Texas 2025 - 89th Regular

Texas Senate Bill SB170 Latest Draft

Bill / Introduced Version Filed 11/12/2024

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                            89R3209 LHC-F
 By: Menéndez S.B. No. 170




 A BILL TO BE ENTITLED
 AN ACT
 relating to authorizing the possession, use, cultivation,
 distribution, delivery, sale, and research of medical cannabis for
 medical use by patients with certain medical conditions and the
 licensing of medical cannabis organizations; authorizing fees.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1. FINDINGS AND PURPOSE
 SECTION 1.01.  LEGISLATIVE FINDINGS; PURPOSE. The
 legislature finds that:
 (1)  scientific evidence suggests that medical
 cannabis is one potential therapy that may mitigate suffering,
 enhance quality of life, and offer potential treatment of certain
 medical conditions;
 (2)  Texas patients should have reasonable statewide
 access to medical cannabis subject to safeguards for public health
 and safety;
 (3)  a seriously ill patient who engages in medical use
 of cannabis on a treating practitioner's advice should not be
 arrested, incarcerated, or otherwise punished for violation of drug
 laws;
 (4)  where patients are suffering from certain medical
 conditions, they and their physicians should have a right to try
 medical cannabis as an alternative medicine through a safe and
 regulated program; and
 (5)  Texas has a wealth of esteemed research
 institutions from medical to agricultural that can greatly
 contribute to the advancement of research on the safe cultivation,
 manufacturing, and use of medical cannabis.
 ARTICLE 2. MEDICAL CANNABIS RESEARCH PROGRAM
 SECTION 2.01.  Subtitle A, Title 6, Health and Safety Code,
 is amended by adding Chapter 446 to read as follows:
 CHAPTER 446. MEDICAL CANNABIS RESEARCH PROGRAM
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 446.001.  SHORT TITLE. This chapter may be cited as the
 Medical Cannabis Research Act.
 Sec. 446.002.  DEFINITIONS. In this chapter:
 (1)  "Advisory board" means the medical cannabis
 research advisory board established under this chapter.
 (2)  "License" means a medical cannabis research
 license issued by the department under Subchapter C.
 (3)  "License holder" means a person who holds a
 medical cannabis research license.
 (4)  "Medical cannabis" has the meaning assigned by
 Section 169.001, Occupations Code.
 SUBCHAPTER B. MEDICAL CANNABIS RESEARCH ADVISORY BOARD
 Sec. 446.051.  ESTABLISHMENT OF ADVISORY BOARD. (a)  A
 medical cannabis research advisory board is established to perform
 functions and duties under this chapter.
 (b)  The executive commissioner shall assist the advisory
 board as provided by this chapter.
 Sec. 446.052.  MEMBERSHIP. (a) The advisory board members
 are appointed by the governor and serve staggered six-year terms,
 with the terms of one-third of the members, or as near to one-third
 as possible, expiring on August 31 of each odd-numbered year.
 (b)  The advisory board shall be composed of the following 11
 members:
 (1)  a licensed physician certified by the American
 Board of Internal Medicine and certified in the subspecialty of
 medical oncology;
 (2)  a licensed physician certified by the American
 Board of Surgery;
 (3)  a licensed physician certified by the American
 Board of Psychiatry and Neurology;
 (4)  a licensed physician certified by the American
 Board of Family Medicine;
 (5)  a licensed physician certified in neurology with a
 special qualification in child neurology;
 (6)  a licensed physician specializing in pain
 management certified by the American Board of Anesthesiology, the
 American Board of Psychiatry and Neurology, or the American Board
 of Physical Medicine and Rehabilitation;
 (7)  a licensed pharmacist;
 (8)  a licensed advanced practice registered nurse
 specializing in palliative care certified by the Hospice and
 Palliative Credentialing Center or a licensed physician
 specializing in palliative care certified by a member board of the
 American Board of Medical Specialties, the American Osteopathic
 Association, or the Hospice Medical Director Certification Board;
 (9)  a representative from a Texas medical specialty
 organization;
 (10)  a licensed attorney with experience in law
 pertaining to the practice of medicine and cannabis regulation; and
 (11)  a person who represents medical cannabis patient
 interests.
 (c)  At least two members of the advisory board must be
 affiliated with an institution of higher education or private or
 independent institution of higher education involved in relevant
 research, such as a medical and dental unit, general academic
 teaching institution, or other agency of higher education, as
 defined by Section 61.003, Education Code.
 (d)  The governor shall select a presiding officer from the
 membership of the advisory board.
 (e)  The advisory board shall meet at least quarterly at the
 call of the presiding officer.
 (f)  The advisory board may create and appoint one or more
 advisory committees composed of patients, law enforcement
 officers, researchers, other medical professionals, and other
 persons who are knowledgeable about the medical use of cannabis.
 (g)  Members serve without compensation but are entitled to
 reimbursement for actual and necessary expenses incurred in
 performing official duties.
 Sec. 446.053.  DUTIES OF ADVISORY BOARD; REPORT.  (a)  The
 advisory board shall assist the department in evaluating proposals
 submitted as part of a license application under Section 446.104.
 (b)  The advisory board shall conduct a continuing study of
 the laws relating to medical cannabis to facilitate statewide
 access to safe and effective medical cannabis.
 (c)  The advisory board shall prepare a report of the board's
 findings and recommendations under Subsection (b) and submit the
 report to the legislature not later than September 1 of each
 even-numbered year.
 (d)  The advisory board shall consult with the public safety
 director of the Department of Public Safety under Section
 487.0521(b) on rules monitoring the safety and efficacy of medical
 cannabis or medical cannabis products.
 (e)  Chapter 2110, Government Code, does not apply to the
 advisory board.
 SUBCHAPTER C. MEDICAL CANNABIS RESEARCH LICENSE
 Sec. 446.101.  ISSUANCE OF LICENSE. The department shall
 issue a medical cannabis research license to a person that
 authorizes the person to possess, manufacture, cultivate, or
 dispense medical cannabis for the limited research purposes
 described by Section 446.102.
 Sec. 446.102.  PURPOSE OF LICENSE. A medical cannabis
 research license may be issued for the following limited research
 purposes:
 (1)  conducting objective scientific research into the
 safety and efficacy of medical cannabis or other public health
 outcomes related to medical cannabis;
 (2)  developing medical guidelines for the appropriate
 administration of medical cannabis to assist physicians and
 patients in evaluating the risks and benefits of medical cannabis
 and to provide a scientific basis for future policies;
 (3)  developing quality control, purity, and labeling
 standards for medical cannabis;
 (4)  developing best practices for the safe and
 efficient cultivation of medical cannabis;
 (5)  analyzing genetic and healing properties of
 different varieties of cannabis;
 (6)  conducting genomic, horticultural, or
 agricultural research; and
 (7)  conducting research on cannabis-affiliated
 products or systems.
