Texas 2023 - 88th Regular

Texas House Bill HB3652 Latest Draft

Bill / Introduced Version Filed 03/07/2023

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                            By: Moody H.B. No. 3652


 A BILL TO BE ENTITLED
 AN ACT
 relating to the regulation of the cultivation, manufacture,
 distribution, sale, testing, possession, and use of cannabis and
 cannabis products; authorizing the imposition of taxes and fees;
 requiring an occupational license; creating a criminal offense.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subtitle C, Title 6, Health and Safety Code, is
 amended by adding Chapter 491 to read as follows:
 CHAPTER 491. REGULATION AND TAXATION OF CANNABIS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 491.001.  SHORT TITLE. This chapter may be cited as the
 Texas Regulation and Taxation of Cannabis Act.
 Sec. 491.002.  DEFINITIONS. In this chapter:
 (1)  "Adult" means an individual 21 years of age or
 older.
 (2)  "Cannabis" means the plant Cannabis sativa L.,
 whether growing or not, the seeds of that plant, and every compound,
 manufacture, salt, derivative, mixture, or preparation of that
 plant or its seeds. The term includes cannabis concentrate. The
 term does not include:
 (A)  the mature stalks of the plant or fiber
 produced from the stalks;
 (B)  oil or cake made from the seeds of the plant;
 (C)  a compound, manufacture, salt, derivative,
 mixture, or preparation of the mature stalks, fiber, oil, or cake;
 or
 (D)  the sterilized seeds of the plant that are
 incapable of beginning germination.
 (3)  "Cannabis concentrate" means the resin extracted
 from a part of the plant Cannabis sativa L. or a compound,
 manufacture, salt, derivative, mixture, or preparation of the
 resin.
 (4)  "Cannabis establishment" means an entity licensed
 by the department under this chapter to process and dispense
 cannabis and cannabis products to an adult.
 (5)  "Cannabis grower" means an entity licensed by the
 department to cultivate cannabis for sale and distribution to a
 cannabis establishment.
 (6)  "Cannabis product" means a product that contains
 cannabis and is intended for use or consumption by humans,
 including as an edible product or as a topical product, ointment,
 oil, or tincture. The term includes products that consist of
 cannabis and other ingredients.
 (7)  "Cannabis secure transporter" means an entity
 licensed by the department under this chapter to transport cannabis
 from a cannabis grower to a cannabis establishment.
 (8)  "Cannabis testing facility" means an entity
 licensed by the department under this chapter to analyze the safety
 and potency of cannabis and cannabis products.
 (9)  "Commission" means the Texas Commission of
 Licensing and Regulation.
 (10)  "Cultivate" means to propagate, breed, grow,
 harvest, dry, cure, or separate parts of the cannabis plant by
 manual or mechanical means.
 (11)  "Department" means the Texas Department of
 Licensing and Regulation.
 (12)  "Executive director" means the executive
 director of the department.
 (13)  "Process" means to separate or otherwise prepare
 parts of the cannabis plant and to compound, blend, extract,
 infuse, or otherwise make or prepare cannabis concentrate or
 cannabis products.
 SUBCHAPTER B. PROTECTIONS FROM LEGAL ACTION RELATED TO CANNABIS
 Sec. 491.051.  AUTHORIZED CONDUCT: PERSONAL USE OF CANNABIS.
