Monitoring the Session

SB 734

Menéndez Cannabis Bill Bars Child Removal Over Any Parent’s Positive Test

Died in committee

Verdict: Smells

SmellsInitial review
Sen. José MenéndezDSenate 26
Both charges, and why
Caption mismatch

THE TEXT

“tested positive for marihuana, unless the”…

Bill text, introduced version (I)

The caption covers medical cannabis for registered patients, but this clause bars child protective services from taking a child because any parent tested positive for marihuana, whether or not the parent is a patient. The caption never mentions that broader change.

Caption mismatch
New fee, fund, board or appointees

THE TEXT

…“use revenue from fees to establish a cannabis testing and quality”…

Bill text, introduced version (I)

The bill orders DPS to set up a new dedicated testing and quality control fund from license fees. The caption says it authorizes a fee, so this is disclosed and routine.

New fee, fund, board or appointees

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to authorizing the possession, use, cultivation, distribution, delivery, sale, and research of medical cannabis for medical use by patients with certain medical conditions and the licensing of medical cannabis organizations; authorizing a fee.

Caption from analyzed text · version I.

Summary

Patient or not. Also: any diagnosis can qualify, no THC cap, about 300 dispensing sites.

The bill turns Texas's narrow low-THC program into a full medical cannabis program, lets any qualified physician recommend cannabis for any diagnosis or symptom they judge it will help, and drops the THC cap and the smoking ban. It touches patients, caregivers, physicians, schools, family courts, child protective services, cities and counties, and new cultivation, processing, dispensing and testing businesses licensed by the Department of Public Safety. On the ground, DPS must license at least about 300 dispensing sites by region plus growers and processors by mid-2026, local governments cannot ban them, and patients, caregivers and licensees are shielded from arrest, discipline, forfeiture and custody penalties for authorized use.

Labels

Labels: ZOMBIE BILL. Died 2 times: 88R SB 121 (Died in committee) and this bill (Died in committee). Checked against 88R only.DO-OVER. Reworked text of a bill filed before that died: 88R SB 121 (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.FEE INCLUDED. The caption of the graded version (introduced) reads: “relating to authorizing the possession, use, cultivation, distribution, delivery, sale, and research of medical cannabis for medical use by patients with certain medical conditions and the licensing of medical cannabis organizations; authorizing a fee.”DOORSTOP: 7,628 WORDS. The bill as filed runs 7,628 words, counting the existing law it amends and the text it strikes. The median 89R bill as filed runs 441 words (derived, 8,702 graded bills, snapshot Oct 19, 2026).NEVER GOT A HEARING. Filed Jan 7, 2025 and referred to the Senate Health & Human Services committee. No public hearing. The bill died.

Receipt

The receipt

89R-SB734 · 2025-01-07

SOLD BY

ITEM

relating to authorizing the possession, use, cultivation, distribution, delivery, sale, and research of medical cannabis for medical use by patients with certain medical conditions and the licensing of medical cannabis organizations; authorizing a fee.

WHAT IT DOES

Patient or not. Also: any diagnosis can qualify, no THC cap, about 300 dispensing sites.

The bill turns Texas's narrow low-THC program into a full medical cannabis program, lets any qualified physician recommend cannabis for any diagnosis or symptom they judge it will help, and drops the THC cap and the smoking ban. It touches patients, caregivers, physicians, schools, family courts, child protective services, cities and counties, and new cultivation, processing, dispensing and testing businesses licensed by the Department of Public Safety. On the ground, DPS must license at least about 300 dispensing sites by region plus growers and processors by mid-2026, local governments cannot ban them, and patients, caregivers and licensees are shielded from arrest, discipline, forfeiture and custody penalties for authorized use.

CHARGES

[x] CAPTION MISMATCHanalysis confidence 60%

THE TEXT

“tested positive for marihuana, unless the”…

Bill text, introduced version (I)

The caption covers medical cannabis for registered patients, but this clause bars child protective services from taking a child because any parent tested positive for marihuana, whether or not the parent is a patient. The caption never mentions that broader change.

[x] NEW FEE, FUND, BOARD OR APPOINTEESanalysis confidence 40%

THE TEXT

…“use revenue from fees to establish a cannabis testing and quality”…

Bill text, introduced version (I)

The bill orders DPS to set up a new dedicated testing and quality control fund from license fees. The caption says it authorizes a fee, so this is disclosed and routine.

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Received by the Secretary of the Senate
  2. Filed
  3. Read first time
  4. Referred to Health & Human Services
FILED UNDER

SPEECH AND LAWFARE

THE TEXT

…“Subsection (a) is not subject to arrest, prosecution, or penalty in”…

Bill text, introduced version (I)

The bill gives patients, caregivers, licensed cannabis businesses and their staff a broad shield from prosecution, civil penalties and licensing discipline for authorized conduct.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Jul 2, 2024 to Oct 5, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Kickapoo Traditional Tribes of Texas$25,000.00

Kickapoo Traditional Tribes of Texas

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Jan 22, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Jan 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101065471.

Texas Trial Lawyers Association PAC$20,000.00

Texas Trial Lawyers Association PAC

$20,000.00

Cash
$20,000.00
Paid by others
$0.00
Total
$20,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 12, 2024 to Oct 5, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101012370, 101032316, 101072614.

Texas REALTORS Political Action Committee$10,000.00

Texas REALTORS Political Action Committee

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Dec 2, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101032316.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Kickapoo Traditional Tribes of Texas

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Jan 22, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Jan 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101065471.

×

Texas Trial Lawyers Association PAC

$20,000.00

Cash
$20,000.00
Paid by others
$0.00
Total
$20,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 12, 2024 to Oct 5, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101012370, 101032316, 101072614.

