85R22838 JSC-F     By: Lucio III, Isaac, White, Simmons, H.B. No. 2107       Sheffield, et al.     Substitute the following for H.B. No. 2107:     By:  Cortez C.S.H.B. No. 2107       A BILL TO BE ENTITLED   AN ACT   relating to authorizing the possession, use, cultivation,   distribution, transportation, and delivery of medical cannabis for   medical use by patients with certain debilitating medical   conditions and the licensing of dispensing organizations and   cannabis testing facilities; authorizing fees.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  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 dispensing organization or cannabis testing   facility licensed under Subchapter C, Chapter 487, that possesses   medical [low-THC] cannabis.          SECTION 2.  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, is a patient for whom medical use    [low-THC cannabis] is recommended [prescribed] under Chapter 169,   Occupations Code, [or the patient's legal guardian,] and the person   possesses no more than the allowable amount of medical [low-THC]   cannabis, as determined under Section 487.002 [obtained under a   valid prescription from a dispensing organization]; or                (2)  is a director, manager, or employee of a   dispensing organization or cannabis testing facility and the   person, solely in performing the person's regular duties at the   organization or facility, 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)  "Cannabis testing facility" and "dispensing   organization" have the meanings ["Dispensing organization"   has the   meaning] assigned by Section 487.001.                (2)  "Medical cannabis" and "medical use" have the   meanings ["Low-THC cannabis" has the meaning] assigned by Section   169.001, Occupations Code.          SECTION 3.  Section 487.001, Health and Safety Code, is   amended to read as follows:          Sec. 487.001.  DEFINITIONS.  In this chapter:                (1)  "Cannabis testing facility" means an independent   entity licensed by the department under this chapter to analyze the   safety and potency of medical cannabis.                (2)  "Debilitating medical condition," "medical   cannabis," and "medical use" have the meanings assigned by Section   169.001, Occupations Code.                (3)  "Department" means the Department of Public   Safety.                (4) [(2)]  "Director" means the public safety director   of the department.                (5) [(3)]  "Dispensing organization" means an   organization licensed by the department to cultivate, process, and   dispense medical [low-THC] cannabis to a patient for whom medical   use [low-THC cannabis] is recommended [prescribed] under Chapter   169, Occupations Code.                [(4)     "Low-THC cannabis" has the meaning assigned by   Section 169.001, Occupations Code.]          SECTION 4.  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.  (a)     The allowable amount of medical cannabis for a person for whom   medical use is recommended under Chapter 169, Occupations Code, is:                (1)  not more than 2.5 ounces of medical cannabis;                (2)  if applicable, a greater amount specified in   accordance with department rules by a recommending physician under   Chapter 169, Occupations Code, and included with the patient's   registration on the compassionate-use registry established under   Section 487.054; or                (3)  an amount of oils or products infused with medical   cannabis such that the quantity of tetrahydrocannabinols and   cannabidiol in the oil or product does not exceed the quantity of   those substances contained in the amount of medical cannabis under   Subdivision (1) or (2), as applicable.          (b)  Oils and products infused with medical cannabis must be   labeled in accordance with department rules to indicate the   quantity of tetrahydrocannabinols and cannabidiol contained in the   oil or product for purposes of determining compliance with this   section.          SECTION 5.  Section 487.052, Health and Safety Code, is   amended to read as follows:          Sec. 487.052.  RULES. (a)  The director shall adopt any   rules necessary for the administration and enforcement of this   chapter.          (b)  The director shall adopt [, including] rules imposing   fees under this chapter in amounts sufficient to cover the cost of   administering this chapter.          (c)  The director shall adopt rules in accordance with   Section 487.002 governing the allowable amount of medical cannabis   a physician may recommend for a patient for whom medical use is   recommended under Chapter 169, Occupations Code.          (d)  The director by rule shall adopt labeling requirements   for medical cannabis.  In adopting labeling requirements, the   director shall ensure each oil and product infused with medical   cannabis is labeled with the quantity of tetrahydrocannabinols and   cannabidiol contained in the oil or product.          SECTION 6.  