 Sec. 446.103.  APPLICATION FOR LICENSE. (a) As part of the
 application process for a license, an applicant shall submit to the
 department and the advisory board a description of the research
 that the applicant intends to conduct. The department shall grant
 the license if:
 (1)  the department determines that the application
 meets the criteria for the issuance of a license described by
 Section 446.102 and Subchapter C, Chapter 487; and
 (2)  the advisory board recommends the application for
 approval under Section 446.104(b).
 (b)  The department may not grant a license if the advisory
 board does not recommend the application for approval.
 Sec. 446.104.  REVIEW BY ADVISORY BOARD. (a)  The advisory
 board shall review each applicant's research project to assess the
 following:
 (1)  the quality, study design, value, and impact of
 the project;
 (2)  whether the research supports the purposes
 described by Section 446.102;
 (3)  whether the applicant has the appropriate
 personnel, expertise, facilities, infrastructure, funding, and
 approvals in place to successfully conduct the project; and
 (4)  whether the amount of cannabis to be grown by the
 applicant is consistent with the scope and goals of the project.
 (b)  If the advisory board determines that the research
 project meets the requirements of this subchapter and the applicant
 satisfies the criteria described by Subsection (a), the advisory
 board may recommend that a license be granted to the applicant for
 the project.
 Sec. 446.105.  CONTRACTS. A license holder may contract to
 perform research in conjunction with another license holder, a
 medical school, as defined by Section 61.501, Education Code, a
 hospital licensed under Chapter 241, or an institution of higher
 education or private or independent institution of higher education
 involved in relevant research, such as a general academic teaching
 institution, medical and dental unit, or other agency of higher
 education, as defined by Section 61.003, Education Code.
 Sec. 446.106.  TRANSFER OF CANNABIS TO OTHER LICENSE HOLDER.
 Unless otherwise authorized by the department, a license holder may
 only transfer, by sale or donation, cannabis grown or processed
 within the license holder's operation to another license holder or
 program participant as authorized by department rule.
 Sec. 446.107.  LIMITATION OF LIABILITY. The growing,
 cultivating, possessing, or transferring, by sale or donation, of
 cannabis in accordance with this subchapter and the rules adopted
 under this subchapter, by a license holder may not be the basis of
 criminal or civil liability.
 Sec. 446.108.  FEES. The executive commissioner shall set
 license and renewal fees in an amount sufficient to administer this
 chapter.
 Sec. 446.109.  RULES. The executive commissioner shall, in
 consultation with the advisory board and the Public Safety
 Commission of the Department of Public Safety, adopt rules to
 implement this chapter, including:
 (1)  license application requirements;
 (2)  license renewal requirements, including the
 consideration or addition of additional research projects by a
 license holder;
 (3)  grounds for license revocation;
 (4)  security measures to ensure cannabis is not
 diverted to purposes other than research;
 (5)  license holder reporting requirements;
 (6)  conditions under which cannabis grown by licensed
 cannabis cultivators and other product types from licensed cannabis
 processors may be donated to license holders; and
 (7)  additional rules the executive commissioner
 considers necessary.
 ARTICLE 3. CHANGES TO TEXAS COMPASSIONATE USE PROGRAM
 SECTION 3.01.  Section 487.001, Health and Safety Code, is
 amended to read as follows:
 Sec. 487.001.  DEFINITIONS. In this chapter:
 (1)  "Caregiver" means a person who has a significant
 responsibility for managing the well-being of a registered patient.
 A caregiver may be either an individual or an organization or other
 entity, including a long-term care facility, other health care
 organization, or public institution.
 (2)  "Department" means the Department of Public
 Safety.
 (3) [(2)]  "Director" means the public safety director
 of the department.
 [(3)  "Dispensing organization" means an organization
 licensed by the department to cultivate, process, and dispense
 low-THC cannabis to a patient for whom low-THC cannabis is
 prescribed under Chapter 169, Occupations Code.]
 (4)  "Medical [Low-THC] cannabis" has the meaning
 assigned by Section 169.001, Occupations Code.
 (5)  "Medical cannabis organization" means any
 organization that cultivates, processes, manufactures,
 distributes, researches, tests, dispenses, or conducts other
 business regarding medical cannabis as authorized by a license
 issued by the department under this chapter.
 (6)  "Medical cannabis product" means a product, other
 than cannabis itself, which contains or is derived from cannabis.
 The term does not include a product derived from hemp, as defined by
 Section 121.001, Agriculture Code, or a consumable hemp product, as
 defined by Section 443.001 of this code.
 (7)  "Medical use" has the meaning assigned by Section
 169.001, Occupations Code.
 SECTION 3.02.  Subchapter A, Chapter 487, Health and Safety
 Code, is amended by adding Section 487.002 to read as follows:
 Sec. 487.002.  ALLOWABLE AMOUNT OF MEDICAL CANNABIS. The
 allowable amount of medical cannabis for a person for whom medical
 use is recommended under Chapter 169, Occupations Code, is an
 amount of cannabis in any form approved by the physician possessed
 by a qualified patient or collectively possessed by a qualified
 patient and the qualified patient's caregiver that is:
 (1)  not more than reasonably necessary to ensure the
 uninterrupted availability of cannabis for a period of three months
 based on the individual patient's recommended amount of medical
 cannabis; and
 (2)  obtained solely from a medical cannabis
 organization.
 SECTION 3.03.  Chapter 487, Health and Safety Code, is
 amended by adding Subchapter A-1 to read as follows:
 SUBCHAPTER A-1. PROTECTIONS RELATED TO MEDICAL USE OF CANNABIS
 Sec. 487.021.  PROTECTION FROM LEGAL ACTION. (a)  This
 section applies to a person who is:
 (1)  a patient for whom medical use is recommended
 under Chapter 169, Occupations Code, or the parent, legal guardian,
 or caregiver of a patient;
 (2)  a medical cannabis organization;
 (3)  a director, manager, or employee of a medical
 cannabis organization who is registered with the department under
 Section 487.053;
 (4)  a medical cannabis research license holder under
 Chapter 446; or
 (5)  a person participating as a researcher or patient
 in an approved research program under Subchapter G, Chapter 481.
 (b)  Notwithstanding any other law, a person described by
 Subsection (a) is not subject to arrest, prosecution, 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, for conduct involving
 medical use that is authorized under this chapter, Chapter 446 of
 this code, Subchapter G, Chapter 481, of this code, Chapter 169,
 Occupations Code, or department rule.
 Sec. 487.022.  NO PRESUMPTION OF CHILD ABUSE, NEGLECT, OR
 ENDANGERMENT.  A person described by Section 487.021(a) may not be
 presumed to have engaged in conduct constituting child abuse,
 neglect, or endangerment solely because the person engaged in
 conduct involving medical use that is authorized under this
 chapter, Chapter 446 of this code, Subchapter G, Chapter 481, of
 this code, Chapter 169, Occupations Code, or department rule.