 (a) An adult is authorized under this chapter to:
 (1)  use, possess, and transport not more than 2.5
 ounces of cannabis, except that not more than 15 grams of that
 amount may be in the form of cannabis concentrate;
 (2)  transfer without remuneration to another adult not
 more than 2.5 ounces of cannabis, except that not more than 15 grams
 of that amount may be in the form of cannabis concentrate and
 provided that the transfer is not advertised or promoted to the
 public;
 (3)  cultivate for personal use not more than 12
 cannabis plants in an area on the premises of the adult's private
 residence, provided that the cultivation occurs in an enclosed area
 that is:
 (A)  equipped with locks or other security devices
 that restrict access to the area; and
 (B)  not visible from a public place without the
 use of aircraft or optical aids;
 (4)  possess, store, or process on the premises of the
 adult's private residence not more than:
 (A)  the amount of cannabis produced from plants
 cultivated on the premises, provided that:
 (i)  not more than the 12 cannabis plants are
 possessed, cultivated, or processed on the premises at one time;
 and
 (ii)  any amount of cannabis in excess of 2.5
 ounces is stored in a container or area equipped with locks or other
 security devices that restrict access to the contents of the
 container or area; and
 (B)  10 ounces of cannabis that was not produced
 from plants cultivated on the premises, provided that the amount in
 excess of 2.5 ounces is stored in a container or area described by
 Paragraph (A)(ii);
 (5)  use, possess, process, transport, or transfer to
 another adult without remuneration, an amount of cannabis products
 specified by rule of the commission as the allowable amount of
 cannabis for purposes of this subdivision; and
 (6)  use, possess, transport, or transfer to another
 adult without remuneration, cannabis-related drug paraphernalia.
 Sec. 491.052.  AUTHORIZED CONDUCT: RETAIL CANNABIS
 OPERATIONS. This chapter authorizes the conduct of:
 (1)  a cannabis grower director, manager, or employee
 who, acting within the scope of the grower's license:
 (A)  cultivates cannabis or produces cannabis
 products for sale or transfer to a cannabis establishment; and
 (B)  possesses cannabis or cannabis-related drug
 paraphernalia;
 (2)  a cannabis establishment director, manager, or
 employee who, acting within the scope of the establishment's
 license, possesses cannabis or cannabis products or transfers or
 sells cannabis, cannabis products, or cannabis-related drug
 paraphernalia to an adult;
 (3)  a cannabis secure transporter director, manager,
 or employee who, acting within the scope of the secure
 transporter's license, transports or transfers cannabis or
 cannabis products from a cannabis grower to a cannabis
 establishment; and
 (4)  a cannabis testing facility director, manager, or
 employee who, acting within the scope of the facility's license,
 possesses, tests, or transports cannabis, cannabis products, or
 cannabis-related drug paraphernalia.
 Sec. 491.053.  PROTECTION FROM LEGAL ACTION FOR AUTHORIZED
 CONDUCT. (a) A person is not subject to arrest, prosecution,
 forfeiture of property, or penalty in any manner or denial of any
 right or privilege, including any civil penalty or disciplinary
 action by a court or occupational or professional licensing board
 or bureau solely due to conduct authorized under Section 491.051 or
 491.052.
 (b)  The fact that a person engages in conduct authorized by
 Section 491.051 or 491.052 does not in itself constitute grounds
 for denying, limiting, or restricting conservatorship or
 possession of or access to a child under Title 5, Family Code.
 Sec. 491.054.  PROHIBITION OF CANNABIS ON PRIVATE PROPERTY;
 EXCEPTION. (a) Except as otherwise provided by Subsection (b), a
 person may prohibit or restrict the possession, consumption,
 cultivation, distribution, processing, sale, or display of
 cannabis or cannabis products on property the person owns,
 occupies, or manages.
 (b)  A person may not prohibit a residential tenant under a
 lease agreement from possessing cannabis, cannabis products, or
 cannabis-related drug paraphernalia or consuming cannabis by means
 other than smoking on the premises.
 Sec. 491.055.  CONDUCT NOT AUTHORIZED UNDER THIS CHAPTER.
