Texas 2025 - 89th Regular

Texas Senate Bill SB734 Compare Versions

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Old	New	Differences
1	1	89R4874 LHC-D
2	2	By: Menéndez S.B. No. 734
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6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to authorizing the possession, use, cultivation,
10	10	distribution, delivery, sale, and research of medical cannabis for
11	11	medical use by patients with certain medical conditions and the
12	12	licensing of medical cannabis organizations; authorizing a fee.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	ARTICLE 1. CHANGES TO TEXAS COMPASSIONATE USE PROGRAM
15	15	SECTION 1.01. Section 487.001, Health and Safety Code, is
16	16	amended to read as follows:
17	17	Sec. 487.001. DEFINITIONS. In this chapter:
18	18	(1) "Caregiver" means a person who has a significant
19	19	responsibility for managing the well-being of a registered patient.
20	20	A caregiver may be either an individual or an organization or other
21	21	entity, including a long-term care facility, other health care
22	22	organization, or public institution.
23	23	(2) "Department" means the Department of Public
24	24	Safety.
25	25	(3) [(2)] "Director" means the public safety director
26	26	of the department.
27	27	[(3) "Dispensing organization" means an organization
28	28	licensed by the department to cultivate, process, and dispense
29	29	low-THC cannabis to a patient for whom low-THC cannabis is
30	30	prescribed under Chapter 169, Occupations Code.]
31	31	(4) "Medical [Low-THC] cannabis" has the meaning
32	32	assigned by Section 169.001, Occupations Code.
33	33	(5) "Medical cannabis organization" means any
34	34	organization that cultivates, processes, manufactures,
35	35	distributes, researches, tests, dispenses, or conducts other
36	36	business regarding medical cannabis as authorized by a license
37	37	issued by the department under this chapter.
38	38	(6) "Medical cannabis product" means a product, other
39	39	than cannabis itself, which contains or is derived from cannabis.
40	40	The term does not include a product derived from hemp, as defined by
41	41	Section 121.001, Agriculture Code, or a consumable hemp product, as
42	42	defined by Section 443.001 of this code.
43	43	(7) "Medical use" has the meaning assigned by Section
44	44	169.001, Occupations Code.
45	45	SECTION 1.02. Subchapter A, Chapter 487, Health and Safety
46	46	Code, is amended by adding Section 487.002 to read as follows:
47	47	Sec. 487.002. ALLOWABLE AMOUNT OF MEDICAL CANNABIS. The
48	48	allowable amount of medical cannabis for a person for whom medical
49	49	use is recommended under Chapter 169, Occupations Code, is an
50	50	amount of cannabis in any form approved by the physician possessed
51	51	by a qualified patient or collectively possessed by a qualified
52	52	patient and the qualified patient's caregiver that is:
53	53	(1) not more than reasonably necessary to ensure the
54	54	uninterrupted availability of cannabis for a period of three months
55	55	based on the individual patient's recommended amount of medical
56	56	cannabis; and
57	57	(2) obtained solely from a medical cannabis
58	58	organization.
59	59	SECTION 1.03. Chapter 487, Health and Safety Code, is
60	60	amended by adding Subchapter A-1 to read as follows:
61	61	SUBCHAPTER A-1. PROTECTIONS RELATED TO MEDICAL USE OF CANNABIS
62	62	Sec. 487.021. PROTECTION FROM LEGAL ACTION. (a) This
63	63	section applies to a person who is:
64	64	(1) a patient for whom medical use is recommended
65	65	under Chapter 169, Occupations Code, or the parent, legal guardian,
66	66	or caregiver of a patient;
67	67	(2) a medical cannabis organization;
68	68	(3) a director, manager, or employee of a medical
69	69	cannabis organization who is registered with the department under
70	70	Section 487.053; or
71	71	(4) a person participating as a researcher or patient
72	72	in an approved research program under Subchapter G, Chapter 481.
73	73	(b) Notwithstanding any other law, a person described by
74	74	Subsection (a) is not subject to arrest, prosecution, or penalty in
75	75	any manner, or denial of any right or privilege, including any civil
76	76	penalty or disciplinary action by a court or occupational or
77	77	professional licensing board or bureau, for conduct involving
78	78	medical use that is authorized under this chapter, Subchapter G,
79	79	Chapter 481, of this code, Chapter 169, Occupations Code, or
80	80	department rule.
81	81	Sec. 487.022. NO PRESUMPTION OF CHILD ABUSE, NEGLECT, OR
82	82	ENDANGERMENT. A person described by Section 487.021(a) may not be
83	83	presumed to have engaged in conduct constituting child abuse,
84	84	neglect, or endangerment solely because the person engaged in
85	85	conduct involving medical use that is authorized under this
86	86	chapter, Subchapter G, Chapter 481, of this code, Chapter 169,
87	87	Occupations Code, or department rule.
88	88	Sec. 487.023. NO DENIAL OF PARENTAL RIGHTS. The fact that a
89	89	person described by Section 487.021(a) engages in conduct
90	90	authorized under this chapter, Subchapter G, Chapter 481, of this
91	91	code, Chapter 169, Occupations Code, or department rule, does not
92	92	in itself constitute grounds for denying, limiting, or restricting
93	93	conservatorship or possession of or access to a child under Title 5,
94	94	Family Code.
95	95	Sec. 487.024. NO SEIZURE OR FORFEITURE. Property used in
96	96	the cultivation, research, testing, processing, distribution,
97	97	transportation, and delivery of medical cannabis for medical use
98	98	that is authorized under this chapter, Subchapter G, Chapter 481,
99	99	of this code, Chapter 169, Occupations Code, or department rule, is
100	100	not contraband for purposes of Chapter 59, Code of Criminal
101	101	Procedure, and is not subject to seizure or forfeiture under that
102	102	chapter or other law solely for the use of the property in those
103	103	authorized activities.
104	104	Sec. 487.025. NO PROSECUTION FOR PROVISION OF
105	105	PARAPHERNALIA. A person is not subject to arrest, prosecution, or
106	106	the imposition of any sentence or penalty for the delivery,
107	107	possession with intent to deliver, or manufacture of any item that
108	108	meets the definition of drug paraphernalia, as defined by Section
109	109	481.002, if that item is delivered, possessed with intent to
110	110	deliver, or manufactured for the sole purpose of providing that
111	111	item to:
112	112	(1) a patient for whom medical use is recommended
113	113	under Chapter 169, Occupations Code, or the parent, legal guardian,
114	114	or caregiver of a patient;
115	115	(2) a medical cannabis organization;
116	116	(3) a director, manager, or employee of a medical
117	117	cannabis organization who is registered with the department under
118	118	Section 487.053; or
119	119	(4) a person participating as a researcher or patient
120	120	in an approved research program under Subchapter G, Chapter 481.
