possessed by a qualified patient or collectively possessed by a
251251 qualified patient and the qualified patient's caregiver that is no
252252 more than reasonably necessary to ensure the uninterrupted
253253 availability of cannabis for a period of three months based on the
254254 individual patient's recommended amount of medical cannabis and
255255 that is obtained solely from a medical cannabis organization.
256256 (b) Medical cannabis and medical cannabis products must be
257257 packaged and labeled in accordance with department rules before
258258 sale to a medical cannabis dispensary to indicate the quantity of
259259 each cannabinoid and terpene contained in the product for purposes
260260 of determining compliance with this section and protecting patient
261261 health and safety.
262262 SECTION 3.03. Chapter 487, Health and Safety Code, is
263263 amended by adding Subchapter A-1 to read as follows:
264264 SUBCHAPTER A-1. PROTECTIONS RELATED TO MEDICAL USE OF CANNABIS
265265 Sec. 487.021. PROTECTION FROM LEGAL ACTION. (a) This
266266 section applies to a person who is:
267267 (1) a patient for whom medical use is recommended
268268 under Chapter 169, Occupations Code, or the parent or caregiver of a
269269 patient;
270270 (2) a medical cannabis organization;
271271 (3) a director, manager, or employee of a medical
272272 cannabis organization who is registered with the department under
273273 Section 487.053;
274274 (4) a medical cannabis research license holder under
275275 Chapter 444; or
276276 (5) a person participating as a researcher or patient
277277 in an approved research program under Subchapter G, Chapter 481.
278278 (b) Notwithstanding any other law, a person described by
279279 Subsection (a) is not subject to arrest, prosecution, or penalty in
280280 any manner, or denial of any right or privilege, including any civil
281281 penalty or disciplinary action by a court or occupational or
282282 professional licensing board or bureau, for conduct involving
283283 medical use that is authorized under this chapter, Chapter 444,
284284 Subchapter G, Chapter 481, Chapter 169, Occupations Code, or
285285 department rule.
286286 Sec. 487.022. NO PRESUMPTION OF CHILD ABUSE, NEGLECT, OR
287287 ENDANGERMENT. A person described by Section 487.021(a) may not be
288288 presumed to have engaged in conduct constituting child abuse,
289289 neglect, or endangerment solely because the person engaged in
290290 conduct involving medical use that is authorized under this
291291 chapter, Chapter 444, Subchapter G, Chapter 481, Chapter 169,
292292 Occupations Code, or department rule.
293293 Sec. 487.023. NO DENIAL OF PARENTAL RIGHTS. The fact that a
294294 person described by Section 487.021(a) engages in conduct
295295 authorized under this chapter, Chapter 444, Subchapter G, Chapter
296296 481, Chapter 169, Occupations Code, or department rule, does not in
297297 itself constitute grounds for denying, limiting, or restricting
298298 conservatorship or possession of or access to a child under Title 5,
299299 Family Code.
300300 Sec. 487.024. NO SEIZURE OR FORFEITURE. Property used in
301301 the cultivation, research, testing, processing, distribution,
302302 transportation, and delivery of medical cannabis for medical use
303303 that is authorized under this chapter, Chapter 444, Subchapter G,
304304 Chapter 481, Chapter 169, Occupations Code, or department rule, is
305305 not contraband for purposes of Chapter 59, Code of Criminal
306306 Procedure, and is not subject to seizure or forfeiture under that
307307 chapter or other law solely for the use of the property in those
308308 authorized activities.
309309 Sec. 487.025. NO PROSECUTION FOR PROVISION OF
310310 PARAPHERNALIA. A person is not subject to arrest, prosecution, or
311311 the imposition of any sentence or penalty for the delivery,
312312 possession with intent to deliver, or manufacture of any item that
313313 meets the definition of drug paraphernalia, as defined by Section
314314 481.002, if that item is delivered, possessed with intent to
315315 deliver, or manufactured for the sole purpose of providing that
316316 item to:
317317 (1) a patient for whom medical use is recommended
318318 under Chapter 169, Occupations Code, or the parent or caregiver of a
319319 patient;
320320 (2) a medical cannabis organization;
321321 (3) a director, manager, or employee of a medical
322322 cannabis organization who is registered with the department under
323323 Section 487.053;
324324 (4) a medical cannabis research license holder under
325325 Chapter 444; or
326326 (5) a person participating as a researcher or patient
327327 in an approved research program under Subchapter G, Chapter 481.
328328 Sec. 487.026. NO PUNISHMENT FOR STUDENT PATIENTS AND THEIR
329329 CAREGIVERS. Notwithstanding any other law, a school or university
330330 student for whom medical cannabis was recommended under Chapter
331331 169, Occupations Code, may not be subject to suspension, expulsion,
332332 placement in a disciplinary alternative education program, or any
333333 other form of discipline solely because the student possessed,
334334 used, or received a valid recommendation for medical cannabis, nor
335335 may a school health care professional be subject to any discipline
336336 solely for assisting a student in the administration of medical
337337 cannabis.
338338 SECTION 3.04. Section 487.052, Health and Safety Code, is
339339 amended to read as follows:
340340 Sec. 487.052. RULES; FEES. (a) The director shall adopt
341341 any rules necessary for the administration and enforcement of this
342342 chapter.
343343 (b) The director shall adopt [, including] rules imposing
344344 reasonable fees under this chapter in amounts sufficient to cover
345345 the cost of administering this chapter. The department shall also
346346 use revenue from fees to establish a cannabis testing and quality
347347 control fund for the purpose of assisting law enforcement,
348348 including accredited crime laboratories, to purchase instruments,
349349 establish methods, and obtain resources needed to conduct forensic
350350 analysis necessary to enforce this subtitle and to protect the
351351 health and safety of medical cannabis patients and the public.
