Bill Text: TX HB447 | 2021-2022 | 87th Legislature | Introduced


Bill Title: Relating to the regulation of the cultivation, manufacture, distribution, sale, testing, possession, and use of cannabis and cannabis products; authorizing the imposition of taxes and fees; requiring an occupational license; creating a criminal offense.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2020-11-10 - Filed [HB447 Detail]

Download: Texas-2021-HB447-Introduced.html
 
 
  By: Moody H.B. No. 447
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of the cultivation, manufacture,
  distribution, sale, testing, possession, and use of cannabis and
  cannabis products; authorizing the imposition of taxes and fees;
  requiring an occupational license; creating a criminal offense.
         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 491 to read as follows:
  CHAPTER 491.  REGULATION AND TAXATION OF CANNABIS
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 491.001.  SHORT TITLE. This chapter may be cited as the
  Texas Regulation and Taxation of Cannabis Act.
         Sec. 491.002.  DEFINITIONS. In this chapter:
               (1)  "Adult" means an individual 21 years of age or
  older.
               (2)  "Cannabis" means the plant Cannabis sativa L.,
  whether growing or not, the seeds of that plant, and every compound,
  manufacture, salt, derivative, mixture, or preparation of that
  plant or its seeds.  The term includes cannabis concentrate. The
  term does not include:
                     (A)  the mature stalks of the plant or fiber
  produced from the stalks;
                     (B)  oil or cake made from the seeds of the plant;
                     (C)  a compound, manufacture, salt, derivative,
  mixture, or preparation of the mature stalks, fiber, oil, or cake;
  or
                     (D)  the sterilized seeds of the plant that are
  incapable of beginning germination.
               (3)  "Cannabis concentrate" means the resin extracted
  from a part of the plant Cannabis sativa L. or a compound,
  manufacture, salt, derivative, mixture, or preparation of the
  resin.
               (4)  "Cannabis establishment" means an entity licensed
  by the department under this chapter to process and dispense
  cannabis and cannabis products to an adult.
               (5)  "Cannabis grower" means an entity licensed by the
  department to cultivate cannabis for sale and distribution to a
  cannabis establishment.
               (6)  "Cannabis product" means a product that contains
  cannabis and is intended for use or consumption by humans,
  including as an edible product or as a topical product, ointment,
  oil, or tincture. The term includes products that consist of
  cannabis and other ingredients.
               (7)  "Cannabis secure transporter" means an entity
  licensed by the department under this chapter to transport cannabis
  from a cannabis grower to a cannabis establishment.
               (8)  "Cannabis testing facility" means an entity
  licensed by the department under this chapter to analyze the safety
  and potency of cannabis and cannabis products.
               (9)  "Commission" means the Texas Commission of
  Licensing and Regulation.
               (10)  "Cultivate" means to propagate, breed, grow,
  harvest, dry, cure, or separate parts of the cannabis plant by
  manual or mechanical means.
               (11)  "Department" means the Texas Department of
  Licensing and Regulation.
               (12)  "Executive director" means the executive
  director of the department.
               (13)  "Process" means to separate or otherwise prepare
  parts of the cannabis plant and to compound, blend, extract,
  infuse, or otherwise make or prepare cannabis concentrate or
  cannabis products.
  SUBCHAPTER B.  PROTECTIONS FROM LEGAL ACTION RELATED TO CANNABIS
         Sec. 491.051.  AUTHORIZED CONDUCT: PERSONAL USE OF CANNABIS.