121	121	Sec. 487.026. NO PUNISHMENT FOR STUDENT PATIENTS AND THEIR
122	122	CAREGIVERS. Notwithstanding any other law:
123	123	(1) a student enrolled in any school, junior college,
124	124	college, university, or other educational institution for whom
125	125	medical cannabis was recommended under Chapter 169, Occupations
126	126	Code, may not be subject to suspension, expulsion, placement in a
127	127	disciplinary alternative education program, or any other form of
128	128	discipline solely because the student possessed, used, or received
129	129	a valid recommendation for medical cannabis; and
130	130	(2) a health care professional providing services at
131	131	any school, junior college, college, university, or other
132	132	educational institution may not be subject to any discipline solely
133	133	for assisting a student in the administration of medical cannabis.
134	134	SECTION 1.04. Section 487.052, Health and Safety Code, is
135	135	amended to read as follows:
136	136	Sec. 487.052. RULES; FEES. (a) The director shall adopt
137	137	any rules necessary for the administration and enforcement of this
138	138	chapter.
139	139	(b) The director shall adopt [, including] rules imposing
140	140	reasonable fees under this chapter in amounts sufficient to cover
141	141	the cost of administering this chapter. The department shall also
142	142	use revenue from fees to establish a cannabis testing and quality
143	143	control fund for the purpose of assisting law enforcement,
144	144	including accredited crime laboratories, to purchase instruments,
145	145	establish methods, and obtain resources needed to conduct forensic
146	146	analysis necessary to enforce this subtitle and to protect the
147	147	health and safety of medical cannabis patients and the public.
148	148	(c) The fees adopted under Subsection (b) may not exceed:
149	149	(1) $5,000 for application fees;
150	150	(2) $100 for registration fees under Subchapter D; and
151	151	(3) reasonable amounts for the issuance or renewal of
152	152	each class of license.
153	153	(d) The director may not adopt rules establishing a total
154	154	limit on the number of medical cannabis organization licenses by
155	155	class that may be granted nor set the price of or production
156	156	quantity of medical cannabis.
157	157	SECTION 1.05. Subchapter B, Chapter 487, Health and Safety
158	158	Code, is amended by adding Sections 487.0521 and 487.0522 to read as
159	159	follows:
160	160	Sec. 487.0521. SAFETY. (a) The director by rule shall
161	161	adopt packaging and labeling requirements for medical cannabis to
162	162	ensure patients are informed and protected. In adopting packaging
163	163	and labeling requirements, the director shall ensure that:
164	164	(1) each medical cannabis package is labeled with the
165	165	cannabinoid potency and terpenes profile of medical cannabis or
166	166	medical cannabis product as determined by an independent testing
167	167	laboratory;
168	168	(2) each medical cannabis product and medical cannabis
169	169	package is labeled with the required warnings as determined by the
170	170	department; and
171	171	(3) the packaging and label of medical cannabis or a
172	172	medical cannabis product:
173	173	(A) do not contain any false or misleading
174	174	statements; and
175	175	(B) are not designed to appeal to children.
176	176	(b) The director shall adopt necessary rules to allow the
177	177	department to monitor the safety and efficacy of medical cannabis
178	178	or medical cannabis products, including rules:
179	179	(1) requiring accurate reporting to consumers
180	180	regarding the content of medical cannabis or medical cannabis
181	181	products;
182	182	(2) providing for random testing by the department or
183	183	the department's designee to ensure compliance with labeling and
184	184	reporting requirements; and
185	185	(3) providing for health and safety regulations and
186	186	standards for the manufacture and cultivation of medical cannabis
187	187	and medical cannabis products.
188	188	(c) The director may collect data from medical cannabis
189	189	organizations and health care providers as necessary to enable the
190	190	department to monitor the safety and efficacy of medical cannabis.
191	191	The director may adopt rules for the data collection under this
192	192	subsection.
193	193	Sec. 487.0522. MEDICAL CANNABIS INVENTORY SYSTEM. (a) The
194	194	department shall establish and maintain a medical cannabis
195	195	inventory system that oversees the tracking, tracing, testing, and
196	196	quality control and quality assurance certification of medical
197	197	cannabis and medical cannabis products.
198	198	(b) The department may contract with other entities to
199	199	establish and maintain all or part of the medical cannabis
200	200	inventory system on behalf of the department.
201	201	(c) A medical cannabis organization shall use the medical
202	202	cannabis inventory system approved by the department to keep
203	203	records throughout the cannabis supply chain, including for every
204	204	transaction between license holders and between license holders and
205	205	patients. A medical cannabis organization may additionally use its
206	206	own system for keeping records under this chapter provided the
207	207	organization's system can integrate with the department's medical
208	208	cannabis inventory system as required under this chapter and rules
209	209	adopted under this chapter.
210	210	(d) The records in the medical cannabis inventory system
211	211	must include for each transaction:
212	212	(1) the name, license number, and assigned
213	213	identification number of the license holder that cultivated,
214	214	manufactured, tested, or sold the product;
215	215	(2) the address and phone number of the license holder
216	216	that cultivated, manufactured, tested, or sold the product;
217	217	(3) the type and weight of medical cannabis or medical
218	218	cannabis product transferred or received during the transaction;
219	219	(4) the batch number of the medical cannabis or
220	220	medical cannabis product used;
221	221	(5) the date of the transaction;
222	222	(6) the total spent in dollars; and
223	223	(7) any additional information the department
224	224	requires.
225	225	(e) The records in the medical cannabis inventory system
226	226	must include for each license holder:
227	227	(1) the amount of any medical cannabis waste, in
228	228	pounds;
229	229	(2) all point-of-sale records; and
230	230	(3) any additional information the department
231	231	requires.
232	232	(f) Notwithstanding Subsection (c), before the department
233	233	establishes the medical cannabis inventory system described by that
234	234	subsection, each license holder shall use its own inventory system
235	235	that meets the requirements of this section.
236	236	(g) Each medical cannabis organization has a continuing
237	237	responsibility to maintain records on site that are readily
238	238	available to the department regardless of the functionality of the
239	239	medical cannabis inventory system, including the criteria
240	240	established by this section and any requirements established by
241	241	rule.