352352 (c) The fees adopted under Subsection (b) may not exceed:
353353 (1) $5,000 for application fees;
354354 (2) $100 for registration fees under Subchapter D; and
355355 (3) reasonable amounts for the issuance or renewal of
356356 each class of license.
357357 (d) The director may not adopt rules establishing a total
358358 limit on the number of medical cannabis organization licenses by
359359 class that may be granted nor set the price of or production
360360 quantity of medical cannabis.
361361 SECTION 3.05. Subchapter B, Chapter 487, Health and Safety
362362 Code, is amended by adding Sections 487.0521 and 487.0522 to read as
363363 follows:
364364 Sec. 487.0521. SAFETY. (a) The director by rule shall
365365 adopt packaging and labeling requirements for medical cannabis to
366366 ensure patients are informed and protected. In adopting packaging
367367 and labeling requirements, the director shall ensure that:
368368 (1) each medical cannabis package is labeled with the
369369 cannabinoid potency and terpenoid profile of medical cannabis or
370370 medical cannabis product as determined by an independent testing
371371 laboratory;
372372 (2) each medical cannabis product and medical cannabis
373373 package is labeled with the required warnings as determined by the
374374 department; and
375375 (3) the packaging and label of medical cannabis or a
376376 medical cannabis product do not contain any false or misleading
377377 statements and are not designed to appeal to children.
378378 (b) In consultation with the medical cannabis research
379379 advisory board under Chapter 444, the director shall adopt
380380 necessary rules to allow the department to monitor the safety and
381381 efficacy of medical cannabis or medical cannabis products,
382382 including rules:
383383 (1) requiring accurate reporting to consumers
384384 regarding the content of medical cannabis or medical cannabis
385385 products;
386386 (2) providing for random testing by the department or
387387 the department's designee to ensure compliance with labeling and
388388 reporting requirements; and
389389 (3) providing for health and safety regulations and
390390 standards for the manufacture and cultivation of medical cannabis
391391 and medical cannabis products.
392392 (c) The director may collect data from medical cannabis
393393 organizations and health care providers as necessary to enable the
394394 department to monitor the safety and efficacy of medical cannabis.
395395 The director may adopt rules for the data collection under this
396396 subsection.
397397 Sec. 487.0522. INVENTORY TRACKING REQUIREMENTS. (a) The
398398 department shall establish and maintain a medical cannabis
399399 inventory system that oversees the tracking, tracing, testing, and
400400 quality control and quality assurance certification of medical
401401 cannabis and medical cannabis products.
402402 (b) The department may contract with other entities to
403403 establish and maintain all or part of the medical cannabis
404404 inventory system on behalf of the department.
405405 (c) A medical cannabis organization shall use the medical
406406 cannabis inventory system approved by the department to keep
407407 records throughout the cannabis supply chain, including for every
408408 transaction between license holders and between license holders and
409409 patients. A medical cannabis organization may use its own
410410 recordkeeping system provided the medical cannabis organization's
411411 system can integrate with the department's system as required under
412412 this chapter and rules. The records shall include, at a minimum:
413413 (1) the name, license number, and assigned
414414 identification number of the licensee that cultivated,
415415 manufactured, tested, or sold the product;
416416 (2) the address and phone number of the licensee that
417417 cultivated, manufactured, tested, or sold the product;
418418 (3) the type and weight of medical cannabis or medical
419419 cannabis product transferred or received during the transaction;
420420 (4) the batch number of the medical cannabis or
421421 medical cannabis product used;
422422 (5) the date of the transaction;
423423 (6) the total spent in dollars;
424424 (7) all point-of-sale records;
425425 (8) the amount of any medical cannabis waste, in
426426 pounds; and
427427 (9) any additional information as may be reasonably
428428 required by the department.
429429 (d) Until the department establishes the medical cannabis
430430 inventory program, each licensee shall use its own inventory
431431 program that meets the requirements of this section.
432432 (e) Each medical cannabis organization has a continuing
433433 responsibility to maintain records on site that are readily
434434 available to the department regardless of the functionality of the
435435 statewide inventory program including, at a minimum, the criteria
436436 established by this section and any requirements established by
437437 rule.
438438 (f) The department shall adopt rules necessary for the
439439 implementation and enforcement of this section, including rules
440440 ensuring:
441441 (1) the department has 24-hour access to the inventory
442442 program; and
443443 (2) all inventory tracking records containing patient
444444 information comply with Chapter 181 and the Health Insurance
445445 Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d
446446 et seq.).
