Alvarado Bill Opens Medical Cannabis Shops And A Patient Registry

The text as introduced · 4,058 words

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.