242	242	(h) The director shall adopt rules necessary for the
243	243	implementation and enforcement of this section, including rules
244	244	ensuring:
245	245	(1) the department has 24-hour access to the medical
246	246	cannabis inventory system; and
247	247	(2) all inventory records containing patient
248	248	information comply with Chapter 181 and the Health Insurance
249	249	Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d
250	250	et seq.).
251	251	SECTION 1.06. The heading to Section 487.053, Health and
252	252	Safety Code, is amended to read as follows:
253	253	Sec. 487.053. LICENSING OF MEDICAL CANNABIS [DISPENSING]
254	254	ORGANIZATIONS AND REGISTRATION OF CERTAIN ASSOCIATED INDIVIDUALS.
255	255	SECTION 1.07. Section 487.053(a), Health and Safety Code,
256	256	is amended to read as follows:
257	257	(a) The department shall:
258	258	(1) issue or renew a license under Subchapter C to
259	259	operate as a medical cannabis [dispensing] organization to each
260	260	applicant who satisfies the requirements established under this
261	261	chapter for licensure under that class of medical cannabis
262	262	organization; [and]
263	263	(2) register directors, managers, and employees under
264	264	Subchapter D of each medical cannabis [dispensing] organization;
265	265	(3) issue a permit for an additional location to a
266	266	dispensing cannabis organization license holder on application if
267	267	the license holder is in compliance with all eligibility
268	268	requirements and the proposed location complies with any local
269	269	zoning requirements and will assist with ensuring reasonable
270	270	statewide access;
271	271	(4) to ensure reasonable statewide access, issue not
272	272	fewer than the following number of licenses or permits, as
273	273	applicable, for each type of medical cannabis organization provided
274	274	the department receives an adequate number of qualified
275	275	applications:
276	276	(A) dispensing cannabis organization licenses or
277	277	permits for an additional location for a dispensing cannabis
278	278	organization license holder, as applicable, based on population
279	279	within each of the 11 public health regions established by the
280	280	Health and Human Services Commission, as follows:
281	281	(i) 9 in public health region 1;
282	282	(ii) 6 in public health region 2;
283	283	(iii) 82 in public health region 3;
284	284	(iv) 12 in public health region 4;
285	285	(v) 8 in public health region 5;
286	286	(vi) 75 in public health region 6;
287	287	(vii) 37 in public health region 7;
288	288	(viii) 31 in public health region 8;
289	289	(ix) 7 in public health region 9;
290	290	(x) 9 in public health region 10; and
291	291	(xi) 24 in public health region 11;
292	292	(B) one cultivation cannabis organization
293	293	license for every four dispensing cannabis organization licenses;
294	294	(C) one processing cannabis organization license
295	295	for every three dispensing cannabis organization licenses; and
296	296	(D) the number of independent testing cannabis
297	297	organization licenses necessary to meet demand;
298	298	(5) when the number of registered medical cannabis
299	299	patients reaches 100,000, issue not fewer than 24 additional
300	300	dispensing cannabis organization licenses or location permits, as
301	301	applicable, and the appropriate number of other medical cannabis
302	302	organization license types as prescribed by Subdivision (4); and
303	303	(6) for each additional 100,000 registered medical
304	304	cannabis patients beyond the first 100,000 patients described by
305	305	Subdivision (5), issue not fewer than 24 additional dispensing
306	306	cannabis organization licenses or location permits, as applicable,
307	307	and the appropriate number of other medical cannabis organization
308	308	license types as prescribed by Subdivision (4).
309	309	SECTION 1.08. Section 487.054, Health and Safety Code, is
310	310	amended to read as follows:
311	311	Sec. 487.054. COMPASSIONATE-USE REGISTRY. (a) The
312	312	department shall establish and maintain a secure online
313	313	compassionate-use registry that contains:
314	314	(1) the name of each physician who registers as a
315	315	physician recommending medical cannabis and for each patient for
316	316	whom the physician has registered:
317	317	(A) [the prescriber for a patient under Section
318	318	169.004, Occupations Code,] the patient's name, and any caregivers'
319	319	names, if applicable;
320	320	(B) the patient's [and] date of birth;
321	321	(C) the nature of the patient's eligible medical
322	322	condition;
323	323	(D) [of the patient,] the dosage recommended;
324	324	(E) [prescribed,] the means of administration
325	325	ordered; [,] and
326	326	(F) the total amount of medical [low-THC]
327	327	cannabis required to fill the patient's recommendation
328	328	[prescription]; and
329	329	(2) a record of each amount of medical [low-THC]
330	330	cannabis dispensed by a medical cannabis [dispensing] organization
331	331	to a patient under a recommendation [prescription].
332	332	(b) The department shall ensure the registry:
333	333	(1) is designed to prevent more than one qualified
334	334	physician from registering as the recommending physician
335	335	[prescriber] for a single patient;
336	336	(2) is accessible to law enforcement agencies and
337	337	medical cannabis [dispensing] organizations licensed to dispense
338	338	medical cannabis for the purpose of verifying whether a patient is
339	339	one for whom medical [low-THC] cannabis is recommended [prescribed]
340	340	and whether the patient's recommendations [prescriptions] have
341	341	been filled; [and]
342	342	(3) allows a physician [qualified to prescribe low-THC
343	343	cannabis under Section 169.002, Occupations Code,] to input safety
344	344	and efficacy data derived from the treatment of patients for whom
345	345	medical [low-THC] cannabis is recommended [prescribed] under
346	346	Chapter 169, Occupations Code, including any severe adverse effects
347	347	due to the medical use of medical cannabis; and
348	348	(4) ensures that all application records and
349	349	information are sealed to protect the privacy of patients.
350	350	(c) The handling of any records maintained in the registry
351	351	must comply with all relevant state and federal privacy laws,
352	352	including Chapter 181.
353	353	SECTION 1.09. Subchapter B, Chapter 487, Health and Safety
354	354	Code, is amended by adding Section 487.055 to read as follows:
355	355	Sec. 487.055. DESIGNATION OF CAREGIVER. (a) A patient
356	356	listed in the compassionate-use registry may designate a caregiver.
357	357	A caregiver designated under this subsection may be either an
358	358	individual or an organization or other entity, including a
359	359	long-term care facility, other health care organization, or public
360	360	institution.
361	361	(b) The department shall develop a form for a patient listed
362	362	in the registry to designate a caregiver under Subsection (a). The
363	363	form must require the patient to provide the full name, home
364	364	address, and date of birth of the patient's caregiver or, in the
365	365	case of a caregiver that is an entity, the entity's name and
366	366	address.