 This chapter does not authorize the following conduct:
 (1)  operating a motor vehicle while intoxicated or
 otherwise violating Chapter 49, Penal Code;
 (2)  smoking or otherwise consuming cannabis in:
 (A)  a motor vehicle while the vehicle is on a
 public road;
 (B)  an aircraft, while the aircraft is in flight
 or in a public area;
 (C)  a watercraft, while the watercraft is on a
 public waterway; or
 (D)  a public place, unless:
 (i)  the public place is an area designated
 by a political subdivision as an area where using cannabis is
 permissible; and
 (ii)  the area described by Subparagraph (i)
 is not accessible to persons younger than 21 years of age;
 (3)  possessing or consuming cannabis or cannabis
 products or possessing cannabis-related drug paraphernalia:
 (A)  on the premises of a public or private child
 care facility, prekindergarten, or primary or secondary school;
 (B)  on a school bus that serves a facility or
 school described by Paragraph (A); or
 (C)  on the premises of a correctional facility,
 as defined by Article 18A.251, Code of Criminal Procedure, or a
 civil commitment facility; or
 (4)  the separation of resin from the cannabis plant by
 butane extraction or another method that uses a substance with a
 flashpoint below 100 degrees Fahrenheit in a public place or motor
 vehicle or within the curtilage of a residential structure.
 SUBCHAPTER C. DUTIES OF DEPARTMENT
 Sec. 491.101.  DUTIES OF DEPARTMENT. The department shall
 administer this chapter.
 Sec. 491.102.  RULES; FEES. (a) The commission shall adopt
 all necessary rules for the administration and enforcement of this
 chapter, including rules imposing fees under this chapter in
 amounts sufficient to cover the cost of administering this chapter.
 (b)  The commission by rule shall set application and license
 fees under this chapter in amounts sufficient to administer this
 chapter and may annually adjust the fees for inflation.
 (c)  The department shall deposit a fee collected under this
 chapter to the credit of the cannabis regulation fund established
 under Section 491.255.
 (d)  The commission shall adopt rules for the reasonable
 regulation of cannabis growers and cannabis establishments,
 including rules that:
 (1)  restrict the use of dangerous pesticides;
 (2)  regulate the packaging and labeling of cannabis
 products available at a cannabis establishment;
 (3)  restrict advertising and display of cannabis and
 cannabis products;
 (4)  restrict the maximum amount of
 tetrahydrocannabinol that may be contained in a cannabis product
 sold to a consumer;
 (5)  require recordkeeping and monitoring to track the
 transfer of cannabis and cannabis products between license holders;
 and
 (6)  require security measures provided that the
 security measures do not restrict the cultivation of cannabis
 outdoors or in greenhouses.
 Sec. 491.103.  TESTING, PACKAGING, AND LABELING STANDARDS.
 (a) The commission by rule shall establish standards for:
 (1)  the operation of cannabis testing facilities;
 (2)  the testing of cannabis and cannabis products; and
 (3)  packaging and labeling requirements for cannabis
 and cannabis products.
 (b)  In establishing standards for packaging and labeling
 requirements under Subsection (a)(3), the commission shall require
 that:
 (1)  cannabis and cannabis products be packaged in
 opaque, resealable, child-resistant packaging that does not
 resemble and may not be easily confused with typical packaging for
 commercially sold candy;
 (2)  cannabis and cannabis products be clearly labeled;
 and
 (3)  the label for a cannabis product disclose the
 amount of cannabis contained in that product.
 Sec. 491.104.  SECURE TRANSPORTATION OF CANNABIS. The
 commission by rule shall establish standards applicable to cannabis
 secure transporters, including standards to ensure all cannabis
 establishments are properly served.
 Sec. 491.105.  CONFLICT OF INTEREST. (a) A person who is
 involved in the implementation, administration, or enforcement of
 this chapter as a member of the commission, an employee of the
 department, or a consultant to the commission or the department may
 not also hold a pecuniary interest in any entity licensed by the
 department under this chapter.
 (b)  A person who holds a pecuniary interest in a cannabis
 testing facility or a cannabis secure transporter that holds a
 license issued under this chapter may not hold a pecuniary interest
 in any entity that holds a cannabis establishment or cannabis
 grower license issued under this chapter.
 (c)  A person may not hold a pecuniary interest in more than
 five entities that are licensed under this chapter as a cannabis
 grower, except as provided by department rule.
