Texas 2021 - 87th Regular

Texas Senate Bill SB269 Compare Versions

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

Old	New	Differences
1	1	87R1282 GCB/CJC-D
2	2	By: West S.B. No. 269
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 and
10	10	the allocation of tax revenue derived from cannabis and cannabis
11	11	products; authorizing the imposition of fees; requiring an
12	12	occupational license; creating a criminal offense.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. This Act may be cited as the Texas Regulation of
15	15	Cannabis Act.
16	16	SECTION 2. Subtitle C, Title 6, Health and Safety Code, is
17	17	amended by adding Chapter 491 to read as follows:
18	18	CHAPTER 491. REGULATION OF CANNABIS
19	19	SUBCHAPTER A. GENERAL PROVISIONS
20	20	Sec. 491.0001. DEFINITIONS. In this chapter:
21	21	(1) "Adult" means an individual 21 years of age or
22	22	older.
23	23	(2) "Cannabis" means the plant Cannabis sativa L.,
24	24	whether growing or not, the seeds of that plant, and every compound,
25	25	manufacture, salt, derivative, mixture, or preparation of that
26	26	plant or its seeds. The term includes cannabis concentrate. The
27	27	term does not include:
28	28	(A) the mature stalks of the plant or fiber
29	29	produced from the stalks;
30	30	(B) oil or cake made from the seeds of the plant;
31	31	(C) a compound, manufacture, salt, derivative,
32	32	mixture, or preparation of the mature stalks, fiber, oil, or cake;
33	33	or
34	34	(D) the sterilized seeds of the plant that are
35	35	incapable of beginning germination.
36	36	(3) "Cannabis concentrate" means the resin extracted
37	37	from a part of the plant Cannabis sativa L. or a compound,
38	38	manufacture, salt, derivative, mixture, or preparation of the
39	39	resin.
40	40	(4) "Cannabis establishment" means an entity licensed
41	41	by the department under this chapter to process and dispense
42	42	cannabis and cannabis products to an adult.
43	43	(5) "Cannabis grower" means an entity licensed by the
44	44	department to cultivate cannabis for sale and distribution to a
45	45	cannabis establishment.
46	46	(6) "Cannabis product" means a product that contains
47	47	cannabis and is intended for use or consumption by humans,
48	48	including as an edible product or as a topical product, ointment,
49	49	oil, or tincture. The term includes products that consist of
50	50	cannabis and other ingredients.
51	51	(7) "Cannabis-related drug paraphernalia" means
52	52	equipment, a product, or material that is used or intended for use
53	53	in:
54	54	(A) planting, propagating, cultivating, growing,
55	55	harvesting, manufacturing, compounding, converting, producing,
56	56	processing, preparing, testing, analyzing, packaging, repackaging,
57	57	storing, or containing cannabis or a cannabis product; or
58	58	(B) introducing cannabis or a cannabis product
59	59	into the human body.
60	60	(8) "Cannabis secure transporter" means an entity
61	61	licensed by the department under this chapter to transport cannabis
62	62	from a cannabis grower to a cannabis establishment.
63	63	(9) "Cannabis testing facility" means an entity
64	64	licensed by the department under this chapter to analyze the safety
65	65	and potency of cannabis and cannabis products.
66	66	(10) "Commission" means the Texas Commission of
67	67	Licensing and Regulation.
68	68	(11) "Cultivate" means to propagate, breed, grow,
69	69	harvest, dry, cure, or separate parts of the cannabis plant by
70	70	manual or mechanical means.
71	71	(12) "Department" means the Texas Department of
72	72	Licensing and Regulation.
73	73	(13) "Executive director" means the executive
74	74	director of the department.
75	75	(14) "Marihuana" has the meaning assigned by Section
76	76	481.002.
77	77	(15) "Process" means to separate or otherwise prepare
78	78	parts of the cannabis plant and to compound, blend, extract,
79	79	infuse, or otherwise make or prepare cannabis concentrate or
80	80	cannabis products.
