Texas 2025 - 89th Regular

Texas Senate Bill SB335 Compare Versions

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Old	New	Differences
1	1	89R4309 CJD-F
2	2	By: Eckhardt S.B. No. 335
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to regulating the cultivation, manufacture, processing,
10	10	distribution, sale, testing, transportation, delivery, transfer,
11	11	possession, and use of cannabis and cannabis products; authorizing
12	12	the imposition of fees; requiring occupational licenses; creating a
13	13	criminal offense.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Subtitle C, Title 6, Health and Safety Code, is
16	16	amended by adding Chapter 491 to read as follows:
17	17	CHAPTER 491. REGULATION OF CANNABIS
18	18	SUBCHAPTER A. GENERAL PROVISIONS
19	19	Sec. 491.0001. DEFINITIONS. In this chapter:
20	20	(1) "Adult" means an individual 21 years of age or
21	21	older.
22	22	(2) "Cannabis" means the plant Cannabis sativa L.,
23	23	whether growing or not, the seeds of that plant, and every compound,
24	24	manufacture, salt, derivative, mixture, or preparation of that
25	25	plant or its seeds. The term includes cannabis concentrate. The
26	26	term does not include:
27	27	(A) the mature stalks of the plant or fiber
28	28	produced from the stalks;
29	29	(B) oil or cake made from the seeds of the plant;
30	30	(C) a compound, manufacture, salt, derivative,
31	31	mixture, or preparation of the mature stalks, fiber, oil, or cake;
32	32	(D) the sterilized seeds of the plant that are
33	33	incapable of beginning germination;
34	34	(E) hemp, as that term is defined by Section
35	35	121.001, Agriculture Code; or
36	36	(F) a consumable hemp product, as that term is
37	37	defined by Section 443.001.
38	38	(3) "Cannabis concentrate" means the resin extracted
39	39	from a part of the plant Cannabis sativa L. or a compound,
40	40	manufacture, salt, derivative, mixture, or preparation of the
41	41	resin.
42	42	(4) "Cannabis establishment" means an entity licensed
43	43	by the department under this chapter to process and dispense
44	44	cannabis and cannabis products to an adult.
45	45	(5) "Cannabis grower" means an entity licensed by the
46	46	department to cultivate cannabis for sale and distribution to a
47	47	cannabis establishment.
48	48	(6) "Cannabis product" means a product that contains
49	49	cannabis and is intended for use or consumption by humans,
50	50	including as an edible product or as a topical product, ointment,
51	51	oil, or tincture. The term includes products that consist of
52	52	cannabis and other ingredients.
53	53	(7) "Cannabis-related drug paraphernalia" means
54	54	equipment, a product, or material that is used or intended for use
55	55	in:
56	56	(A) planting, propagating, cultivating, growing,
57	57	harvesting, manufacturing, compounding, converting, producing,
58	58	processing, preparing, testing, analyzing, packaging, repackaging,
59	59	storing, or containing cannabis or a cannabis product; or
60	60	(B) introducing cannabis or a cannabis product
61	61	into the human body.
62	62	(8) "Cannabis secure transporter" means an entity
63	63	licensed by the department under this chapter to transport cannabis
64	64	from a cannabis grower to a cannabis establishment.
65	65	(9) "Cannabis testing facility" means an entity
66	66	licensed by the department under this chapter to analyze the safety
67	67	and potency of cannabis and cannabis products.
68	68	(10) "Commission" means the Texas Commission of
69	69	Licensing and Regulation.
70	70	(11) "Cultivate" means to propagate, breed, grow,
71	71	harvest, dry, cure, or separate parts of the cannabis plant by
72	72	manual or mechanical means.
73	73	(12) "Department" means the Texas Department of
74	74	Licensing and Regulation.
75	75	(13) "Executive director" means the executive
76	76	director of the department.
77	77	(14) "Marihuana" has the meaning assigned by Section
78	78	481.002.
79	79	(15) "Process" means to separate or otherwise prepare
80	80	parts of the cannabis plant and to compound, blend, extract,
81	81	infuse, or otherwise make or prepare cannabis concentrate or
82	82	cannabis products.