 Sec. 487.023.  NO DENIAL OF PARENTAL RIGHTS. The fact that a
 person described by Section 487.021(a) engages in conduct
 authorized under this chapter, Chapter 446 of this code, Subchapter
 G, Chapter 481, of this code, Chapter 169, Occupations Code, or
 department rule, 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. 487.024.  NO SEIZURE OR FORFEITURE. Property used in
 the cultivation, research, testing, processing, distribution,
 transportation, and delivery of medical cannabis for medical use
 that is authorized under this chapter, Chapter 446 of this code,
 Subchapter G, Chapter 481, of this code, Chapter 169, Occupations
 Code, or department rule, is not contraband for purposes of Chapter
 59, Code of Criminal Procedure, and is not subject to seizure or
 forfeiture under that chapter or other law solely for the use of the
 property in those authorized activities.
 Sec. 487.025.  NO PROSECUTION FOR PROVISION OF
 PARAPHERNALIA. A person is not subject to arrest, prosecution, or
 the imposition of any sentence or penalty for the delivery,
 possession with intent to deliver, or manufacture of any item that
 meets the definition of drug paraphernalia, as defined by Section
 481.002, if that item is delivered, possessed with intent to
 deliver, or manufactured for the sole purpose of providing that
 item to:
 (1)  a patient for whom medical use is recommended
 under Chapter 169, Occupations Code, or the parent, legal guardian,
 or caregiver of a patient;
 (2)  a medical cannabis organization;
 (3)  a director, manager, or employee of a medical
 cannabis organization who is registered with the department under
 Section 487.053;
 (4)  a medical cannabis research license holder under
 Chapter 446; or
 (5)  a person participating as a researcher or patient
 in an approved research program under Subchapter G, Chapter 481.
 Sec. 487.026.  NO PUNISHMENT FOR STUDENT PATIENTS AND THEIR
 CAREGIVERS. Notwithstanding any other law:
 (1)  a student enrolled in any school, junior college,
 college, university, or other educational institution for whom
 medical cannabis was recommended under Chapter 169, Occupations
 Code, may not be subject to suspension, expulsion, placement in a
 disciplinary alternative education program, or any other form of
 discipline solely because the student possessed, used, or received
 a valid recommendation for medical cannabis; and
 (2)  a health care professional providing services at
 any school, junior college, college, university, or other
 educational institution may not be subject to any discipline solely
 for assisting a student in the administration of medical cannabis.
 SECTION 3.04.  Section 487.052, Health and Safety Code, is
 amended to read as follows:
 Sec. 487.052.  RULES; FEES. (a)  The director shall adopt
 any rules necessary for the administration and enforcement of this
 chapter.
 (b)  The director shall adopt [, including] rules imposing
 reasonable fees under this chapter in amounts sufficient to cover
 the cost of administering this chapter.  The department shall also
 use revenue from fees to establish a cannabis testing and quality
 control fund for the purpose of assisting law enforcement,
 including accredited crime laboratories, to purchase instruments,
 establish methods, and obtain resources needed to conduct forensic
 analysis necessary to enforce this subtitle and to protect the
 health and safety of medical cannabis patients and the public.
 (c)  The fees adopted under Subsection (b) may not exceed:
 (1)  $5,000 for application fees;
 (2)  $100 for registration fees under Subchapter D; and
 (3)  reasonable amounts for the issuance or renewal of
 each class of license.
 (d)  The director may not adopt rules establishing a total
 limit on the number of medical cannabis organization licenses by
 class that may be granted nor set the price of or production
 quantity of medical cannabis.
 SECTION 3.05.  Subchapter B, Chapter 487, Health and Safety
 Code, is amended by adding Sections 487.0521 and 487.0522 to read as
 follows:
 Sec. 487.0521.  SAFETY. (a)  The director by rule shall
 adopt packaging and labeling requirements for medical cannabis to
 ensure patients are informed and protected.  In adopting packaging
 and labeling requirements, the director shall ensure that:
 (1)  each medical cannabis package is labeled with the
 cannabinoid potency and terpenes profile of medical cannabis or
 medical cannabis product as determined by an independent testing
 laboratory;
 (2)  each medical cannabis product and medical cannabis
 package is labeled with the required warnings as determined by the
 department; and
 (3)  the packaging and label of medical cannabis or a
 medical cannabis product:
 (A)  do not contain any false or misleading
 statements; and
 (B)  are not designed to appeal to children.
 (b)  In consultation with the medical cannabis research
 advisory board under Chapter 446, the director shall adopt
 necessary rules to allow the department to monitor the safety and
 efficacy of medical cannabis or medical cannabis products,
 including rules:
 (1)  requiring accurate reporting to consumers
 regarding the content of medical cannabis or medical cannabis
 products;
 (2)  providing for random testing by the department or
 the department's designee to ensure compliance with labeling and
 reporting requirements; and
 (3)  providing for health and safety regulations and
 standards for the manufacture and cultivation of medical cannabis
 and medical cannabis products.
 (c)  The director may collect data from medical cannabis
 organizations and health care providers as necessary to enable the
 department to monitor the safety and efficacy of medical cannabis.
 The director may adopt rules for the data collection under this
 subsection.
 Sec. 487.0522.  MEDICAL CANNABIS INVENTORY SYSTEM. (a)  The
 department shall establish and maintain a medical cannabis
 inventory system that oversees the tracking, tracing, testing, and
 quality control and quality assurance certification of medical
 cannabis and medical cannabis products.
 (b)  The department may contract with other entities to
 establish and maintain all or part of the medical cannabis
 inventory system on behalf of the department.
 (c)  A medical cannabis organization shall use the medical
 cannabis inventory system approved by the department to keep
 records throughout the cannabis supply chain, including for every
 transaction between license holders and between license holders and
 patients. A medical cannabis organization may additionally use its
 own system for keeping records under this chapter provided the
 organization's system can integrate with the department's medical
 cannabis inventory system as required under this chapter and rules
 adopted under this chapter.
 (d)  The records in the medical cannabis inventory system
 must include for each transaction:
 (1)  the name, license number, and assigned
 identification number of the license holder that cultivated,
 manufactured, tested, or sold the product;
 (2)  the address and phone number of the license holder
 that cultivated, manufactured, tested, or sold the product;
 (3)  the type and weight of medical cannabis or medical
 cannabis product transferred or received during the transaction;
 (4)  the batch number of the medical cannabis or
 medical cannabis product used;
 (5)  the date of the transaction;
 (6)  the total spent in dollars; and
 (7)  any additional information the department
 requires.