×

Texas REALTORS Political Action Committee

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Dec 2, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101032316.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R SB 121

by Sen. Menéndez, same lead author · Died in committee · reworked

Introduced text

Last action, Feb 15, 2023: Referred to Health & Human Services

Relating to authorizing the possession, use, cultivation, distribution, delivery, sale, and research of medical cannabis for medical use by patients with certain medical conditions and the licensing of medical cannabis organizations; authorizing fees.

Caption, 88R bill history

Sources

Texas Senate · Filed Jan 7, 2025

02/07/2025 S Referred to Health & Human Services

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

Senate committee · Health & Human Services · Final status: Died in committee

Subjects

Crimes--Drugs

Electronic Information Systems

Governor

Health--Other Diseases & Medical Conditions

Occupational Regulation--Other Trades & Professions

State Finances--Management & Control

MARIHUANA

MEDICINE & PRESCRIPTION DRUGS

PACKAGING & LABELING REQUIREMENTS

PHYSICIANS

PUBLIC SAFETY, DEPARTMENT OF

Text

The text as introduced · 7,628 words

89R4874 LHC-D

By: Menéndez
S.B. No. 734

A BILL TO BE ENTITLED

AN ACT

relating to authorizing the possession, use, cultivation,

distribution, delivery, sale, and research of medical cannabis for

medical use by patients with certain medical conditions and the

licensing of medical cannabis organizations; authorizing a fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. CHANGES TO TEXAS COMPASSIONATE USE PROGRAM

SECTION 1.01. Section 487.001, Health and Safety Code, is

amended to read as follows:

Sec. 487.001. DEFINITIONS. In this chapter:

(1) "Caregiver" means a person who has a significant

responsibility for managing the well-being of a registered patient.

A caregiver may be either an individual or an organization or other

entity, including a long-term care facility, other health care

organization, or public institution.

(2) "Department" means the Department of Public

Safety.

(3) [ (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

low-THC cannabis to a patient for whom low-THC cannabis is

prescribed under Chapter 169, Occupations Code. ]

(4) " Medical [ Low-THC ] cannabis" has the meaning

assigned by Section 169.001, Occupations Code.

(5) "Medical cannabis organization" means any

organization that cultivates, processes, manufactures,

distributes, researches, tests, dispenses, or conducts other

business regarding medical cannabis as authorized by a license

issued by the department under this chapter.

(6) "Medical cannabis product" means a product, other

than cannabis itself, which contains or is derived from cannabis.

The term does not include a product derived from hemp, as defined by

Section 121.001, Agriculture Code, or a consumable hemp product, as

defined by Section 443.001 of this code.

(7) "Medical use" has the meaning assigned by Section

169.001, Occupations Code.

SECTION 1.02. Subchapter A, Chapter 487, Health and Safety

Code, is amended by adding Section 487.002 to read as follows:

Sec. 487.002. ALLOWABLE AMOUNT OF MEDICAL CANNABIS. The

allowable amount of medical cannabis for a person for whom medical

use is recommended under Chapter 169, Occupations Code, is an

amount of cannabis in any form approved by the physician possessed

by a qualified patient or collectively possessed by a qualified

patient and the qualified patient's caregiver that is:

(1) not more than reasonably necessary to ensure the

uninterrupted availability of cannabis for a period of three months

based on the individual patient's recommended amount of medical

cannabis; and

(2) obtained solely from a medical cannabis

organization.

SECTION 1.03. Chapter 487, Health and Safety Code, is

amended by adding Subchapter A-1 to read as follows:

SUBCHAPTER A-1. PROTECTIONS RELATED TO MEDICAL USE OF CANNABIS

Sec. 487.021. PROTECTION FROM LEGAL ACTION. (a) This

section applies to a person who is:

(1) a patient for whom medical use is recommended

under Chapter 169, Occupations Code, or the parent, legal guardian,

or caregiver of a patient;

(2) a medical cannabis organization;

(3) a director, manager, or employee of a medical

cannabis organization who is registered with the department under

Section 487.053; or

(4) a person participating as a researcher or patient

in an approved research program under Subchapter G, Chapter 481.

(b) Notwithstanding any other law, a person described by

Subsection (a) is not subject to arrest, prosecution, or penalty in

any manner, or denial of any right or privilege, including any civil

penalty or disciplinary action by a court or occupational or

professional licensing board or bureau, for conduct involving

medical use that is authorized under this chapter, Subchapter G,

Chapter 481, of this code, Chapter 169, Occupations Code, or

department rule.

Sec. 487.022. NO PRESUMPTION OF CHILD ABUSE, NEGLECT, OR

ENDANGERMENT. A person described by Section 487.021(a) may not be

presumed to have engaged in conduct constituting child abuse,

neglect, or endangerment solely because the person engaged in

conduct involving medical use that is authorized under this

chapter, Subchapter G, Chapter 481, of this code, Chapter 169,

Occupations Code, or department rule.

Sec. 487.023. NO DENIAL OF PARENTAL RIGHTS. The fact that a

person described by Section 487.021(a) engages in conduct

authorized under this chapter, Subchapter G, Chapter 481, of this

code, Chapter 169, Occupations Code, or department rule, does not

in itself constitute grounds for denying, limiting, or restricting

conservatorship or possession of or access to a child under Title 5,

Family Code.

Sec. 487.024. NO SEIZURE OR FORFEITURE. Property used in

the cultivation, research, testing, processing, distribution,

transportation, and delivery of medical cannabis for medical use

that is authorized under this chapter, Subchapter G, Chapter 481,

of this code, Chapter 169, Occupations Code, or department rule, is

not contraband for purposes of Chapter 59, Code of Criminal

Procedure, and is not subject to seizure or forfeiture under that

chapter or other law solely for the use of the property in those

authorized activities.