447447 SECTION 3.06. The heading to Section 487.053, Health and
448448 Safety Code, is amended to read as follows:
449449 Sec. 487.053. LICENSING OF CANNABIS [DISPENSING]
450450 ORGANIZATIONS AND REGISTRATION OF CERTAIN ASSOCIATED INDIVIDUALS.
451451 SECTION 3.07. Section 487.053(a), Health and Safety Code,
452452 is amended to read as follows:
453453 (a) The department shall:
454454 (1) issue or renew a license under Subchapter C to
455455 operate as a medical cannabis [dispensing] organization to each
456456 applicant who satisfies the requirements established under this
457457 chapter for licensure under that class of medical cannabis
458458 organization; [and]
459459 (2) register directors, managers, and employees under
460460 Subchapter D of each medical cannabis [dispensing] organization;
461461 (3) issue a permit for additional locations to a
462462 dispensing cannabis licensee on application if the licensee is in
463463 compliance with all eligibility requirements and the proposed
464464 location complies with any local zoning requirements and will
465465 assist with ensuring reasonable statewide access;
466466 (4) to ensure reasonable statewide access, issue no
467467 less than the following number of licenses or permits for each type
468468 of medical cannabis organization provided the department receives
469469 an adequate number of qualified applications:
470470 (A) dispensing cannabis organization licenses
471471 and permits, based on population within each of the 11 public health
472472 regions established by the Health and Human Services Commission, as
473473 follows:
474474 (i) 9 in public health region 1;
475475 (ii) 6 in public health region 2;
476476 (iii) 82 in public health region 3;
477477 (iv) 12 in public health region 4;
478478 (v) 8 in public health region 5;
479479 (vi) 75 in public health region 6;
480480 (vii) 37 in public health region 7;
481481 (viii) 31 in public health region 8;
482482 (ix) 7 in public health region 9;
483483 (x) 9 in public health region 10; and
484484 (xi) 24 in public health region 11;
485485 (B) one cultivation cannabis organization
486486 license for every four dispensing cannabis organization licenses;
487487 (C) one processing cannabis organization license
488488 for every three dispensing cannabis organization licenses; and
489489 (D) the number of testing cannabis organization
490490 licenses necessary to meet demand;
491491 (5) once the number of registered medical cannabis
492492 patients reaches 100,000, issue no less than 24 additional
493493 dispensing cannabis organization licenses and permits and other
494494 medical cannabis organization license types under Subdivision (4);
495495 and
496496 (6) for each additional 100,000 patients, issue no
497497 less than 24 additional dispensing cannabis organization licenses
498498 and permits and other medical cannabis organization license types
499499 under Subdivision (4).
500500 SECTION 3.08. Section 487.054, Health and Safety Code, is
501501 amended to read as follows:
502502 Sec. 487.054. COMPASSIONATE-USE REGISTRY. (a) The
503503 department shall establish and maintain a secure online
504504 compassionate-use registry that contains:
505505 (1) the name of each physician who registers as a
506506 physician recommending medical cannabis and for each patient for
507507 whom the physician has registered:
508508 (A) [the prescriber for a patient under Section
509509 169.004, Occupations Code,] the patient's name, and any caregivers'
510510 names, if applicable;
511511 (B) the patient's [and] date of birth;
512512 (C) the nature of the patient's eligible medical
513513 condition;
514514 (D) [of the patient,] the dosage recommended;
515515 (E) [prescribed,] the means of administration
516516 ordered; [,] and
517517 (F) the total amount of medical [low-THC]
518518 cannabis required to fill the patient's recommendation
519519 [prescription]; and
520520 (2) a record of each amount of medical [low-THC]
521521 cannabis dispensed by a medical cannabis [dispensing] organization
522522 to a patient under a recommendation [prescription].
523523 (b) The department shall ensure the registry:
524524 (1) is designed to prevent more than one qualified
525525 physician from registering as the recommending physician
526526 [prescriber] for a single patient;
527527 (2) is accessible to law enforcement agencies and
528528 medical cannabis [dispensing] organizations licensed to dispense
529529 medical cannabis for the purpose of verifying whether a patient is
530530 one for whom medical [low-THC] cannabis is recommended [prescribed]
531531 and whether the patient's recommendations [prescriptions] have
532532 been filled; [and]
533533 (3) allows a physician [qualified to prescribe low-THC
534534 cannabis under Section 169.002, Occupations Code,] to input safety
535535 and efficacy data derived from the treatment of patients for whom
536536 medical [low-THC] cannabis is recommended [prescribed] under
537537 Chapter 169, Occupations Code, including any severe adverse effects
538538 due to the medical use of medical cannabis; and
539539 (4) ensures that all application records and
540540 information are sealed to protect the privacy of patients.
541541 (c) The handling of any records maintained in the registry
542542 must comply with all relevant state and federal privacy laws,
543543 including, but not limited to, Chapter 181.
544544 SECTION 3.09. Subchapter B, Chapter 487, Health and Safety
545545 Code, is amended by adding Section 487.055 to read as follows:
546546 Sec. 487.055. DESIGNATION OF CAREGIVERS. (a) The
547547 department shall develop a form for a patient listed in the registry
548548 to designate caregivers whether an individual, health care
549549 facility, or public institution. Caregivers may possess medical
550550 cannabis and medical cannabis products up to the sum of the
551551 possession limits for the patient or patients under the caregiver's
552552 care.
553553 (b) The form must require the patient to provide the full
554554 name, home address, and date of birth of the patient's caregiver or,
555555 in the case of an organization, the organization's name and
556556 address.
557557 (c) The director shall adopt rules necessary to implement
558558 this section, including rules to provide identification cards for
559559 registered caregivers.
560560 SECTION 3.10. The heading to Subchapter C, Chapter 487,
561561 Health and Safety Code, is amended to read as follows:
562562 SUBCHAPTER C. LICENSE TO OPERATE AS MEDICAL CANNABIS [DISPENSING]
563563 ORGANIZATION
564564 SECTION 3.11. Section 487.101, Health and Safety Code, is
565565 amended to read as follows:
566566 Sec. 487.101. LICENSE REQUIRED. (a) A license issued by
567567 the department under this chapter is required to operate a medical
568568 cannabis [dispensing] organization.
569569 (b) The director by rule shall adopt application and
570570 licensing requirements and privileges of each medical cannabis
571571 organization license type.