 (e)  The records in the medical cannabis inventory system
 must include for each license holder:
 (1)  the amount of any medical cannabis waste, in
 pounds;
 (2)  all point-of-sale records; and
 (3)  any additional information the department
 requires.
 (f)  Notwithstanding Subsection (c), before the department
 establishes the medical cannabis inventory system described by that
 subsection, each license holder shall use its own inventory system
 that meets the requirements of this section.
 (g)  Each medical cannabis organization has a continuing
 responsibility to maintain records on site that are readily
 available to the department regardless of the functionality of the
 medical cannabis inventory system, including the criteria
 established by this section and any requirements established by
 rule.
 (h)  The director shall adopt rules necessary for the
 implementation and enforcement of this section, including rules
 ensuring:
 (1)  the department has 24-hour access to the medical
 cannabis inventory system; and
 (2)  all inventory records containing patient
 information comply with Chapter 181 and the Health Insurance
 Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d
 et seq.).
 SECTION 3.06.  The heading to Section 487.053, Health and
 Safety Code, is amended to read as follows:
 Sec. 487.053.  LICENSING OF MEDICAL CANNABIS [DISPENSING]
 ORGANIZATIONS AND REGISTRATION OF CERTAIN ASSOCIATED INDIVIDUALS.
 SECTION 3.07.  Section 487.053(a), Health and Safety Code,
 is amended to read as follows:
 (a)  The department shall:
 (1)  issue or renew a license under Subchapter C to
 operate as a medical cannabis [dispensing] organization to each
 applicant who satisfies the requirements established under this
 chapter for licensure under that class of medical cannabis
 organization; [and]
 (2)  register directors, managers, and employees under
 Subchapter D of each medical cannabis [dispensing] organization;
 (3)  issue a permit for an additional location to a
 dispensing cannabis organization license holder on application if
 the license holder is in compliance with all eligibility
 requirements and the proposed location complies with any local
 zoning requirements and will assist with ensuring reasonable
 statewide access;
 (4)  to ensure reasonable statewide access, issue not
 fewer than the following number of licenses or permits, as
 applicable, for each type of medical cannabis organization provided
 the department receives an adequate number of qualified
 applications:
 (A)  dispensing cannabis organization licenses or
 permits for an additional location for a dispensing cannabis
 organization license holder, as applicable, based on population
 within each of the 11 public health regions established by the
 Health and Human Services Commission, as follows:
 (i)  9 in public health region 1;
 (ii)  6 in public health region 2;
 (iii)  82 in public health region 3;
 (iv)  12 in public health region 4;
 (v)  8 in public health region 5;
 (vi)  75 in public health region 6;
 (vii)  37 in public health region 7;
 (viii)  31 in public health region 8;
 (ix)  7 in public health region 9;
 (x)  9 in public health region 10; and
 (xi)  24 in public health region 11;
 (B)  one cultivation cannabis organization
 license for every four dispensing cannabis organization licenses;
 (C)  one processing cannabis organization license
 for every three dispensing cannabis organization licenses; and
 (D)  the number of independent testing cannabis
 organization licenses necessary to meet demand;
 (5)  when the number of registered medical cannabis
 patients reaches 100,000, issue not fewer than 24 additional
 dispensing cannabis organization licenses or location permits, as
 applicable, and the appropriate number of other medical cannabis
 organization license types as prescribed by Subdivision (4); and
 (6)  for each additional 100,000 registered medical
 cannabis patients beyond the first 100,000 patients described by
 Subdivision (5), issue not fewer than 24 additional dispensing
 cannabis organization licenses or location permits, as applicable,
 and the appropriate number of other medical cannabis organization
 license types as prescribed by Subdivision (4).
 SECTION 3.08.  Section 487.054, Health and Safety Code, is
 amended to read as follows:
 Sec. 487.054.  COMPASSIONATE-USE REGISTRY.  (a)  The
 department shall establish and maintain a secure online
 compassionate-use registry that contains:
 (1)  the name of each physician who registers as a
 physician recommending medical cannabis and for each patient for
 whom the physician has registered:
 (A)  [the prescriber for a patient under Section
 169.004, Occupations Code,] the patient's name, and any caregivers'
 names, if applicable;
 (B)  the patient's [and] date of birth;
 (C)  the nature of the patient's eligible medical
 condition;
 (D)  [of the patient,] the dosage recommended;
 (E)  [prescribed,] the means of administration
 ordered; [,] and
 (F)  the total amount of medical [low-THC]
 cannabis required to fill the patient's recommendation
 [prescription]; and
 (2)  a record of each amount of medical [low-THC]
 cannabis dispensed by a medical cannabis [dispensing] organization
 to a patient under a recommendation [prescription].
 (b)  The department shall ensure the registry:
 (1)  is designed to prevent more than one qualified
 physician from registering as the recommending physician
 [prescriber] for a single patient;
 (2)  is accessible to law enforcement agencies and
 medical cannabis [dispensing] organizations licensed to dispense
 medical cannabis for the purpose of verifying whether a patient is
 one for whom medical [low-THC] cannabis is recommended [prescribed]
 and whether the patient's recommendations [prescriptions] have
 been filled; [and]
 (3)  allows a physician [qualified to prescribe low-THC
 cannabis under Section 169.002, Occupations Code,] to input safety
 and efficacy data derived from the treatment of patients for whom
 medical [low-THC] cannabis is recommended [prescribed] under
 Chapter 169, Occupations Code, including any severe adverse effects
 due to the medical use of medical cannabis; and
 (4)  ensures that all application records and
 information are sealed to protect the privacy of patients.
 (c)  The handling of any records maintained in the registry
 must comply with all relevant state and federal privacy laws,
 including Chapter 181.
 SECTION 3.09.  Subchapter B, Chapter 487, Health and Safety
 Code, is amended by adding Section 487.055 to read as follows:
 Sec. 487.055.  DESIGNATION OF CAREGIVER. (a)  A patient
 listed in the compassionate-use registry may designate a caregiver.
 A caregiver designated under this subsection may be either an
 individual or an organization or other entity, including a
 long-term care facility, other health care organization, or public
 institution.
 (b)  The department shall develop a form for a patient listed
 in the registry to designate a caregiver under Subsection (a). The
 form must require the patient to provide the full name, home
 address, and date of birth of the patient's caregiver or, in the
 case of a caregiver that is an entity, the entity's name and
 address.
 (c)  A caregiver may possess medical cannabis and medical
 cannabis products up to the sum of the possession limits for all
 patients under the caregiver's care.
 (d)  The director shall adopt rules necessary to implement
 this section, including rules to provide identification cards for
 designated caregivers.