Sec. 487.025. NO PROSECUTION FOR PROVISION OF

PARAPHERNALIA. A person is not subject to arrest, prosecution, or

the imposition of any sentence or penalty for the delivery,

possession with intent to deliver, or manufacture of any item that

meets the definition of drug paraphernalia, as defined by Section

481.002, if that item is delivered, possessed with intent to

deliver, or manufactured for the sole purpose of providing that

item to:

(1) a patient for whom medical use is recommended

under Chapter 169, Occupations Code, or the parent, legal guardian,

or caregiver of a patient;

(2) a medical cannabis organization;

(3) a director, manager, or employee of a medical

cannabis organization who is registered with the department under

Section 487.053; or

(4) a person participating as a researcher or patient

in an approved research program under Subchapter G, Chapter 481.

Sec. 487.026. NO PUNISHMENT FOR STUDENT PATIENTS AND THEIR

CAREGIVERS. Notwithstanding any other law:

(1) a student enrolled in any school, junior college,

college, university, or other educational institution for whom

medical cannabis was recommended under Chapter 169, Occupations

Code, may not be subject to suspension, expulsion, placement in a

disciplinary alternative education program, or any other form of

discipline solely because the student possessed, used, or received

a valid recommendation for medical cannabis; and

(2) a health care professional providing services at

any school, junior college, college, university, or other

educational institution may not be subject to any discipline solely

for assisting a student in the administration of medical cannabis.

SECTION 1.04. Section 487.052, Health and Safety Code, is

amended to read as follows:

Sec. 487.052. RULES ; FEES . (a) The director shall adopt

any rules necessary for the administration and enforcement of this

chapter .

(b) The director shall adopt [ , including ] rules imposing

reasonable fees under this chapter in amounts sufficient to cover

the cost of administering this chapter. The department shall also

use revenue from fees to establish a cannabis testing and quality

control fund for the purpose of assisting law enforcement,

including accredited crime laboratories, to purchase instruments,

establish methods, and obtain resources needed to conduct forensic

analysis necessary to enforce this subtitle and to protect the

health and safety of medical cannabis patients and the public.

(c) The fees adopted under Subsection (b) may not exceed:

(1) $5,000 for application fees;

(2) $100 for registration fees under Subchapter D; and

(3) reasonable amounts for the issuance or renewal of

each class of license.

(d) The director may not adopt rules establishing a total

limit on the number of medical cannabis organization licenses by

class that may be granted nor set the price of or production

quantity of medical cannabis.

SECTION 1.05. Subchapter B, Chapter 487, Health and Safety

Code, is amended by adding Sections 487.0521 and 487.0522 to read as

follows:

Sec. 487.0521. SAFETY. (a) The director by rule shall

adopt packaging and labeling requirements for medical cannabis to

ensure patients are informed and protected. In adopting packaging

and labeling requirements, the director shall ensure that:

(1) each medical cannabis package is labeled with the

cannabinoid potency and terpenes profile of medical cannabis or

medical cannabis product as determined by an independent testing

laboratory;

(2) each medical cannabis product and medical cannabis

package is labeled with the required warnings as determined by the

department; and

(3) the packaging and label of medical cannabis or a

medical cannabis product:

(A) do not contain any false or misleading

statements; and

(B) are not designed to appeal to children.

(b) The director shall adopt necessary rules to allow the

department to monitor the safety and efficacy of medical cannabis

or medical cannabis products, including rules:

(1) requiring accurate reporting to consumers

regarding the content of medical cannabis or medical cannabis

products;

(2) providing for random testing by the department or

the department's designee to ensure compliance with labeling and

reporting requirements; and

(3) providing for health and safety regulations and

standards for the manufacture and cultivation of medical cannabis

and medical cannabis products.

(c) The director may collect data from medical cannabis

organizations and health care providers as necessary to enable the

department to monitor the safety and efficacy of medical cannabis.

The director may adopt rules for the data collection under this

subsection.

Sec. 487.0522. MEDICAL CANNABIS INVENTORY SYSTEM. (a) The

department shall establish and maintain a medical cannabis

inventory system that oversees the tracking, tracing, testing, and

quality control and quality assurance certification of medical

cannabis and medical cannabis products.

(b) The department may contract with other entities to

establish and maintain all or part of the medical cannabis

inventory system on behalf of the department.

(c) A medical cannabis organization shall use the medical

cannabis inventory system approved by the department to keep

records throughout the cannabis supply chain, including for every

transaction between license holders and between license holders and

patients. A medical cannabis organization may additionally use its

own system for keeping records under this chapter provided the

organization's system can integrate with the department's medical

cannabis inventory system as required under this chapter and rules

adopted under this chapter.

(d) The records in the medical cannabis inventory system

must include for each transaction:

(1) the name, license number, and assigned

identification number of the license holder that cultivated,

manufactured, tested, or sold the product;

(2) the address and phone number of the license holder

that cultivated, manufactured, tested, or sold the product;

(3) the type and weight of medical cannabis or medical

cannabis product transferred or received during the transaction;

(4) the batch number of the medical cannabis or

medical cannabis product used;

(5) the date of the transaction;

(6) the total spent in dollars; and

(7) any additional information the department

requires.

(e) The records in the medical cannabis inventory system

must include for each license holder:

(1) the amount of any medical cannabis waste, in

pounds;

(2) all point-of-sale records; and

(3) any additional information the department

requires.

(f) Notwithstanding Subsection (c), before the department

establishes the medical cannabis inventory system described by that

subsection, each license holder shall use its own inventory system

that meets the requirements of this section.

(g) Each medical cannabis organization has a continuing

responsibility to maintain records on site that are readily

available to the department regardless of the functionality of the

medical cannabis inventory system, including the criteria

established by this section and any requirements established by

rule.