81	81	SUBCHAPTER B. PROTECTIONS FROM LEGAL ACTION RELATED TO CANNABIS
82	82	Sec. 491.0051. AUTHORIZED CONDUCT: PERSONAL USE OF
83	83	CANNABIS. An adult is authorized under this chapter to:
84	84	(1) use, possess, and transport not more than 2.5
85	85	ounces of cannabis, except that not more than 15 grams of that
86	86	amount may be in the form of cannabis concentrate;
87	87	(2) transfer without remuneration to another adult not
88	88	more than 2.5 ounces of cannabis, except that not more than 15 grams
89	89	of that amount may be in the form of cannabis concentrate and
90	90	provided that the transfer is not advertised or promoted to the
91	91	public;
92	92	(3) cultivate for personal use not more than 12
93	93	cannabis plants in an area on the premises of the adult's private
94	94	residence, provided that the cultivation occurs in an enclosed area
95	95	that is:
96	96	(A) equipped with locks or other security devices
97	97	that restrict access to the area; and
98	98	(B) not visible from a public place without the
99	99	use of aircraft or optical aids;
100	100	(4) possess, store, or process on the premises of the
101	101	adult's private residence not more than:
102	102	(A) the amount of cannabis produced from cannabis
103	103	plants cultivated on the premises, provided that:
104	104	(i) not more than 12 cannabis plants are
105	105	possessed, cultivated, or processed on the premises at one time;
106	106	and
107	107	(ii) any amount of cannabis in excess of 2.5
108	108	ounces is stored in a container or area equipped with locks or other
109	109	security devices that restrict access to the contents of the
110	110	container or area; and
111	111	(B) 10 ounces of cannabis that were not produced
112	112	from cannabis plants cultivated on the premises, provided that the
113	113	amount in excess of 2.5 ounces is stored in a container or area
114	114	described by Paragraph (A)(ii);
115	115	(5) use, possess, process, transport, or transfer to
116	116	another adult without remuneration an amount of cannabis products
117	117	specified by rule of the commission as the allowable amount of
118	118	cannabis for purposes of this subdivision; and
119	119	(6) use, possess, transport, or transfer to another
120	120	adult without remuneration cannabis-related drug paraphernalia.
121	121	Sec. 491.0052. AUTHORIZED CONDUCT: RETAIL CANNABIS
122	122	OPERATIONS. This chapter authorizes the conduct of:
123	123	(1) a cannabis grower director, manager, or employee
124	124	who, acting within the scope of the grower's license:
125	125	(A) cultivates cannabis or produces cannabis
126	126	products for sale or transfer to a cannabis establishment; and
127	127	(B) possesses cannabis or cannabis-related drug
128	128	paraphernalia;
129	129	(2) a cannabis establishment director, manager, or
130	130	employee who, acting within the scope of the establishment's
131	131	license, possesses cannabis or cannabis products or transfers or
132	132	sells cannabis, cannabis products, or cannabis-related drug
133	133	paraphernalia to an adult;
134	134	(3) a cannabis secure transporter director, manager,
135	135	or employee who, acting within the scope of the secure
136	136	transporter's license, transports, transfers, or delivers cannabis
137	137	or cannabis products from a cannabis grower to a cannabis
138	138	establishment; and
139	139	(4) a cannabis testing facility director, manager, or
140	140	employee who, acting within the scope of the facility's license,
141	141	possesses or tests cannabis, cannabis products, or
142	142	cannabis-related drug paraphernalia.
143	143	Sec. 491.0053. PROTECTION FROM LEGAL ACTION FOR AUTHORIZED
144	144	CONDUCT. (a) A person is not subject to arrest, prosecution,
145	145	forfeiture of property, or penalty in any manner or denial of any
146	146	right or privilege, including any civil penalty or disciplinary
147	147	action by a court or occupational or professional licensing board
148	148	or bureau solely due to conduct authorized under Section 491.0051
149	149	or 491.0052.
150	150	(b) The fact that a person engages in conduct authorized by
151	151	Section 491.0051 or 491.0052 does not in itself constitute grounds
152	152	for denying, limiting, or restricting conservatorship or
153	153	possession of or access to a child under Title 5, Family Code.
154	154	Sec. 491.0054. PROHIBITION OF CANNABIS ON PRIVATE PROPERTY;
155	155	EXCEPTION. (a) Except as otherwise provided by Subsection (b), a
156	156	person may prohibit or restrict the possession, consumption,
157	157	cultivation, distribution, processing, sale, or display of
158	158	cannabis or cannabis products on property the person owns,
159	159	occupies, or manages.
160	160	(b) A person may not prohibit a residential tenant under a
161	161	lease agreement from possessing cannabis, cannabis products, or
162	162	cannabis-related drug paraphernalia or consuming cannabis by means
163	163	other than smoking on the premises.
164	164	Sec. 491.0055. CONDUCT NOT AUTHORIZED UNDER THIS CHAPTER.
165	165	This chapter does not authorize the following conduct:
166	166	(1) operating a motor vehicle while intoxicated or
167	167	otherwise violating Chapter 49, Penal Code;
168	168	(2) smoking or otherwise consuming cannabis in:
169	169	(A) a motor vehicle while the vehicle is on a
170	170	public road;
171	171	(B) an aircraft, while the aircraft is in flight
172	172	or in a public area;
173	173	(C) a watercraft, while the watercraft is on a
174	174	public waterway; or
175	175	(D) a public place, unless:
176	176	(i) the public place is an area designated
177	177	by the applicable political subdivision as an area where using
178	178	cannabis is permissible; and
179	179	(ii) the area described by Subparagraph (i)
180	180	is not accessible to persons younger than 21 years of age;
181	181	(3) possessing or consuming cannabis or cannabis
182	182	products or possessing cannabis-related drug paraphernalia:
183	183	(A) on the premises of a public or private
184	184	child-care facility, prekindergarten, or primary or secondary
185	185	school;
186	186	(B) on a school bus that serves a facility or
187	187	school described by Paragraph (A); or
188	188	(C) on the premises of a correctional facility,
189	189	as defined by Article 18A.251, Code of Criminal Procedure, or a
190	190	civil commitment facility; or
191	191	(4) separating resin from the cannabis plant by butane
192	192	extraction or another method that uses a substance with a
193	193	flashpoint below 100 degrees Fahrenheit in a public place or motor
194	194	vehicle or within the curtilage of a residential structure.