  (a)  An adult is authorized under this chapter to:
               (1)  use, possess, and transport not more than 2.5
  ounces of cannabis, except that not more than 15 grams of that
  amount may be in the form of cannabis concentrate;
               (2)  transfer without remuneration to another adult not
  more than 2.5 ounces of cannabis, except that not more than 15 grams
  of that amount may be in the form of cannabis concentrate and
  provided that the transfer is not advertised or promoted to the
  public;
               (3)  cultivate for personal use not more than 12
  cannabis plants in an area on the premises of the adult's private
  residence, provided that the cultivation occurs in an enclosed area
  that is:
                     (A)  equipped with locks or other security devices
  that restrict access to the area; and
                     (B)  not visible from a public place without the
  use of aircraft or optical aids;
               (4)  possess, store, or process on the premises of the
  adult's private residence not more than:
                     (A)  the amount of cannabis produced from plants
  cultivated on the premises, provided that:
                           (i)  not more than the 12 cannabis plants are
  possessed, cultivated, or processed on the premises at one time;
  and
                           (ii)  any amount of cannabis in excess of 2.5
  ounces is stored in a container or area equipped with locks or other
  security devices that restrict access to the contents of the
  container or area; and
                     (B)  10 ounces of cannabis that was not produced
  from plants cultivated on the premises, provided that the amount in
  excess of 2.5 ounces is stored in a container or area described by
  Paragraph (A)(ii);
               (5)  use, possess, process, transport, or transfer to
  another adult without remuneration, an amount of cannabis products
  specified by rule of the commission as the allowable amount of
  cannabis for purposes of this subdivision; and
               (6)  use, possess, transport, or transfer to another
  adult without remuneration, cannabis-related drug paraphernalia.
         Sec. 491.052.  AUTHORIZED CONDUCT: RETAIL CANNABIS
  OPERATIONS. This chapter authorizes the conduct of:
               (1)  a cannabis grower director, manager, or employee
  who, acting within the scope of the grower's license:
                     (A)  cultivates cannabis or produces cannabis
  products for sale or transfer to a cannabis establishment; and
                     (B)  possesses cannabis or cannabis-related drug
  paraphernalia;
               (2)  a cannabis establishment director, manager, or
  employee who, acting within the scope of the establishment's
  license, possesses cannabis or cannabis products or transfers or
  sells cannabis, cannabis products, or cannabis-related drug
  paraphernalia to an adult;
               (3)  a cannabis secure transporter director, manager,
  or employee who, acting within the scope of the secure
  transporter's license, transports or transfers cannabis or
  cannabis products from a cannabis grower to a cannabis
  establishment; and
               (4)  a cannabis testing facility director, manager, or
  employee who, acting within the scope of the facility's license,
  possesses, tests, or transports cannabis, cannabis products, or
  cannabis-related drug paraphernalia.
         Sec. 491.053.  PROTECTION FROM LEGAL ACTION FOR AUTHORIZED
  CONDUCT. (a) A person is not subject to arrest, prosecution,
  forfeiture of property, 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 solely due to conduct authorized under Section 491.051 or
  491.052.
         (b)  The fact that a person engages in conduct authorized by
  Section 491.051 or 491.052 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. 491.054.  PROHIBITION OF CANNABIS ON PRIVATE PROPERTY;
  EXCEPTION.  (a)  Except as otherwise provided by Subsection (b), a
  person may prohibit or restrict the possession, consumption,
  cultivation, distribution, processing, sale, or display of
  cannabis or cannabis products on property the person owns,
  occupies, or manages.
         (b)  A person may not prohibit a residential tenant under a
  lease agreement from possessing cannabis, cannabis products, or
  cannabis-related drug paraphernalia or consuming cannabis by means
  other than smoking on the premises.
         Sec. 491.055.  CONDUCT NOT AUTHORIZED UNDER THIS CHAPTER.
  This chapter does not authorize the following conduct:
               (1)  operating a motor vehicle while intoxicated or
  otherwise violating Chapter 49, Penal Code;
               (2)  smoking or otherwise consuming cannabis in:
                     (A)  a motor vehicle while the vehicle is on a
  public road;
                     (B)  an aircraft, while the aircraft is in flight
  or in a public area;
                     (C)  a watercraft, while the watercraft is on a
  public waterway; or
                     (D)  a public place, unless:
                           (i)  the public place is an area designated
  by a political subdivision as an area where using cannabis is
  permissible; and
                           (ii)  the area described by Subparagraph (i)
  is not accessible to persons younger than 21 years of age;
               (3)  possessing or consuming cannabis or cannabis
  products or possessing cannabis-related drug paraphernalia:
                     (A)  on the premises of a public or private child
  care facility, prekindergarten, or primary or secondary school;
                     (B)  on a school bus that serves a facility or
  school described by Paragraph (A); or
                     (C)  on the premises of a correctional facility,
  as defined by Article 18A.251, Code of Criminal Procedure, or a
  civil commitment facility; or
               (4)  the separation of resin from the cannabis plant by
  butane extraction or another method that uses a substance with a
  flashpoint below 100 degrees Fahrenheit in a public place or motor
  vehicle or within the curtilage of a residential structure.