(h) The director shall adopt rules necessary for the

implementation and enforcement of this section, including rules

ensuring:

(1) the department has 24-hour access to the medical

cannabis inventory system; and

(2) all inventory records containing patient

information comply with Chapter 181 and the Health Insurance

Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d

et seq.).

SECTION 1.06. The heading to Section 487.053, Health and

Safety Code, is amended to read as follows:

Sec. 487.053. LICENSING OF MEDICAL CANNABIS [ DISPENSING ]

ORGANIZATIONS AND REGISTRATION OF CERTAIN ASSOCIATED INDIVIDUALS.

SECTION 1.07. Section 487.053(a), Health and Safety Code,

is amended to read as follows:

(a) The department shall:

(1) issue or renew a license under Subchapter C to

operate as a medical cannabis [ dispensing ] organization to each

applicant who satisfies the requirements established under this

chapter for licensure under that class of medical cannabis

organization ; [ and ]

(2) register directors, managers, and employees under

Subchapter D of each medical cannabis [ dispensing ] organization ;

(3) issue a permit for an additional location to a

dispensing cannabis organization license holder on application if

the license holder is in compliance with all eligibility

requirements and the proposed location complies with any local

zoning requirements and will assist with ensuring reasonable

statewide access;

(4) to ensure reasonable statewide access, issue not

fewer than the following number of licenses or permits, as

applicable, for each type of medical cannabis organization provided

the department receives an adequate number of qualified

applications:

(A) dispensing cannabis organization licenses or

permits for an additional location for a dispensing cannabis

organization license holder, as applicable, based on population

within each of the 11 public health regions established by the

Health and Human Services Commission, as follows:

(i) 9 in public health region 1;

(ii) 6 in public health region 2;

(iii) 82 in public health region 3;

(iv) 12 in public health region 4;

(v) 8 in public health region 5;

(vi) 75 in public health region 6;

(vii) 37 in public health region 7;

(viii) 31 in public health region 8;

(ix) 7 in public health region 9;

(x) 9 in public health region 10; and

(xi) 24 in public health region 11;

(B) one cultivation cannabis organization

license for every four dispensing cannabis organization licenses;

(C) one processing cannabis organization license

for every three dispensing cannabis organization licenses; and

(D) the number of independent testing cannabis

organization licenses necessary to meet demand;

(5) when the number of registered medical cannabis

patients reaches 100,000, issue not fewer than 24 additional

dispensing cannabis organization licenses or location permits, as

applicable, and the appropriate number of other medical cannabis

organization license types as prescribed by Subdivision (4); and

(6) for each additional 100,000 registered medical

cannabis patients beyond the first 100,000 patients described by

Subdivision (5), issue not fewer than 24 additional dispensing

cannabis organization licenses or location permits, as applicable,

and the appropriate number of other medical cannabis organization

license types as prescribed by Subdivision (4) .

SECTION 1.08. Section 487.054, Health and Safety Code, is

amended to read as follows:

Sec. 487.054. COMPASSIONATE-USE REGISTRY. (a) The

department shall establish and maintain a secure online

compassionate-use registry that contains:

(1) the name of each physician who registers as a

physician recommending medical cannabis and for each patient for

whom the physician has registered:

(A) [ the prescriber for a patient under Section

169.004, Occupations Code, ] the patient's name , and any caregivers'

names, if applicable;

(B) the patient's [ and ] date of birth ;

(C) the nature of the patient's eligible medical

condition;

(D) [ of the patient, ] the dosage recommended;

(E) [ prescribed, ] the means of administration

ordered ; [ , ] and

(F) the total amount of medical [ low-THC ]

cannabis required to fill the patient's recommendation

[ prescription ]; and

(2) a record of each amount of medical [ low-THC ]

cannabis dispensed by a medical cannabis [ dispensing ] organization

to a patient under a recommendation [ prescription ].

(b) The department shall ensure the registry:

(1) is designed to prevent more than one qualified

physician from registering as the recommending physician

[ prescriber ] for a single patient;

(2) is accessible to law enforcement agencies and

medical cannabis [ dispensing ] organizations licensed to dispense

medical cannabis for the purpose of verifying whether a patient is

one for whom medical [ low-THC ] cannabis is recommended [ prescribed ]

and whether the patient's recommendations [ prescriptions ] have

been filled; [ and ]

(3) allows a physician [ qualified to prescribe low-THC

cannabis under Section 169.002, Occupations Code, ] to input safety

and efficacy data derived from the treatment of patients for whom

medical [ low-THC ] cannabis is recommended [ prescribed ] under

Chapter 169, Occupations Code , including any severe adverse effects

due to the medical use of medical cannabis; and

(4) ensures that all application records and

information are sealed to protect the privacy of patients.

(c) The handling of any records maintained in the registry

must comply with all relevant state and federal privacy laws,

including Chapter 181 .

SECTION 1.09. Subchapter B, Chapter 487, Health and Safety

Code, is amended by adding Section 487.055 to read as follows:

Sec. 487.055. DESIGNATION OF CAREGIVER. (a) A patient

listed in the compassionate-use registry may designate a caregiver.

A caregiver designated under this subsection may be either an

individual or an organization or other entity, including a

long-term care facility, other health care organization, or public

institution.

(b) The department shall develop a form for a patient listed

in the registry to designate a caregiver under Subsection (a). The

form must require the patient to provide the full name, home

address, and date of birth of the patient's caregiver or, in the

case of a caregiver that is an entity, the entity's name and

address.

(c) A caregiver may possess medical cannabis and medical

cannabis products up to the sum of the possession limits for all

patients under the caregiver's care.

(d) The director shall adopt rules necessary to implement

this section, including rules to provide identification cards for

designated caregivers.

