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 - Dead) 2021-03-03 - Referred to State Affairs [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.