83	83	SUBCHAPTER B. PROTECTIONS FROM LEGAL ACTION RELATED TO CANNABIS
84	84	Sec. 491.0051. AUTHORIZED CONDUCT: PERSONAL USE OF
85	85	CANNABIS. An adult is authorized under this chapter to:
86	86	(1) use, possess, and transport not more than 2.5
87	87	ounces of cannabis, except that not more than 15 grams of that
88	88	amount may be in the form of cannabis concentrate;
89	89	(2) transfer without remuneration to another adult not
90	90	more than 2.5 ounces of cannabis, except that not more than 15 grams
91	91	of that amount may be in the form of cannabis concentrate and
92	92	provided that the transfer is not advertised or promoted to the
93	93	public;
94	94	(3) cultivate for personal use not more than 12
95	95	cannabis plants in an area on the premises of the adult's private
96	96	residence, provided that the cultivation occurs in an enclosed area
97	97	that is:
98	98	(A) equipped with locks or other security devices
99	99	that restrict access to the area; and
100	100	(B) not visible from a public place without the
101	101	use of aircraft or optical aids;
102	102	(4) possess, store, or process on the premises of the
103	103	adult's private residence not more than:
104	104	(A) the amount of cannabis produced from cannabis
105	105	plants cultivated on the premises, provided that:
106	106	(i) not more than 12 cannabis plants are
107	107	possessed, cultivated, or processed on the premises at one time;
108	108	and
109	109	(ii) any amount of cannabis in excess of 2.5
110	110	ounces is stored in a container or area equipped with locks or other
111	111	security devices that restrict access to the contents of the
112	112	container or area; and
113	113	(B) 10 ounces of cannabis that were not produced
114	114	from cannabis plants cultivated on the premises, provided that the
115	115	amount in excess of 2.5 ounces is stored in a container or area
116	116	described by Paragraph (A)(ii);
117	117	(5) use, possess, process, transport, or transfer to
118	118	another adult without remuneration an amount of cannabis products
119	119	specified by commission rule as the allowable amount of cannabis
120	120	for purposes of this subdivision; and
121	121	(6) use, possess, transport, or transfer to another
122	122	adult without remuneration cannabis-related drug paraphernalia.
123	123	Sec. 491.0052. AUTHORIZED CONDUCT: RETAIL CANNABIS
124	124	OPERATIONS. This chapter authorizes the conduct of:
125	125	(1) a cannabis grower director, manager, or employee
126	126	who, acting within the scope of the grower's license:
127	127	(A) cultivates cannabis or produces cannabis
128	128	products for sale or transfer to a cannabis establishment; and
129	129	(B) possesses cannabis or cannabis-related drug
130	130	paraphernalia;
131	131	(2) a cannabis establishment director, manager, or
132	132	employee who, acting within the scope of the establishment's
133	133	license, possesses cannabis or cannabis products or transfers or
134	134	sells cannabis, cannabis products, or cannabis-related drug
135	135	paraphernalia to an adult;
136	136	(3) a cannabis secure transporter director, manager,
137	137	or employee who, acting within the scope of the secure
138	138	transporter's license, transports, transfers, or delivers cannabis
139	139	or cannabis products from a cannabis grower to a cannabis
140	140	establishment; and
141	141	(4) a cannabis testing facility director, manager, or
142	142	employee who, acting within the scope of the facility's license,
143	143	possesses or tests cannabis, cannabis products, or
144	144	cannabis-related drug paraphernalia.
145	145	Sec. 491.0053. PROTECTION FROM LEGAL ACTION FOR AUTHORIZED
146	146	CONDUCT. (a) A person is not subject to arrest, prosecution,
147	147	forfeiture of property, or penalty in any manner or denial of any
148	148	right or privilege, including any civil penalty or disciplinary
149	149	action by a court or occupational or professional licensing board
150	150	or bureau solely due to conduct authorized under Section 491.0051
151	151	or 491.0052.
152	152	(b) The fact that a person engages in conduct authorized by
153	153	Section 491.0051 or 491.0052 does not in itself constitute grounds
154	154	for denying, limiting, or restricting conservatorship or
155	155	possession of or access to a child under Title 5, Family Code.