572572 (c) Medical cannabis organization license types shall
573573 include the following:
574574 (1) cultivating cannabis organization that cultivates
575575 medical cannabis for sale and distribution to other medical
576576 cannabis organizations and may process and package cannabis for
577577 individual sale so long as the cannabis is not subjected to any
578578 chemical alteration;
579579 (2) processing cannabis organization that extracts
580580 medical cannabis and manufactures, prepares, and packages medical
581581 cannabis products for sale and distribution to other medical
582582 cannabis organizations;
583583 (3) dispensing cannabis organization that sells
584584 medical cannabis and medical cannabis products to patients;
585585 (4) independent testing cannabis organizations that
586586 test medical cannabis and medical cannabis products for potency,
587587 safety, and efficacy; and
588588 (5) any other class of medical cannabis organization
589589 that the department finds warranted to safely and securely ensure
590590 reasonable statewide access of medical cannabis for medical use.
591591 SECTION 3.12. Section 487.102, Health and Safety Code, is
592592 amended to read as follows:
593593 Sec. 487.102. ELIGIBILITY FOR LICENSE. An applicant for a
594594 license to operate as a medical cannabis [dispensing] organization
595595 is eligible for the license if:
596596 (1) as determined by the department, the applicant
597597 possesses:
598598 (A) the technical and technological ability
599599 appropriate for that class of license [to cultivate and produce
600600 low-THC cannabis];
601601 (B) the ability to secure:
602602 (i) the resources and personnel necessary
603603 to operate as a medical cannabis [dispensing] organization; and
604604 (ii) for distribution or
605605 dispensing premises reasonably located to allow patients listed on
606606 the compassionate-use registry access to the organization through
607607 existing infrastructure;
608608 (C) the ability to maintain accountability for
609609 the raw materials, the finished product, and any by-products used
610610 or produced in the cultivation or production of medical [low-THC]
611611 cannabis to prevent unlawful access to or unlawful diversion or
612612 possession of those materials, products, or by-products; [and]
613613 (D) the financial ability to maintain operations
614614 for not less than two years from the date of application; and
615615 (E) any specific qualifications for licensure
616616 for each class of license the department promulgates by rule under
617617 this chapter that are demonstrably related to the operations
618618 authorized and duties imposed under that class of license to safely
619619 and securely provide medical cannabis for medical use to patients;
620620 (2) each director, manager, or employee of the
621621 applicant is registered under Subchapter D; [and]
622622 (3) the applicant satisfies any additional criteria
623623 determined by the director to be necessary to safely implement this
624624 chapter; and
625625 (4) each director, manager, employee, and any other
626626 relevant individual, as determined by department rule, passes a
627627 criminal history background check the department approves as
628628 reliable and expedient to ensure applicants comply with eligibility
629629 requirements established by the department by rule.
630630 SECTION 3.13. Subchapter C, Chapter 487, Health and Safety
631631 Code, is amended by adding Section 487.1021 to read as follows:
632632 Sec. 487.1021. ELIGIBILITY FOR LICENSE TO OPERATE AS AN
633633 INDEPENDENT CANNABIS TESTING ORGANIZATION. In addition to the
634634 criteria described by Section 487.102, an applicant for a license
635635 to operate as an independent cannabis testing organization is
636636 eligible for the license if:
637637 (1) the applicant submits proof of accreditation by an
638638 independent accreditation body in accordance with the
639639 International Organization for Standardization ISO/IEC 17025 or a
640640 comparable or successor standard;
641641 (2) the applicant submits proof that it does not share
642642 ownership interest or joint management with any medical cannabis
643643 organization whose product the applicant may test except for less
644644 than 10 percent ownership in publicly traded companies; and
645645 (3) the applicant satisfies any additional criteria
646646 determined by the director to be necessary for the operation of a
647647 cannabis testing facility.
648648 SECTION 3.14. Section 487.103(a), Health and Safety Code,
649649 is amended to read as follows:
650650 (a) A person may apply for an initial or renewal license to
651651 operate as a medical cannabis [dispensing] organization by
652652 submitting a form prescribed by the department along with the
653653 application fee in an amount set by the director for that class of
654654 license.
655655 SECTION 3.15. Section 487.104(a), Health and Safety Code,
656656 is amended to read as follows:
657657 (a) The department shall issue or renew a license to operate
658658 as a medical cannabis [dispensing] organization [only] if:
659659 (1) the department determines the applicant meets the
660660 eligibility requirements described by Section 487.102 or 487.1021,
661661 as applicable; and
662662 (2) issuance or renewal of the license would assist
663663 [is necessary to ensure] reasonable statewide access to, and the
664664 availability of, medical [low-THC] cannabis for patients
665665 registered in the compassionate-use registry and for whom medical
666666 [low-THC] cannabis is recommended [prescribed] under Chapter 169,
667667 Occupations Code.
668668 SECTION 3.16. Sections 487.105(a) and (b), Health and
669669 Safety Code, are amended to read as follows:
670670 (a) An applicant for the issuance or renewal of a license
671671 under this subchapter [to operate as a dispensing organization]
672672 shall provide the department with the applicant's name and the name
673673 of each of the applicant's directors, managers, and employees.
674674 (b) Before a medical cannabis [dispensing] organization
675675 licensee hires a manager or employee for the organization, the
676676 licensee must provide the department with the name of the
677677 prospective manager or employee. The licensee may not transfer the
678678 license to another person before that prospective applicant and the
679679 applicant's directors, managers, and employees pass a criminal
680680 history background check and any other requirements established by
681681 the department by rule, and are registered as required by
682682 Subchapter D.
683683 SECTION 3.17. Section 487.106, Health and Safety Code, is
684684 amended to read as follows:
685685 Sec. 487.106. DUTY TO MAINTAIN ELIGIBILITY. (a) Each
686686 license holder under this subchapter [A dispensing organization]
687687 must maintain compliance at all times with the eligibility
688688 requirements described by Section 487.102 or 487.1021, as
689689 applicable.