SECTION 1.10. The heading to Subchapter C, Chapter 487,

Health and Safety Code, is amended to read as follows:

SUBCHAPTER C. LICENSE TO OPERATE AS MEDICAL CANNABIS [ DISPENSING ]

ORGANIZATION

SECTION 1.11. Section 487.101, Health and Safety Code, is

amended to read as follows:

Sec. 487.101. LICENSE REQUIRED. (a) A license issued by

the department under this chapter is required to operate a medical

cannabis [ dispensing ] organization.

(b) The director by rule shall adopt application and

licensing requirements and privileges of each medical cannabis

organization license type.

(c) Medical cannabis organization license types shall

include the following:

(1) a cultivating cannabis organization that

cultivates medical cannabis for sale and distribution to other

medical cannabis organizations and may process and package medical

cannabis for individual sale so long as the cannabis is not

subjected to any chemical alteration;

(2) a processing cannabis organization that extracts

medical cannabis and manufactures, prepares, and packages medical

cannabis products for sale and distribution to other medical

cannabis organizations;

(3) a dispensing cannabis organization that sells

medical cannabis and medical cannabis products to patients;

(4) an independent testing cannabis organization that

tests medical cannabis and medical cannabis products for potency,

safety, and efficacy; and

(5) any other class of medical cannabis organization

that the department finds warranted to safely and securely ensure

reasonable statewide access of medical cannabis for medical use.

SECTION 1.12. Section 487.102, Health and Safety Code, is

amended to read as follows:

Sec. 487.102. ELIGIBILITY FOR LICENSE. An applicant for a

license to operate as a medical cannabis [ dispensing ] organization

is eligible for the license if:

(1) as determined by the department, the applicant

possesses:

(A) the technical and technological ability

appropriate for that class of license [ to cultivate and produce

low-THC cannabis ];

(B) the ability to secure:

(i) the resources and personnel necessary

to operate as a medical cannabis [ dispensing ] organization; and

(ii) for distribution or

dispensing premises reasonably located to allow patients listed on

the compassionate-use registry access to the organization through

existing infrastructure;

(C) the ability to maintain accountability for

the raw materials, the finished product, and any by-products used

or produced in the cultivation or production of medical [ low-THC ]

cannabis to prevent unlawful access to or unlawful diversion or

possession of those materials, products, or by-products; [ and ]

(D) the financial ability to maintain operations

for not less than two years from the date of application; and

(E) any specific qualifications for licensure

for each class of license the department requires by rule under this

chapter that are demonstrably related to the operations authorized

and duties imposed under that class of license to safely and

securely provide medical cannabis for medical use to patients;

(2) each director, manager, or employee of the

applicant is registered under Subchapter D; and

(3) the applicant satisfies any additional criteria

determined by the director to be necessary to safely implement this

chapter.

SECTION 1.13. Subchapter C, Chapter 487, Health and Safety

Code, is amended by adding Section 487.1021 to read as follows:

Sec. 487.1021. ELIGIBILITY FOR LICENSE TO OPERATE AS AN

INDEPENDENT CANNABIS TESTING ORGANIZATION. In addition to the

criteria described by Section 487.102, an applicant for a license

to operate as an independent cannabis testing organization is

eligible for the license if the applicant:

(1) submits proof of accreditation by an independent

accreditation body in accordance with the International

Organization for Standardization ISO/IEC 17025 or a comparable or

successor standard designated by department rule;

(2) submits proof that it does not share ownership

interest or joint management with any medical cannabis organization

whose product the applicant may test except for less than 10 percent

ownership in a publicly traded company; and

(3) satisfies any additional criteria determined by

the department to be necessary for the operation of a cannabis

testing facility.

SECTION 1.14. Section 487.103(a), Health and Safety Code,

is amended to read as follows:

(a) A person may apply for an initial or renewal license to

operate as a medical cannabis [ dispensing ] organization by

submitting a form prescribed by the department along with the

application fee in an amount set by the director for that class of

license .

SECTION 1.15. Section 487.104(a), Health and Safety Code,

is amended to read as follows:

(a) The department shall issue or renew a license to operate

as a medical cannabis [ dispensing ] organization [ only ] if:

(1) the department determines the applicant meets the

eligibility requirements described by Section 487.102 or 487.1021,

as applicable ; and

(2) issuance or renewal of the license would assist

[ is necessary to ensure ] reasonable statewide access to, and the

availability of, medical [ low-THC ] cannabis for patients

registered in the compassionate-use registry and for whom medical

[ low-THC ] cannabis is recommended [ prescribed ] under Chapter 169,

Occupations Code.

SECTION 1.16. Sections 487.105(a) and (b), Health and

Safety Code, are amended to read as follows:

(a) An applicant for the issuance or renewal of a license

under this subchapter [ to operate as a dispensing organization ]

shall provide the department with the applicant's name and the name

of each of the applicant's directors, managers, and employees.

(b) Before a medical cannabis [ dispensing ] organization

license holder [ licensee ] hires a manager or employee for the

organization, the license holder [ licensee ] must provide the

department with the name of the prospective manager or employee.

The license holder [ licensee ] may not transfer the license to

another person before that prospective applicant and the

applicant's directors, managers, and employees pass a criminal

history background check and any other requirements established by

the director by rule, and are registered as required by Subchapter

D.

SECTION 1.17. Section 487.106, Health and Safety Code, is

amended to read as follows:

Sec. 487.106. DUTY TO MAINTAIN ELIGIBILITY. (a) Each

license holder under this subchapter [ A dispensing organization ]

must maintain compliance at all times with the eligibility

requirements described by Section 487.102 or 487.1021, as

applicable .

(b) On request of the department, a license holder must

provide to the department a reasonably sized sample suitable for

testing of medical cannabis.