 Sec. 491.106.  ANNUAL REPORT. The executive director shall
 annually submit to the governor a report providing the following
 information regarding licensing and regulation under this chapter:
 (1)  the number of licenses issued for each class of
 license under this chapter;
 (2)  demographic information pertaining to license
 holders;
 (3)  a description of any fines imposed on a license
 holder or disciplinary actions taken against a license holder by
 the department; and
 (4)  a statement of revenues and expenses of the
 department related to the implementation, administration, and
 enforcement of this chapter.
 SUBCHAPTER D. LICENSING
 Sec. 491.151.  LICENSE REQUIRED. A license issued by the
 department under this chapter is required to operate as a cannabis
 grower, cannabis establishment, cannabis secure transporter, or
 cannabis testing facility.
 Sec. 491.152.  QUALIFICATIONS FOR LICENSURE. The commission
 by rule shall provide for each class of license issued under this
 chapter qualifications for licensure that are demonstrably related
 to the operations authorized and duties imposed under that class of
 license.
 Sec. 491.153.  APPLICATION.  (a)  A person may apply for an
 initial or renewal license under this chapter by submitting a form
 prescribed by the department along with the application fee in an
 amount set by the commission.
 (b)  The application must indicate the class of license
 sought and include the name and address of the applicant, the name
 and address of each of the applicant's directors, managers, and
 employees, and any other information considered necessary by the
 department to determine the applicant's eligibility for the
 license.
 Sec. 491.154.  ISSUANCE, RENEWAL, OR DENIAL OF LICENSE. (a)
 The department shall issue or renew a license under this chapter
 only if:
 (1)  the department determines the applicant meets the
 qualifications for the class of license sought established under
 Section 491.152; and
 (2)  the applicant is in compliance with any applicable
 local regulations.
 (b)  If the department denies the issuance or renewal of a
 license under Subsection (a), the department shall give written
 notice of the grounds for denial to the applicant.
 (c)  A license issued or renewed under this section expires
 on the second anniversary of the date of issuance or renewal, as
 applicable.
 Sec. 491.155.  DUTY TO MAINTAIN QUALIFICATIONS. A license
 holder shall maintain compliance at all times with the
 qualifications for the applicable class of license established
 under Section 491.152.
 Sec. 491.156.  LICENSE SUSPENSION OR REVOCATION. (a) The
 department may at any time suspend or revoke a license issued under
 this chapter if the department determines that the license holder
 has not maintained the qualifications established under Section
 491.152 or has failed to comply with a duty imposed under this
 chapter.
 (b)  The department shall give written notice to a license
 holder of a license suspension or revocation under this section and
 the grounds for the suspension or revocation. The notice must be
 sent by certified mail, return receipt requested.
 (c)  After suspending or revoking a license issued under this
 chapter, the department shall notify the Department of Public
 Safety. The public safety director of the Department of Public
 Safety may seize or place under seal all cannabis, cannabis
 products, and cannabis-related drug paraphernalia owned or
 possessed by the license holder. If the license is revoked, a
 disposition may not be made of the seized or sealed cannabis,
 cannabis products, or drug paraphernalia until the time for
 administrative appeal of the order has elapsed or until all appeals
 have been concluded. When a revocation order becomes final, all
 cannabis, cannabis products, and drug paraphernalia may be
 forfeited to the state as provided under Subchapter E, Chapter 481.
 (d)  Chapter 2001, Government Code, applies to a proceeding
 under this section.
 Sec. 491.157.  CRIMINAL RECORD INFORMATION FOR LICENSE
 APPLICANTS. (a) In addition to satisfying the other requirements
 provided by commission rule under this chapter, an applicant for a
 license under this chapter must submit to the department a complete
 and legible set of fingerprints, on a form prescribed by the
 commission, for the purpose of obtaining criminal history record
 information from the Department of Public Safety and the Federal
 Bureau of Investigation.