 SECTION 3.10.  The heading to Subchapter C, Chapter 487,
 Health and Safety Code, is amended to read as follows:
 SUBCHAPTER C. LICENSE TO OPERATE AS MEDICAL CANNABIS [DISPENSING]
 ORGANIZATION
 SECTION 3.11.  Section 487.101, Health and Safety Code, is
 amended to read as follows:
 Sec. 487.101.  LICENSE REQUIRED.  (a)  A license issued by
 the department under this chapter is required to operate a medical
 cannabis [dispensing] organization.
 (b)  The director by rule shall adopt application and
 licensing requirements and privileges of each medical cannabis
 organization license type.
 (c)  Medical cannabis organization license types shall
 include the following:
 (1)  a cultivating cannabis organization that
 cultivates medical cannabis for sale and distribution to other
 medical cannabis organizations and may process and package medical
 cannabis for individual sale so long as the cannabis is not
 subjected to any chemical alteration;
 (2)  a processing cannabis organization that extracts
 medical cannabis and manufactures, prepares, and packages medical
 cannabis products for sale and distribution to other medical
 cannabis organizations;
 (3)  a dispensing cannabis organization that sells
 medical cannabis and medical cannabis products to patients;
 (4)  an independent testing cannabis organization that
 tests medical cannabis and medical cannabis products for potency,
 safety, and efficacy; and
 (5)  any other class of medical cannabis organization
 that the department finds warranted to safely and securely ensure
 reasonable statewide access of medical cannabis for medical use.
 SECTION 3.12.  Section 487.102, Health and Safety Code, is
 amended to read as follows:
 Sec. 487.102.  ELIGIBILITY FOR LICENSE.  An applicant for a
 license to operate as a medical cannabis [dispensing] organization
 is eligible for the license if:
 (1)  as determined by the department, the applicant
 possesses:
 (A)  the technical and technological ability
 appropriate for that class of license [to cultivate and produce
 low-THC cannabis];
 (B)  the ability to secure:
 (i)  the resources and personnel necessary
 to operate as a medical cannabis [dispensing] organization; and
 (ii)  for distribution or
 dispensing premises reasonably located to allow patients listed on
 the compassionate-use registry access to the organization through
 existing infrastructure;
 (C)  the ability to maintain accountability for
 the raw materials, the finished product, and any by-products used
 or produced in the cultivation or production of medical [low-THC]
 cannabis to prevent unlawful access to or unlawful diversion or
 possession of those materials, products, or by-products; [and]
 (D)  the financial ability to maintain operations
 for not less than two years from the date of application; and
 (E)  any specific qualifications for licensure
 for each class of license the department requires by rule under this
 chapter that are demonstrably related to the operations authorized
 and duties imposed under that class of license to safely and
 securely provide medical cannabis for medical use to patients;
 (2)  each director, manager, or employee of the
 applicant is registered under Subchapter D; and
 (3)  the applicant satisfies any additional criteria
 determined by the director to be necessary to safely implement this
 chapter.
 SECTION 3.13.  Subchapter C, Chapter 487, Health and Safety
 Code, is amended by adding Section 487.1021 to read as follows:
 Sec. 487.1021.  ELIGIBILITY FOR LICENSE TO OPERATE AS AN
 INDEPENDENT CANNABIS TESTING ORGANIZATION. In addition to the
 criteria described by Section 487.102, an applicant for a license
 to operate as an independent cannabis testing organization is
 eligible for the license if the applicant:
 (1)  submits proof of accreditation by an independent
 accreditation body in accordance with the International
 Organization for Standardization ISO/IEC 17025 or a comparable or
 successor standard designated by department rule;
 (2)  submits proof that it does not share ownership
 interest or joint management with any medical cannabis organization
 whose product the applicant may test except for less than 10 percent
 ownership in a publicly traded company; and
 (3)  satisfies any additional criteria determined by
 the department to be necessary for the operation of a cannabis
 testing facility.
 SECTION 3.14.  Section 487.103(a), Health and Safety Code,
 is amended to read as follows:
 (a)  A person may apply for an initial or renewal license to
 operate as a medical cannabis [dispensing] organization by
 submitting a form prescribed by the department along with the
 application fee in an amount set by the director for that class of
 license.
 SECTION 3.15.  Section 487.104(a), Health and Safety Code,
 is amended to read as follows:
 (a)  The department shall issue or renew a license to operate
 as a medical cannabis [dispensing] organization [only] if:
 (1)  the department determines the applicant meets the
 eligibility requirements described by Section 487.102 or 487.1021,
 as applicable; and
 (2)  issuance or renewal of the license would assist
 [is necessary to ensure] reasonable statewide access to, and the
 availability of, medical [low-THC] cannabis for patients
 registered in the compassionate-use registry and for whom medical
 [low-THC] cannabis is recommended [prescribed] under Chapter 169,
 Occupations Code.
 SECTION 3.16.  Sections 487.105(a) and (b), Health and
 Safety Code, are amended to read as follows:
 (a)  An applicant for the issuance or renewal of a license
 under this subchapter [to operate as a dispensing organization]
 shall provide the department with the applicant's name and the name
 of each of the applicant's directors, managers, and employees.
 (b)  Before a medical cannabis [dispensing] organization
 license holder [licensee] hires a manager or employee for the
 organization, the license holder [licensee] must provide the
 department with the name of the prospective manager or employee.
 The license holder [licensee] may not transfer the license to
 another person before that prospective applicant and the
 applicant's directors, managers, and employees pass a criminal
 history background check and any other requirements established by
 the director by rule, and are registered as required by Subchapter
 D.
 SECTION 3.17.  Section 487.106, Health and Safety Code, is
 amended to read as follows:
 Sec. 487.106.  DUTY TO MAINTAIN ELIGIBILITY. (a) Each
 license holder under this subchapter [A dispensing organization]
 must maintain compliance at all times with the eligibility
 requirements described by Section 487.102 or 487.1021, as
 applicable.
 (b)  On request of the department, a license holder must
 provide to the department a reasonably sized sample suitable for
 testing of medical cannabis.
 SECTION 3.18.  Section 487.107, Health and Safety Code, is
 amended to read as follows:
 Sec. 487.107.  DUTIES RELATING TO DISPENSING MEDICAL
 CANNABIS [PRESCRIPTION]. (a) Before dispensing medical [low-THC]
 cannabis to a person for whom the medical [low-THC] cannabis is
 recommended [prescribed] under Chapter 169, Occupations Code, the
 medical cannabis [dispensing] organization must verify that the
 recommendation [prescription] presented:
 (1)  is for a person listed as a patient in the
 compassionate-use registry;
 (2)  matches the entry in the compassionate-use
 registry with respect to the total amount of medical [low-THC]
 cannabis required to fill the recommendation [prescription]; and
 (3)  has not previously been filled by a medical
 cannabis [dispensing] organization as indicated by an entry in the
 compassionate-use registry.