156	156	Sec. 491.0054. PROHIBITION OF CANNABIS ON PRIVATE PROPERTY;
157	157	EXCEPTION. (a) Except as otherwise provided by Subsection (b), a
158	158	person may prohibit or restrict the possession, consumption,
159	159	cultivation, distribution, processing, sale, or display of
160	160	cannabis or cannabis products on property the person owns,
161	161	occupies, or manages.
162	162	(b) A person may not prohibit a residential tenant under a
163	163	lease agreement from possessing cannabis, cannabis products, or
164	164	cannabis-related drug paraphernalia or consuming cannabis by means
165	165	other than smoking on the premises.
166	166	Sec. 491.0055. CONDUCT NOT AUTHORIZED UNDER THIS CHAPTER.
167	167	This chapter does not authorize the following conduct:
168	168	(1) operating a motor vehicle while intoxicated or
169	169	otherwise violating Chapter 49, Penal Code;
170	170	(2) smoking or otherwise consuming cannabis in:
171	171	(A) a motor vehicle while the vehicle is on a
172	172	public road;
173	173	(B) an aircraft, while the aircraft is in flight
174	174	or in a public area;
175	175	(C) a watercraft, while the watercraft is on a
176	176	public waterway; or
177	177	(D) a public place, unless:
178	178	(i) the public place is an area designated
179	179	by the applicable political subdivision as an area where using
180	180	cannabis is permissible; and
181	181	(ii) the area described by Subparagraph (i)
182	182	is not accessible to persons younger than 21 years of age;
183	183	(3) possessing or consuming cannabis or cannabis
184	184	products or possessing cannabis-related drug paraphernalia:
185	185	(A) on the premises of a public or private
186	186	child-care facility, prekindergarten, or primary or secondary
187	187	school;
188	188	(B) on a school bus that serves a facility or
189	189	school described by Paragraph (A); or
190	190	(C) on the premises of a correctional facility,
191	191	as defined by Article 18A.251, Code of Criminal Procedure, or a
192	192	civil commitment facility; or
193	193	(4) separating resin from the cannabis plant by butane
194	194	extraction or another method that uses a substance with a
195	195	flashpoint below 100 degrees Fahrenheit in a public place or motor
196	196	vehicle or within the curtilage of a residential structure.
197	197	SUBCHAPTER C. DUTIES OF COMMISSION AND DEPARTMENT
198	198	Sec. 491.0101. DUTIES OF DEPARTMENT. The department shall
199	199	administer this chapter.
200	200	Sec. 491.0102. RULES; FEES. (a) The commission shall adopt
201	201	all necessary rules for the administration and enforcement of this
202	202	chapter, including rules imposing fees under this chapter in
203	203	amounts sufficient to cover the cost of administering this chapter.
204	204	(b) The commission by rule shall set application and license
205	205	fees under this chapter in amounts sufficient to administer this
206	206	chapter and may annually adjust the fees for inflation.
207	207	(c) A fee collected under this chapter shall be deposited to
208	208	the credit of the cannabis regulation account established under
209	209	Section 491.0251.
210	210	(d) The commission shall adopt rules for the reasonable
211	211	regulation of cannabis growers and cannabis establishments,
212	212	including rules that:
213	213	(1) restrict the use of dangerous pesticides;
214	214	(2) regulate the packaging and labeling of cannabis
215	215	products available at a cannabis establishment;
216	216	(3) restrict advertising and display of cannabis and
217	217	cannabis products;
218	218	(4) restrict the maximum amount of
219	219	tetrahydrocannabinol that may be contained in a cannabis product
220	220	sold to a consumer;
221	221	(5) require recordkeeping and monitoring to track the
222	222	transfer of cannabis and cannabis products between license holders;
223	223	and
224	224	(6) require security measures, provided that the
225	225	security measures do not restrict the cultivation of cannabis
226	226	outdoors or in greenhouses.
227	227	Sec. 491.0103. TESTING, PACKAGING, AND LABELING STANDARDS.
228	228	(a) The commission by rule shall establish standards for:
229	229	(1) the operation of cannabis testing facilities;
230	230	(2) the testing of cannabis and cannabis products; and
231	231	(3) packaging and labeling requirements for cannabis
232	232	and cannabis products.