  SUBCHAPTER C.  DUTIES OF DEPARTMENT
         Sec. 491.101.  DUTIES OF DEPARTMENT. The department shall
  administer this chapter.
         Sec. 491.102.  RULES; FEES.  (a)  The commission shall adopt
  all necessary rules for the administration and enforcement of this
  chapter, including rules imposing fees under this chapter in
  amounts sufficient to cover the cost of administering this chapter.
         (b)  The commission by rule shall set application and license
  fees under this chapter in amounts sufficient to administer this
  chapter and may annually adjust the fees for inflation.
         (c)  The department shall deposit a fee collected under this
  chapter to the credit of the cannabis regulation fund established
  under Section 491.255.
         (d)  The commission shall adopt rules for the reasonable
  regulation of cannabis growers and cannabis establishments,
  including rules that:
               (1)  restrict the use of dangerous pesticides;
               (2)  regulate the packaging and labeling of cannabis
  products available at a cannabis establishment;
               (3)  restrict advertising and display of cannabis and
  cannabis products;
               (4)  restrict the maximum amount of
  tetrahydrocannabinol that may be contained in a cannabis product
  sold to a consumer;
               (5)  require recordkeeping and monitoring to track the
  transfer of cannabis and cannabis products between license holders;
  and
               (6)  require security measures provided that the
  security measures do not restrict the cultivation of cannabis
  outdoors or in greenhouses.
         Sec. 491.103.  TESTING, PACKAGING, AND LABELING STANDARDS.
  (a)  The commission by rule shall establish standards for:
               (1)  the operation of cannabis testing facilities;
               (2)  the testing of cannabis and cannabis products; and
               (3)  packaging and labeling requirements for cannabis
  and cannabis products.
         (b)  In establishing standards for packaging and labeling
  requirements under Subsection (a)(3), the commission shall require
  that:
               (1)  cannabis and cannabis products be packaged in
  opaque, resealable, child-resistant packaging that does not
  resemble and may not be easily confused with typical packaging for
  commercially sold candy;
               (2)  cannabis and cannabis products be clearly labeled;
  and
               (3)  the label for a cannabis product disclose the
  amount of cannabis contained in that product.
         Sec. 491.104.  SECURE TRANSPORTATION OF CANNABIS. The
  commission by rule shall establish standards applicable to cannabis
  secure transporters, including standards to ensure all cannabis
  establishments are properly served.
         Sec. 491.105.  CONFLICT OF INTEREST. (a) A person who is
  involved in the implementation, administration, or enforcement of
  this chapter as a member of the commission, an employee of the
  department, or a consultant to the commission or the department may
  not also hold a pecuniary interest in any entity licensed by the
  department under this chapter.
         (b)  A person who holds a pecuniary interest in a cannabis
  testing facility or a cannabis secure transporter that holds a
  license issued under this chapter may not hold a pecuniary interest
  in any entity that holds a cannabis establishment or cannabis
  grower license issued under this chapter.
         (c)  A person may not hold a pecuniary interest in more than
  five entities that are licensed under this chapter as a cannabis
  grower, except as provided by department rule.
         Sec. 491.106.  ANNUAL REPORT. The executive director shall
  annually submit to the governor a report providing the following
  information regarding licensing and regulation under this chapter:
               (1)  the number of licenses issued for each class of
  license under this chapter;
               (2)  demographic information pertaining to license
  holders;
               (3)  a description of any fines imposed on a license
  holder or disciplinary actions taken against a license holder by
  the department; and
               (4)  a statement of revenues and expenses of the
  department related to the implementation, administration, and
  enforcement of this chapter.
  SUBCHAPTER D.  LICENSING
         Sec. 491.151.  LICENSE REQUIRED. A license issued by the
  department under this chapter is required to operate as a cannabis
  grower, cannabis establishment, cannabis secure transporter, or
  cannabis testing facility.
         Sec. 491.152.  QUALIFICATIONS FOR LICENSURE. The commission
  by rule shall provide for each class of license issued under this
  chapter qualifications for licensure that are demonstrably related
  to the operations authorized and duties imposed under that class of
  license.
         Sec. 491.153.  APPLICATION. (a)  A person may apply for an
  initial or renewal license under this chapter by submitting a form
  prescribed by the department along with the application fee in an
  amount set by the commission.