690690 (b) On request of the department, a license holder must
691691 provide to the department a reasonably sized sample suitable for
692692 testing of medical cannabis.
693693 SECTION 3.18. Section 487.107, Health and Safety Code, is
694694 amended to read as follows:
695695 Sec. 487.107. DUTIES RELATING TO DISPENSING
696696 [PRESCRIPTION]. (a) Before dispensing medical [low-THC] cannabis
697697 to a person for whom the medical [low-THC] cannabis is recommended
698698 [prescribed] under Chapter 169, Occupations Code, the medical
699699 cannabis [dispensing] organization must verify that the
700700 recommendation [prescription] presented:
701701 (1) is for a person listed as a patient in the
702702 compassionate-use registry;
703703 (2) matches the entry in the compassionate-use
704704 registry with respect to the total amount of medical [low-THC]
705705 cannabis required to fill the recommendation [prescription]; and
706706 (3) has not previously been filled by a medical
707707 cannabis [dispensing] organization as indicated by an entry in the
708708 compassionate-use registry.
709709 (b) After dispensing medical [low-THC] cannabis to a
710710 patient for whom the medical [low-THC] cannabis is recommended
711711 [prescribed] under Chapter 169, Occupations Code, the medical
712712 cannabis [dispensing] organization shall record in the
713713 compassionate-use registry the form and quantity of medical
714714 [low-THC] cannabis dispensed and the date and time of dispensation.
715715 SECTION 3.19. Sections 487.108(a), (b), and (c), Health and
716716 Safety Code, are amended to read as follows:
717717 (a) The department may at any time suspend or revoke a
718718 license issued under this subchapter [chapter] if the department
719719 determines that the license holder [licensee] has not maintained
720720 the eligibility requirements described by Section 487.102 or
721721 487.1021, as applicable, or has failed to comply with a duty imposed
722722 under this chapter.
723723 (b) The director shall give written notice to the license
724724 holder [dispensing organization] of a license suspension or
725725 revocation under this section and the grounds for the suspension or
726726 revocation. The notice must be sent by certified mail, return
727727 receipt requested.
728728 (c) After suspending or revoking a license issued under this
729729 subchapter [chapter], the director may seize or place under seal
730730 all medical [low-THC] cannabis and drug paraphernalia owned or
731731 possessed by the license holder [dispensing organization]. If the
732732 director orders the revocation of the license, a disposition may
733733 not be made of the seized or sealed medical [low-THC] cannabis or
734734 drug paraphernalia until the time for administrative appeal of the
735735 order has elapsed or until all appeals have been concluded. When a
736736 revocation order becomes final, all medical [low-THC] cannabis and
737737 drug paraphernalia may be forfeited to the state as provided under
738738 Subchapter E, Chapter 481.
739739 SECTION 3.20. Section 487.151(a), Health and Safety Code,
740740 is amended to read as follows:
741741 (a) An individual who is a director, manager, or employee of
742742 a license holder under Subchapter C [dispensing organization] must
743743 apply for and obtain a registration under this section.
744744 SECTION 3.21. Section 487.201, Health and Safety Code, is
745745 amended to read as follows:
746746 Sec. 487.201. COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT
747747 MEDICAL [LOW-THC] CANNABIS. A municipality, county, or other
748748 political subdivision may not enact, adopt, or enforce a rule,
749749 ordinance, order, resolution, or other regulation that prohibits
750750 the cultivation, production, dispensing, researching, testing, or
751751 possession of medical [low-THC] cannabis, as authorized by this
752752 chapter.
753753 ARTICLE 4. PHYSICIAN RECOMMENDATIONS OF MEDICAL CANNABIS
754754 SECTION 4.01. The heading to Chapter 169, Occupations Code,
755755 is amended to read as follows:
756756 CHAPTER 169. AUTHORITY TO RECOMMEND [PRESCRIBE] MEDICAL [LOW-THC]
757757 CANNABIS TO CERTAIN PATIENTS FOR COMPASSIONATE USE
758758 SECTION 4.02. Section 169.001, Occupations Code, is amended
759759 to read as follows:
760760 Sec. 169.001. DEFINITIONS. In this chapter:
761761 (1) "Department" means the Department of Public
762762 Safety.
763763 [(1-a) "Incurable neurodegenerative disease" means a
764764 disease designated as an incurable neurodegenerative disease by
765765 rule of the executive commissioner of the Health and Human Services
766766 Commission, adopted in consultation with the National Institutes of
767767 Health.]
768768 (2) [(3)] "Medical [Low-THC] cannabis" means the
769769 plant Cannabis sativa L., and any part of that plant or any
770770 compound, manufacture, salt, derivative, mixture, preparation,
771771 resin, or oil of that plant. The term does not include hemp as
772772 defined by Section 121.001, Agriculture Code [that contains not
773773 more than 0.5 percent by weight of tetrahydrocannabinols].
774774 (3) [(4)] "Medical use" means the administration of
775775 medical cannabis to a registered patient for treatment of an
776776 eligible medical condition or symptoms as recommended by a
777777 physician [ingestion by a means of administration other than by
778778 smoking of a prescribed amount of low-THC cannabis by a person for
779779 whom low-THC cannabis is prescribed] under this chapter.
780780 (4) "Serious adverse event" means an adverse event
781781 that:
782782 (A) results in death;
783783 (B) results in an illness requiring
784784 hospitalization;
785785 (C) is considered life-threatening; or
786786 (D) results in a persistent or significant
787787 disability, incapacity, or medically important condition.