233	233	(b) In establishing standards for packaging and labeling
234	234	requirements under Subsection (a)(3), the commission shall require
235	235	that:
236	236	(1) cannabis and cannabis products be packaged in
237	237	opaque, resealable, child-resistant packaging that does not
238	238	resemble and may not be easily confused with typical packaging for
239	239	commercially sold candy;
240	240	(2) cannabis and cannabis products be clearly labeled;
241	241	and
242	242	(3) the label for a cannabis product disclose the
243	243	amount of cannabis contained in that product.
244	244	Sec. 491.0104. SECURE TRANSPORTATION OF CANNABIS. The
245	245	commission by rule shall establish standards applicable to cannabis
246	246	secure transporters, including standards to ensure all cannabis
247	247	establishments are properly served.
248	248	Sec. 491.0105. CONFLICT OF INTEREST. (a) A person who is
249	249	involved in the implementation, administration, or enforcement of
250	250	this chapter as a member of the commission, an employee of the
251	251	department, or a consultant to the commission or the department may
252	252	not also hold a pecuniary interest in any entity licensed by the
253	253	department under this chapter.
254	254	(b) A person who holds a pecuniary interest in a cannabis
255	255	testing facility or a cannabis secure transporter who holds a
256	256	license issued under this chapter may not hold a pecuniary interest
257	257	in any entity that holds a cannabis establishment or cannabis
258	258	grower license issued under this chapter.
259	259	(c) A person may not hold a pecuniary interest in more than
260	260	five entities that are licensed under this chapter as a cannabis
261	261	grower, except as provided by commission rule.
262	262	Sec. 491.0106. ANNUAL REPORT. The executive director shall
263	263	annually submit to the governor a report providing the following
264	264	information regarding licensing and regulation under this chapter:
265	265	(1) the number of applications received for each class
266	266	of license under this chapter;
267	267	(2) the number of licenses issued for each class of
268	268	license under this chapter;
269	269	(3) demographic information pertaining to license
270	270	holders;
271	271	(4) a description of any fines imposed on a license
272	272	holder or disciplinary actions taken against a license holder by
273	273	the department; and
274	274	(5) a statement of revenues and expenses of the
275	275	department related to the implementation, administration, and
276	276	enforcement of this chapter.
277	277	SUBCHAPTER D. LICENSING
278	278	Sec. 491.0151. LICENSE REQUIRED. A person may not operate
279	279	as a cannabis grower, cannabis establishment, cannabis secure
280	280	transporter, or cannabis testing facility unless the person holds a
281	281	license issued by the department under this chapter.
282	282	Sec. 491.0152. QUALIFICATIONS FOR LICENSURE. The
283	283	commission by rule shall provide for each class of license issued
284	284	under this chapter qualifications for licensure that are
285	285	demonstrably related to the operations authorized and duties
286	286	imposed under that class of license.
287	287	Sec. 491.0153. APPLICATION. (a) A person may apply for an
288	288	initial or renewal license under this chapter by submitting a form
289	289	prescribed by the department along with the application fee in an
290	290	amount set by commission rule.
291	291	(b) The application must indicate the class of license
292	292	sought and include the name and address of the applicant, the name
293	293	and address of each of the applicant's directors, managers, and
294	294	employees, and any other information considered necessary by the
295	295	department to determine the applicant's eligibility for the
296	296	license.
297	297	Sec. 491.0154. ISSUANCE, RENEWAL, OR DENIAL OF LICENSE.
298	298	(a) The department shall issue or renew a license under this
299	299	chapter only if:
300	300	(1) the department determines the applicant meets the
301	301	qualifications established under Section 491.0152 for the class of
302	302	license sought; and
303	303	(2) the applicant is in compliance with any applicable
304	304	local regulations.
305	305	(b) If the department denies the issuance or renewal of a
306	306	license under Subsection (a), the department shall give written
307	307	notice of the grounds for denial to the applicant.
308	308	(c) A license issued or renewed under this section expires
309	309	as determined by commission rule and the department in accordance
310	310	with Section 51.406, Occupations Code.
311	311	Sec. 491.0155. DUTY TO MAINTAIN QUALIFICATIONS. A license
312	312	holder shall maintain compliance at all times with the
313	313	qualifications for the applicable class of license established
314	314	under Section 491.0152.