         (b)  The application must indicate the class of license
  sought and 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 considered necessary by the
  department to determine the applicant's eligibility for the
  license.
         Sec. 491.154.  ISSUANCE, RENEWAL, OR DENIAL OF LICENSE.  (a)  
  The department shall issue or renew a license under this chapter
  only if:
               (1)  the department determines the applicant meets the
  qualifications for the class of license sought established under
  Section 491.152; and
               (2)  the applicant is in compliance with any applicable
  local regulations.
         (b)  If the department denies the issuance or renewal of a
  license under Subsection (a), the department shall give written
  notice of the grounds for denial to the applicant.
         (c)  A license issued or renewed under this section expires
  on the second anniversary of the date of issuance or renewal, as
  applicable.
         Sec. 491.155.  DUTY TO MAINTAIN QUALIFICATIONS. A license
  holder shall maintain compliance at all times with the
  qualifications for the applicable class of license established
  under Section 491.152.
         Sec. 491.156.  LICENSE SUSPENSION OR REVOCATION. (a) The
  department may at any time suspend or revoke a license issued under
  this chapter if the department determines that the license holder
  has not maintained the qualifications established under Section
  491.152 or has failed to comply with a duty imposed under this
  chapter.
         (b)  The department shall give written notice to a 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
  chapter, the department shall notify the Department of Public
  Safety.  The public safety director of the Department of Public
  Safety may seize or place under seal all cannabis, cannabis
  products, and cannabis-related drug paraphernalia owned or
  possessed by the license holder.  If the license is revoked, a
  disposition may not be made of the seized or sealed cannabis,
  cannabis products, 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
  cannabis, cannabis products, 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.
         Sec. 491.157.  CRIMINAL RECORD INFORMATION FOR LICENSE
  APPLICANTS. (a)  In addition to satisfying the other requirements
  provided by commission rule under this chapter, an applicant for a
  license under this chapter must submit to the department a complete
  and legible set of fingerprints, on a form prescribed by the
  commission, for the purpose of obtaining criminal history record
  information from the Department of Public Safety and the Federal
  Bureau of Investigation.
         (b)  The department may deny a license to an applicant who
  does not comply with the requirement of Subsection (a). Issuance of
  a license by the department is conditioned on the department
  obtaining the applicant's criminal history record information
  under this section.
         (c)  A person's conviction for an offense other than an
  offense under Section 481.122, that involves the delivery or
  possession of marihuana, as defined under Section 481.002, does not
  disqualify an applicant for licensure under this chapter.
  SUBCHAPTER E.  DUTIES OF LICENSE HOLDERS
         Sec. 491.201.  DUTIES RELATING TO DISPENSING CANNABIS OR
  CANNABIS PRODUCTS. Before dispensing cannabis or cannabis products
  to an adult, a cannabis establishment must make reasonable efforts
  to verify that:
               (1)  the person receiving the cannabis or cannabis
  product is an adult;
               (2)  the cannabis or cannabis product complies with
  department testing and labeling rules; and
               (3)  the amount dispensed is not greater than the
  amount of cannabis or cannabis product allowed for personal use as
  provided by Section 491.051.
         Sec. 491.202.  DUTIES RELATING TO SECURITY. (a)  A license
  holder shall ensure that the cultivation, processing, sale, or
  display of cannabis, cannabis products, and cannabis-related drug
  paraphernalia is not visible from a public place without the use of
  optical aids or aircraft.
         (b)  A license holder may not cultivate, process, store, or
  sell cannabis, cannabis products, or cannabis-related drug
  paraphernalia at a location other than the physical address
  approved by the department for the establishment under the license
  issued to the establishment under this chapter.
         (c)  A license holder shall adopt reasonable security
  measures necessary to restrict access to areas where cannabis or
  cannabis products are stored and to prevent theft of cannabis and
  cannabis products.
         Sec. 491.203.  LICENSE HOLDER OPERATIONS. (a)  A license
  holder may not employ or otherwise accept the services of a person
  younger than 21 years of age.
         (b)  A cannabis establishment may not sell tobacco products,
  as defined by Section 155.001, Tax Code.
         Sec. 491.204.  MONTHLY SALES REPORT. A cannabis
  establishment shall monthly submit a report to the comptroller
  specifying the amount of cannabis sold, the number of cannabis
  products sold, and the amount of money collected in sales by the
  establishment during the preceding month.