195	195	SUBCHAPTER C. DUTIES OF DEPARTMENT
196	196	Sec. 491.0101. DUTIES OF DEPARTMENT. The department shall
197	197	administer this chapter.
198	198	Sec. 491.0102. RULES; FEES. (a) The commission shall adopt
199	199	all necessary rules for the administration and enforcement of this
200	200	chapter, including rules imposing fees under this chapter in
201	201	amounts sufficient to cover the cost of administering this chapter.
202	202	(b) The commission by rule shall set application and license
203	203	fees under this chapter in amounts sufficient to administer this
204	204	chapter and may annually adjust the fees for inflation.
205	205	(c) A fee collected under this chapter shall be deposited to
206	206	the credit of the cannabis regulation account established under
207	207	Section 491.0251.
208	208	(d) The commission shall adopt rules for the reasonable
209	209	regulation of cannabis growers and cannabis establishments,
210	210	including rules that:
211	211	(1) restrict the use of dangerous pesticides;
212	212	(2) regulate the packaging and labeling of cannabis
213	213	products available at a cannabis establishment;
214	214	(3) restrict advertising and display of cannabis and
215	215	cannabis products;
216	216	(4) restrict the maximum amount of
217	217	tetrahydrocannabinol that may be contained in a cannabis product
218	218	sold to a consumer;
219	219	(5) require recordkeeping and monitoring to track the
220	220	transfer of cannabis and cannabis products between license holders;
221	221	and
222	222	(6) require security measures, provided that the
223	223	security measures do not restrict the cultivation of cannabis
224	224	outdoors or in greenhouses.
225	225	Sec. 491.0103. TESTING, PACKAGING, AND LABELING STANDARDS.
226	226	(a) The commission by rule shall establish standards for:
227	227	(1) the operation of cannabis testing facilities;
228	228	(2) the testing of cannabis and cannabis products; and
229	229	(3) packaging and labeling requirements for cannabis
230	230	and cannabis products.
231	231	(b) In establishing standards for packaging and labeling
232	232	requirements under Subsection (a)(3), the commission shall require
233	233	that:
234	234	(1) cannabis and cannabis products be packaged in
235	235	opaque, resealable, child-resistant packaging that does not
236	236	resemble and may not be easily confused with typical packaging for
237	237	commercially sold candy;
238	238	(2) cannabis and cannabis products be clearly labeled;
239	239	and
240	240	(3) the label for a cannabis product disclose the
241	241	amount of cannabis contained in that product.
242	242	Sec. 491.0104. SECURE TRANSPORTATION OF CANNABIS. The
243	243	commission by rule shall establish standards applicable to cannabis
244	244	secure transporters, including standards to ensure all cannabis
245	245	establishments are properly served.
246	246	Sec. 491.0105. CONFLICT OF INTEREST. (a) A person who is
247	247	involved in the implementation, administration, or enforcement of
248	248	this chapter as a member of the commission, an employee of the
249	249	department, or a consultant to the commission or the department may
250	250	not also hold a pecuniary interest in any entity licensed by the
251	251	department under this chapter.
252	252	(b) A person who holds a pecuniary interest in a cannabis
253	253	testing facility or a cannabis secure transporter who holds a
254	254	license issued under this chapter may not hold a pecuniary interest
255	255	in any entity that holds a cannabis establishment or cannabis
256	256	grower license issued under this chapter.
257	257	(c) A person may not hold a pecuniary interest in more than
258	258	five entities that are licensed under this chapter as a cannabis
259	259	grower, except as provided by department rule.
260	260	Sec. 491.0106. ANNUAL REPORT. The executive director shall
261	261	annually submit to the governor a report providing the following
262	262	information regarding licensing and regulation under this chapter:
263	263	(1) the number of applications received for each class
264	264	of license under this chapter;
265	265	(2) the number of licenses issued for each class of
266	266	license under this chapter;
267	267	(3) demographic information pertaining to license
268	268	holders;
269	269	(4) a description of any fines imposed on a license
270	270	holder or disciplinary actions taken against a license holder by
271	271	the department; and
272	272	(5) a statement of revenues and expenses of the
273	273	department related to the implementation, administration, and
274	274	enforcement of this chapter.