The heading to Section 487.053, Health and   Safety Code, is amended to read as follows:          Sec. 487.053.  LICENSING OF DISPENSING ORGANIZATIONS AND   CANNABIS TESTING FACILITIES; REGISTRATION OF CERTAIN ASSOCIATED   INDIVIDUALS.          SECTION 7.  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)  a dispensing organization to each applicant   who satisfies the requirements established under this chapter for   licensure as a dispensing organization; and                      (B)  a cannabis testing facility to each applicant   who satisfies the requirements established under this chapter for   licensure as a cannabis testing facility; and                (2)  register directors, managers, and employees under   Subchapter D of each:                      (A)  dispensing organization; and                      (B)  cannabis testing facility.          SECTION 8.  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 the   physician recommending medical use [prescriber] for a patient under   Section 169.004, Occupations Code, and the name and date of birth of   the patient[, the dosage prescribed, the means of administration   ordered, and the total amount of low-THC cannabis required to fill   the patient's prescription]; and                (2)  if applicable, the allowable amount of cannabis   specified by a recommending physician for the patient under Chapter   169, Occupations Code [a record of each amount of low-THC cannabis   dispensed by a dispensing organization to a patient under a   prescription].          (b)  The department shall ensure the registry:                (1)  is designed to prevent more than one [qualified]   physician from registering as the physician recommending medical   use [prescriber] for a single patient;                (2)  is accessible to law enforcement agencies and   dispensing organizations for the purpose of verifying whether a   patient is one for whom medical use is recommended under Chapter   169, Occupations Code [low-THC cannabis is prescribed and whether   the patient's prescriptions have been filled]; and                (3)  allows a physician recommending medical use   [qualified to prescribe low-THC cannabis] under Chapter 169    [Section 169.002], Occupations Code, to input safety and efficacy   data derived from the treatment of patients for whom medical use   [low-THC cannabis] is recommended [prescribed under Chapter 169,   Occupations Code].          SECTION 9.  The heading to Subchapter C, Chapter 487, Health   and Safety Code, is amended to read as follows:   SUBCHAPTER C. LICENSING OF [LICENSE TO OPERATE AS] DISPENSING   ORGANIZATIONS AND CANNABIS TESTING FACILITIES [ORGANIZATION]          SECTION 10.  Section 487.101, Health and Safety Code, is   amended to read as follows:          Sec. 487.101.  LICENSE REQUIRED.  A person may not operate as   a dispensing organization or a cannabis testing facility without   the appropriate license issued by the department under this   subchapter [chapter is required to operate a dispensing   organization].          SECTION 11.  Section 487.102, Health and Safety Code, is   amended to read as follows:          Sec. 487.102.  ELIGIBILITY FOR LICENSE TO OPERATE AS   DISPENSING ORGANIZATION. An applicant for a license to operate as a   dispensing organization is eligible for the license if:                (1)  as determined by the department, the applicant   possesses:                      (A)  the technical and technological ability to   cultivate and produce medical [low-THC] cannabis;                      (B)  the ability to secure:                            (i)  the resources and personnel necessary   to operate as a dispensing organization; and                            (ii)  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;                (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 12.  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   CANNABIS TESTING FACILITY. An applicant for a license to operate as   a cannabis testing facility is eligible for the license if:                (1)  as determined by the department, the applicant   possesses:                      (A)  the ability to secure the resources and   personnel necessary to operate as a cannabis testing facility; and                      (B)  the financial ability to maintain operations   for not less than two years from the date of application;                (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 for the operation of a   cannabis testing facility.          SECTION 13.  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   under this subchapter [to operate as a dispensing organization] by   submitting a form prescribed by the department along with the   application fee in an amount set by the director.          SECTION 14.  Section 487.104(a), Health and Safety Code, is   amended to read as follows:          (a)  The department shall issue or renew a license under this   subchapter [to operate as a 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 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 15.  