Bill Text: TX SB140 | 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; to border security enhancement projects and the creation of a fund to pay for those projects; to authorizing the possession, use, cultivation, distribution, transportation, and delivery of medical cannabis and the licensing of medical cannabis dispensing organizations.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2020-11-09 - Filed [SB140 Detail]

Download: Texas-2021-SB140-Introduced.html
 
 
  By: Gutierrez S.B. No. 140
 
 
 
   
 
 
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; to
  border security enhancement projects and the creation of a fund to
  pay for those projects; to authorizing the possession, use,
  cultivation, distribution, transportation, and delivery of medical
  cannabis and the licensing of medical cannabis dispensing
  organizations.
         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
  Real Solutions 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 or cannabis dispensing organization.
         (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)  5 percent to the Border Security Enhancement Fund;
               (2)  5 percent to the Municipal Security Enhancement
  Fund;
               (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 Foundation School Program.
         (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,
  including researching and addressing any other mental health,
  substance use disorder, or addiction issue relating to the use of
  cannabis.
         (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.
  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.  Section 481.121, Health and Safety Code, is
  amended by adding Subsections (c) and (d) to read as follows:
         (c)  It is an affirmative defense to prosecution under
  Subsection (a) that the person possessed the marihuana:
               (1)  as a patient of a physician licensed to practice
  medicine in this state pursuant to the recommendation of that
  physician for the amelioration of the symptoms or effects of a
  medical condition; or
               (2)  as the primary caregiver of a patient described by
  Subdivision (1), and the person possessed the marihuana only with
  intent to assist the patient.
         (d)  An agency, including a law enforcement agency, of this
  state or a political subdivision of this state may not initiate an
  administrative, civil, or criminal investigation into a physician
  licensed to practice medicine in this state solely on the ground
  that the physician:
               (1)  discussed marihuana as a treatment option with a
  patient of the physician; or
               (2)  made a written or oral statement that, in the
  physician's professional opinion, the potential benefits of the use
  of marihuana would likely outweigh the health risks for a
  particular patient.
         SECTION 5.  Section 481.0764, Health and Safety Code, is
  amended by adding Subsection (f) to read as follows:
         (f)  A prescriber, other than a veterinarian, who issues a
  prescription for an opioid for acute or chronic pain, on issuance of
  the initial prescription and on issuance of the second prescription
  for the same substance, shall discuss with the patient and, if the
  patient is a minor, the patient's parent, conservator, or guardian,
  or other person authorized to consent to the minor's medical
  treatment:
               (1)  the risk of addiction associated with the drug
  prescribed, including any risk of developing a physical or
  psychological dependence on the drug;
               (2)  the risk of taking the drug in a dosage greater
  than the dosage prescribed;
               (3)  the danger of taking the drug with
  benzodiazepines, alcohol, or other central nervous system
  depressants; and
               (4)  the availability of medical cannabis recommended
  under Chapter 169A, Occupations Code, and any other alternative
  drugs or treatments available for the acute or chronic pain.
         SECTION 6.  Subtitle C, Title 6, Health and Safety Code, is
  amended by adding Chapter 488 to read as follows:
  CHAPTER 488. USE OF CANNABIS FOR MEDICAL PURPOSES
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 488.001.  DEFINITIONS. In this chapter:
               (1)  "Department" means the Department of Public
  Safety.
               (2)  "Director" means the public safety director of the
  department.
               (3)  "Dispensing organization" means an organization
  licensed by the department to cultivate, process, and dispense
  medical cannabis to a patient for whom medical use is recommended
  under Chapter 169A, Occupations Code.
               (4)  "Medical cannabis" and "medical use" have the
  meanings assigned by Section 169A.001, Occupations Code.
  SUBCHAPTER B. DUTIES OF DEPARTMENT
         Sec. 488.051.  DUTIES OF DEPARTMENT. The department shall
  administer this chapter.
         Sec. 488.052.  RULES. (a) The director shall adopt any
  rules necessary for the administration and enforcement of this
  chapter.
         (b)  The director shall adopt rules imposing fees under this
  chapter in amounts sufficient to cover the cost of administering
  this chapter.