 (b)  The department may deny a license to an applicant who
 does not comply with the requirement of Subsection (a). Issuance of
 a license by the department is conditioned on the department
 obtaining the applicant's criminal history record information
 under this section.
 (c)  A person's conviction for an offense other than an
 offense under Section 481.122, that involves the delivery or
 possession of marihuana, as defined under Section 481.002, does not
 disqualify an applicant for licensure under this chapter.
 SUBCHAPTER E. DUTIES OF LICENSE HOLDERS
 Sec. 491.201.  DUTIES RELATING TO DISPENSING CANNABIS OR
 CANNABIS PRODUCTS. Before dispensing cannabis or cannabis products
 to an adult, a cannabis establishment must make reasonable efforts
 to verify that:
 (1)  the person receiving the cannabis or cannabis
 product is an adult;
 (2)  the cannabis or cannabis product complies with
 department testing and labeling rules; and
 (3)  the amount dispensed is not greater than the
 amount of cannabis or cannabis product allowed for personal use as
 provided by Section 491.051.
 Sec. 491.202.  DUTIES RELATING TO SECURITY. (a) A license
 holder shall ensure that the cultivation, processing, sale, or
 display of cannabis, cannabis products, and cannabis-related drug
 paraphernalia is not visible from a public place without the use of
 optical aids or aircraft.
 (b)  A license holder may not cultivate, process, store, or
 sell cannabis, cannabis products, or cannabis-related drug
 paraphernalia at a location other than the physical address
 approved by the department for the establishment under the license
 issued to the establishment under this chapter.
 (c)  A license holder shall adopt reasonable security
 measures necessary to restrict access to areas where cannabis or
 cannabis products are stored and to prevent theft of cannabis and
 cannabis products.
 Sec. 491.203.  LICENSE HOLDER OPERATIONS. (a) A license
 holder may not employ or otherwise accept the services of a person
 younger than 21 years of age.
 (b)  A cannabis establishment may not sell tobacco products,
 as defined by Section 155.001, Tax Code.
 Sec. 491.204.  MONTHLY SALES REPORT. A cannabis
 establishment shall monthly submit a report to the comptroller
 specifying the amount of cannabis sold, the number of cannabis
 products sold, and the amount of money collected in sales by the
 establishment during the preceding month.
 SUBCHAPTER F. TAXES
 Sec. 491.251.  SALES TAX. Cannabis and cannabis products
 are taxable items subject to the sales tax imposed by Chapter 151,
 Tax Code.
 Sec. 491.252.  CANNABIS TAX IMPOSED. (a) A tax is imposed
 on each sale of cannabis or a cannabis product by a cannabis
 establishment.
 (b)  The rate of the tax is 10 percent of the sales price of
 the cannabis or cannabis product.
 (c)  The tax imposed by this section is administered,
 collected, and enforced in the same manner as the tax under Chapter
 151 is administered, collected, and enforced.
 (d)  The tax imposed by this section is in addition to any
 other tax imposed by law.
 Sec. 491.253.  ALLOCATION OF CANNABIS TAX. (a) The
 comptroller shall allocate the net revenue derived from the tax
 imposed by this subchapter as follows:
 (1)  10 percent as a local share to municipalities in
 which cannabis establishments are located, allocated among those
 municipalities as provided by Subsection (b);
 (2)  10 percent as a local share to counties in which
 cannabis establishments are located, allocated among those
 counties as provided by Subsection (c);
 (3)  one percent to the cannabis testing and quality
 control fund established under Section 491.254;
 (4)  the amount certified to the comptroller by the
 commission under Section 491.255 to the fund established under that
 section; and
 (5)  the remainder to the public school teachers fund
 established under Section 491.256.
 (b)  In determining the local share for each municipality in
 which one or more cannabis establishments are located, the
 comptroller shall allocate funds under Subsection (a)(1) in
 proportion to the number of cannabis establishments located in each
 municipality.
 (c)  In determining the local share for each county in which
 one or more cannabis establishments are located, the comptroller
 shall allocate funds under Subsection (a)(2) in proportion to the
 number of cannabis establishments located in each county.