788788 [(5) "Smoking" means burning or igniting a substance
789789 and inhaling the smoke.
790790 [(6) "Terminal cancer" means cancer that meets the
791791 criteria for a terminal illness, as defined by Section 1003.051,
792792 Health and Safety Code.]
793793 SECTION 4.03. Chapter 169, Occupations Code, is amended by
794794 adding Section 169.0012 to read as follows:
795795 Sec. 169.0012. BONA FIDE PHYSICIAN-PATIENT RELATIONSHIP.
796796 For purposes of this chapter, a bona fide physician-patient
797797 relationship exists when there is a treatment or counseling
798798 relationship between a physician and patient in which all of the
799799 following are present:
800800 (1) the physician has reviewed the patient's relevant
801801 medical records and completed a full assessment of the patient's
802802 medical history and current medical condition, including a relevant
803803 medical evaluation of the patient;
804804 (2) the physician has created and continues to
805805 maintain records of the patient's condition in accordance with
806806 medically accepted standards;
807807 (3) the physician has a reasonable expectation that
808808 the physician will provide follow-up care to the patient to monitor
809809 the efficacy of the use of medical cannabis as a treatment of the
810810 patient's medical condition; and
811811 (4) if the patient has given permission, the physician
812812 has notified the patient's primary care physician of the patient's
813813 medical condition and certification for the medical use of medical
814814 cannabis to treat that condition.
815815 SECTION 4.04. Section 169.002, Occupations Code, is amended
816816 to read as follows:
817817 Sec. 169.002. PHYSICIAN QUALIFIED TO RECOMMEND MEDICAL
818818 [PRESCRIBE LOW-THC] CANNABIS [TO PATIENTS WITH CERTAIN MEDICAL
819819 CONDITIONS]. (a) Only a physician qualified with respect to a
820820 patient's particular medical condition [as provided by this
821821 section] may recommend medical [prescribe low-THC] cannabis in
822822 accordance with this chapter to treat the applicable medical
823823 condition.
824824 (b) A physician is qualified to recommend medical
825825 [prescribe low-THC] cannabis with respect to a patient's particular
826826 medical condition if the physician:
827827 (1) is licensed under this subtitle;
828828 (2) has a bona fide physician-patient relationship
829829 with the patient [is board certified in a medical specialty
830830 relevant to the treatment of the patient's particular medical
831831 condition by a specialty board approved by the American Board of
832832 Medical Specialties or the Bureau of Osteopathic Specialists]; and
833833 (3) dedicates a significant portion of clinical
834834 practice to the evaluation and treatment of the patient's
835835 particular medical condition.
836836 SECTION 4.05. Section 169.003, Occupations Code, is amended
837837 to read as follows:
838838 Sec. 169.003. RECOMMENDATION [PRESCRIPTION] OF MEDICAL
839839 [LOW-THC] CANNABIS. A physician described by Section 169.002 may
840840 recommend medical [prescribe low-THC] cannabis to a patient if:
841841 (1) the patient is a permanent resident of the state;
842842 (2) the physician complies with the registration
843843 requirements of Section 169.004; and
844844 (3) the physician certifies to the department that:
845845 (A) there is a bona fide physician-patient
846846 relationship;
847847 (B) the patient has a diagnosis or symptoms such
848848 that, in the physician's professional judgment and review of past
849849 treatments, the patient is likely to receive therapeutic or
850850 palliative benefit from medical cannabis [is diagnosed with:
851851 [(i) epilepsy;
852852 [(ii) a seizure disorder;
853853 [(iii) multiple sclerosis;
854854 [(iv) spasticity;
855855 [(v) amyotrophic lateral sclerosis;
856856 [(vi) autism;
857857 [(vii) terminal cancer; or
858858 [(viii) an incurable neurodegenerative
859859 disease]; and
860860 (C) [(B)] the physician determines the risk of
861861 the medical use of medical [low-THC] cannabis by the patient is
862862 reasonable in light of the potential benefit for the patient.
863863 SECTION 4.06. The heading to Section 169.004, Occupations
864864 Code, is amended to read as follows:
865865 Sec. 169.004. MEDICAL [LOW-THC] CANNABIS RECOMMENDATION
866866 [PRESCRIBER] REGISTRATION.
867867 SECTION 4.07. Section 169.004(a), Occupations Code, is
868868 amended to read as follows:
869869 (a) Before a physician [qualified to prescribe low-THC
870870 cannabis under Section 169.002] may recommend [prescribe] or renew
871871 a recommendation [prescription] for medical [low-THC] cannabis for
872872 a patient under this chapter, the physician must register [as the
873873 prescriber for that patient] in the compassionate-use registry
874874 maintained by the department under Section 487.054, Health and
875875 Safety Code. The physician's registration must indicate:
876876 (1) the physician's name; and
877877 (2) for each patient:
878878 (A) the patient's name and date of birth;
879879 (B) the nature of the patient's diagnosis or
880880 symptom being treated by medical cannabis;
881881 (C) [(3)] the dosage prescribed to the patient;
882882 (D) [(4)] the means of administration ordered
883883 for the patient;
884884 (E) [and
885885 [(5)] the total amount of medical [low-THC]
886886 cannabis required to fill the patient's recommendation; and
887887 (F) any severe adverse events the patient may
888888 experience due to the medical use of medical cannabis
889889 [prescription].