SECTION 1.18. Section 487.107, Health and Safety Code, is

amended to read as follows:

Sec. 487.107. DUTIES RELATING TO DISPENSING MEDICAL

CANNABIS [ PRESCRIPTION ]. (a) Before dispensing medical [ low-THC ]

cannabis to a person for whom the medical [ low-THC ] cannabis is

recommended [ prescribed ] under Chapter 169, Occupations Code, the

medical cannabis [ dispensing ] organization must verify that the

recommendation [ prescription ] presented:

(1) is for a person listed as a patient in the

compassionate-use registry;

(2) matches the entry in the compassionate-use

registry with respect to the total amount of medical [ low-THC ]

cannabis required to fill the recommendation [ prescription ]; and

(3) has not previously been filled by a medical

cannabis [ dispensing ] organization as indicated by an entry in the

compassionate-use registry.

(b) After dispensing medical [ low-THC ] cannabis to a

patient for whom the medical [ low-THC ] cannabis is recommended

[ prescribed ] under Chapter 169, Occupations Code, the medical

cannabis [ dispensing ] organization shall record in the

compassionate-use registry the form and quantity of medical

[ low-THC ] cannabis dispensed and the date and time of dispensation.

SECTION 1.19. Sections 487.108(a), (b), and (c), Health and

Safety Code, are amended to read as follows:

(a) The department may at any time suspend or revoke a

license issued under this subchapter [ chapter ] if the department

determines that the license holder [ licensee ] has not maintained

the eligibility requirements described by Section 487.102 or

487.1021, as applicable, or has failed to comply with a duty imposed

under this chapter.

(b) The director shall give written notice to the license

holder [ dispensing organization ] of a license suspension or

revocation under this section and the grounds for the suspension or

revocation. The notice must be sent by certified mail, return

receipt requested.

(c) After suspending or revoking a license issued under this

subchapter [ chapter ], the director may seize or place under seal

all medical [ low-THC ] cannabis and drug paraphernalia owned or

possessed by the license holder [ dispensing organization ]. If the

director orders the revocation of the license, a disposition may

not be made of the seized or sealed medical [ low-THC ] cannabis or

drug paraphernalia until the time for administrative appeal of the

order has elapsed or until all appeals have been concluded. When a

revocation order becomes final, all medical [ low-THC ] cannabis and

drug paraphernalia may be forfeited to the state as provided under

Subchapter E, Chapter 481.

SECTION 1.20. Section 487.151(a), Health and Safety Code,

is amended to read as follows:

(a) An individual who is a director, manager, or employee of

a license holder under Subchapter C [ dispensing organization ] must

apply for and obtain a registration under this section.

SECTION 1.21. Section 487.201, Health and Safety Code, is

amended to read as follows:

Sec. 487.201. COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT

MEDICAL [ LOW-THC ] CANNABIS. A municipality, county, or other

political subdivision may not enact, adopt, or enforce a rule,

ordinance, order, resolution, or other regulation that prohibits

the cultivation, production, dispensing, researching, testing, or

possession of medical [ low-THC ] cannabis, as authorized by this

chapter.

SECTION 1.22. Subchapter F, Chapter 487, Health and Safety

Code, is repealed.

ARTICLE 2. RECOMMENDATION OF MEDICAL CANNABIS BY PHYSICIAN

SECTION 2.01. The heading to Chapter 169, Occupations Code,

is amended to read as follows:

CHAPTER 169. AUTHORITY TO RECOMMEND MEDICAL [ PRESCRIBE LOW-THC ]

CANNABIS TO CERTAIN PATIENTS FOR COMPASSIONATE USE

SECTION 2.02. Section 169.001, Occupations Code, is amended

to read as follows:

Sec. 169.001. DEFINITIONS. In this chapter:

(1) "Department" means the Department of Public

Safety.

(2) [ (1-a) "Incurable neurodegenerative disease"

means a disease designated as an incurable neurodegenerative

disease by rule of the executive commissioner of the Health and

Human Services Commission, adopted in consultation with the

National Institutes of Health.

[ (3) ] " Medical [ Low-THC ] cannabis" means the plant

Cannabis sativa L., and any part of that plant or any compound,

manufacture, salt, derivative, mixture, preparation, resin, or oil

of that plant . The term does not include hemp, as defined by

Section 121.001, Agriculture Code, or a consumable hemp product, as

defined by Section 443.001, Health and Safety Code [ that contains

not more than one percent by weight of tetrahydrocannabinols ].

(3) [ (4) ] "Medical use" means the administration of

medical cannabis to a registered patient for treatment of an

eligible medical condition or symptoms as recommended by a

physician [ ingestion by a means of administration other than by

smoking of a prescribed amount of low-THC cannabis by a person for

whom low-THC cannabis is prescribed ] under this chapter.

(4) "Severe adverse event" means an adverse event

that:

(A) results in death;

(B) results in an illness requiring

hospitalization;

(C) is considered life-threatening; or

(D) results in a persistent or significant

disability, incapacity, or medically important condition.

[ (5) "Smoking" means burning or igniting a substance

and inhaling the smoke. ]

SECTION 2.03. Chapter 169, Occupations Code, is amended by

adding Section 169.0012 to read as follows:

Sec. 169.0012. BONA FIDE PHYSICIAN-PATIENT RELATIONSHIP.

For purposes of this chapter, a bona fide physician-patient

relationship exists when there is a treatment or counseling

relationship between a physician and patient in which all of the

following are present:

(1) the physician has reviewed the patient's relevant

medical records and completed a full assessment of the patient's

medical history and current medical condition, including a relevant

medical evaluation of the patient;

(2) the physician has created and continues to

maintain records of the patient's condition in accordance with

medically accepted standards;

(3) the physician has a reasonable expectation that

the physician will provide follow-up care to the patient to monitor

the efficacy of the use of medical cannabis as a treatment of the

patient's medical condition; and

(4) if the patient has given permission, the physician

has notified the patient's primary care physician of the patient's

medical condition and certification for the medical use of medical

cannabis to treat that condition.

