Bill Text: TX SB127 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2023-02-15 - Referred to Health & Human Services [SB127 Detail]

Download: Texas-2023-SB127-Introduced.html

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88R1536 JSC-D
By: Alvarado S.B. No. 127

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, as amended by
Chapters 8 (H.B. 567) and 29 (H.B. 2536), Acts of the 87th
Legislature, Regular Session, 2021, is reenacted and 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; [or]
(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) [(6)] 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, as amended by
Chapters 8 (H.B. 567) and 29 (H.B. 2536), Acts of the 87th
Legislature, Regular Session, 2021, is reenacted and 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; [or]
(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) [(6)] 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) [(7)] 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) Subject to Section 411.087, the department is
authorized to obtain and use criminal history record information
maintained by the Federal Bureau of Investigation or the department
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, as defined by Section 487.001 or 487A.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;
or
(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.
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 481.120, 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, 2024, 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, 2023.