 (b)  After dispensing medical [low-THC] cannabis to a
 patient for whom the medical [low-THC] cannabis is recommended
 [prescribed] under Chapter 169, Occupations Code, the medical
 cannabis [dispensing] organization shall record in the
 compassionate-use registry the form and quantity of medical
 [low-THC] cannabis dispensed and the date and time of dispensation.
 SECTION 3.19.  Sections 487.108(a), (b), and (c), Health and
 Safety Code, are amended to read as follows:
 (a)  The department may at any time suspend or revoke a
 license issued under this subchapter [chapter] if the department
 determines that the license holder [licensee] has not maintained
 the eligibility requirements described by Section 487.102 or
 487.1021, as applicable, or has failed to comply with a duty imposed
 under this chapter.
 (b)  The director shall give written notice to the license
 holder [dispensing organization] 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
 subchapter [chapter], the director may seize or place under seal
 all medical [low-THC] cannabis and drug paraphernalia owned or
 possessed by the license holder [dispensing organization].  If the
 director orders the revocation of the license, a disposition may
 not be made of the seized or sealed medical [low-THC] cannabis 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 medical [low-THC] cannabis and
 drug paraphernalia may be forfeited to the state as provided under
 Subchapter E, Chapter 481.
 SECTION 3.20.  Section 487.151(a), Health and Safety Code,
 is amended to read as follows:
 (a)  An individual who is a director, manager, or employee of
 a license holder under Subchapter C [dispensing organization] must
 apply for and obtain a registration under this section.
 SECTION 3.21.  Section 487.201, Health and Safety Code, is
 amended to read as follows:
 Sec. 487.201.  COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT
 MEDICAL [LOW-THC] CANNABIS.  A municipality, county, or other
 political subdivision may not enact, adopt, or enforce a rule,
 ordinance, order, resolution, or other regulation that prohibits
 the cultivation, production, dispensing, researching, testing, or
 possession of medical [low-THC] cannabis, as authorized by this
 chapter.
 SECTION 3.22.  Subchapter F, Chapter 487, Health and Safety
 Code, is repealed.
 ARTICLE 4. RECOMMENDATION OF MEDICAL CANNABIS BY PHYSICIAN
 SECTION 4.01.  The heading to Chapter 169, Occupations Code,
 is amended to read as follows:
 CHAPTER 169. AUTHORITY TO RECOMMEND MEDICAL [PRESCRIBE LOW-THC]
 CANNABIS TO CERTAIN PATIENTS FOR COMPASSIONATE USE
 SECTION 4.02.  Section 169.001, Occupations Code, is amended
 to read as follows:
 Sec. 169.001.  DEFINITIONS.  In this chapter:
 (1)  "Department" means the Department of Public
 Safety.
 [(1-a)  "Incurable neurodegenerative disease" means a
 disease designated as an incurable neurodegenerative disease by
 rule of the executive commissioner of the Health and Human Services
 Commission, adopted in consultation with the National Institutes of
 Health.]
 (2) [(3)]  "Medical [Low-THC] cannabis" means the
 plant Cannabis sativa L., and any part of that plant or any
 compound, manufacture, salt, derivative, mixture, preparation,
 resin, or oil of that plant. The term does not include hemp, as
 defined by Section 121.001, Agriculture Code, or a consumable hemp
 product, as defined by Section 443.001, Health and Safety Code
 [that contains not more than one percent by weight of
 tetrahydrocannabinols].
 (3) [(4)]  "Medical use" means the administration of
 medical cannabis to a registered patient for treatment of an
 eligible medical condition or symptoms as recommended by a
 physician [ingestion by a means of administration other than by
 smoking of a prescribed amount of low-THC cannabis by a person for
 whom low-THC cannabis is prescribed] under this chapter.
 (4)  "Serious adverse event" means an adverse event
 that:
 (A)  results in death;
 (B)  results in an illness requiring
 hospitalization;
 (C)  is considered life-threatening; or
 (D)  results in a persistent or significant
 disability, incapacity, or medically important condition.
 [(5)  "Smoking" means burning or igniting a substance
 and inhaling the smoke.]
 SECTION 4.03.  Chapter 169, Occupations Code, is amended by
 adding Section 169.0012 to read as follows:
 Sec. 169.0012.  BONA FIDE PHYSICIAN-PATIENT RELATIONSHIP.
 For purposes of this chapter, a bona fide physician-patient
 relationship exists when there is a treatment or counseling
 relationship between a physician and patient in which all of the
 following are present:
 (1)  the physician has reviewed the patient's relevant
 medical records and completed a full assessment of the patient's
 medical history and current medical condition, including a relevant
 medical evaluation of the patient;
 (2)  the physician has created and continues to
 maintain records of the patient's condition in accordance with
 medically accepted standards;
 (3)  the physician has a reasonable expectation that
 the physician will provide follow-up care to the patient to monitor
 the efficacy of the use of medical cannabis as a treatment of the
 patient's medical condition; and
 (4)  if the patient has given permission, the physician
 has notified the patient's primary care physician of the patient's
 medical condition and certification for the medical use of medical
 cannabis to treat that condition.
 SECTION 4.04.  Section 169.002, Occupations Code, is amended
 to read as follows:
 Sec. 169.002.  PHYSICIAN QUALIFIED TO RECOMMEND MEDICAL
 [PRESCRIBE LOW-THC] CANNABIS [TO PATIENTS WITH CERTAIN MEDICAL
 CONDITIONS]. (a) Only a physician qualified with respect to a
 patient's particular medical condition [as provided by this
 section] may recommend medical [prescribe low-THC] cannabis in
 accordance with this chapter to treat the applicable medical
 condition.
 (b)  A physician is qualified to recommend medical
 [prescribe low-THC] cannabis with respect to a patient's particular
 medical condition if the physician:
 (1)  is licensed under this subtitle;
 (2)  has a bona fide physician-patient relationship
 with the patient [is board certified in a medical specialty
 relevant to the treatment of the patient's particular medical
 condition by a specialty board approved by the American Board of
 Medical Specialties or the Bureau of Osteopathic Specialists]; and
 (3)  dedicates a significant portion of clinical
 practice to the evaluation and treatment of the patient's
 particular medical condition.
 [(c)  A physician is qualified to prescribe low-THC cannabis
 for the treatment of a patient with a medical condition approved by
 rule of the executive commissioner of the Health and Human Services
 Commission for treatment in an approved research program conducted
 under Subchapter F, Chapter 487, Health and Safety Code, if the
 physician is:
 [(1)  licensed under this subtitle; and
 [(2)  certified by a compassionate-use institutional
 review board created under Section 487.253, Health and Safety Code,
 that oversees patient treatment undertaken as part of that approved
 research program.]