  SUBCHAPTER F.  TAXES
         Sec. 491.251.  SALES TAX. Cannabis and cannabis products
  are taxable items subject to the sales tax imposed by Chapter 151,
  Tax Code.
         Sec. 491.252.  CANNABIS TAX IMPOSED. (a)  A tax is imposed
  on each sale of cannabis or a cannabis product by a cannabis
  establishment.
         (b)  The rate of the tax is 10 percent of the sales price of
  the cannabis or cannabis product.
         (c)  The tax imposed by this section is administered,
  collected, and enforced in the same manner as the tax under Chapter
  151 is administered, collected, and enforced.
         (d)  The tax imposed by this section is in addition to any
  other tax imposed by law.
         Sec. 491.253.  ALLOCATION OF CANNABIS TAX. (a)  The
  comptroller shall allocate the net revenue derived from the tax
  imposed by this subchapter as follows:
               (1)  10 percent as a local share to municipalities in
  which cannabis establishments are located, allocated among those
  municipalities as provided by Subsection (b);
               (2)  10 percent as a local share to counties in which
  cannabis establishments are located, allocated among those
  counties as provided by Subsection (c);
               (3)  one percent to the cannabis testing and quality
  control fund established under Section 491.254;
               (4)  the amount certified to the comptroller by the
  commission under Section 491.255 to the fund established under that
  section; and
               (5)  the remainder to the public school teachers fund
  established under Section 491.256.
         (b)  In determining the local share for each municipality in
  which one or more cannabis establishments are located, the
  comptroller shall allocate funds under Subsection (a)(1) in
  proportion to the number of cannabis establishments located in each
  municipality.
         (c)  In determining the local share for each county in which
  one or more cannabis establishments are located, the comptroller
  shall allocate funds under Subsection (a)(2) in proportion to the
  number of cannabis establishments located in each county.
         Sec. 491.254.  CANNABIS TESTING AND QUALITY CONTROL FUND.
  (a) The cannabis testing and quality control fund is established
  outside the treasury and is administered by the public safety
  director of the Department of Public Safety.
         (b)  The public safety director shall use money in the fund
  available to enable Department of Public Safety crime laboratory
  facilities to test cannabis and cannabis products on request by the
  executive director, for the purposes of assisting the department in
  monitoring compliance with testing and quality control
  requirements imposed on license holders under this chapter or by
  commission rules adopted under this chapter.
         (c)  Interest and income from the assets of the trust fund
  shall be credited to and deposited in the fund.
         Sec. 491.255.  CANNABIS REGULATION FUND. (a)  The cannabis
  regulation fund is established outside the treasury and is
  administered by the commission.
         (b)  The commission shall make money in the fund available to
  the department for implementing and administering this chapter.
         (c)  The commission shall monthly certify to the comptroller
  the amount of money the department expended during the preceding
  month in the implementation and administration of this chapter.
         (d)  Interest and income from the assets of the trust fund
  shall be credited to and deposited in the fund.
         Sec. 491.256.  PUBLIC SCHOOL TEACHERS FUND. (a)  The public
  school teachers fund is established outside the treasury and is
  administered by the comptroller.  The comptroller shall deposit:
               (1)  half of all money allocated to the fund in a
  teacher retirement support account in the fund; and
               (2)  the remainder in a teacher salary support account
  in the fund.
         (b)  Each month the comptroller shall transfer the balance of
  the teacher retirement support account to the state contribution
  account of the teacher retirement system trust fund. Money
  transferred to the state contribution account under this section
  may not be considered in computing the amount owed by the state
  under Section 825.404(a), Government Code, and is not considered a
  state contribution for purposes of that section.
         (c)  Each month the comptroller shall transfer the balance of
  the teacher salary support account to the commissioner of
  education.  Notwithstanding any other law, money transferred to the
  commissioner of education under this section may be used only to
  provide additional state aid under the Foundation School Program to
  public schools to pay for teacher salary increases. The
  commissioner of education may adopt rules as necessary to implement
  this subsection.