367	367	(c) A caregiver may possess medical cannabis and medical
368	368	cannabis products up to the sum of the possession limits for all
369	369	patients under the caregiver's care.
370	370	(d) The director shall adopt rules necessary to implement
371	371	this section, including rules to provide identification cards for
372	372	designated caregivers.
373	373	SECTION 1.10. The heading to Subchapter C, Chapter 487,
374	374	Health and Safety Code, is amended to read as follows:
375	375	SUBCHAPTER C. LICENSE TO OPERATE AS MEDICAL CANNABIS [DISPENSING]
376	376	ORGANIZATION
377	377	SECTION 1.11. Section 487.101, Health and Safety Code, is
378	378	amended to read as follows:
379	379	Sec. 487.101. LICENSE REQUIRED. (a) A license issued by
380	380	the department under this chapter is required to operate a medical
381	381	cannabis [dispensing] organization.
382	382	(b) The director by rule shall adopt application and
383	383	licensing requirements and privileges of each medical cannabis
384	384	organization license type.
385	385	(c) Medical cannabis organization license types shall
386	386	include the following:
387	387	(1) a cultivating cannabis organization that
388	388	cultivates medical cannabis for sale and distribution to other
389	389	medical cannabis organizations and may process and package medical
390	390	cannabis for individual sale so long as the cannabis is not
391	391	subjected to any chemical alteration;
392	392	(2) a processing cannabis organization that extracts
393	393	medical cannabis and manufactures, prepares, and packages medical
394	394	cannabis products for sale and distribution to other medical
395	395	cannabis organizations;
396	396	(3) a dispensing cannabis organization that sells
397	397	medical cannabis and medical cannabis products to patients;
398	398	(4) an independent testing cannabis organization that
399	399	tests medical cannabis and medical cannabis products for potency,
400	400	safety, and efficacy; and
401	401	(5) any other class of medical cannabis organization
402	402	that the department finds warranted to safely and securely ensure
403	403	reasonable statewide access of medical cannabis for medical use.
404	404	SECTION 1.12. Section 487.102, Health and Safety Code, is
405	405	amended to read as follows:
406	406	Sec. 487.102. ELIGIBILITY FOR LICENSE. An applicant for a
407	407	license to operate as a medical cannabis [dispensing] organization
408	408	is eligible for the license if:
409	409	(1) as determined by the department, the applicant
410	410	possesses:
411	411	(A) the technical and technological ability
412	412	appropriate for that class of license [to cultivate and produce
413	413	low-THC cannabis];
414	414	(B) the ability to secure:
415	415	(i) the resources and personnel necessary
416	416	to operate as a medical cannabis [dispensing] organization; and
417	417	(ii) for distribution or
418	418	dispensing premises reasonably located to allow patients listed on
419	419	the compassionate-use registry access to the organization through
420	420	existing infrastructure;
421	421	(C) the ability to maintain accountability for
422	422	the raw materials, the finished product, and any by-products used
423	423	or produced in the cultivation or production of medical [low-THC]
424	424	cannabis to prevent unlawful access to or unlawful diversion or
425	425	possession of those materials, products, or by-products; [and]
426	426	(D) the financial ability to maintain operations
427	427	for not less than two years from the date of application; and
428	428	(E) any specific qualifications for licensure
429	429	for each class of license the department requires by rule under this
430	430	chapter that are demonstrably related to the operations authorized
431	431	and duties imposed under that class of license to safely and
432	432	securely provide medical cannabis for medical use to patients;
433	433	(2) each director, manager, or employee of the
434	434	applicant is registered under Subchapter D; and
435	435	(3) the applicant satisfies any additional criteria
436	436	determined by the director to be necessary to safely implement this
437	437	chapter.
438	438	SECTION 1.13. Subchapter C, Chapter 487, Health and Safety
439	439	Code, is amended by adding Section 487.1021 to read as follows:
440	440	Sec. 487.1021. ELIGIBILITY FOR LICENSE TO OPERATE AS AN
441	441	INDEPENDENT CANNABIS TESTING ORGANIZATION. In addition to the
442	442	criteria described by Section 487.102, an applicant for a license
443	443	to operate as an independent cannabis testing organization is
444	444	eligible for the license if the applicant:
445	445	(1) submits proof of accreditation by an independent
446	446	accreditation body in accordance with the International
447	447	Organization for Standardization ISO/IEC 17025 or a comparable or
448	448	successor standard designated by department rule;
449	449	(2) submits proof that it does not share ownership
450	450	interest or joint management with any medical cannabis organization
451	451	whose product the applicant may test except for less than 10 percent
452	452	ownership in a publicly traded company; and
453	453	(3) satisfies any additional criteria determined by
454	454	the department to be necessary for the operation of a cannabis
455	455	testing facility.
456	456	SECTION 1.14. Section 487.103(a), Health and Safety Code,
457	457	is amended to read as follows:
458	458	(a) A person may apply for an initial or renewal license to
459	459	operate as a medical cannabis [dispensing] organization by
460	460	submitting a form prescribed by the department along with the
461	461	application fee in an amount set by the director for that class of
462	462	license.
463	463	SECTION 1.15. Section 487.104(a), Health and Safety Code,
464	464	is amended to read as follows:
465	465	(a) The department shall issue or renew a license to operate
466	466	as a medical cannabis [dispensing] organization [only] if:
467	467	(1) the department determines the applicant meets the
468	468	eligibility requirements described by Section 487.102 or 487.1021,
469	469	as applicable; and
470	470	(2) issuance or renewal of the license would assist
471	471	[is necessary to ensure] reasonable statewide access to, and the
472	472	availability of, medical [low-THC] cannabis for patients
473	473	registered in the compassionate-use registry and for whom medical
474	474	[low-THC] cannabis is recommended [prescribed] under Chapter 169,
475	475	Occupations Code.
476	476	SECTION 1.16. Sections 487.105(a) and (b), Health and
477	477	Safety Code, are amended to read as follows:
478	478	(a) An applicant for the issuance or renewal of a license
479	479	under this subchapter [to operate as a dispensing organization]
480	480	shall provide the department with the applicant's name and the name
481	481	of each of the applicant's directors, managers, and employees.
482	482	(b) Before a medical cannabis [dispensing] organization
483	483	license holder [licensee] hires a manager or employee for the
484	484	organization, the license holder [licensee] must provide the
485	485	department with the name of the prospective manager or employee.