         Sec. 488.053.  LICENSING OF DISPENSING ORGANIZATIONS AND
  REGISTRATION OF CERTAIN ASSOCIATED INDIVIDUALS. (a) The
  department shall:
               (1)  issue or renew a license under Subchapter C to
  operate as a dispensing organization to each applicant who
  satisfies the requirements established under this chapter for
  licensure as a dispensing organization; and
               (2)  register directors, managers, and employees under
  Subchapter D of each dispensing organization.
         (b)  The department shall enforce compliance of license
  holders and registrants and shall adopt procedures for suspending
  or revoking a license or registration issued under this chapter and
  for renewing a license or registration issued under this chapter.
         Sec. 488.054.  MEDICAL USE REGISTRY. (a) The department
  shall establish and maintain a secure online medical use registry
  that contains:
               (1)  the name of each physician who registers as the
  physician recommending medical use for a patient under Section
  169A.003, Occupations Code, and the name and date of birth of the
  patient; and
               (2)  the amount of medical cannabis dispensed to each
  patient.
         (b)  The department shall ensure the registry:
               (1)  is designed to prevent more than one physician
  from registering as the physician recommending medical use for a
  single patient;
               (2)  is accessible to law enforcement agencies and
  dispensing organizations for the purpose of verifying whether a
  patient is one for whom medical use is recommended under Chapter
  169A, Occupations Code; and
               (3)  allows a physician recommending medical use under
  Chapter 169A, Occupations Code, to input safety and efficacy data
  derived from the treatment of patients for whom medical use is
  recommended.
  SUBCHAPTER C. LICENSING TO OPERATE AS DISPENSING ORGANIZATION
         Sec. 488.101.  LICENSE REQUIRED. A person may not operate as
  a dispensing organization without a license issued by the
  department under this subchapter.
         Sec. 488.102.  ELIGIBILITY FOR LICENSE. An applicant for a
  license to operate as a dispensing organization is eligible for the
  license if:
               (1)  as determined by the department, the applicant
  possesses:
                     (A)  the technical and technological ability to
  cultivate and produce medical cannabis;
                     (B)  the ability to secure:
                           (i)  the resources and personnel necessary
  to operate as a dispensing organization; and
                           (ii)  premises reasonably located to allow
  patients listed on the medical use registry access to the
  organization through existing infrastructure;
                     (C)  the ability to maintain accountability for
  the raw materials, the finished product, and any by-products used
  or produced in the cultivation or production of medical cannabis to
  prevent unlawful access to or unlawful diversion or possession of
  those materials, products, or by-products; and
                     (D)  the financial ability to maintain operations
  for not less than two years from the date of application;
               (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.
         Sec. 488.103.  APPLICATION. (a) A person may apply for an
  initial or renewal license under this subchapter by submitting a
  form prescribed by the department along with the application fee in
  an amount set by the director.
         (b)  A person is not required to pay an application fee if the
  person holds a license under Subchapter C, Chapter 487.
         (c)  The application must include the name and address of the
  applicant, the name and address of each of the applicant's
  directors, managers, and employees, and any other information
  considered necessary by the department to determine the applicant's
  eligibility for the license.
         Sec. 488.104.  ISSUANCE, RENEWAL, OR DENIAL OF LICENSE. (a)
  The department shall issue or renew a license under this subchapter
  only if:
               (1)  the department determines the applicant meets the
  eligibility requirements described by Section 488.102; and
               (2)  issuance or renewal of the license is necessary to
  ensure reasonable statewide access to, and the availability of,
  medical cannabis for patients registered in the medical use
  registry and for whom medical cannabis is recommended under Chapter
  169A, Occupations Code.
         (b)  If the department denies the issuance or renewal of a
  license under Subsection (a), the applicant is entitled to a
  hearing. The department shall give written notice of the grounds
  for denial to the applicant at least 30 days before the date of the
  hearing.
         (c)  A license issued or renewed under this section expires
  on the second anniversary of the date of issuance or renewal, as
  applicable.
         Sec. 488.105.  CRIMINAL HISTORY BACKGROUND CHECK. (a) An
  applicant for the issuance or renewal of a license under this
  subchapter shall provide the department with the applicant's name
  and the name of each of the applicant's directors, managers, and
  employees.