275	275	SUBCHAPTER D. LICENSING
276	276	Sec. 491.0151. LICENSE REQUIRED. A person must hold a
277	277	license issued by the department under this chapter to operate as a
278	278	cannabis grower, cannabis establishment, cannabis secure
279	279	transporter, or cannabis testing facility.
280	280	Sec. 491.0152. QUALIFICATIONS FOR LICENSURE. The
281	281	commission by rule shall provide for each class of license issued
282	282	under this chapter qualifications for licensure that are
283	283	demonstrably related to the operations authorized and duties
284	284	imposed under that class of license.
285	285	Sec. 491.0153. APPLICATION. (a) A person may apply for an
286	286	initial or renewal license under this chapter by submitting a form
287	287	prescribed by the department along with the application fee in an
288	288	amount set by the commission.
289	289	(b) The application must indicate the class of license
290	290	sought and include the name and address of the applicant, the name
291	291	and address of each of the applicant's directors, managers, and
292	292	employees, and any other information considered necessary by the
293	293	department to determine the applicant's eligibility for the
294	294	license.
295	295	Sec. 491.0154. ISSUANCE, RENEWAL, OR DENIAL OF LICENSE.
296	296	(a) The department shall issue or renew a license under this
297	297	chapter only if:
298	298	(1) the department determines the applicant meets the
299	299	qualifications for the class of license sought established under
300	300	Section 491.0152; and
301	301	(2) the applicant is in compliance with any applicable
302	302	local regulations.
303	303	(b) If the department denies the issuance or renewal of a
304	304	license under Subsection (a), the department shall give written
305	305	notice of the grounds for denial to the applicant.
306	306	(c) A license issued or renewed under this section expires
307	307	as determined by the department in accordance with Section 411.511,
308	308	Government Code.
309	309	Sec. 491.0155. DUTY TO MAINTAIN QUALIFICATIONS. A license
310	310	holder shall maintain compliance at all times with the
311	311	qualifications for the applicable class of license established
312	312	under Section 491.0152.
313	313	Sec. 491.0156. LICENSE SUSPENSION OR REVOCATION. (a) The
314	314	department may at any time suspend or revoke a license issued under
315	315	this chapter if the department determines that the license holder
316	316	has not maintained the qualifications established under Section
317	317	491.0152 or has failed to comply with a duty imposed under this
318	318	chapter.
319	319	(b) The department shall give written notice to a license
320	320	holder of a license suspension or revocation under this section and
321	321	the grounds for the suspension or revocation. The notice must be
322	322	sent by certified mail, return receipt requested.
323	323	(c) After suspending or revoking a license issued under this
324	324	chapter, the department shall notify the Department of Public
325	325	Safety. The public safety director of the Department of Public
326	326	Safety may seize or place under seal all cannabis, cannabis
327	327	products, and cannabis-related drug paraphernalia owned or
328	328	possessed by the license holder. If the license is revoked, a
329	329	disposition may not be made of the seized or sealed cannabis,
330	330	cannabis products, or drug paraphernalia until the time for
331	331	administrative appeal of the order has elapsed or until all appeals
332	332	have been concluded. When a revocation order becomes final, all
333	333	cannabis, cannabis products, and drug paraphernalia may be
334	334	forfeited to the state as provided under Subchapter E, Chapter 481.
335	335	(d) Chapter 2001, Government Code, applies to a proceeding
336	336	under this section.
337	337	Sec. 491.0157. CRIMINAL HISTORY BACKGROUND CHECK. (a) In
338	338	addition to satisfying the other requirements provided by
339	339	commission rule under this chapter, an applicant for a license
340	340	under this chapter must submit to the department a complete and
341	341	legible set of fingerprints, on a form prescribed by the
342	342	commission, for the purpose of obtaining criminal history record
343	343	information from the Department of Public Safety and the Federal
344	344	Bureau of Investigation.
345	345	(b) The department may deny a license to an applicant who
346	346	does not comply with the requirement of Subsection (a). Issuance of
347	347	a license by the department is conditioned on the department
348	348	obtaining the applicant's criminal history record information
349	349	under this section.
350	350	(c) The commission by rule shall establish criteria for
351	351	determining whether a person passes the criminal history background
352	352	check for purposes of this section. The rules adopted under this
353	353	section may not disqualify a person for licensure solely for a
354	354	conviction of an offense that involves the possession of marihuana
355	355	or the delivery of marihuana to a person 18 years of age or older.
356	356	SUBCHAPTER E. DUTIES OF LICENSE HOLDERS
357	357	Sec. 491.0201. DUTIES RELATING TO DISPENSING CANNABIS OR
358	358	CANNABIS PRODUCTS. Before dispensing cannabis or cannabis products
359	359	to an adult, a cannabis establishment must make reasonable efforts
360	360	to verify that:
361	361	(1) the person receiving the cannabis or cannabis
362	362	product is an adult;
363	363	(2) the cannabis or cannabis product complies with
364	364	department testing and labeling rules; and
365	365	(3) the amount dispensed is not greater than the
366	366	amount of cannabis or cannabis product allowed for personal use as
367	367	provided by Section 491.0051.