486	486	The license holder [licensee] may not transfer the license to
487	487	another person before that prospective applicant and the
488	488	applicant's directors, managers, and employees pass a criminal
489	489	history background check and any other requirements established by
490	490	the director by rule, and are registered as required by Subchapter
491	491	D.
492	492	SECTION 1.17. Section 487.106, Health and Safety Code, is
493	493	amended to read as follows:
494	494	Sec. 487.106. DUTY TO MAINTAIN ELIGIBILITY. (a) Each
495	495	license holder under this subchapter [A dispensing organization]
496	496	must maintain compliance at all times with the eligibility
497	497	requirements described by Section 487.102 or 487.1021, as
498	498	applicable.
499	499	(b) On request of the department, a license holder must
500	500	provide to the department a reasonably sized sample suitable for
501	501	testing of medical cannabis.
502	502	SECTION 1.18. Section 487.107, Health and Safety Code, is
503	503	amended to read as follows:
504	504	Sec. 487.107. DUTIES RELATING TO DISPENSING MEDICAL
505	505	CANNABIS [PRESCRIPTION]. (a) Before dispensing medical [low-THC]
506	506	cannabis to a person for whom the medical [low-THC] cannabis is
507	507	recommended [prescribed] under Chapter 169, Occupations Code, the
508	508	medical cannabis [dispensing] organization must verify that the
509	509	recommendation [prescription] presented:
510	510	(1) is for a person listed as a patient in the
511	511	compassionate-use registry;
512	512	(2) matches the entry in the compassionate-use
513	513	registry with respect to the total amount of medical [low-THC]
514	514	cannabis required to fill the recommendation [prescription]; and
515	515	(3) has not previously been filled by a medical
516	516	cannabis [dispensing] organization as indicated by an entry in the
517	517	compassionate-use registry.
518	518	(b) After dispensing medical [low-THC] cannabis to a
519	519	patient for whom the medical [low-THC] cannabis is recommended
520	520	[prescribed] under Chapter 169, Occupations Code, the medical
521	521	cannabis [dispensing] organization shall record in the
522	522	compassionate-use registry the form and quantity of medical
523	523	[low-THC] cannabis dispensed and the date and time of dispensation.
524	524	SECTION 1.19. Sections 487.108(a), (b), and (c), Health and
525	525	Safety Code, are amended to read as follows:
526	526	(a) The department may at any time suspend or revoke a
527	527	license issued under this subchapter [chapter] if the department
528	528	determines that the license holder [licensee] has not maintained
529	529	the eligibility requirements described by Section 487.102 or
530	530	487.1021, as applicable, or has failed to comply with a duty imposed
531	531	under this chapter.
532	532	(b) The director shall give written notice to the license
533	533	holder [dispensing organization] of a license suspension or
534	534	revocation under this section and the grounds for the suspension or
535	535	revocation. The notice must be sent by certified mail, return
536	536	receipt requested.
537	537	(c) After suspending or revoking a license issued under this
538	538	subchapter [chapter], the director may seize or place under seal
539	539	all medical [low-THC] cannabis and drug paraphernalia owned or
540	540	possessed by the license holder [dispensing organization]. If the
541	541	director orders the revocation of the license, a disposition may
542	542	not be made of the seized or sealed medical [low-THC] cannabis or
543	543	drug paraphernalia until the time for administrative appeal of the
544	544	order has elapsed or until all appeals have been concluded. When a
545	545	revocation order becomes final, all medical [low-THC] cannabis and
546	546	drug paraphernalia may be forfeited to the state as provided under
547	547	Subchapter E, Chapter 481.
548	548	SECTION 1.20. Section 487.151(a), Health and Safety Code,
549	549	is amended to read as follows:
550	550	(a) An individual who is a director, manager, or employee of
551	551	a license holder under Subchapter C [dispensing organization] must
552	552	apply for and obtain a registration under this section.
553	553	SECTION 1.21. Section 487.201, Health and Safety Code, is
554	554	amended to read as follows:
555	555	Sec. 487.201. COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT
556	556	MEDICAL [LOW-THC] CANNABIS. A municipality, county, or other
557	557	political subdivision may not enact, adopt, or enforce a rule,
558	558	ordinance, order, resolution, or other regulation that prohibits
559	559	the cultivation, production, dispensing, researching, testing, or
560	560	possession of medical [low-THC] cannabis, as authorized by this
561	561	chapter.
562	562	SECTION 1.22. Subchapter F, Chapter 487, Health and Safety
563	563	Code, is repealed.
564	564	ARTICLE 2. RECOMMENDATION OF MEDICAL CANNABIS BY PHYSICIAN
565	565	SECTION 2.01. The heading to Chapter 169, Occupations Code,
566	566	is amended to read as follows:
567	567	CHAPTER 169. AUTHORITY TO RECOMMEND MEDICAL [PRESCRIBE LOW-THC]
568	568	CANNABIS TO CERTAIN PATIENTS FOR COMPASSIONATE USE
569	569	SECTION 2.02. Section 169.001, Occupations Code, is amended
570	570	to read as follows:
571	571	Sec. 169.001. DEFINITIONS. In this chapter:
572	572	(1) "Department" means the Department of Public
573	573	Safety.
574	574	(2) [(1-a) "Incurable neurodegenerative disease"
575	575	means a disease designated as an incurable neurodegenerative
576	576	disease by rule of the executive commissioner of the Health and
577	577	Human Services Commission, adopted in consultation with the
578	578	National Institutes of Health.
579	579	[(3)] "Medical [Low-THC] cannabis" means the plant
580	580	Cannabis sativa L., and any part of that plant or any compound,
581	581	manufacture, salt, derivative, mixture, preparation, resin, or oil
582	582	of that plant. The term does not include hemp, as defined by
583	583	Section 121.001, Agriculture Code, or a consumable hemp product, as
584	584	defined by Section 443.001, Health and Safety Code [that contains
585	585	not more than one percent by weight of tetrahydrocannabinols].
586	586	(3) [(4)] "Medical use" means the administration of
587	587	medical cannabis to a registered patient for treatment of an
588	588	eligible medical condition or symptoms as recommended by a
589	589	physician [ingestion by a means of administration other than by
590	590	smoking of a prescribed amount of low-THC cannabis by a person for
591	591	whom low-THC cannabis is prescribed] under this chapter.
592	592	(4) "Severe adverse event" means an adverse event
593	593	that:
594	594	(A) results in death;
595	595	(B) results in an illness requiring
596	596	hospitalization;
597	597	(C) is considered life-threatening; or
598	598	(D) results in a persistent or significant
599	599	disability, incapacity, or medically important condition.