         (b)  Before a dispensing organization under this subchapter
  hires a manager or employee for the organization, the license
  holder must provide the department with the name of the prospective
  manager or employee. The license holder may not transfer the
  license to another person before that prospective applicant and the
  applicant's directors, managers, and employees pass a criminal
  history background check and are registered as required by
  Subchapter D.
         (c)  The department shall conduct a criminal history
  background check on each individual whose name is provided to the
  department under Subsection (a) or (b). The director by rule shall:
               (1)  determine the manner by which an individual is
  required to submit a complete set of fingerprints to the department
  for purposes of a criminal history background check under this
  section; and
               (2)  establish criteria for determining whether an
  individual passes the criminal history background check for the
  purposes of this section.
         (d)  After conducting a criminal history background check
  under this section, the department shall notify the relevant
  applicant or organization and the individual who is the subject of
  the criminal history background check as to whether the individual
  passed the criminal history background check.
         Sec. 488.106.  DUTY TO MAINTAIN ELIGIBILITY. Each license
  holder under this subchapter must maintain compliance at all times
  with the eligibility requirements described by Section 488.102.
         Sec. 488.107.  DUTIES RELATING TO DISPENSING MEDICAL
  CANNABIS. (a) Before dispensing medical cannabis to a person for
  whom medical use is recommended under Chapter 169A, Occupations
  Code, the dispensing organization must verify that the person is
  listed as a patient in the medical use registry.
         (b)  After dispensing medical cannabis to a patient for whom
  medical use is recommended under Chapter 169A, Occupations Code,
  the dispensing organization shall record in the medical use
  registry the form and quantity of the medical cannabis dispensed
  and the date and time of dispensation.
         Sec. 488.108.  LABELING. Each product containing medical
  cannabis dispensed under this chapter must bear a label that
  clearly states the concentrations of tetrahydrocannabinol and
  cannabidiol in the product.
         Sec. 488.109.  LICENSE SUSPENSION OR REVOCATION. (a) The
  department may at any time suspend or revoke a license issued under
  this subchapter if the department determines that the license
  holder has not maintained the eligibility requirements described by
  Section 488.102 or has failed to comply with a duty imposed under
  this chapter.
         (b)  The director shall give written notice to the license
  holder of a license suspension or revocation under this section and
  the grounds for the suspension or revocation. The notice must be
  sent by certified mail, return receipt requested.
         (c)  After suspending or revoking a license issued under this
  subchapter, the director may seize or place under seal all medical
  cannabis and drug paraphernalia owned or possessed by the
  dispensing organization. If the director orders the revocation of
  the license, a disposition may not be made of the seized or sealed
  medical cannabis or drug paraphernalia until the time for
  administrative appeal of the order has elapsed or until all appeals
  have been concluded. When a revocation order becomes final, all
  medical cannabis and drug paraphernalia may be forfeited to the
  state as provided under Subchapter E, Chapter 481.
         (d)  Chapter 2001, Government Code, applies to a proceeding
  under this section.
  SUBCHAPTER D. REGISTRATION OF CERTAIN INDIVIDUALS
         Sec. 488.151.  REGISTRATION REQUIRED. (a) An individual
  who is a director, manager, or employee of a dispensing
  organization must apply for and obtain a registration under this
  section.
         (b)  An applicant for a registration under this section must:
               (1)  be at least 18 years of age;
               (2)  submit a complete set of fingerprints to the
  department in the manner required by department rule; and
               (3)  pass a fingerprint-based criminal history
  background check as required by Section 488.105.
         (c)  A registration expires on the second anniversary of the
  date of the registration's issuance, unless suspended or revoked
  under rules adopted under this chapter.
  SUBCHAPTER E. DUTIES OF COUNTIES AND MUNICIPALITIES
         Sec. 488.201.  COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT
  MEDICAL CANNABIS. A municipality, county, or other political
  subdivision may not enact, adopt, or enforce a rule, ordinance,
  order, resolution, or other regulation that prohibits the
  cultivation, production, dispensing, or possession of medical
  cannabis, as authorized by this chapter.