368	368	Sec. 491.0202. DUTIES RELATING TO SECURITY. (a) A license
369	369	holder shall ensure that the cultivation, processing, sale, or
370	370	display of cannabis, cannabis products, and cannabis-related drug
371	371	paraphernalia is not visible from a public place without the use of
372	372	optical aids or aircraft.
373	373	(b) A license holder may not cultivate, process, store, or
374	374	sell cannabis, cannabis products, or cannabis-related drug
375	375	paraphernalia at a location other than the physical address
376	376	approved by the department for the establishment under the license
377	377	issued to the establishment under this chapter.
378	378	(c) A license holder shall adopt reasonable security
379	379	measures necessary to restrict access to areas where cannabis,
380	380	cannabis products, or cannabis-related drug paraphernalia are
381	381	stored and to prevent theft of cannabis, cannabis products, and
382	382	cannabis-related drug paraphernalia.
383	383	Sec. 491.0203. LICENSE HOLDER OPERATIONS. (a) A license
384	384	holder may not employ or otherwise accept the services of a person
385	385	younger than 21 years of age.
386	386	(b) A cannabis establishment may not sell tobacco products,
387	387	as defined by Section 155.001, Tax Code.
388	388	Sec. 491.0204. MONTHLY SALES REPORT. A cannabis
389	389	establishment shall monthly submit a report to the comptroller
390	390	specifying the amount of cannabis sold, the number of cannabis
391	391	products sold, the number and types of cannabis-related drug
392	392	paraphernalia sold, and the amount of money collected in sales by
393	393	the establishment during the preceding month.
394	394	SUBCHAPTER F. FUNDING FOR REGULATION, TESTING, AND QUALITY CONTROL
395	395	Sec. 491.0251. CANNABIS REGULATION ACCOUNT. (a) The
396	396	cannabis regulation account is an account in the general revenue
397	397	fund administered by the department.
398	398	(b) The account consists of:
399	399	(1) money deposited to the credit of the account under
400	400	Section 151.801, Tax Code; and
401	401	(2) fees deposited to the credit of the account under
402	402	Section 491.0102.
403	403	(c) Money in the account may be appropriated only to the
404	404	department for implementing and administering this chapter.
405	405	Sec. 491.0252. CANNABIS TESTING AND QUALITY CONTROL
406	406	ACCOUNT. (a) The cannabis testing and quality control account is
407	407	an account in the general revenue fund administered by the
408	408	Department of Public Safety.
409	409	(b) The account consists of money deposited to the credit of
410	410	the account under Section 151.801, Tax Code.
411	411	(c) Money in the account may be appropriated only to the
412	412	Department of Public Safety for monitoring compliance with testing
413	413	and quality control requirements imposed on license holders by this
414	414	chapter or by commission rules adopted under this chapter.
415	415	SUBCHAPTER G. LOCAL REGULATION
416	416	Sec. 491.0301. PROHIBITED LOCAL REGULATION. A political
417	417	subdivision of this state may not enact, adopt, or enforce a rule,
418	418	ordinance, order, resolution, or other regulation that prohibits or
419	419	unreasonably restricts the cultivation, production, processing,
420	420	dispensing, transportation, or possession of cannabis or cannabis
421	421	products or the operation of a cannabis grower, cannabis
422	422	establishment, cannabis secure transporter, or cannabis testing
423	423	facility as authorized by this chapter.
424	424	Sec. 491.0302. PERMISSIBLE LOCAL REGULATION. A political
425	425	subdivision may adopt regulations consistent with this chapter
426	426	governing the hours of operation, location, manner of conducting
427	427	business, and number of cannabis growers, cannabis establishments,
428	428	or cannabis testing facilities.
429	429	SUBCHAPTER H. SALE OR DISTRIBUTION OF CANNABIS OR CANNABIS PRODUCT
430	430	TO MINORS PROHIBITED
431	431	Sec. 491.0351. DEFINITION. In this subchapter, "minor"
432	432	means a person younger than 21 years of age.
433	433	Sec. 491.0352. SALE OR DISTRIBUTION OF CANNABIS OR CANNABIS
434	434	PRODUCT TO MINORS PROHIBITED; PROOF OF AGE REQUIRED. (a) A person
435	435	commits an offense if the person, under the authority of this
436	436	chapter:
437	437	(1) sells, gives, or causes to be sold or given
438	438	cannabis or cannabis products to a minor; or
439	439	(2) sells, gives, or causes to be sold or given
440	440	cannabis or cannabis products to another person who intends to
441	441	deliver the cannabis or cannabis products to a minor.