 Sec. 491.254.  CANNABIS TESTING AND QUALITY CONTROL FUND.
 (a) The cannabis testing and quality control fund is established
 outside the treasury and is administered by the public safety
 director of the Department of Public Safety.
 (b)  The public safety director shall use money in the fund
 available to enable Department of Public Safety crime laboratory
 facilities to test cannabis and cannabis products on request by the
 executive director, for the purposes of assisting the department in
 monitoring compliance with testing and quality control
 requirements imposed on license holders under this chapter or by
 commission rules adopted under this chapter.
 (c)  Interest and income from the assets of the trust fund
 shall be credited to and deposited in the fund.
 Sec. 491.255.  CANNABIS REGULATION FUND. (a) The cannabis
 regulation fund is established outside the treasury and is
 administered by the commission.
 (b)  The commission shall make money in the fund available to
 the department for implementing and administering this chapter.
 (c)  The commission shall monthly certify to the comptroller
 the amount of money the department expended during the preceding
 month in the implementation and administration of this chapter.
 (d)  Interest and income from the assets of the trust fund
 shall be credited to and deposited in the fund.
 Sec. 491.256.  PUBLIC SCHOOL TEACHERS FUND. (a) The public
 school teachers fund is established outside the treasury and is
 administered by the comptroller. The comptroller shall deposit:
 (1)  half of all money allocated to the fund in a
 teacher retirement support account in the fund; and
 (2)  the remainder in a teacher salary support account
 in the fund.
 (b)  Each month the comptroller shall transfer the balance of
 the teacher retirement support account to the state contribution
 account of the teacher retirement system trust fund. Money
 transferred to the state contribution account under this section
 may not be considered in computing the amount owed by the state
 under Section 825.404(a), Government Code, and is not considered a
 state contribution for purposes of that section.
 (c)  Each month the comptroller shall transfer the balance of
 the teacher salary support account to the commissioner of
 education. Notwithstanding any other law, money transferred to the
 commissioner of education under this section may be used only to
 provide additional state aid under the Foundation School Program to
 public schools to pay for teacher salary increases. The
 commissioner of education may adopt rules as necessary to implement
 this subsection.
 SUBCHAPTER G. LOCAL REGULATION
 Sec. 491.301.  PROHIBITED LOCAL REGULATION. A political
 subdivision of this state may not enact, adopt, or enforce a rule,
 ordinance, order, resolution, or other regulation that prohibits or
 unreasonably restricts the cultivation, production, processing,
 dispensing, transportation, or possession of cannabis or cannabis
 products or the operation of a cannabis grower, cannabis
 establishment, cannabis secure transporter, or cannabis testing
 facility as authorized by this chapter.
 Sec. 491.302.  PERMISSIBLE LOCAL REGULATION. A political
 subdivision may adopt regulations consistent with this chapter
 governing the hours of operation, location, manner of conducting
 business, and number of cannabis growers, cannabis establishments,
 or cannabis testing facilities.
 SUBCHAPTER H. SALE OR DISTRIBUTION OF CANNABIS OR CANNABIS PRODUCT
 TO MINORS PROHIBITED
 Sec. 491.351.  DEFINITION. In this subchapter, "minor"
 means a person younger than 21 years of age.
 Sec. 491.352.  SALE OR DISTRIBUTION OF CANNABIS OR CANNABIS
 PRODUCT TO MINORS PROHIBITED; PROOF OF AGE REQUIRED. (a) A person
 commits an offense if the person, under the authority of this
 chapter:
 (1)  sells, gives, or causes to be sold or given
 cannabis or cannabis products to a minor; or
 (2)  sells, gives, or causes to be sold or given
 cannabis or cannabis products to another person who intends to
 deliver the cannabis or cannabis products to a minor.
 (b)  If an offense under this section occurs in connection
 with a sale by an employee of the owner of a cannabis establishment,
 the employee is criminally responsible for the offense and is
 subject to prosecution.