600	600	[(5) "Smoking" means burning or igniting a substance
601	601	and inhaling the smoke.]
602	602	SECTION 2.03. Chapter 169, Occupations Code, is amended by
603	603	adding Section 169.0012 to read as follows:
604	604	Sec. 169.0012. BONA FIDE PHYSICIAN-PATIENT RELATIONSHIP.
605	605	For purposes of this chapter, a bona fide physician-patient
606	606	relationship exists when there is a treatment or counseling
607	607	relationship between a physician and patient in which all of the
608	608	following are present:
609	609	(1) the physician has reviewed the patient's relevant
610	610	medical records and completed a full assessment of the patient's
611	611	medical history and current medical condition, including a relevant
612	612	medical evaluation of the patient;
613	613	(2) the physician has created and continues to
614	614	maintain records of the patient's condition in accordance with
615	615	medically accepted standards;
616	616	(3) the physician has a reasonable expectation that
617	617	the physician will provide follow-up care to the patient to monitor
618	618	the efficacy of the use of medical cannabis as a treatment of the
619	619	patient's medical condition; and
620	620	(4) if the patient has given permission, the physician
621	621	has notified the patient's primary care physician of the patient's
622	622	medical condition and certification for the medical use of medical
623	623	cannabis to treat that condition.
624	624	SECTION 2.04. Section 169.002, Occupations Code, is amended
625	625	to read as follows:
626	626	Sec. 169.002. PHYSICIAN QUALIFIED TO RECOMMEND MEDICAL
627	627	[PRESCRIBE LOW-THC] CANNABIS [TO PATIENTS WITH CERTAIN MEDICAL
628	628	CONDITIONS]. (a) Only a physician qualified with respect to a
629	629	patient's particular medical condition [as provided by this
630	630	section] may recommend medical [prescribe low-THC] cannabis in
631	631	accordance with this chapter to treat the applicable medical
632	632	condition.
633	633	(b) A physician is qualified to recommend medical
634	634	[prescribe low-THC] cannabis with respect to a patient's particular
635	635	medical condition if the physician:
636	636	(1) is licensed under this subtitle;
637	637	(2) has a bona fide physician-patient relationship
638	638	with the patient [is board certified in a medical specialty
639	639	relevant to the treatment of the patient's particular medical
640	640	condition by a specialty board approved by the American Board of
641	641	Medical Specialties or the Bureau of Osteopathic Specialists]; and
642	642	(3) dedicates a significant portion of clinical
643	643	practice to the evaluation and treatment of the patient's
644	644	particular medical condition.
645	645	[(c) A physician is qualified to prescribe low-THC cannabis
646	646	for the treatment of a patient with a medical condition approved by
647	647	rule of the executive commissioner of the Health and Human Services
648	648	Commission for treatment in an approved research program conducted
649	649	under Subchapter F, Chapter 487, Health and Safety Code, if the
650	650	physician is:
651	651	[(1) licensed under this subtitle; and
652	652	[(2) certified by a compassionate-use institutional
653	653	review board created under Section 487.253, Health and Safety Code,
654	654	that oversees patient treatment undertaken as part of that approved
655	655	research program.]
656	656	SECTION 2.05. Section 169.003, Occupations Code, is amended
657	657	to read as follows:
658	658	Sec. 169.003. RECOMMENDATION [PRESCRIPTION] OF MEDICAL
659	659	[LOW-THC] CANNABIS. A physician described by Section 169.002 may
660	660	recommend medical [prescribe low-THC] cannabis to a patient if:
661	661	(1) the patient is a permanent resident of the state;
662	662	(2) the physician complies with the registration
663	663	requirements of Section 169.004; and
664	664	(3) the physician certifies to the department that:
665	665	(A) there is a bona fide physician-patient
666	666	relationship;
667	667	(B) the patient has a diagnosis or symptoms such
668	668	that, in the physician's professional judgment and review of past
669	669	treatments, the patient is likely to receive therapeutic or
670	670	palliative benefit from medical cannabis [is diagnosed with:
671	671	[(i) epilepsy;
672	672	[(ii) a seizure disorder;
673	673	[(iii) multiple sclerosis;
674	674	[(iv) spasticity;
675	675	[(v) amyotrophic lateral sclerosis;
676	676	[(vi) autism;
677	677	[(vii) cancer;
678	678	[(viii) an incurable neurodegenerative
679	679	disease;
680	680	[(ix) post-traumatic stress disorder; or
681	681	[(x) a medical condition that is approved
682	682	for a research program under Subchapter F, Chapter 487, Health and
683	683	Safety Code, and for which the patient is receiving treatment under
684	684	that program]; and
685	685	(C) [(B)] the physician determines the risk of
686	686	the medical use of medical [low-THC] cannabis by the patient is
687	687	reasonable in light of the potential benefit for the patient.
688	688	SECTION 2.06. The heading to Section 169.004, Occupations
689	689	Code, is amended to read as follows:
690	690	Sec. 169.004. MEDICAL [LOW-THC] CANNABIS RECOMMENDATION
691	691	[PRESCRIBER] REGISTRATION.
692	692	SECTION 2.07. Section 169.004(a), Occupations Code, is
693	693	amended to read as follows:
694	694	(a) Before a physician [qualified to prescribe low-THC
695	695	cannabis under Section 169.002] may recommend [prescribe] or renew
696	696	a recommendation [prescription] for medical [low-THC] cannabis for
697	697	a patient under this chapter, the physician must register [as the
698	698	prescriber for that patient] in the compassionate-use registry
699	699	maintained by the department under Section 487.054, Health and
700	700	Safety Code. The physician's registration must indicate:
701	701	(1) the physician's name; and
702	702	(2) for each patient:
703	703	(A) the patient's name and date of birth;
704	704	(B) the nature of the patient's diagnosis or
705	705	symptom being treated by medical cannabis;
706	706	(C) [(3)] the dosage recommended for [prescribed
707	707	to] the patient;
708	708	(D) [(4)] the means of administration ordered
709	709	for the patient;
710	710	(E) [and
711	711	[(5)] the total amount of medical [low-THC] cannabis
712	712	required to fill the patient's recommendation; and
713	713	(F) any severe adverse events the patient may
714	714	experience due to the medical use of medical cannabis
715	715	[prescription].