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 license holder under this subchapter    [dispensing organization licensee] hires a manager or employee for   the organization or facility, 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 are registered as required by   Subchapter D.          SECTION 16.  Sections 487.106 and 487.107, Health and Safety   Code, are amended to read as follows:          Sec. 487.106.  DUTY TO MAINTAIN ELIGIBILITY.  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.          Sec. 487.107.  DUTIES RELATING TO DISPENSING MEDICAL   CANNABIS [PRESCRIPTION]. (a)  Before dispensing medical [low-THC]   cannabis to a person for whom medical use is recommended [the   low-THC cannabis is prescribed] under Chapter 169, Occupations   Code, the dispensing organization must verify that the   [prescription presented:                [(1)  is for a] person is 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 low-THC cannabis   required to fill the prescription; and                [(3)     has not previously been filled by a dispensing   organization as indicated by an entry in the compassionate-use   registry].          (b)  After dispensing medical [low-THC] cannabis to a   patient for whom medical use is recommended [the low-THC cannabis   is prescribed] under Chapter 169, Occupations Code, the dispensing   organization shall record in the compassionate-use registry the   form and quantity of the medical [low-THC] cannabis dispensed and   the date and time of dispensation.          SECTION 17.  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 dispensing organization or cannabis testing   facility.  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 18.  Section 487.151, Health and Safety Code, is   amended by adding Subsection (a-1) to read as follows:          (a-1)  An individual who is a director, manager, or employee   of a cannabis testing facility must apply for and obtain a   registration under this section.          SECTION 19.  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, testing, or possession of   medical [low-THC] cannabis, as authorized by this chapter.          SECTION 20.  Chapter 169, Occupations Code, is amended to   read as follows:   CHAPTER 169. AUTHORITY TO RECOMMEND MEDICAL USE OF [PRESCRIBE   LOW-THC] CANNABIS TO CERTAIN PATIENTS FOR COMPASSIONATE USE          Sec. 169.001.  DEFINITIONS. In this chapter:                (1)  "Debilitating medical condition" means:                      (A)  cancer, glaucoma, positive status for human   immunodeficiency virus, acquired immune deficiency syndrome,   amyotrophic lateral sclerosis, Crohn's disease, ulcerative   colitis, agitation of Alzheimer's disease, post-traumatic stress   disorder, autism, sickle cell anemia, Parkinson's disease,   muscular dystrophy, or Huntington's disease;                      (B)  a chronic medical condition that produces, or   the treatment of a chronic medical condition that produces:                            (i)  cachexia or wasting syndrome;                            (ii)  severe debilitating pain;                            (iii)  severe nausea;                            (iv)  seizures, including those   characteristic of epilepsy; or                            (v)  severe and persistent muscle spasms,   including those characteristic of multiple sclerosis; or                      (C)  any other medical condition approved as a   debilitating medical condition by department rule or any symptom   caused by the treatment of a medical condition that is approved as a   debilitating medical condition by department rule.                (2)  "Department" means the Department of Public   Safety.                [(2) "Intractable epilepsy" means a seizure disorder in   which the patient's seizures have been treated by two or more   appropriately chosen and maximally titrated antiepileptic drugs   that have failed to control the seizures.]                (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 [that contains:                      [(A)     not more than 0.5 percent by weight of   tetrahydrocannabinols; and                      [(B)     not less than 10 percent by weight of   cannabidiol].                (4)  "Medical use" means the ingestion by a means of   administration other than by smoking of a recommended [prescribed]   amount of medical [low-THC] cannabis by a person for whom medical   use [low-THC cannabis] is recommended [prescribed] under this   chapter.                (5)  "Smoking" means burning or igniting a substance   and inhaling the smoke.          Sec. 169.002.  RECOMMENDATION OF MEDICAL USE [PHYSICIAN   QUALIFIED TO PRESCRIBE LOW-THC CANNABIS].  (a)  A [Only a] physician   [qualified as provided by this section] may recommend medical use   [prescribe low-THC cannabis] in accordance with this chapter for a   patient with a debilitating medical condition.          (b)  [A physician is qualified to prescribe low-THC cannabis   to a patient with intractable epilepsy if the physician:                [(1)  is licensed under this subtitle;                [(2)     dedicates a significant portion of clinical   practice to the evaluation and treatment of epilepsy; and                [(3)  is certified:                      [(A)     by the American Board of Psychiatry and   Neurology in:                            [(i)  epilepsy; or                            [(ii)     neurology or neurology with special   qualification in child neurology and is otherwise qualified for the   examination for certification in epilepsy; or                      [(B)  in neurophysiology by:                            [(i)     the American Board of Psychiatry and   Neurology; or                            [(ii)     the American Board of Clinical   Neurophysiology.          [Sec. 169.003.  PRESCRIPTION OF LOW-THC CANNABIS.]  A   physician who recommends medical use for a patient must [described   by Section 169.002 may prescribe low-THC cannabis to alleviate a   patient's seizures if]:                (1)  comply [the patient is a permanent resident of the   state;                [(2)  the physician complies] with the registration   requirements of Section 169.004; and                (2)  certify [(3) the physician certifies] to the   department that:                      (A)  the patient is diagnosed with a debilitating   medical condition [intractable epilepsy]; and                      (B)  the physician has determined that   [determines] the risk of [the] medical use [of low-THC cannabis] by   the patient is reasonable in light of the potential benefit for the   patient[; and                      [(C)     a second physician qualified to prescribe   low-THC cannabis under Section 169.002 has concurred with the   determination under Paragraph (B), and the second physician's   concurrence is recorded in the patient's medical record].          Sec. 169.004.  RECOMMENDING PHYSICIAN [LOW-THC CANNABIS   PRESCRIBER] REGISTRATION. Before a physician [qualified to   prescribe low-THC cannabis under Section 169.002] may recommend   medical use [prescribe or renew a prescription for low-THC   cannabis] for a patient under this chapter, the physician must   register as the recommending physician [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;                (2)  the patient's name and date of birth; and                (3)  the allowable [dosage prescribed to the patient;                [(4)     the means of administration ordered for the   patient; and                [(5)  the total] amount of medical [low-THC] cannabis   recommended for the patient, if the physician recommends an   allowable amount greater than the amount provided by Section   487.002(a)(1), Health and Safety Code [required to fill the   patient's prescription].          Sec. 169.005.  PATIENT TREATMENT PLAN.  A physician   [described by Section 169.002] who recommends medical use   [prescribes low-THC cannabis] for a patient [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 low-THC cannabis;                [(2)]  a plan for monitoring the patient's symptoms;   and                (2) [(3)]  a plan for monitoring indicators of   tolerance or reaction to medical [low-THC] cannabis.          SECTION 21.  Section 551.004, Occupations Code, is amended   by amending Subsection (a) and adding Subsection (a-1) 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 dispensing organization[, as defined by Section   487.001, Health and Safety Code,] that cultivates, processes, and   dispenses medical [low-THC] cannabis, as authorized by a license   issued under Subchapter (C), Chapter 487, Health and Safety Code,   to a patient listed in the compassionate-use registry established   under that chapter; or                (6)  a cannabis testing facility that analyzes the   safety and potency of medical cannabis, as authorized by a license   issued under Subchapter C, Chapter 487, Health and Safety Code.          (a-1)  For purposes of Subsections (a)(5) and (b), "cannabis   testing facility" and "dispensing organization" have the meanings   assigned by Section 487.001, Health and Safety Code.          SECTION 22.  Not later than October 1, 2017, the public   safety director of the Department of Public Safety shall adopt   rules as required to implement, administer, and enforce Chapter   487, Health and Safety Code, as amended by this Act.          SECTION 23.  (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.          (c)  Not later than March 1, 2018, the Department of Public   Safety shall begin licensing cannabis testing facilities 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 24.  This Act takes effect immediately if it   receives a vote of two-thirds of all the members elected to each   house, as provided by Section 39, Article III, Texas Constitution.     If this Act does not receive the vote necessary for immediate   effect, this Act takes effect September 1, 2017.