315	315	Sec. 491.0156. LICENSE SUSPENSION OR REVOCATION. (a) The
316	316	department may at any time suspend or revoke a license issued under
317	317	this chapter if the department determines the license holder has
318	318	not maintained the qualifications established under Section
319	319	491.0152 or has failed to comply with a duty imposed under this
320	320	chapter.
321	321	(b) The department shall give written notice to a license
322	322	holder of a license suspension or revocation under this section and
323	323	the grounds for the suspension or revocation. The notice must be
324	324	sent by certified mail, return receipt requested.
325	325	(c) After suspending or revoking a license issued under this
326	326	chapter, the department shall notify the Department of Public
327	327	Safety. The public safety director of the Department of Public
328	328	Safety may seize or place under seal all cannabis, cannabis
329	329	products, and cannabis-related drug paraphernalia owned or
330	330	possessed by the license holder. If the license is revoked, a
331	331	disposition may not be made of the seized or sealed cannabis,
332	332	cannabis products, or cannabis-related drug paraphernalia until
333	333	the time for administrative appeal of the order has elapsed or until
334	334	all appeals have been concluded. When a revocation order becomes
335	335	final, all cannabis, cannabis products, and cannabis-related drug
336	336	paraphernalia may be forfeited to the state as provided under
337	337	Subchapter E, Chapter 481.
338	338	(d) Chapter 2001, Government Code, applies to a proceeding
339	339	under this section.
340	340	Sec. 491.0157. CRIMINAL HISTORY BACKGROUND CHECK. (a) In
341	341	addition to satisfying the other requirements provided by
342	342	commission rule under this chapter, an applicant for a license
343	343	under this chapter must submit to the department a complete and
344	344	legible set of fingerprints, on a form prescribed by the
345	345	commission, for the purpose of obtaining criminal history record
346	346	information from the Department of Public Safety and the Federal
347	347	Bureau of Investigation.
348	348	(b) The department may deny a license to an applicant who
349	349	does not comply with the requirement of Subsection (a). Issuance of
350	350	a license by the department is conditioned on the department
351	351	obtaining the applicant's criminal history record information
352	352	under this section.
353	353	(c) The commission by rule shall establish criteria for
354	354	determining whether a person passes the criminal history background
355	355	check for purposes of this section. The rules adopted under this
356	356	section may not disqualify a person for licensure solely for a
357	357	conviction of an offense that involves the possession of marihuana
358	358	or the delivery of marihuana to a person 18 years of age or older.
359	359	SUBCHAPTER E. DUTIES OF LICENSE HOLDERS
360	360	Sec. 491.0201. DUTIES RELATING TO DISPENSING CANNABIS OR
361	361	CANNABIS PRODUCTS. Before dispensing cannabis or cannabis products
362	362	to an adult, a cannabis establishment must make reasonable efforts
363	363	to verify that:
364	364	(1) the person receiving the cannabis or cannabis
365	365	product is an adult;
366	366	(2) the cannabis or cannabis product complies with
367	367	department testing and labeling rules; and
368	368	(3) the amount dispensed is not greater than the
369	369	amount of cannabis or cannabis product allowed for personal use as
370	370	provided by Section 491.0051.
371	371	Sec. 491.0202. DUTIES RELATING TO SECURITY. (a) A license
372	372	holder shall ensure that the cultivation, processing, sale, or
373	373	display of cannabis, cannabis products, and cannabis-related drug
374	374	paraphernalia is not visible from a public place without the use of
375	375	optical aids or aircraft.
376	376	(b) A license holder may not cultivate, process, store, or
377	377	sell cannabis, cannabis products, or cannabis-related drug
378	378	paraphernalia at a location other than the physical address
379	379	approved by the department for the establishment under the license
380	380	issued to the establishment under this chapter.
381	381	(c) A license holder shall adopt reasonable security
382	382	measures necessary to restrict access to areas where cannabis,
383	383	cannabis products, or cannabis-related drug paraphernalia are
384	384	stored and to prevent theft of cannabis, cannabis products, and
385	385	cannabis-related drug paraphernalia.