716	716	SECTION 2.08. Section 169.005, Occupations Code, is amended
717	717	to read as follows:
718	718	Sec. 169.005. PATIENT TREATMENT PLAN. A physician
719	719	described by Section 169.002 who recommends medical [prescribes
720	720	low-THC] cannabis for a patient's medical use under this chapter
721	721	must maintain a patient treatment plan that indicates:
722	722	(1) the dosage, means of administration, and planned
723	723	duration of treatment for the medical [low-THC] cannabis;
724	724	(2) a plan for monitoring the patient's symptoms; and
725	725	(3) a plan for monitoring indicators of tolerance or
726	726	reaction to medical [low-THC] cannabis.
727	727	SECTION 2.09. Section 169.0011, Occupations Code, is
728	728	repealed.
729	729	ARTICLE 3. CONFORMING AMENDMENTS
730	730	SECTION 3.01. Section 161.001(c), Family Code, is amended
731	731	to read as follows:
732	732	(c) Evidence of one or more of the following does not
733	733	constitute clear and convincing evidence sufficient for a court to
734	734	make a finding under Subsection (b) and order termination of the
735	735	parent-child relationship:
736	736	(1) the parent homeschooled the child;
737	737	(2) the parent is economically disadvantaged;
738	738	(3) the parent has been charged with a nonviolent
739	739	misdemeanor offense other than:
740	740	(A) an offense under Title 5, Penal Code;
741	741	(B) an offense under Title 6, Penal Code; or
742	742	(C) an offense that involves family violence, as
743	743	defined by Section 71.004 of this code;
744	744	(4) the parent provided or administered medical
745	745	[low-THC] cannabis to a child for whom the medical [low-THC]
746	746	cannabis was recommended [prescribed] under Chapter 169,
747	747	Occupations Code;
748	748	(5) the parent declined immunization for the child for
749	749	reasons of conscience, including a religious belief;
750	750	(6) the parent sought an opinion from more than one
751	751	medical provider relating to the child's medical care, transferred
752	752	the child's medical care to a new medical provider, or transferred
753	753	the child to another health care facility; or
754	754	(7) the parent allowed the child to engage in
755	755	independent activities that are appropriate and typical for the
756	756	child's level of maturity, physical condition, developmental
757	757	abilities, or culture.
758	758	SECTION 3.02. Section 262.116(a), Family Code, is amended
759	759	to read as follows:
760	760	(a) The Department of Family and Protective Services may not
761	761	take possession of a child under this subchapter based on evidence
762	762	that the parent:
763	763	(1) homeschooled the child;
764	764	(2) is economically disadvantaged;
765	765	(3) has been charged with a nonviolent misdemeanor
766	766	offense other than:
767	767	(A) an offense under Title 5, Penal Code;
768	768	(B) an offense under Title 6, Penal Code; or
769	769	(C) an offense that involves family violence, as
770	770	defined by Section 71.004 of this code;
771	771	(4) provided or administered medical [low-THC]
772	772	cannabis to a child for whom the medical [low-THC] cannabis was
773	773	recommended [prescribed] under Chapter 169, Occupations Code;
774	774	(5) declined immunization for the child for reasons of
775	775	conscience, including a religious belief;
776	776	(6) sought an opinion from more than one medical
777	777	provider relating to the child's medical care, transferred the
778	778	child's medical care to a new medical provider, or transferred the
779	779	child to another health care facility;
780	780	(7) allowed the child to engage in independent
781	781	activities that are appropriate and typical for the child's level
782	782	of maturity, physical condition, developmental abilities, or
783	783	culture; or
784	784	(8) tested positive for marihuana, unless the
785	785	department has evidence that the parent's use of marihuana has
786	786	caused significant impairment to the child's physical or mental
787	787	health or emotional development.
788	788	SECTION 3.03. Section 411.0891(a), Government Code, is
789	789	amended to read as follows:
790	790	(a) The department may obtain as provided by Subsection
791	791	(a-1) criminal history record information that relates to a person
792	792	who:
793	793	(1) is an applicant for or holds a registration issued
794	794	by the director under Subchapter C, Chapter 481, Health and Safety
795	795	Code, that authorizes the person to manufacture, distribute,
796	796	analyze, or conduct research with a controlled substance;
797	797	(2) is an applicant for or holds a registration issued
798	798	by the department under Chapter 487, Health and Safety Code, to be a
799	799	director, manager, or employee of a medical cannabis [dispensing]
800	800	organization, as defined by Section 487.001, Health and Safety
801	801	Code;
802	802	(3) is an applicant for or holds an authorization
803	803	issued by the department under Section 521.2476, Transportation
804	804	Code, to do business in this state as a vendor of ignition interlock
805	805	devices;
806	806	(4) is an applicant for or holds certification by the
807	807	department as an inspection station or an inspector under
808	808	Subchapter G, Chapter 548, Transportation Code, holds an inspection
809	809	station or inspector certificate issued under that subchapter, or
810	810	is the owner of an inspection station operating under that chapter;
811	811	(5) is an applicant for or holds a certificate of
812	812	registration issued by the department under Chapter 1956,
813	813	Occupations Code, to act as a metal recycling entity;
814	814	(6) is an applicant for or holds a license to carry a
815	815	handgun issued by the department under Subchapter H, or is an
816	816	applicant for or holds a certification as an instructor issued by
817	817	the department under this chapter;
818	818	(7) is an applicant for or holds a Capitol access pass
819	819	issued by the department under Section 411.0625; or
820	820	(8) is an applicant for or holds a license or
821	821	commission issued by the department under Chapter 1702, Occupations
822	822	Code.
823	823	SECTION 3.04. Section 443.202(a), Health and Safety Code,
824	824	is amended to read as follows:
825	825	(a) This section does not apply to medical [low-THC]
826	826	cannabis regulated under Chapter 487.
827	827	SECTION 3.05. Section 443.2025(a), Health and Safety Code,
828	828	is amended to read as follows:
829	829	(a) This section does not apply to medical [low-THC]
830	830	cannabis regulated under Chapter 487.
