89R4874 LHC-D     By: Menéndez S.B. No. 734       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 a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1. CHANGES TO TEXAS COMPASSIONATE USE PROGRAM          SECTION 1.01.  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 1.02.  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 1.03.  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; or                (4)  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, 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, 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, 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, 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; or                (4)  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 1.04.  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 1.05.  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)  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 1.06.  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 1.07.  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 1.08.  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 1.09.  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 1.10.  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 1.11.  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 1.12.  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 1.13.  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 1.14.  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 1.15.  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 1.16.  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 1.17.  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 1.18.  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 1.19.  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 1.20.  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 1.21.  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 1.22.  Subchapter F, Chapter 487, Health and Safety   Code, is repealed.   ARTICLE 2. RECOMMENDATION OF MEDICAL CANNABIS BY PHYSICIAN          SECTION 2.01.  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 2.02.  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.                (2) [(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.                [(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)  "Severe 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 2.03.  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 2.04.  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 2.05.  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 2.06.  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 2.07.  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;                      (E) [and                [(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 2.08.  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 2.09.  Section 169.0011, Occupations Code, is   repealed.   ARTICLE 3. CONFORMING AMENDMENTS          SECTION 3.01.  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 3.02.  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 3.03.  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 3.04.  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 3.05.  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 3.06.  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, that possesses medical   [low-THC] cannabis.          SECTION 3.07.  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 3.08.  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 3.09.  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.   ARTICLE 4. TRANSITIONS AND EFFECTIVE DATE          SECTION 4.01.  Not later than December 31, 2025, the public   safety director of the Department of Public Safety shall adopt   rules as required to implement, administer, and enforce this Act.          SECTION 4.02.  (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 4.03.  (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.          SECTION 4.04.  This Act takes effect September 1, 2025.