 (c)  An offense under this section is a Class C misdemeanor.
 (d)  It is a defense to prosecution under Subsection (a)(1)
 that the person to whom the cannabis or cannabis products were sold
 or given presented to the defendant apparently valid proof of
 identification.
 (e)  A proof of identification satisfies the requirements of
 Subsection (d) if it contains a physical description and photograph
 consistent with the person's appearance, purports to establish that
 the person is 21 years of age or older, and was issued by a
 governmental agency. The proof of identification may include a
 driver's license issued by this state or another state, a passport,
 or an identification card issued by a state or the federal
 government.
 SECTION 2.  Section 481.062, Health and Safety Code, is
 amended to read as follows:
 Sec. 481.062.  EXEMPTIONS. (a) The following persons are
 not required to register and may possess a controlled substance
 under this chapter [without registering with the Federal Drug
 Enforcement Administration]:
 (1)  an agent or employee of a registered manufacturer,
 distributor, analyzer, or dispenser of the controlled substance
 [who is registered with the Federal Drug Enforcement Administration
 and] acting in the usual course of business or employment;
 (2)  a common or contract carrier, a warehouseman, or
 an employee of a carrier or warehouseman whose possession of the
 controlled substance is in the usual course of business or
 employment;
 (3)  an ultimate user or a person in possession of the
 controlled substance under a lawful order of a practitioner or in
 lawful possession of the controlled substance if it is listed in
 Schedule V;
 (4)  an officer or employee of this state, another
 state, a political subdivision of this state or another state, or
 the United States who is lawfully engaged in the enforcement of a
 law relating to a controlled substance or drug or to a customs law
 and authorized to possess the controlled substance in the discharge
 of the person's official duties;
 (5)  if the substance is tetrahydrocannabinol or one of
 its derivatives:
 (A)  a Department of State Health Services
 official, a medical school researcher, or a research program
 participant possessing the substance as authorized under
 Subchapter G; or
 (B)  a practitioner or an ultimate user possessing
 the substance as a participant in a federally approved therapeutic
 research program that the commissioner has reviewed and found, in
 writing, to contain a medically responsible research protocol; [or]
 (6)  a dispensing organization licensed under Chapter
 487 that possesses low-THC cannabis;
 (7)  a cannabis grower, cannabis establishment,
 cannabis secure transporter, or cannabis testing facility licensed
 under Chapter 491 that possesses cannabis or cannabis products; or
 (8)  a person who possesses cannabis or cannabis
 products in accordance with Chapter 491.
 (b)  In this section, "cannabis" and "cannabis product" have
 the meanings assigned to those terms by Section 491.001.
 SECTION 3.  Section 481.111, Health and Safety Code, is
 amended by adding Subsections (g) and (h) to read as follows:
 (g)  Sections 481.120, 481.121, and 481.125 do not apply to a
 person who engages in the acquisition, possession, production,
 processing, cultivation, delivery, transportation, or disposal of
 a raw material used in or by-product created by the production or
 cultivation of cannabis or cannabis products if the conduct is
 expressly authorized by Subchapter B, Chapter 491.
 (h)  For purposes of Subsection (g), "cannabis" and
 "cannabis product" have the meanings assigned to those terms by
 Section 491.001.
 SECTION 4.  (a) Not later than July 1, 2024, the Texas
 Commission of Licensing and Regulation shall adopt rules as
 required to implement, administer, and enforce Chapter 491, Health
 and Safety Code, as added by this Act.
 (b)  Not later than November 1, 2024, the Texas Department of
 Licensing and Regulation shall begin licensing cannabis growers,
 cannabis establishments, cannabis secure transporters, and
 cannabis testing facilities in accordance with Chapter 491, Health
 and Safety Code, as added by this Act, provided that the applicants
 for a license have met all requirements for approval under Chapter
 491, Health and Safety Code, as added by this Act.
 SECTION 5.  This Act takes effect September 1, 2023.