SECTION 2.04. Section 169.002, Occupations Code, is amended

to read as follows:

Sec. 169.002. PHYSICIAN QUALIFIED TO RECOMMEND MEDICAL

[ PRESCRIBE LOW-THC ] CANNABIS [ TO PATIENTS WITH CERTAIN MEDICAL

CONDITIONS ]. (a) Only a physician qualified with respect to a

patient's particular medical condition [ as provided by this

section ] may recommend medical [ prescribe low-THC ] cannabis in

accordance with this chapter to treat the applicable medical

condition.

(b) A physician is qualified to recommend medical

[ prescribe low-THC ] cannabis with respect to a patient's particular

medical condition if the physician:

(1) is licensed under this subtitle;

(2) has a bona fide physician-patient relationship

with the patient [ is board certified in a medical specialty

relevant to the treatment of the patient's particular medical

condition by a specialty board approved by the American Board of

Medical Specialties or the Bureau of Osteopathic Specialists ]; and

(3) dedicates a significant portion of clinical

practice to the evaluation and treatment of the patient's

particular medical condition.

[ (c) A physician is qualified to prescribe low-THC cannabis

for the treatment of a patient with a medical condition approved by

rule of the executive commissioner of the Health and Human Services

Commission for treatment in an approved research program conducted

under Subchapter F, Chapter 487, Health and Safety Code, if the

physician is:

[ (1) licensed under this subtitle; and

[ (2) certified by a compassionate-use institutional

review board created under Section 487.253, Health and Safety Code,

that oversees patient treatment undertaken as part of that approved

research program. ]

SECTION 2.05. Section 169.003, Occupations Code, is amended

to read as follows:

Sec. 169.003. RECOMMENDATION [ PRESCRIPTION ] OF MEDICAL

[ LOW-THC ] CANNABIS. A physician described by Section 169.002 may

recommend medical [ prescribe low-THC ] cannabis to a patient if:

(1) the patient is a permanent resident of the state;

(2) the physician complies with the registration

requirements of Section 169.004; and

(3) the physician certifies to the department that:

(A) there is a bona fide physician-patient

relationship;

(B) the patient has a diagnosis or symptoms such

that, in the physician's professional judgment and review of past

treatments, the patient is likely to receive therapeutic or

palliative benefit from medical cannabis [ is diagnosed with:

[ (i) epilepsy;

[ (ii) a seizure disorder;

[ (iii) multiple sclerosis;

[ (iv) spasticity;

[ (v) amyotrophic lateral sclerosis;

[ (vi) autism;

[ (vii) cancer;

[ (viii) an incurable neurodegenerative

disease;

[ (ix) post-traumatic stress disorder; or

[ (x) a medical condition that is approved

for a research program under Subchapter F, Chapter 487, Health and

Safety Code, and for which the patient is receiving treatment under

that program ]; and

(C) [ (B) ] the physician determines the risk of

the medical use of medical [ low-THC ] cannabis by the patient is

reasonable in light of the potential benefit for the patient.

SECTION 2.06. The heading to Section 169.004, Occupations

Code, is amended to read as follows:

Sec. 169.004. MEDICAL [ LOW-THC ] CANNABIS RECOMMENDATION

[ PRESCRIBER ] REGISTRATION.

SECTION 2.07. Section 169.004(a), Occupations Code, is

amended to read as follows:

(a) Before a physician [ qualified to prescribe low-THC

cannabis under Section 169.002 ] may recommend [ prescribe ] or renew

a recommendation [ prescription ] for medical [ low-THC ] cannabis for

a patient under this chapter, the physician must register [ as the

prescriber for that patient ] in the compassionate-use registry

maintained by the department under Section 487.054, Health and

Safety Code. The physician's registration must indicate:

(1) the physician's name; and

(2) for each patient:

(A) the patient's name and date of birth;

(B) the nature of the patient's diagnosis or

symptom being treated by medical cannabis;

(C) [ (3) ] the dosage recommended for [ prescribed

to ] the patient;

(D) [ (4) ] the means of administration ordered

for the patient;

(E) [ and

[ (5) ] the total amount of medical [ low-THC ] cannabis

required to fill the patient's recommendation; and

(F) any severe adverse events the patient may

experience due to the medical use of medical cannabis

[ prescription ].

SECTION 2.08. Section 169.005, Occupations Code, is amended

to read as follows:

Sec. 169.005. PATIENT TREATMENT PLAN. A physician

described by Section 169.002 who recommends medical [ prescribes

low-THC ] cannabis for a patient's medical use under this chapter

must maintain a patient treatment plan that indicates:

(1) the dosage, means of administration, and planned

duration of treatment for the medical [ low-THC ] cannabis;

(2) a plan for monitoring the patient's symptoms; and

(3) a plan for monitoring indicators of tolerance or

reaction to medical [ low-THC ] cannabis.

SECTION 2.09. Section 169.0011, Occupations Code, is

repealed.

ARTICLE 3. CONFORMING AMENDMENTS

SECTION 3.01. 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 medical

[ low-THC ] cannabis to a child for whom the medical [ low-THC ]

cannabis was recommended [ prescribed ] under Chapter 169,

Occupations Code;

(5) the parent declined immunization for the child for

reasons of conscience, including a religious belief;

(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

(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 3.02. 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 medical [ low-THC ]

cannabis to a child for whom the medical [ low-THC ] cannabis was

recommended [ prescribed ] under Chapter 169, Occupations Code;

(5) declined immunization for the child for reasons of

conscience, including a religious belief;

(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;

(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

(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 3.03. 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, Health and Safety Code, to be a

director, manager, or employee of a medical cannabis [ dispensing ]

organization, 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 3.04. Section 443.202(a), Health and Safety Code,

is amended to read as follows:

(a) This section does not apply to medical [ low-THC ]

cannabis regulated under Chapter 487.

