89R2239 LHC-D     By: Alvarado S.B. No. 259       A BILL TO BE ENTITLED   AN ACT   relating to the possession, use, cultivation, distribution,   transportation, and delivery of medical cannabis for use by   patients as the best available medical treatment, the licensing of   medical cannabis dispensing organizations, and the registration of   certain individuals; authorizing fees.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle C, Title 6, Health and Safety Code, is   amended by adding Chapter 487A to read as follows:   CHAPTER 487A. USE OF CANNABIS FOR MEDICAL PURPOSES   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 487A.001.  DEFINITIONS. In this chapter:                (1)  "Department" means the Department of Public   Safety.                (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   medical cannabis to a patient for whom medical use is recommended   under Chapter 169A, Occupations Code.                (4)  "Medical cannabis" and "medical use" have the   meanings assigned by Section 169A.001, Occupations Code.   SUBCHAPTER B. DUTIES OF DEPARTMENT          Sec. 487A.051.  DUTIES OF DEPARTMENT. The department shall   administer this chapter.          Sec. 487A.052.  RULES. (a)  The director shall adopt any   rules necessary for the administration and enforcement of this   chapter.          (b)  The director shall adopt rules imposing fees under this   chapter in amounts sufficient to cover the cost of administering   this chapter.          Sec. 487A.053.  LICENSING OF DISPENSING ORGANIZATIONS AND   REGISTRATION OF CERTAIN ASSOCIATED INDIVIDUALS. (a)  The   department shall:                (1)  issue or renew a license under Subchapter C to   operate as a dispensing organization to each applicant who   satisfies the requirements established under this chapter for   licensure as a dispensing organization; and                (2)  register directors, managers, and employees under   Subchapter D of each dispensing organization.          (b)  Subject to Section 411.503, Government Code, the   department shall enforce compliance of license holders and   registrants and shall adopt procedures for renewing a license or   registration issued under this chapter and for suspending or   revoking a license or registration issued under this chapter.          Sec. 487A.054.  MEDICAL USE REGISTRY. (a)  The department   shall establish and maintain a secure online medical use registry   that contains:                (1)  the name of each physician who registers as the   physician recommending medical use for a patient under Section   169A.003, Occupations Code, and the name and date of birth of the   patient; and                (2)  the amount of medical cannabis dispensed to each   patient.          (b)  The department shall ensure the registry:                (1)  is designed to prevent more than one physician   from registering as the physician recommending medical use for a   single patient;                (2)  is accessible to law enforcement agencies and   dispensing organizations for the purpose of verifying whether an   individual is a patient for whom medical use is recommended under   Chapter 169A, Occupations Code; and                (3)  allows a physician recommending medical use under   Chapter 169A, Occupations Code, to input safety and efficacy data   derived from the treatment of patients for whom medical use is   recommended.   SUBCHAPTER C. LICENSING TO OPERATE AS DISPENSING ORGANIZATION          Sec. 487A.101.  LICENSE REQUIRED. A person may not operate a   dispensing organization unless the person holds a license issued by   the department under this subchapter.          Sec. 487A.102.  ELIGIBILITY FOR LICENSE. An applicant for a   license to operate 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 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 medical 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 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   until at least the second anniversary of the application date;                (2)  each director, manager, or employee of the   applicant is registered under Subchapter D; and                (3)  the applicant satisfies any additional criteria   the director determines necessary to safely implement this chapter.          Sec. 487A.103.  APPLICATION. (a)  A person may apply for an   initial or renewal license under this subchapter by submitting a   form prescribed by the department along with the application fee in   an amount set by the director.          (b)  The application must include the name and address of the   applicant, the name and address of each of the applicant's   directors, managers, and employees, and any other information the   department considers necessary to determine the applicant's   eligibility for the license.          Sec. 487A.104.  ISSUANCE, RENEWAL, OR DENIAL OF LICENSE.     (a)  The department shall issue or renew a license under this   subchapter only if:                (1)  the department determines the applicant meets the   eligibility requirements described by Section 487A.102; and                (2)  issuance or renewal of the license is necessary to   ensure reasonable statewide access to, and the availability of,   medical cannabis for patients registered in the medical use   registry for whom medical cannabis is recommended under Chapter   169A, Occupations Code.          (b)  If the department denies the issuance or renewal of a   license under Subsection (a), the applicant is entitled to a   hearing. Chapter 2001, Government Code, applies to a proceeding   under this section.          (c)  A license issued or renewed under this subchapter   expires as determined by the department in accordance with Section   411.511, Government Code.          Sec. 487A.105.  CRIMINAL HISTORY RECORD CHECK. (a)  An   applicant for the issuance or renewal of a license under this   subchapter 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 dispensing organization under this subchapter   hires a manager or employee for the organization, the license   holder must provide the department with the name of the prospective   manager or employee. The license holder may not transfer the   license to another person before that prospective applicant and the   applicant's directors, managers, and employees are eligible based   on a criminal history record check and are registered as required by   Subchapter D.          (c)  The department shall conduct a criminal history record   check on each individual whose name is provided to the department   under Subsection (a) or (b). The director by rule shall:                (1)  require the individual to submit a complete set of   fingerprints to the department on a form prescribed by the   department for purposes of a criminal history record check under   this section; and                (2)  establish criteria for determining whether an   individual is eligible based on the criminal history record check   for the purposes of this section.          (d)  After conducting a criminal history record check under   this section, the department shall notify the relevant applicant or   organization and the individual who is the subject of the criminal   history record check as to whether the individual is eligible based   on the criminal history record check.          Sec. 487A.106.  DUTY TO MAINTAIN ELIGIBILITY. Each license   holder under this subchapter must maintain compliance at all times   with the eligibility requirements described by Section 487A.102.          Sec. 487A.107.  DUTIES RELATING TO DISPENSING MEDICAL   CANNABIS. (a)  Before dispensing medical cannabis to an individual   for whom medical use is recommended under Chapter 169A, Occupations   Code, the dispensing organization must verify the individual is   listed as a patient in the medical use registry.          (b)  After dispensing medical cannabis to a patient for whom   medical use is recommended under Chapter 169A, Occupations Code,   the dispensing organization shall record in the medical use   registry the form and quantity of the medical cannabis dispensed   and the date and time of dispensation.          Sec. 487A.108.  LICENSE SUSPENSION OR REVOCATION. (a)  The   department may at any time suspend or revoke a license issued under   this subchapter if the department determines the license holder has   not maintained the eligibility requirements described by Section   487A.102 or has failed to comply with a duty imposed under this   chapter.          (b)  The director shall give written notice to the license   holder 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, the director may seize or place under seal all medical   cannabis and drug paraphernalia owned or possessed by the   dispensing organization. If the director orders the revocation of   the license, a disposition may not be made of the seized or sealed   medical 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 cannabis and drug paraphernalia may be forfeited to the   state as provided under Subchapter E, Chapter 481.          (d)  Chapter 2001, Government Code, applies to a proceeding   under this section.   SUBCHAPTER D. REGISTRATION OF CERTAIN INDIVIDUALS          Sec. 487A.151.  REGISTRATION REQUIRED. (a)  An individual   may not act as a director, manager, or employee of a dispensing   organization unless the individual is registered under this   section.          (b)  An applicant for a registration under this section must:                (1)  be at least 18 years of age;                (2)  submit a complete set of fingerprints to the   department in the manner required by department rule; and                (3)  pass a fingerprint-based criminal history record   check as required by Section 487A.105.          (c)  A registration expires on the second anniversary of the   date of the registration's issuance, unless suspended or revoked   under rules adopted under this chapter.   SUBCHAPTER E. DUTIES OF COUNTIES AND MUNICIPALITIES          Sec. 487A.201.  COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT   MEDICAL 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, or possession of medical   cannabis, as authorized by this chapter.          