831	831	SECTION 3.06. Section 481.062(a), Health and Safety Code,
832	832	is amended to read as follows:
833	833	(a) The following persons may possess a controlled
834	834	substance under this chapter without registering with the Federal
835	835	Drug Enforcement Administration:
836	836	(1) an agent or employee of a manufacturer,
837	837	distributor, analyzer, or dispenser of the controlled substance who
838	838	is registered with the Federal Drug Enforcement Administration and
839	839	acting in the usual course of business or employment;
840	840	(2) a common or contract carrier, a warehouseman, or
841	841	an employee of a carrier or warehouseman whose possession of the
842	842	controlled substance is in the usual course of business or
843	843	employment;
844	844	(3) an ultimate user or a person in possession of the
845	845	controlled substance under a lawful order of a practitioner or in
846	846	lawful possession of the controlled substance if it is listed in
847	847	Schedule V;
848	848	(4) an officer or employee of this state, another
849	849	state, a political subdivision of this state or another state, or
850	850	the United States who is lawfully engaged in the enforcement of a
851	851	law relating to a controlled substance or drug or to a customs law
852	852	and authorized to possess the controlled substance in the discharge
853	853	of the person's official duties;
854	854	(5) if the substance is tetrahydrocannabinol or one of
855	855	its derivatives:
856	856	(A) a Department of State Health Services
857	857	official, a medical school researcher, or a research program
858	858	participant possessing the substance as authorized under
859	859	Subchapter G; or
860	860	(B) a practitioner or an ultimate user possessing
861	861	the substance as a participant in a federally approved therapeutic
862	862	research program that the commissioner has reviewed and found, in
863	863	writing, to contain a medically responsible research protocol; or
864	864	(6) a medical cannabis [dispensing] organization
865	865	licensed under Subchapter C, Chapter 487, that possesses medical
866	866	[low-THC] cannabis.
867	867	SECTION 3.07. Sections 481.111(e) and (f), Health and
868	868	Safety Code, are amended to read as follows:
869	869	(e) Sections 481.120, 481.121, 481.122, and 481.125 do not
870	870	apply to a person who engages in the acquisition, possession,
871	871	production, cultivation, delivery, or disposal of a raw material
872	872	used in or by-product created by the production or cultivation of
873	873	medical [low-THC] cannabis if the person:
874	874	(1) for an offense involving possession only of
875	875	marihuana or drug paraphernalia:
876	876	(A) [,] is a patient for whom medical [low-THC]
877	877	cannabis is recommended [prescribed] under Chapter 169,
878	878	Occupations Code, or the patient's parent, legal guardian, or
879	879	caregiver;[,] and
880	880	(B) [the person] possesses medical [low-THC]
881	881	cannabis obtained under a valid recommendation [prescription] from
882	882	a medical cannabis [dispensing] organization; or
883	883	(2) is a director, manager, or employee of a medical
884	884	cannabis [dispensing] organization and the person, solely in
885	885	performing the person's regular duties at the organization,
886	886	acquires, possesses, produces, cultivates, dispenses, or disposes
887	887	of:
888	888	(A) in reasonable quantities, any medical
889	889	[low-THC] cannabis or raw materials used in or by-products created
890	890	by the production or cultivation of medical [low-THC] cannabis; or
891	891	(B) any drug paraphernalia used in the
892	892	acquisition, possession, production, cultivation, delivery, or
893	893	disposal of medical [low-THC] cannabis.
894	894	(f) For purposes of Subsection (e):
895	895	(1) ["Dispensing organization" has the meaning
896	896	assigned by Section 487.001.
897	897	[(2)] "Medical [Low-THC] cannabis" has the meaning
898	898	assigned by Section 169.001, Occupations Code.
899	899	(2) "Medical cannabis organization" has the meaning
900	900	assigned by Section 487.001.
901	901	SECTION 3.08. Section 490.001(3), Health and Safety Code,
902	902	is amended to read as follows:
903	903	(3) "Investigational drug, biological product, or
904	904	device" means a drug, biological product, or device that has
905	905	successfully completed phase one of a clinical trial but the United
906	906	States Food and Drug Administration or its international equivalent
907	907	has not yet approved for general use and that remains under
908	908	investigation in the clinical trial. The term does not include
909	909	medical [low-THC] cannabis, as defined by Section 169.001,
910	910	Occupations Code, or a product containing marihuana, as defined by
911	911	Section 481.002, regardless of whether the cannabis or product
912	912	successfully completed phase one of a clinical trial.
913	913	SECTION 3.09. Section 551.004(a), Occupations Code, is
914	914	amended to read as follows:
915	915	(a) This subtitle does not apply to:
916	916	(1) a practitioner licensed by the appropriate state
917	917	board who supplies a patient of the practitioner with a drug in a
918	918	manner authorized by state or federal law and who does not operate a
919	919	pharmacy for the retailing of prescription drugs;
920	920	(2) a member of the faculty of a college of pharmacy
921	921	recognized by the board who is a pharmacist and who performs the
922	922	pharmacist's services only for the benefit of the college;
923	923	(3) a person who procures prescription drugs for
924	924	lawful research, teaching, or testing and not for resale;
925	925	(4) a home and community support services agency that
926	926	possesses a dangerous drug as authorized by Section 142.0061,
927	927	142.0062, or 142.0063, Health and Safety Code; or
928	928	(5) a medical cannabis [dispensing] organization, as
929	929	defined by Section 487.001, Health and Safety Code, that
930	930	cultivates, processes, tests, and dispenses medical [low-THC]
931	931	cannabis, as authorized by a license issued under Subchapter C,
932	932	Chapter 487, Health and Safety Code, to a patient listed in the
933	933	compassionate-use registry established under that chapter.
934	934	ARTICLE 4. TRANSITIONS AND EFFECTIVE DATE
935	935	SECTION 4.01. Not later than December 31, 2025, the public
936	936	safety director of the Department of Public Safety shall adopt
937	937	rules as required to implement, administer, and enforce this Act.
938	938	SECTION 4.02. (a) A license to operate as a dispensing
939	939	organization issued under Chapter 487, Health and Safety Code,
940	940	before the effective date of this Act continues to be valid after
941	941	the effective date of this Act until that license expires.
942	942	(b) The registration of a director, manager, or employee of
943	943	a dispensing organization under Subchapter D, Chapter 487, Health
944	944	and Safety Code, continues to be valid after the effective date of
945	945	this Act until that registration expires.
946	946	SECTION 4.03. (a) Not later than April 1, 2026, the
947	947	Department of Public Safety shall license cannabis cultivation
948	948	organizations in accordance with Subchapter C, Chapter 487, Health
949	949	and Safety Code, as amended by this Act, provided that the
950	950	applicants for a license have met all requirements for approval
951	951	under that subchapter.
952	952	(b) Not later than June 1, 2026, the Department of Public
953	953	Safety shall license other classes of medical cannabis
954	954	organizations in accordance with Subchapter C, Chapter 487, Health
955	955	and Safety Code, as amended by this Act, provided that the
956	956	applicants for a license have met all requirements for approval
957	957	under that subchapter.
958	958	SECTION 4.04. This Act takes effect September 1, 2025.