442	442	(b) If an offense under this section occurs in connection
443	443	with a sale by an employee of the owner of a cannabis establishment,
444	444	the employee is criminally responsible for the offense and is
445	445	subject to prosecution.
446	446	(c) An offense under this section is a Class C misdemeanor.
447	447	(d) It is a defense to prosecution under Subsection (a)(1)
448	448	that the person to whom the cannabis or cannabis products were sold
449	449	or given presented to the defendant apparently valid proof of
450	450	identification.
451	451	(e) A proof of identification satisfies the requirements of
452	452	Subsection (d) if it contains a physical description and photograph
453	453	consistent with the person's appearance, purports to establish that
454	454	the person is 21 years of age or older, and was issued by a
455	455	governmental agency. The proof of identification may include a
456	456	driver's license issued by this state or another state, a passport,
457	457	or an identification card issued by a state or the federal
458	458	government.
459	459	SECTION 3. Section 122.103(c), Agriculture Code, is amended
460	460	to read as follows:
461	461	(c) A qualified applicant who along with the application
462	462	submits proof to the department that the applicant holds a license
463	463	under Chapter 487 or 491, Health and Safety Code, is not required to
464	464	pay an application fee, and the department shall issue the license
465	465	to the applicant within the time prescribed by Subsection (b).
466	466	SECTION 4. Subchapter F, Chapter 48, Education Code, is
467	467	amended by adding Section 48.280 to read as follows:
468	468	Sec. 48.280. PUBLIC SCHOOL TEACHER SALARY SUPPORT ACCOUNT.
469	469	(a) The public school teacher salary support account is an account
470	470	in the general revenue fund administered by the agency.
471	471	(b) The account consists of money deposited to the account
472	472	under Section 151.801, Tax Code.
473	473	(c) Money in the account may be appropriated only to the
474	474	agency for the purpose of increasing public school teacher
475	475	compensation.
476	476	SECTION 5. Section 411.0891(a), Government Code, is amended
477	477	to read as follows:
478	478	(a) Subject to Section 411.087, the department is
479	479	authorized to obtain and use criminal history record information
480	480	maintained by the Federal Bureau of Investigation or the department
481	481	that relates to a person who:
482	482	(1) is an applicant for or holds a registration issued
483	483	by the director under Subchapter C, Chapter 481, Health and Safety
484	484	Code, that authorizes the person to manufacture, distribute,
485	485	analyze, or conduct research with a controlled substance;
486	486	(2) is an applicant for or holds a registration issued
487	487	by the department under Chapter 487, Health and Safety Code, to be a
488	488	director, manager, or employee of a dispensing organization, as
489	489	defined by Section 487.001, Health and Safety Code;
490	490	(2-a) is an applicant for or holds a license issued by
491	491	the department under Chapter 491, Health and Safety Code, to be a
492	492	cannabis grower, cannabis establishment, cannabis secure
493	493	transporter, or cannabis testing facility, as defined by Section
494	494	491.0001, Health and Safety Code;
495	495	(3) is an applicant for or holds an authorization
496	496	issued by the department under Section 521.2476, Transportation
497	497	Code, to do business in this state as a vendor of ignition interlock
498	498	devices;
499	499	(4) is an applicant for or holds certification by the
500	500	department as an inspection station or an inspector under
501	501	Subchapter G, Chapter 548, Transportation Code, holds an inspection
502	502	station or inspector certificate issued under that subchapter, or
503	503	is the owner of an inspection station operating under that chapter;
504	504	or
505	505	(5) is an applicant for or holds a certificate of
506	506	registration issued by the department under Chapter 1956,
507	507	Occupations Code, to act as a metal recycling entity.
508	508	SECTION 6. Section 411.502, Government Code, is amended to
509	509	read as follows:
510	510	Sec. 411.502. APPLICABILITY. This subchapter applies to a
511	511	program, and persons regulated under the program, administered by
512	512	the department under the following laws, including rules adopted
513	513	under those laws:
514	514	(1) Section 411.0625;
515	515	(2) Chapter 487, Health and Safety Code;
516	516	(2-a) Chapter 491, Health and Safety Code;
517	517	(3) Chapter 1702, Occupations Code;
518	518	(4) Chapter 1956, Occupations Code;
519	519	(5) Section 521.2476, Transportation Code; and
520	520	(6) Subchapter G, Chapter 548, Transportation Code.
521	521	SECTION 7. Section 443.202(a), Health and Safety Code, is
522	522	amended to read as follows:
523	523	(a) This section does not apply to low-THC cannabis
524	524	regulated under Chapter 487 or cannabis regulated under Chapter
525	525	491.
526	526	SECTION 8. Section 443.2025(a), Health and Safety Code, is
527	527	amended to read as follows:
528	528	(a) This section does not apply to low-THC cannabis
529	529	regulated under Chapter 487 or cannabis regulated under Chapter
530	530	491.