890890 SECTION 4.08. Section 169.005, Occupations Code, is amended
891891 to read as follows:
892892 Sec. 169.005. PATIENT TREATMENT PLAN. A physician
893893 described by Section 169.002 who recommends medical [prescribes
894894 low-THC] cannabis for a patient's medical use under this chapter
895895 must maintain a patient treatment plan that indicates:
896896 (1) the dosage, means of administration, and planned
897897 duration of treatment for the medical [low-THC] cannabis;
898898 (2) a plan for monitoring the patient's symptoms; and
899899 (3) a plan for monitoring indicators of tolerance or
900900 reaction to medical [low-THC] cannabis.
901901 SECTION 4.09. Section 169.0011, Occupations Code, is
902902 repealed.
903903 ARTICLE 5. CONFORMING AMENDMENTS
904904 SECTION 5.01. Section 161.001(c), Family Code, is amended
905905 to read as follows:
906906 (c) A court may not make a finding under Subsection (b) and
907907 order termination of the parent-child relationship based on
908908 evidence that the parent:
909909 (1) homeschooled the child;
910910 (2) is economically disadvantaged;
911911 (3) has been charged with a nonviolent misdemeanor
912912 offense other than:
913913 (A) an offense under Title 5, Penal Code;
914914 (B) an offense under Title 6, Penal Code; or
915915 (C) an offense that involves family violence, as
916916 defined by Section 71.004 of this code;
917917 (4) provided or administered medical [low-THC]
918918 cannabis to a child for whom the medical [low-THC] cannabis was
919919 prescribed under Chapter 169, Occupations Code; or
920920 (5) declined immunization for the child for reasons of
921921 conscience, including a religious belief.
922922 SECTION 5.02. Section 262.116(a), Family Code, is amended
923923 to read as follows:
924924 (a) The Department of Family and Protective Services may not
925925 take possession of a child under this subchapter based on evidence
926926 that the parent:
927927 (1) homeschooled the child;
928928 (2) is economically disadvantaged;
929929 (3) has been charged with a nonviolent misdemeanor
930930 offense other than:
931931 (A) an offense under Title 5, Penal Code;
932932 (B) an offense under Title 6, Penal Code; or
933933 (C) an offense that involves family violence, as
934934 defined by Section 71.004 of this code;
935935 (4) provided or administered medical [low-THC]
936936 cannabis to a child for whom the medical [low-THC] cannabis was
937937 recommended [prescribed] under Chapter 169, Occupations Code; or
938938 (5) declined immunization for the child for reasons of
939939 conscience, including a religious belief.
940940 SECTION 5.03. Section 411.0891(a), Government Code, is
941941 amended to read as follows:
942942 (a) Subject to Section 411.087, the department is
943943 authorized to obtain and use criminal history record information
944944 maintained by the Federal Bureau of Investigation or the department
945945 that relates to a person who:
946946 (1) is an applicant for or holds a registration issued
947947 by the director under Subchapter C, Chapter 481, Health and Safety
948948 Code, that authorizes the person to manufacture, distribute,
949949 analyze, or conduct research with a controlled substance;
950950 (2) is an applicant for or holds a registration issued
951951 by the department under Chapter 487, Health and Safety Code, to be a
952952 director, manager, or employee of a medical cannabis [dispensing]
953953 organization, as defined by Section 487.001, Health and Safety
954954 Code;
955955 (3) is an applicant for or holds an authorization
956956 issued by the department under Section 521.2476, Transportation
957957 Code, to do business in this state as a vendor of ignition interlock
958958 devices;
959959 (4) is an applicant for or holds certification by the
960960 department as an inspection station or an inspector under
961961 Subchapter G, Chapter 548, Transportation Code, holds an inspection
962962 station or inspector certificate issued under that subchapter, or
963963 is the owner of an inspection station operating under that chapter;
964964 or
965965 (5) is an applicant for or holds a certificate of
966966 registration issued by the department under Chapter 1956,
967967 Occupations Code, to act as a metal recycling entity.
968968 SECTION 5.04. Section 443.202(a), Health and Safety Code,
969969 is amended to read as follows:
970970 (a) This section does not apply to medical [low-THC]
971971 cannabis regulated under Chapter 487.
972972 SECTION 5.05. Section 443.2025(a), Health and Safety Code,
973973 is amended to read as follows:
974974 (a) This section does not apply to medical [low-THC]
975975 cannabis regulated under Chapter 487.
976976 SECTION 5.06. Section 481.062(a), Health and Safety Code,
977977 is amended to read as follows:
978978 (a) The following persons may possess a controlled
979979 substance under this chapter without registering with the Federal
980980 Drug Enforcement Administration:
981981 (1) an agent or employee of a manufacturer,
982982 distributor, analyzer, or dispenser of the controlled substance who
983983 is registered with the Federal Drug Enforcement Administration and
984984 acting in the usual course of business or employment;
985985 (2) a common or contract carrier, a warehouseman, or
986986 an employee of a carrier or warehouseman whose possession of the
987987 controlled substance is in the usual course of business or
988988 employment;
989989 (3) an ultimate user or a person in possession of the
990990 controlled substance under a lawful order of a practitioner or in
991991 lawful possession of the controlled substance if it is listed in
992992 Schedule V;
993993 (4) an officer or employee of this state, another
994994 state, a political subdivision of this state or another state, or
995995 the United States who is lawfully engaged in the enforcement of a
996996 law relating to a controlled substance or drug or to a customs law
997997 and authorized to possess the controlled substance in the discharge
998998 of the person's official duties;
999999 (5) if the substance is tetrahydrocannabinol or one of
10001000 its derivatives:
10011001 (A) a Department of State Health Services
10021002 official, a medical school researcher, or a research program
10031003 participant possessing the substance as authorized under
10041004 Subchapter G; or
10051005 (B) a practitioner or an ultimate user possessing
10061006 the substance as a participant in a federally approved therapeutic
10071007 research program that the commissioner has reviewed and found, in
10081008 writing, to contain a medically responsible research protocol; or
10091009 (6) a medical cannabis [dispensing] organization
10101010 licensed under Subchapter C, Chapter 487, or a medical cannabis
10111011 research organization licensed under Chapter 444, that possesses
10121012 medical [low-THC] cannabis.
