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.