531	531	SECTION 9. Section 481.062, Health and Safety Code, is
532	532	amended to read as follows:
533	533	Sec. 481.062. EXEMPTIONS. (a) The following persons are
534	534	not required to register and may possess a controlled substance
535	535	under this chapter [without registering with the Federal Drug
536	536	Enforcement Administration]:
537	537	(1) an agent or employee of a registered manufacturer,
538	538	distributor, analyzer, or dispenser of the controlled substance
539	539	[who is registered with the Federal Drug Enforcement Administration
540	540	and] acting in the usual course of business or employment;
541	541	(2) a common or contract carrier, a warehouseman, or
542	542	an employee of a carrier or warehouseman whose possession of the
543	543	controlled substance is in the usual course of business or
544	544	employment;
545	545	(3) an ultimate user or a person in possession of the
546	546	controlled substance under a lawful order of a practitioner or in
547	547	lawful possession of the controlled substance if it is listed in
548	548	Schedule V;
549	549	(4) an officer or employee of this state, another
550	550	state, a political subdivision of this state or another state, or
551	551	the United States who is lawfully engaged in the enforcement of a
552	552	law relating to a controlled substance or drug or to a customs law
553	553	and authorized to possess the controlled substance in the discharge
554	554	of the person's official duties;
555	555	(5) if the substance is tetrahydrocannabinol or one of
556	556	its derivatives:
557	557	(A) a Department of State Health Services
558	558	official, a medical school researcher, or a research program
559	559	participant possessing the substance as authorized under
560	560	Subchapter G; or
561	561	(B) a practitioner or an ultimate user possessing
562	562	the substance as a participant in a federally approved therapeutic
563	563	research program that the commissioner has reviewed and found, in
564	564	writing, to contain a medically responsible research protocol; [or]
565	565	(6) a dispensing organization licensed under Chapter
566	566	487 that possesses low-THC cannabis;
567	567	(7) a cannabis grower, cannabis establishment,
568	568	cannabis secure transporter, or cannabis testing facility licensed
569	569	under Chapter 491 that possesses cannabis or cannabis products; or
570	570	(8) a person who possesses cannabis or cannabis
571	571	products in accordance with Chapter 491.
572	572	(b) In this section, "cannabis" and "cannabis product" have
573	573	the meanings assigned to those terms by Section 491.0001.
574	574	SECTION 10. Section 481.111, Health and Safety Code, is
575	575	amended by adding Subsections (g) and (h) to read as follows:
576	576	(g) Sections 481.120, 481.121, and 481.125 do not apply to a
577	577	person who engages in the acquisition, possession, production,
578	578	processing, cultivation, delivery, transportation, disposal,
579	579	transfer, or use of a raw material used in or by-product created by
580	580	the production or cultivation of cannabis or cannabis products if
581	581	the conduct is expressly authorized by Subchapter B, Chapter 491.
582	582	(h) For purposes of Subsection (g), "cannabis" and
583	583	"cannabis product" have the meanings assigned to those terms by
584	584	Section 491.0001.
585	585	SECTION 11. Section 551.004, Occupations Code, is amended
586	586	by amending Subsection (a) and adding Subsection (a-1) to read as
587	587	follows:
588	588	(a) This subtitle does not apply to:
589	589	(1) a practitioner licensed by the appropriate state
590	590	board who supplies a patient of the practitioner with a drug in a
591	591	manner authorized by state or federal law and who does not operate a
592	592	pharmacy for the retailing of prescription drugs;
593	593	(2) a member of the faculty of a college of pharmacy
594	594	recognized by the board who is a pharmacist and who performs the
595	595	pharmacist's services only for the benefit of the college;
596	596	(3) a person who procures prescription drugs for
597	597	lawful research, teaching, or testing and not for resale;
598	598	(4) a home and community support services agency that
599	599	possesses a dangerous drug as authorized by Section 142.0061,
600	600	142.0062, or 142.0063, Health and Safety Code; [or]
601	601	(5) a dispensing organization[, as defined by Section
602	602	487.001, Health and Safety Code,] that cultivates, processes, and
603	603	dispenses low-THC cannabis, as authorized by Chapter 487, Health
604	604	and Safety Code, to a patient listed in the compassionate-use
605	605	registry established under that chapter;
606	606	(6) a cannabis grower, cannabis establishment,
607	607	cannabis secure transporter, or cannabis testing facility licensed
608	608	under Chapter 491, Health and Safety Code, that cultivates,
609	609	manufactures, processes, distributes, delivers sells, tests,
610	610	transports, or dispenses cannabis or a cannabis product as
611	611	authorized by that chapter; or
612	612	(7) a person who transfers cannabis without
613	613	remuneration as authorized by Section 491.0051, Health and Safety
614	614	Code.