SECTION 2.  Subtitle B, Title 3, Occupations Code, is   amended by adding Chapter 169A to read as follows:   CHAPTER 169A. AUTHORITY TO RECOMMEND MEDICAL CANNABIS TO CERTAIN   PATIENTS          Sec. 169A.001.  DEFINITIONS. In this chapter:                (1)  "Department" means the Department of Public   Safety.                (2)  "Medical 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.                (3)  "Medical use" means the ingestion by a means of   administration other than by smoking of a recommended amount of   medical cannabis by an individual for whom medical use is   recommended under this chapter.                (4)  "Smoking" means burning or igniting a substance   and inhaling the smoke.          Sec. 169A.002.  RECOMMENDATION OF MEDICAL USE. (a) A   physician may recommend medical use in accordance with this chapter   to any patient for treatment of the patient's medical condition or   symptoms if, in the physician's medical judgment, medical use is   the best available treatment for that patient's medical condition   or symptoms.          (b)  A physician who recommends medical use for a patient   must:                (1)  comply with the registration requirements of   Section 169A.003; and                (2)  certify to the department the physician has   determined that:                      (A)  medical use is the best available treatment   for the patient's medical condition or symptoms; and                      (B)  the risk of medical use by the patient is   reasonable in light of the potential benefit for the patient.          Sec. 169A.003.  RECOMMENDING PHYSICIAN REGISTRATION. (a)     Before a physician may recommend medical use for a patient under   this chapter, the physician must register as the recommending   physician for that patient in the medical use registry maintained   by the department under Section 487A.054, Health and Safety Code.   The physician's registration must indicate:                (1)  the physician's name; and                (2)  the patient's name and date of birth.          (b)  The department may not publish the name of a physician   registered under this section unless the physician expressly grants   permission.          Sec. 169A.004.  PATIENT TREATMENT PLAN. A physician who   recommends medical use for a patient under this chapter must   maintain a patient treatment plan that indicates:                (1)  a plan for monitoring the patient's symptoms; and                (2)  a plan for monitoring indicators of tolerance or   reaction to medical cannabis.          SECTION 3.  Section 122.103(c), Agriculture Code, is amended   to read as follows:          (c)  A qualified applicant who along with the application   submits proof to the department that the applicant holds a license   under Chapter 487 or 487A, Health and Safety Code, is not required   to pay an application fee, and the department shall issue the   license to the applicant within the time prescribed by Subsection   (b).   SECTION 4.  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 low-THC   cannabis to a child for whom the low-THC cannabis was prescribed   under Chapter 169, Occupations Code;                (5)  the parent provided or administered medical   cannabis to a child for whom medical cannabis was recommended under   Chapter 169A, Occupations Code;                (6)  the parent declined immunization for the child for   reasons of conscience, including a religious belief;                (7) [(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                (8) [(7)]  the parent allowed the child to engage in   independent activities that are appropriate and typical for the   child's level of maturity, physical condition, developmental   abilities, or culture.          SECTION 5.  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 low-THC cannabis to a   child for whom the low-THC cannabis was prescribed under Chapter   169, Occupations Code;                (5)  provided or administered medical cannabis to a   child for whom medical cannabis was recommended under Chapter 169A,   Occupations Code;                (6)  declined immunization for the child for reasons of   conscience, including a religious belief;                (7) [(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;                (8) [(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                (9) [(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 6.  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 or 487A, Health and Safety Code,   to be a director, manager, or employee of a dispensing organization   licensed under Chapter 487 or 487A[, 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 7.  Section 411.502, Government Code, is amended to   read as follows:          Sec. 411.502.  APPLICABILITY.  This subchapter applies to a   program, and persons regulated under the program, administered by   the department under the following laws, including rules adopted   under those laws:                (1)  Section 411.0625;                (2)  Chapter 487, Health and Safety Code;                (3)  Chapter 487A, Health and Safety Code;                (4)  Chapter 1702, Occupations Code;                (5) [(4)]  Chapter 1956, Occupations Code;                (6) [(5)]  Section 521.2476, Transportation Code; and                (7) [(6)]  Subchapter G, Chapter 548, Transportation   Code.          