386	386	Sec. 491.0203. LICENSE HOLDER OPERATIONS. (a) A license
387	387	holder may not employ or otherwise accept the services of a person
388	388	younger than 21 years of age.
389	389	(b) A cannabis establishment may not sell tobacco products,
390	390	as defined by Section 155.001, Tax Code.
391	391	Sec. 491.0204. MONTHLY SALES REPORT. A cannabis
392	392	establishment shall monthly submit a report to the comptroller
393	393	specifying the amount of cannabis sold, the number of cannabis
394	394	products sold, the number and types of cannabis-related drug
395	395	paraphernalia sold, and the amount of money collected in sales by
396	396	the establishment during the preceding month.
397	397	SUBCHAPTER F. FUNDING FOR REGULATION
398	398	Sec. 491.0251. CANNABIS REGULATION ACCOUNT. (a) The
399	399	cannabis regulation account is an account in the general revenue
400	400	fund administered by the department.
401	401	(b) The account consists of fees deposited to the credit of
402	402	the account under 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	SUBCHAPTER G. LOCAL REGULATION
406	406	Sec. 491.0301. LOCAL AUTHORIZATION REQUIRED. A license
407	407	holder under this chapter may not operate in a county without the
408	408	authorization of an election held under this subchapter.
409	409	Sec. 491.0302. ELECTION. (a) The commissioners court of a
410	410	county may order an election to approve the operation of cannabis
411	411	growers, cannabis establishments, or cannabis testing facilities
412	412	in the county.
413	413	(b) A commissioners court of a county shall hold the
414	414	election on the first authorized uniform election date prescribed
415	415	by Chapter 41, Election Code, that allows sufficient time for
416	416	compliance with any requirements established by law.
417	417	(c) The ballot in the election shall be printed to provide
418	418	for voting for or against the proposition: "Authorizing (cannabis
419	419	growers, cannabis establishments, or cannabis testing facilities,
420	420	as applicable) to operate in (name of county)."
421	421	Sec. 491.0303. LOCAL REGULATION. A county that authorizes
422	422	the operation of cannabis growers, cannabis establishments, or
423	423	cannabis testing facilities in the county may adopt regulations
424	424	consistent with this chapter governing the hours of operation,
425	425	location, manner of conducting business, and number of cannabis
426	426	growers, cannabis establishments, or cannabis testing facilities.
427	427	SUBCHAPTER H. PROHIBITED SALE OR DISTRIBUTION OF CANNABIS OR
428	428	CANNABIS PRODUCT TO MINORS
429	429	Sec. 491.0351. DEFINITION. In this subchapter, "minor"
430	430	means a person younger than 21 years of age.
431	431	Sec. 491.0352. PROHIBITED SALE OR DISTRIBUTION OF CANNABIS
432	432	OR CANNABIS PRODUCT TO MINORS; PROOF OF AGE REQUIRED. (a) A person
433	433	commits an offense if the person, under the authority of this
434	434	chapter:
435	435	(1) sells, gives, or causes to be sold or given
436	436	cannabis or cannabis products to a minor; or
437	437	(2) sells, gives, or causes to be sold or given
438	438	cannabis or cannabis products to another person who intends to
439	439	deliver the cannabis or cannabis products to a minor.
440	440	(b) If an offense under this section occurs in connection
441	441	with a sale by an employee of the owner of a cannabis establishment,
442	442	the employee is criminally responsible for the offense and is
443	443	subject to prosecution.
444	444	(c) An offense under this section is a Class C misdemeanor.
445	445	(d) It is a defense to prosecution under Subsection (a)(1)
446	446	that the person to whom the cannabis or cannabis products were sold
447	447	or given presented to the defendant apparently valid proof of
448	448	identification.
449	449	(e) A proof of identification satisfies the requirements of
450	450	Subsection (d) if it contains a physical description and photograph
451	451	consistent with the person's appearance, purports to establish that
452	452	the person is 21 years of age or older, and was issued by a
453	453	governmental agency. The proof of identification may include a
454	454	driver's license issued by this state or another state, a passport,
455	455	or an identification card issued by a state or the federal
456	456	government.