 SECTION 4.05.  Section 169.003, Occupations Code, is amended
 to read as follows:
 Sec. 169.003.  RECOMMENDATION [PRESCRIPTION] OF MEDICAL
 [LOW-THC] CANNABIS.  A physician described by Section 169.002 may
 recommend medical [prescribe low-THC] cannabis to a patient if:
 (1)  the patient is a permanent resident of the state;
 (2)  the physician complies with the registration
 requirements of Section 169.004; and
 (3)  the physician certifies to the department that:
 (A)  there is a bona fide physician-patient
 relationship;
 (B)  the patient has a diagnosis or symptoms such
 that, in the physician's professional judgment and review of past
 treatments, the patient is likely to receive therapeutic or
 palliative benefit from medical cannabis [is diagnosed with:
 [(i)  epilepsy;
 [(ii)  a seizure disorder;
 [(iii)  multiple sclerosis;
 [(iv)  spasticity;
 [(v)  amyotrophic lateral sclerosis;
 [(vi)  autism;
 [(vii)  cancer;
 [(viii)  an incurable neurodegenerative
 disease;
 [(ix)  post-traumatic stress disorder; or
 [(x)  a medical condition that is approved
 for a research program under Subchapter F, Chapter 487, Health and
 Safety Code, and for which the patient is receiving treatment under
 that program]; and
 (C) [(B)]  the physician determines the risk of
 the medical use of medical [low-THC] cannabis by the patient is
 reasonable in light of the potential benefit for the patient.
 SECTION 4.06.  The heading to Section 169.004, Occupations
 Code, is amended to read as follows:
 Sec. 169.004.  MEDICAL [LOW-THC] CANNABIS RECOMMENDATION
 [PRESCRIBER] REGISTRATION.
 SECTION 4.07.  Section 169.004(a), Occupations Code, is
 amended to read as follows:
 (a)  Before a physician [qualified to prescribe low-THC
 cannabis under Section 169.002] may recommend [prescribe] or renew
 a recommendation [prescription] for medical [low-THC] cannabis for
 a patient under this chapter, the physician must register [as the
 prescriber for that patient] in the compassionate-use registry
 maintained by the department under Section 487.054, Health and
 Safety Code.  The physician's registration must indicate:
 (1)  the physician's name; and
 (2)  for each patient:
 (A)  the patient's name and date of birth;
 (B)  the nature of the patient's diagnosis or
 symptom being treated by medical cannabis;
 (C) [(3)]  the dosage recommended for [prescribed
 to] the patient;
 (D) [(4)]  the means of administration ordered
 for the patient; [and]
 (E) [(5)]  the total amount of medical [low-THC]
 cannabis required to fill the patient's recommendation; and
 (F)  any severe adverse events the patient may
 experience due to the medical use of medical cannabis
 [prescription].
 SECTION 4.08.  Section 169.005, Occupations Code, is amended
 to read as follows:
 Sec. 169.005.  PATIENT TREATMENT PLAN. A physician
 described by Section 169.002 who recommends medical [prescribes
 low-THC] cannabis for a patient's medical use under this chapter
 must maintain a patient treatment plan that indicates:
 (1)  the dosage, means of administration, and planned
 duration of treatment for the medical [low-THC] cannabis;
 (2)  a plan for monitoring the patient's symptoms; and
 (3)  a plan for monitoring indicators of tolerance or
 reaction to medical [low-THC] cannabis.
 SECTION 4.09.  Section 169.0011, Occupations Code, is
 repealed.
 ARTICLE 5. CONFORMING AMENDMENTS
 SECTION 5.01.  Section 161.001(c), Family Code, is amended
 to read as follows:
 (c)  Evidence of one or more of the following does not
 constitute clear and convincing evidence sufficient for a court to
 make a finding under Subsection (b) and order termination of the
 parent-child relationship:
 (1)  the parent homeschooled the child;
 (2)  the parent is economically disadvantaged;
 (3)  the parent has been charged with a nonviolent
 misdemeanor offense other than:
 (A)  an offense under Title 5, Penal Code;
 (B)  an offense under Title 6, Penal Code; or
 (C)  an offense that involves family violence, as
 defined by Section 71.004 of this code;
 (4)  the parent provided or administered medical
 [low-THC] cannabis to a child for whom the medical [low-THC]
 cannabis was recommended [prescribed] under Chapter 169,
 Occupations Code;
 (5)  the parent declined immunization for the child for
 reasons of conscience, including a religious belief;
 (6)   the parent sought an opinion from more than one
 medical provider relating to the child's medical care, transferred
 the child's medical care to a new medical provider, or transferred
 the child to another health care facility; or
 (7)  the parent allowed the child to engage in
 independent activities that are appropriate and typical for the
 child's level of maturity, physical condition, developmental
 abilities, or culture.
 SECTION 5.02.  Section 262.116(a), Family Code, is amended
 to read as follows:
 (a)  The Department of Family and Protective Services may not
 take possession of a child under this subchapter based on evidence
 that the parent:
 (1)  homeschooled the child;
 (2)  is economically disadvantaged;
 (3)  has been charged with a nonviolent misdemeanor
 offense other than:
 (A)  an offense under Title 5, Penal Code;
 (B)  an offense under Title 6, Penal Code; or
 (C)  an offense that involves family violence, as
 defined by Section 71.004 of this code;
 (4)  provided or administered medical [low-THC]
 cannabis to a child for whom the medical [low-THC] cannabis was
 recommended [prescribed] under Chapter 169, Occupations Code;
 (5)  declined immunization for the child for reasons of
 conscience, including a religious belief;
 (6)  sought an opinion from more than one medical
 provider relating to the child's medical care, transferred the
 child's medical care to a new medical provider, or transferred the
 child to another health care facility;
 (7)  allowed the child to engage in independent
 activities that are appropriate and typical for the child's level
 of maturity, physical condition, developmental abilities, or
 culture; or
 (8)  tested positive for marihuana, unless the
 department has evidence that the parent's use of marihuana has
 caused significant impairment to the child's physical or mental
 health or emotional development.
 SECTION 5.03.  Section 411.0891(a), Government Code, is
 amended to read as follows:
 (a)  The department may obtain as provided by Subsection
 (a-1) criminal history record information that relates to a person
 who:
 (1)  is an applicant for or holds a registration issued
 by the director under Subchapter C, Chapter 481, Health and Safety
 Code, that authorizes the person to manufacture, distribute,
 analyze, or conduct research with a controlled substance;
 (2)  is an applicant for or holds a registration issued
 by the department under Chapter 487, Health and Safety Code, to be a
 director, manager, or employee of a medical cannabis [dispensing]
 organization, as defined by Section 487.001, Health and Safety
 Code;
 (3)  is an applicant for or holds an authorization
 issued by the department under Section 521.2476, Transportation
 Code, to do business in this state as a vendor of ignition interlock
 devices;
 (4)  is an applicant for or holds certification by the
 department as an inspection station or an inspector under
 Subchapter G, Chapter 548, Transportation Code, holds an inspection
 station or inspector certificate issued under that subchapter, or
 is the owner of an inspection station operating under that chapter;
 (5)  is an applicant for or holds a certificate of
 registration issued by the department under Chapter 1956,
 Occupations Code, to act as a metal recycling entity;
 (6)  is an applicant for or holds a license to carry a
 handgun issued by the department under Subchapter H, or is an
 applicant for or holds a certification as an instructor issued by
 the department under this chapter;
 (7)  is an applicant for or holds a Capitol access pass
 issued by the department under Section 411.0625; or
 (8)  is an applicant for or holds a license or
 commission issued by the department under Chapter 1702, Occupations
 Code.