         SECTION 7.  Subtitle B, Title 3, Occupations Code, is
  amended by adding Chapter 169A to read as follows:
  CHAPTER 169A. AUTHORITY TO RECOMMEND MEDICAL CANNABIS TO CERTAIN
  PATIENTS WITH ACUTE OR CHRONIC PAIN
         Sec. 169A.001.  DEFINITIONS. In this chapter:
               (1)  "Department" means the Department of Public
  Safety.
               (2)  "Medical cannabis" means the plant Cannabis sativa
  L., and any part of that plant or any compound, manufacture, salt,
  derivative, mixture, preparation, resin, or oil of that plant that
  contains:
                     (A)  not more than 5 percent by weight of
  tetrahydrocannabinols; and
                     (B)  not less than 10 percent by weight of
  cannabidiol.
               (3)  "Medical use" means the ingestion by a means of
  administration other than by smoking of a recommended amount of
  medical cannabis by a person for whom medical use is recommended
  under this chapter.
               (4)  "Smoking" means burning or igniting a substance
  and inhaling the smoke.
         Sec. 169A.002.  RECOMMENDATION OF MEDICAL USE. (a) A
  physician may recommend medical use in accordance with this chapter
  for a patient with acute or chronic pain.
         (b)  A physician who recommends medical use for a patient
  must:
               (1)  comply with the registration requirements of
  Section 169A.003; and
               (2)  certify to the department that:
                     (A)  the patient has acute or chronic pain for
  which a prescription of an opioid would be medically appropriate;
  and
                     (B)  the physician has determined that the risk of
  medical use by the patient is reasonable in light of the potential
  benefit for the patient and the risks of treating the pain with an
  opioid.
         Sec. 169A.003.  RECOMMENDING PHYSICIAN REGISTRATION.
  Before a physician may recommend medical use for a patient under
  this chapter, the physician must register as the recommending
  physician for that patient in the medical use registry maintained
  by the department under Section 488.054, Health and Safety
  Code.  The physician's registration must indicate:
               (1)  the physician's name; and
               (2)  the patient's name and date of birth.
         Sec. 169A.004.  PATIENT TREATMENT PLAN. A physician who
  recommends medical use for a patient under this chapter must
  maintain a patient treatment plan that indicates:
               (1)  a plan for monitoring the patient's symptoms; and
               (2)  a plan for monitoring indicators of tolerance or
  reaction to medical cannabis.
         SECTION 8.  Section 161.001(c), Family Code, is amended to
  read as follows:
         (c)  A court may not make a finding under Subsection (b) and
  order termination of the parent-child relationship based on
  evidence that the parent:
               (1)  homeschooled the child;
               (2)  is economically disadvantaged;
               (3)  has been charged with a nonviolent misdemeanor
  offense other than:
                     (A)  an offense under Title 5, Penal Code;
                     (B)  an offense under Title 6, Penal Code; or
                     (C)  an offense that involves family violence, as
  defined by Section 71.004 of this code;
               (4)  provided or administered low-THC cannabis to a
  child for whom the low-THC cannabis was prescribed under Chapter
  169, Occupations Code; [or]
               (5)  provided or administered medical cannabis to a
  child for whom medical cannabis was recommended under Chapter 169A,
  Occupations Code; or
               (6)  declined immunization for the child for reasons of
  conscience, including a religious belief.
         SECTION 9.  Section 262.116(a), Family Code, is amended to
  read as follows:
         (a)  The Department of Family and Protective Services may not
  take possession of a child under this subchapter based on evidence
  that the parent:
               (1)  homeschooled the child;
               (2)  is economically disadvantaged;
               (3)  has been charged with a nonviolent misdemeanor
  offense other than:
                     (A)  an offense under Title 5, Penal Code;
                     (B)  an offense under Title 6, Penal Code; or
                     (C)  an offense that involves family violence, as
  defined by Section 71.004 of this code;
               (4)  provided or administered low-THC cannabis to a
  child for whom the low-THC cannabis was prescribed under Chapter
  169, Occupations Code; [or]
               (5)  provided or administered medical cannabis to a
  child for whom medical cannabis was recommended under Chapter 169A,
  Occupations Code; or
               (6)  declined immunization for the child for reasons of
  conscience, including a religious belief.