457	457	SECTION 2. Section 122.103(c), Agriculture Code, is amended
458	458	to read as follows:
459	459	(c) A qualified applicant who along with the application
460	460	submits proof to the department that the applicant holds a license
461	461	under Chapter 487 or 491, Health and Safety Code, is not required to
462	462	pay an application fee, and the department shall issue the license
463	463	to the applicant within the time prescribed by Subsection (b).
464	464	SECTION 3. Section 411.093(a), Government Code, is amended
465	465	to read as follows:
466	466	(a) The Texas Department of Licensing and Regulation is
467	467	entitled to obtain criminal history record information as provided
468	468	by Subsection (b) that relates to:
469	469	(1) an applicant for or the holder of:
470	470	(A) a driver education instructor license under
471	471	Chapter 1001, Education Code;
472	472	(B) a license under Chapter 202, Occupations
473	473	Code;
474	474	(C) a license under Chapter 401, Occupations
475	475	Code;
476	476	(D) a license under Chapter 402, Occupations
477	477	Code; or
478	478	(E) an instructor license or motorcycle school
479	479	license under Chapter 662, Transportation Code;
480	480	(2) a person who is:
481	481	(A) an applicant for or the holder of a license
482	482	under Chapter 91, Labor Code; or
483	483	(B) a controlling person, as defined by Chapter
484	484	91, Labor Code, of an entity described by Paragraph (A); [or]
485	485	(3) a person who:
486	486	(A) is an applicant for or the holder of a license
487	487	under Chapter 455, Occupations Code; or
488	488	(B) has an interest described under Section
489	489	455.1525(e), Occupations Code, in an entity described by Paragraph
490	490	(A); or
491	491	(4) a person who is an applicant for or holds a license
492	492	issued under Chapter 491, Health and Safety Code, to be a cannabis
493	493	grower, cannabis establishment, cannabis secure transporter, or
494	494	cannabis testing facility, as defined by Section 491.0001, Health
495	495	and Safety Code.
496	496	SECTION 4. Section 443.202(a), Health and Safety Code, is
497	497	amended to read as follows:
498	498	(a) This section does not apply to low-THC cannabis
499	499	regulated under Chapter 487 or cannabis regulated under Chapter
500	500	491.
501	501	SECTION 5. Section 443.2025(a), Health and Safety Code, is
502	502	amended to read as follows:
503	503	(a) This section does not apply to low-THC cannabis
504	504	regulated under Chapter 487 or cannabis regulated under Chapter
505	505	491.
506	506	SECTION 6. Section 481.062, Health and Safety Code, is
507	507	amended to read as follows:
508	508	Sec. 481.062. EXEMPTIONS. (a) The following persons are
509	509	not required to register and may possess a controlled substance
510	510	under this chapter [without registering with the Federal Drug
511	511	Enforcement Administration]:
512	512	(1) an agent or employee of a registered manufacturer,
513	513	distributor, analyzer, or dispenser of the controlled substance
514	514	[who is registered with the Federal Drug Enforcement Administration
515	515	and] acting in the usual course of business or employment;
516	516	(2) a common or contract carrier, a warehouseman, or
517	517	an employee of a carrier or warehouseman whose possession of the
518	518	controlled substance is in the usual course of business or
519	519	employment;
520	520	(3) an ultimate user or a person in possession of the
521	521	controlled substance under a lawful order of a practitioner or in
522	522	lawful possession of the controlled substance if it is listed in
523	523	Schedule V;
524	524	(4) an officer or employee of this state, another
525	525	state, a political subdivision of this state or another state, or
526	526	the United States who is lawfully engaged in the enforcement of a
527	527	law relating to a controlled substance or drug or to a customs law
528	528	and authorized to possess the controlled substance in the discharge
529	529	of the person's official duties;
530	530	(5) if the substance is tetrahydrocannabinol or one of
531	531	its derivatives:
532	532	(A) a Department of State Health Services
533	533	official, a medical school researcher, or a research program
534	534	participant possessing the substance as authorized under
535	535	Subchapter G; or
536	536	(B) a practitioner or an ultimate user possessing
537	537	the substance as a participant in a federally approved therapeutic
538	538	research program that the commissioner has reviewed and found, in
539	539	writing, to contain a medically responsible research protocol; [or]
540	540	(6) a dispensing organization licensed under Chapter
541	541	487 that possesses low-THC cannabis;
542	542	(7) a cannabis grower, cannabis establishment,
543	543	cannabis secure transporter, or cannabis testing facility licensed
544	544	under Chapter 491 that possesses cannabis or cannabis products; or
545	545	(8) a person who possesses cannabis or cannabis
546	546	products in accordance with Chapter 491.