SECTION 8.  Section 443.202(a), Health and Safety Code, is   amended to read as follows:          (a)  This section does not apply to low-THC cannabis   regulated under Chapter 487 or medical cannabis regulated under   Chapter 487A.          SECTION 9.  Section 443.2025(a), Health and Safety Code, is   amended to read as follows:          (a)  This section does not apply to low-THC cannabis   regulated under Chapter 487 or medical cannabis regulated under   Chapter 487A.          SECTION 10.  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   [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 [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 licensed under Chapter   487 that possesses low-THC cannabis; or                (7)  a dispensing organization licensed under Chapter   487A that possesses medical cannabis.          SECTION 11.  Sections 481.111(e) and (f), Health and Safety   Code, are amended to read as follows:          (e)  Sections 481.113, 481.116, 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 low-THC cannabis or medical cannabis if the person:                (1)  for an offense involving possession only of   marihuana or drug paraphernalia, is a patient for whom low-THC   cannabis is prescribed under Chapter 169, Occupations Code, or the   patient's legal guardian, and the person possesses low-THC cannabis   obtained under a valid prescription from a dispensing organization;   [or]                (2)  is a director, manager, or employee of a low-THC   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 low-THC   cannabis or raw materials used in or by-products created by the   production or cultivation of low-THC cannabis; or                      (B)  any drug paraphernalia used in the   acquisition, possession, production, cultivation, delivery, or   disposal of low-THC cannabis;                (3)  for an offense involving possession only of   marihuana or drug paraphernalia, is a patient for whom medical use   is recommended under Chapter 169A, Occupations Code, or the   patient's legal guardian; or                (4)  is a director, manager, or employee of a medical   cannabis dispensing organization and the individual, solely in   performing the individual's regular duties at the organization,   acquires, possesses, produces, cultivates, dispenses, or disposes   of:                      (A)  in reasonable quantities, any medical   cannabis or raw materials used in or by-products created by the   production or cultivation of medical cannabis; or                      (B)  any drug paraphernalia used in the   acquisition, possession, production, cultivation, delivery, or   disposal of medical cannabis.          (f)  For purposes of Subsection (e):                (1)  ["Dispensing organization" has the meaning   assigned by Section 487.001.                [(2)] "Low-THC cannabis" has the meaning assigned by   Section 169.001, Occupations Code.                (2)  "Low-THC cannabis dispensing organization" means   a dispensing organization as defined by Section 487.001.                (3)  "Medical cannabis" and "medical use" have the   meanings assigned by Section 169A.001, Occupations Code.                (4)  "Medical cannabis dispensing organization" means   a dispensing organization as defined by Section 487A.001.          SECTION 12.  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 low-THC cannabis dispensing organization[, as   defined by Section 487.001, Health and Safety Code,] that   cultivates, processes, and dispenses low-THC cannabis, as   authorized by a license issued under Subchapter C, Chapter 487,   Health and Safety Code, to a patient listed in the   compassionate-use registry established under that chapter; or                (6)  a medical cannabis dispensing organization that   cultivates, processes, and dispenses medical cannabis, as   authorized by a license issued under Subchapter C, Chapter 487A,   Health and Safety Code, to a patient listed in the medical use   registry established under that chapter.          (a-1)  For purposes of Subsections (a)(5) and (6):                (1)  "Low-THC cannabis dispensing organization" means   a dispensing organization as defined by Section 487.001, Health and   Safety Code.                (2)  "Medical cannabis dispensing organization" means   a dispensing organization as defined by Section 487A.001, Health   and Safety Code.          SECTION 13.  Not later than January 1, 2026, the public   safety director of the Department of Public Safety shall adopt   rules as required to implement, administer, and enforce Chapter   487A, Health and Safety Code, as added by this Act, including rules   to establish the medical use registry required by that chapter.          SECTION 14.  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, 2025.