SECTION 3.05. Section 443.2025(a), Health and Safety Code,

is amended to read as follows:

(a) This section does not apply to medical [ low-THC ]

cannabis regulated under Chapter 487.

SECTION 3.06. Section 481.062(a), Health and Safety Code,

is amended to read as follows:

(a) The following persons may possess a controlled

substance under this chapter without registering with the Federal

Drug Enforcement Administration:

(1) an agent or employee of a manufacturer,

distributor, analyzer, or dispenser of the controlled substance who

is registered with the Federal Drug Enforcement Administration and

acting in the usual course of business or employment;

(2) a common or contract carrier, a warehouseman, or

an employee of a carrier or warehouseman whose possession of the

controlled substance is in the usual course of business or

employment;

(3) an ultimate user or a person in possession of the

controlled substance under a lawful order of a practitioner or in

lawful possession of the controlled substance if it is listed in

Schedule V;

(4) an officer or employee of this state, another

state, a political subdivision of this state or another state, or

the United States who is lawfully engaged in the enforcement of a

law relating to a controlled substance or drug or to a customs law

and authorized to possess the controlled substance in the discharge

of the person's official duties;

(5) if the substance is tetrahydrocannabinol or one of

its derivatives:

(A) a Department of State Health Services

official, a medical school researcher, or a research program

participant possessing the substance as authorized under

Subchapter G; or

(B) a practitioner or an ultimate user possessing

the substance as a participant in a federally approved therapeutic

research program that the commissioner has reviewed and found, in

writing, to contain a medically responsible research protocol; or

(6) a medical cannabis [ dispensing ] organization

licensed under Subchapter C, Chapter 487 , that possesses medical

[ low-THC ] cannabis.

SECTION 3.07. Sections 481.111(e) and (f), Health and

Safety Code, are amended to read as follows:

(e) Sections 481.120, 481.121, 481.122, and 481.125 do not

apply to a person who engages in the acquisition, possession,

production, cultivation, delivery, or disposal of a raw material

used in or by-product created by the production or cultivation of

medical [ low-THC ] cannabis if the person:

(1) for an offense involving possession only of

marihuana or drug paraphernalia :

(A) [ , ] is a patient for whom medical [ low-THC ]

cannabis is recommended [ prescribed ] under Chapter 169,

Occupations Code, or the patient's parent, legal guardian , or

caregiver; [ , ] and

(B) [ the person ] possesses medical [ low-THC ]

cannabis obtained under a valid recommendation [ prescription ] from

a medical cannabis [ dispensing ] organization; or

(2) is a director, manager, or employee of a medical

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 medical

[ low-THC ] cannabis or raw materials used in or by-products created

by the production or cultivation of medical [ low-THC ] cannabis; or

(B) any drug paraphernalia used in the

acquisition, possession, production, cultivation, delivery, or

disposal of medical [ low-THC ] cannabis.

(f) For purposes of Subsection (e):

(1) [ "Dispensing organization" has the meaning

assigned by Section 487.001.

[ (2) ] " Medical [ Low-THC ] cannabis" has the meaning

assigned by Section 169.001, Occupations Code.

(2) "Medical cannabis organization" has the meaning

assigned by Section 487.001.

SECTION 3.08. Section 490.001(3), Health and Safety Code,

is amended to read as follows:

(3) "Investigational drug, biological product, or

device" means a drug, biological product, or device that has

successfully completed phase one of a clinical trial but the United

States Food and Drug Administration or its international equivalent

has not yet approved for general use and that remains under

investigation in the clinical trial. The term does not include

medical [ low-THC ] cannabis, as defined by Section 169.001,

Occupations Code, or a product containing marihuana, as defined by

Section 481.002, regardless of whether the cannabis or product

successfully completed phase one of a clinical trial.

SECTION 3.09. Section 551.004(a), Occupations Code, is

amended 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 medical cannabis [ dispensing ] organization, as

defined by Section 487.001, Health and Safety Code, that

cultivates, processes, tests, and dispenses medical [ low-THC ]

cannabis, as authorized by a license issued under Subchapter C,

Chapter 487, Health and Safety Code, to a patient listed in the

compassionate-use registry established under that chapter.

ARTICLE 4. TRANSITIONS AND EFFECTIVE DATE

SECTION 4.01. Not later than December 31, 2025, the public

safety director of the Department of Public Safety shall adopt

rules as required to implement, administer, and enforce this Act.

SECTION 4.02. (a) A license to operate as a dispensing

organization issued under Chapter 487, Health and Safety Code,

before the effective date of this Act continues to be valid after

the effective date of this Act until that license expires.

(b) The registration of a director, manager, or employee of

a dispensing organization under Subchapter D, Chapter 487, Health

and Safety Code, continues to be valid after the effective date of

this Act until that registration expires.

SECTION 4.03. (a) Not later than April 1, 2026, the

Department of Public Safety shall license cannabis cultivation

organizations in accordance with Subchapter C, Chapter 487, Health

and Safety Code, as amended by this Act, provided that the

applicants for a license have met all requirements for approval

under that subchapter.

(b) Not later than June 1, 2026, the Department of Public

Safety shall license other classes of medical cannabis

organizations in accordance with Subchapter C, Chapter 487, Health

and Safety Code, as amended by this Act, provided that the

applicants for a license have met all requirements for approval

under that subchapter.

SECTION 4.04. This Act takes effect September 1, 2025.