10131013 SECTION 5.07. Sections 481.111(e) and (f), Health and
10141014 Safety Code, are amended to read as follows:
10151015 (e) Sections 481.120, 481.121, 481.122, and 481.125 do not
10161016 apply to a person who engages in the acquisition, possession,
10171017 production, cultivation, delivery, or disposal of a raw material
10181018 used in or by-product created by the production or cultivation of
10191019 medical [low-THC] cannabis if the person:
10201020 (1) for an offense involving possession only of
10211021 marihuana or drug paraphernalia:
10221022 (A) [,] is a patient for whom medical [low-THC]
10231023 cannabis is prescribed under Chapter 169, Occupations Code, or the
10241024 patient's legal guardian or caregiver; [,] and
10251025 (B) [the person] possesses medical [low-THC]
10261026 cannabis obtained under a valid recommendation [prescription] from
10271027 a medical cannabis [dispensing] organization; or
10281028 (2) is a director, manager, or employee of a medical
10291029 cannabis [dispensing] organization and the person, solely in
10301030 performing the person's regular duties at the organization,
10311031 acquires, possesses, produces, cultivates, dispenses, or disposes
10321032 of:
10331033 (A) in reasonable quantities, any medical
10341034 [low-THC] cannabis or raw materials used in or by-products created
10351035 by the production or cultivation of medical [low-THC] cannabis; or
10361036 (B) any drug paraphernalia used in the
10371037 acquisition, possession, production, cultivation, delivery, or
10381038 disposal of medical [low-THC] cannabis.
10391039 (f) For purposes of Subsection (e):
10401040 (1) ["Dispensing organization" has the meaning
10411041 assigned by Section 487.001.
10421042 [(2)] "Medical [Low-THC] cannabis" has the meaning
10431043 assigned by Section 169.001, Occupations Code.
10441044 (2) "Medical cannabis organization" has the meaning
10451045 assigned by Section 487.001.
10461046 (3) "Medical use" has the meaning assigned by Section
10471047 169.001, Occupations Code.
10481048 SECTION 5.08. Section 551.004(a), Occupations Code, is
10491049 amended to read as follows:
10501050 (a) This subtitle does not apply to:
10511051 (1) a practitioner licensed by the appropriate state
10521052 board who supplies a patient of the practitioner with a drug in a
10531053 manner authorized by state or federal law and who does not operate a
10541054 pharmacy for the retailing of prescription drugs;
10551055 (2) a member of the faculty of a college of pharmacy
10561056 recognized by the board who is a pharmacist and who performs the
10571057 pharmacist's services only for the benefit of the college;
10581058 (3) a person who procures prescription drugs for
10591059 lawful research, teaching, or testing and not for resale;
10601060 (4) a home and community support services agency that
10611061 possesses a dangerous drug as authorized by Section 142.0061,
10621062 142.0062, or 142.0063, Health and Safety Code; [or]
10631063 (5) a medical cannabis [dispensing] organization, as
10641064 defined by Section 487.001, Health and Safety Code, that
10651065 cultivates, processes, tests, and dispenses medical [low-THC]
10661066 cannabis, as authorized by a license issued under Subchapter C,
10671067 Chapter 487, Health and Safety Code, to a patient listed in the
10681068 compassionate-use registry established under that chapter; or
10691069 (6) a medical cannabis research organization licensed
10701070 under Chapter 444, Health and Safety Code, that cultivates,
10711071 processes, researches, tests, and dispenses medical cannabis as
10721072 authorized by the license.
10731073 ARTICLE 6. TRANSITIONS AND EFFECTIVE DATE
10741074 SECTION 6.01. Not later than December 31, 2021, the
10751075 Department of Public Safety and the executive commissioner of the
10761076 Health and Human Services Commission shall adopt rules as required
10771077 to implement, administer, and enforce this Act.
10781078 SECTION 6.02. (a) A license to operate as a dispensing
10791079 organization issued under Chapter 487, Health and Safety Code,
10801080 before the effective date of this Act continues to be valid after
10811081 the effective date of this Act until that license expires.
10821082 (b) The registration of a director, manager, or employee of
10831083 a dispensing organization under Subchapter D, Chapter 487, Health
10841084 and Safety Code, continues to be valid after the effective date of
10851085 this Act until that registration expires.
10861086 SECTION 6.03. (a) Not later than April 1, 2022, the
10871087 Department of Public Safety shall license cannabis cultivation
10881088 organizations in accordance with Subchapter C, Chapter 487, Health
10891089 and Safety Code, as amended by this Act, provided that the
10901090 applicants for a license have met all requirements for approval
10911091 under that subchapter.
10921092 (b) Not later than June 1, 2022, the Department of Public
10931093 Safety shall license other classes of medical cannabis
10941094 organizations in accordance with Subchapter C, Chapter 487, Health
10951095 and Safety Code, as amended by this Act, provided that the
10961096 applicants for a license have met all requirements for approval
10971097 under that subchapter.
10981098 (c) The governor shall appoint members to the medical
10991099 cannabis research advisory board as required under Chapter 444,
11001100 Health and Safety Code, as added by this Act, as soon as practicable
11011101 and not later than September 1, 2021.
11021102 SECTION 6.04. This Act takes effect September 1, 2021.