  SUBCHAPTER G.  LOCAL REGULATION
         Sec. 491.301.  PROHIBITED LOCAL REGULATION. A political
  subdivision of this state may not enact, adopt, or enforce a rule,
  ordinance, order, resolution, or other regulation that prohibits or
  unreasonably restricts the cultivation, production, processing,
  dispensing, transportation, or possession of cannabis or cannabis
  products or the operation of a cannabis grower, cannabis
  establishment, cannabis secure transporter, or cannabis testing
  facility as authorized by this chapter.
         Sec. 491.302.  PERMISSIBLE LOCAL REGULATION. A political
  subdivision may adopt regulations consistent with this chapter
  governing the hours of operation, location, manner of conducting
  business, and number of cannabis growers, cannabis establishments,
  or cannabis testing facilities.
  SUBCHAPTER H. SALE OR DISTRIBUTION OF CANNABIS OR CANNABIS
  PRODUCT TO MINORS PROHIBITED
         Sec. 491.351.  DEFINITION. In this subchapter, "minor"
  means a person younger than 21 years of age.
         Sec. 491.352.  SALE OR DISTRIBUTION OF CANNABIS OR CANNABIS
  PRODUCT TO MINORS PROHIBITED; PROOF OF AGE REQUIRED.  (a)  A person
  commits an offense if the person, under the authority of this
  chapter:
               (1)  sells, gives, or causes to be sold or given
  cannabis or cannabis products to a minor; or
               (2)  sells, gives, or causes to be sold or given
  cannabis or cannabis products to another person who intends to
  deliver the cannabis or cannabis products to a minor.
         (b)  If an offense under this section occurs in connection
  with a sale by an employee of the owner of a cannabis establishment,
  the employee is criminally responsible for the offense and is
  subject to prosecution.
         (c)  An offense under this section is a Class C misdemeanor.
         (d)  It is a defense to prosecution under Subsection (a)(1)
  that the person to whom the cannabis or cannabis products were sold
  or given presented to the defendant apparently valid proof of
  identification.
         (e)  A proof of identification satisfies the requirements of
  Subsection (d) if it contains a physical description and photograph
  consistent with the person's appearance, purports to establish that
  the person is 21 years of age or older, and was issued by a
  governmental agency.  The proof of identification may include a
  driver's license issued by this state or another state, a passport,
  or an identification card issued by a state or the federal
  government.
         SECTION 2.  Section 481.062, Health and Safety Code, is
  amended to read as follows:
         Sec. 481.062.  EXEMPTIONS. (a)  The following persons are
  not required to register and may possess a controlled substance
  under this chapter [without registering with the Federal Drug
  Enforcement Administration]:
               (1)  an agent or employee of a registered 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 dispensing organization licensed under Chapter
  487 that possesses low-THC cannabis;
               (7)  a cannabis grower, cannabis establishment,
  cannabis secure transporter, or cannabis testing facility licensed
  under Chapter 491 that possesses cannabis or cannabis products; or
               (8)  a person who possesses cannabis or cannabis
  products in accordance with Chapter 491.
         (b)  In this section, "cannabis" and "cannabis product" have
  the meanings assigned to those terms by Section 491.001.
         SECTION 3.  Section 481.111, Health and Safety Code, is
  amended by adding Subsections (g) and (h) to read as follows:
         (g)  Sections 481.120, 481.121, and 481.125 do not apply to a
  person who engages in the acquisition, possession, production,
  processing, cultivation, delivery, transportation, or disposal of
  a raw material used in or by-product created by the production or
  cultivation of cannabis or cannabis products if the conduct is
  expressly authorized by Subchapter B, Chapter 491.
         (h)  For purposes of Subsection (g), "cannabis" and
  "cannabis product" have the meanings assigned to those terms by
  Section 491.001.
         SECTION 4.  (a) Not later than July 1, 2022, the Texas
  Commission of Licensing and Regulation shall adopt rules as
  required to implement, administer, and enforce Chapter 491, Health
  and Safety Code, as added by this Act.
         (b)  Not later than November 1, 2022, the Texas Department of
  Licensing and Regulation shall begin licensing cannabis growers,
  cannabis establishments, cannabis secure transporters, and
  cannabis testing facilities in accordance with Chapter 491, Health
  and Safety Code, as added by this Act, provided that the applicants
  for a license have met all requirements for approval under Chapter
  491, Health and Safety Code, as added by this Act.
         SECTION 5.  This Act takes effect September 1, 2021.
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