615	615	(a-1) For purposes of this section:
616	616	(1) "Cannabis," "cannabis establishment," "cannabis
617	617	grower," "cannabis product," "cannabis secure transporter," and
618	618	"cannabis testing facility" have the meanings assigned by Section
619	619	491.0001, Health and Safety Code.
620	620	(2) "Dispensing organization" and "low-THC cannabis"
621	621	have the meanings assigned by Section 487.001, Health and Safety
622	622	Code.
623	623	SECTION 12. Section 151.801, Tax Code, is amended by
624	624	amending Subsection (a) and adding Subsection (c-5) to read as
625	625	follows:
626	626	(a) Except as otherwise provided by this section [for the
627	627	amounts allocated under Subsections (b), (c), (c-2), and (c-3)],
628	628	all proceeds from the collection of the taxes imposed by this
629	629	chapter shall be deposited to the credit of the general revenue
630	630	fund.
631	631	(c-5) The proceeds from the collection of the taxes imposed
632	632	by this chapter on the sale, storage, use, or other consumption of
633	633	cannabis and cannabis products shall be deposited as follows:
634	634	(1) 33 percent to the credit of the cannabis
635	635	regulation account under Section 491.0251, Health and Safety Code;
636	636	(2) 33 percent to the credit of the cannabis testing
637	637	and quality control account under Section 491.0252, Health and
638	638	Safety Code; and
639	639	(3) the remainder to the credit of the public school
640	640	teacher salary support account under Section 48.280, Education
641	641	Code.
642	642	SECTION 13. Section 151.801(d), Tax Code, as effective
643	643	September 1, 2021, is amended to read as follows:
644	644	(d) The comptroller shall determine the amount to be
645	645	deposited to the state highway fund under Subsection (b) according
646	646	to available statistical data indicating the estimated average or
647	647	actual consumption or sales of lubricants used to propel motor
648	648	vehicles over the public roadways. The comptroller shall determine
649	649	the amounts to be deposited to the accounts under Subsection (c)
650	650	according to available statistical data indicating the estimated or
651	651	actual total receipts in this state from taxable sales of sporting
652	652	goods, and according to the specific amounts provided in the
653	653	General Appropriations Act in accordance with Subsection (c-1).
654	654	The comptroller shall determine the amount to be deposited to the
655	655	fund under Subsection (c-2) according to available statistical data
656	656	indicating the estimated or actual total receipts in this state
657	657	from taxes imposed on sales at retail of fireworks. The comptroller
658	658	shall determine the amount to be deposited to the account under
659	659	Subsection (c-3) according to available statistical data
660	660	indicating the estimated or actual total receipts in this state
661	661	from taxable sales of horse feed, horse supplements, horse tack,
662	662	horse bedding and grooming supplies, and other taxable expenditures
663	663	directly related to horse ownership, riding, or boarding. The
664	664	comptroller shall determine the amounts to be deposited to the
665	665	accounts under Subsection (c-5) according to available statistical
666	666	data indicating the estimated or actual total receipts in this
667	667	state from taxable sales of cannabis and cannabis products. If
668	668	satisfactory data are not available, the comptroller may require
669	669	taxpayers who make taxable sales or uses of those lubricants, of
670	670	sporting goods, of fireworks, [or] of horse feed, horse
671	671	supplements, horse tack, horse bedding and grooming supplies, or
672	672	other taxable expenditures directly related to horse ownership,
673	673	riding, or boarding, or of cannabis and cannabis products to report
674	674	to the comptroller as necessary to make the allocation required by
675	675	Subsection (b), (c), (c-2), [or] (c-3), or (c-5).
676	676	SECTION 14. Section 151.801(e), Tax Code, is amended by
677	677	adding Subdivision (6) to read as follows:
678	678	(6) "Cannabis" and "cannabis product" have the
679	679	meanings assigned by Section 491.0001, Health and Safety Code.
680	680	SECTION 15. (a) Not later than July 1, 2022, the Texas
681	681	Commission of Licensing and Regulation shall adopt rules as
682	682	required to implement, administer, and enforce Chapter 491, Health
683	683	and Safety Code, as added by this Act.
684	684	(b) Not later than November 1, 2022, the Texas Department of
685	685	Licensing and Regulation shall begin licensing cannabis growers,
686	686	cannabis establishments, cannabis secure transporters, and
687	687	cannabis testing facilities in accordance with Chapter 491, Health
688	688	and Safety Code, as added by this Act, provided that the applicants
689	689	for a license have met all requirements for approval under Chapter
690	690	491, Health and Safety Code, as added by this Act.
691	691	SECTION 16. The changes in law made by this Act do not
692	692	affect tax liability accruing before the effective date of this
693	693	Act. That liability continues in effect as if this Act had not been
694	694	enacted, and the former law is continued in effect for the
695	695	collection of taxes due and for civil and criminal enforcement of
696	696	the liability for those taxes.
697	697	SECTION 17. This Act takes effect September 1, 2021.