 SECTION 5.04.  Section 443.202(a), Health and Safety Code,
 is amended to read as follows:
 (a)  This section does not apply to medical [low-THC]
 cannabis regulated under Chapter 487.
 SECTION 5.05.  Section 443.2025(a), Health and Safety Code,
 is amended to read as follows:
 (a)  This section does not apply to medical [low-THC]
 cannabis regulated under Chapter 487.
 SECTION 5.06.  Section 481.062(a), Health and Safety Code,
 is amended to read as follows:
 (a)  The following persons may possess a controlled
 substance under this chapter without registering with the Federal
 Drug Enforcement Administration:
 (1)  an agent or employee of a 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 medical cannabis [dispensing] organization
 licensed under Subchapter C, Chapter 487, or a medical cannabis
 research license holder under Chapter 446, that possesses medical
 [low-THC] cannabis.
 SECTION 5.07.  Sections 481.111(e) and (f), Health and
 Safety Code, are amended to read as follows:
 (e)  Sections 481.120, 481.121, 481.122, and 481.125 do not
 apply to a person who engages in the acquisition, possession,
 production, cultivation, delivery, or disposal of a raw material
 used in or by-product created by the production or cultivation of
 medical [low-THC] cannabis if the person:
 (1)  for an offense involving possession only of
 marihuana or drug paraphernalia:
 (A)  [,] is a patient for whom medical [low-THC]
 cannabis is recommended [prescribed] under Chapter 169,
 Occupations Code, or the patient's parent, legal guardian, or
 caregiver;[,] and
 (B)  [the person] possesses medical [low-THC]
 cannabis obtained under a valid recommendation [prescription] from
 a medical cannabis [dispensing] organization; or
 (2)  is a director, manager, or employee of a medical
 cannabis [dispensing] organization and the person, solely in
 performing the person's regular duties at the organization,
 acquires, possesses, produces, cultivates, dispenses, or disposes
 of:
 (A)  in reasonable quantities, any medical
 [low-THC] cannabis or raw materials used in or by-products created
 by the production or cultivation of medical [low-THC] cannabis; or
 (B)  any drug paraphernalia used in the
 acquisition, possession, production, cultivation, delivery, or
 disposal of medical [low-THC] cannabis.
 (f)  For purposes of Subsection (e):
 (1)  ["Dispensing organization" has the meaning
 assigned by Section 487.001.
 [(2)]  "Medical [Low-THC] cannabis" has the meaning
 assigned by Section 169.001, Occupations Code.
 (2)  "Medical cannabis organization" has the meaning
 assigned by Section 487.001.
 SECTION 5.08.  Section 490.001(3), Health and Safety Code,
 is amended to read as follows:
 (3)  "Investigational drug, biological product, or
 device" means a drug, biological product, or device that has
 successfully completed phase one of a clinical trial but the United
 States Food and Drug Administration or its international equivalent
 has not yet approved for general use and that remains under
 investigation in the clinical trial.  The term does not include
 medical [low-THC] cannabis, as defined by Section 169.001,
 Occupations Code, or a product containing marihuana, as defined by
 Section 481.002, regardless of whether the cannabis or product
 successfully completed phase one of a clinical trial.
 SECTION 5.09.  Section 551.004(a), Occupations Code, is
 amended to read as follows:
 (a)  This subtitle does not apply to:
 (1)  a practitioner licensed by the appropriate state
 board who supplies a patient of the practitioner with a drug in a
 manner authorized by state or federal law and who does not operate a
 pharmacy for the retailing of prescription drugs;
 (2)  a member of the faculty of a college of pharmacy
 recognized by the board who is a pharmacist and who performs the
 pharmacist's services only for the benefit of the college;
 (3)  a person who procures prescription drugs for
 lawful research, teaching, or testing and not for resale;
 (4)  a home and community support services agency that
 possesses a dangerous drug as authorized by Section 142.0061,
 142.0062, or 142.0063, Health and Safety Code; [or]
 (5)  a medical cannabis [dispensing] organization, as
 defined by Section 487.001, Health and Safety Code, that
 cultivates, processes, tests, and dispenses medical [low-THC]
 cannabis, as authorized by a license issued under Subchapter C,
 Chapter 487, Health and Safety Code, to a patient listed in the
 compassionate-use registry established under that chapter; or
 (6)  a medical cannabis research license holder under
 Chapter 446, Health and Safety Code, that cultivates, possesses,
 researches, tests, and dispenses medical cannabis as authorized by
 the license.
 ARTICLE 6. TRANSITIONS AND EFFECTIVE DATE
 SECTION 6.01.  Not later than December 31, 2025, the public
 safety director of the Department of Public Safety and the
 executive commissioner of the Health and Human Services Commission
 shall adopt rules as required to implement, administer, and enforce
 this Act.
 SECTION 6.02.  (a) A license to operate as a dispensing
 organization issued under Chapter 487, Health and Safety Code,
 before the effective date of this Act continues to be valid after
 the effective date of this Act until that license expires.
 (b)  The registration of a director, manager, or employee of
 a dispensing organization under Subchapter D, Chapter 487, Health
 and Safety Code, continues to be valid after the effective date of
 this Act until that registration expires.
 SECTION 6.03.  (a) Not later than April 1, 2026, the
 Department of Public Safety shall license cannabis cultivation
 organizations in accordance with Subchapter C, Chapter 487, Health
 and Safety Code, as amended by this Act, provided that the
 applicants for a license have met all requirements for approval
 under that subchapter.
 (b)  Not later than June 1, 2026, the Department of Public
 Safety shall license other classes of medical cannabis
 organizations in accordance with Subchapter C, Chapter 487, Health
 and Safety Code, as amended by this Act, provided that the
 applicants for a license have met all requirements for approval
 under that subchapter.
 (c)  The governor shall appoint members to the medical
 cannabis research advisory board as required under Chapter 446,
 Health and Safety Code, as added by this Act, as soon as practicable
 and not later than September 1, 2025.
 SECTION 6.04.  This Act takes effect September 1, 2025.