547	547	(b) In this section, "cannabis" and "cannabis product" have
548	548	the meanings assigned to those terms by Section 491.0001.
549	549	SECTION 7. Section 481.111, Health and Safety Code, is
550	550	amended by adding Subsections (g) and (h) to read as follows:
551	551	(g) Sections 481.113, 481.116, 481.120, 481.121, and
552	552	481.125 do not apply to a person who engages in the acquisition,
553	553	possession, production, processing, cultivation, delivery,
554	554	transportation, disposal, transfer, or use of a raw material used
555	555	in or by-product created by the production or cultivation of
556	556	cannabis or cannabis products if the conduct is expressly
557	557	authorized by Subchapter B, Chapter 491.
558	558	(h) For purposes of Subsection (g), "cannabis" and
559	559	"cannabis product" have the meanings assigned to those terms by
560	560	Section 491.0001.
561	561	SECTION 8. Section 551.004, Occupations Code, is amended by
562	562	amending Subsection (a) and adding Subsection (a-1) to read as
563	563	follows:
564	564	(a) This subtitle does not apply to:
565	565	(1) a practitioner licensed by the appropriate state
566	566	board who supplies a patient of the practitioner with a drug in a
567	567	manner authorized by state or federal law and who does not operate a
568	568	pharmacy for the retailing of prescription drugs;
569	569	(2) a member of the faculty of a college of pharmacy
570	570	recognized by the board who is a pharmacist and who performs the
571	571	pharmacist's services only for the benefit of the college;
572	572	(3) a person who procures prescription drugs for
573	573	lawful research, teaching, or testing and not for resale;
574	574	(4) a home and community support services agency that
575	575	possesses a dangerous drug as authorized by Section 142.0061,
576	576	142.0062, or 142.0063, Health and Safety Code; [or]
577	577	(5) a dispensing organization[, as defined by Section
578	578	487.001, Health and Safety Code,] that cultivates, processes, and
579	579	dispenses low-THC cannabis, as authorized by Chapter 487, Health
580	580	and Safety Code, to a patient listed in the compassionate-use
581	581	registry established under that chapter;
582	582	(6) a cannabis grower, cannabis establishment,
583	583	cannabis secure transporter, or cannabis testing facility licensed
584	584	under Chapter 491, Health and Safety Code, that cultivates,
585	585	manufactures, processes, distributes, delivers sells, tests,
586	586	transports, or dispenses cannabis or a cannabis product as
587	587	authorized by that chapter; or
588	588	(7) a person who transfers cannabis without
589	589	remuneration as authorized by Section 491.0051, Health and Safety
590	590	Code.
591	591	(a-1) For purposes of this section:
592	592	(1) "Cannabis," "cannabis establishment," "cannabis
593	593	grower," "cannabis product," "cannabis secure transporter," and
594	594	"cannabis testing facility" have the meanings assigned by Section
595	595	491.0001, Health and Safety Code.
596	596	(2) "Dispensing organization" and "low-THC cannabis"
597	597	have the meanings assigned by Section 487.001, Health and Safety
598	598	Code.
599	599	SECTION 9. (a) Not later than July 1, 2026, the Texas
600	600	Commission of Licensing and Regulation shall adopt rules as
601	601	required to implement, administer, and enforce Chapter 491, Health
602	602	and Safety Code, as added by this Act.
603	603	(b) Not later than November 1, 2026, the Texas Department of
604	604	Licensing and Regulation shall begin licensing cannabis growers,
605	605	cannabis establishments, cannabis secure transporters, and
606	606	cannabis testing facilities in accordance with Chapter 491, Health
607	607	and Safety Code, as added by this Act, provided that the applicants
608	608	for a license have met all requirements for approval under Chapter
609	609	491, Health and Safety Code, as added by this Act.
610	610	SECTION 10. This Act takes effect September 1, 2025.