         SECTION 10.  Subchapter B, Chapter 164, Occupations Code, is
  amended by adding Section 164.0535 to read as follows:
         Sec. 164.0535.  MEDICAL USE OF MARIHUANA. A physician may
  not be denied any right or privilege or be subject to any
  disciplinary action solely for making a written or oral statement
  that, in the physician's professional opinion, the potential
  benefits of the use of marihuana would likely outweigh the health
  risks for a particular patient.
         SECTION 11.  Chapter 421, Government Code, is amended by
  adding Subchapter G and H to read as follows:
  SUBCHAPTER G. BORDER SECURITY ENHANCEMENT
         Sec. 421.101.  DEFINITION. In this subchapter, "fund" means
  the border security enhancement fund.
         Sec. 421.102.  BORDER SECURITY ENHANCEMENT FUND. (a) The
  border security enhancement fund is an account in the general
  revenue fund to be administered by the governor under this
  subchapter and rules adopted by the governor under this subchapter.
         (b)  The fund consists of appropriations of money made by the
  legislature for deposit to the credit of the fund and funds
  dedicated from the tax imposed by 491.252, Health and Safety Code.
         Sec. 421.103.  FUND INTEREST. The comptroller shall deposit
  to the credit of the foundation school fund interest and other
  earnings made on the balance of the border security enhancement
  fund.
         Sec. 421.104.  USE OF FUND. The governor shall dispense
  money in this fund to local law enforcement authorities in counties
  located on an international border or municipalities located within
  50 miles of an international border for the following purposes:
               (1)  the prevention of human trafficking and entry into
  the United States of contraband, including but not limited to
  narcotics and other controlled substances;
               (2)  the establishment a program for the creation of
  border crossing checkpoints within counties located on the
  Texas-Mexico border operated by local law enforcement authorities;
  and
               (3)  the pay and salary of peace officers and other law
  enforcement personnel.
         Sec. 421.107.  RULES. The governor shall adopt rules
  necessary to carry out this subchapter.
  SUBCHAPTER H. MUNICIPAL SECURITY ENHANCEMENT
         Sec. 421.101.  DEFINITION. In this subchapter, "fund" means
  the municipal security enhancement fund.
         Sec. 421.102.  MUNICIPAL SECURITY ENHANCEMENT FUND. (a)
  The municipal security enhancement fund is an account in the
  general revenue fund to be administered by the governor under this
  subchapter and rules adopted by the governor under this subchapter.
         (b)  The fund consists of appropriations of money made by the
  legislature for deposit to the credit of the fund and funds
  dedicated from the tax imposed by 491.252, Health and Safety Code.
         Sec. 421.103.  FUND INTEREST. The comptroller shall deposit
  to the credit of the foundation school fund interest and other
  earnings made on the balance of the municipal security enhancement
  fund.
         Sec. 421.104.  USE OF FUND. The governor shall dispense
  money in this fund to local law enforcement authorities in
  municipalities with a population of at least 1.2 million for the
  following purposes:
               (1)  the prevention and investigation of violent
  crimes, family violence, and intoxication offenses; and
               (2)  the pay and salary of peace officers and other law
  enforcement personnel.
         Sec. 421.107.  RULES. The governor shall adopt rules
  necessary to carry out this subchapter.
         SECTION 12.  The change in law made by this Act applies only
  to an offense committed on or after the effective date of this Act.
  An offense committed before the effective date of this Act is
  governed by the law in effect on the date the offense was committed,
  and the former law is continued in effect for that purpose. For
  purposes of this section, an offense was committed before the
  effective date of this Act if any element of the offense occurred
  before that date.
         SECTION 13.  (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 14.  Not later than January 1, 2022, the public
  safety director of the Department of Public Safety shall adopt
  rules as required to implement, administer, and enforce Chapter
  488, Health and Safety Code, as added by this Act, including rules
  to establish the medical use registry required by that chapter.
         SECTION 15.  Section 481.0764(f), Health and Safety Code, as
  added by this Act, applies only to a prescription issued on or after
  January 1, 2022.
         SECTION 16.  This Act takes effect September 1, 2021.
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