Bill Text: TX SB209 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to regulating the cultivation, manufacture, processing, distribution, sale, testing, transportation, delivery, transfer, possession, and use of cannabis and cannabis products; authorizing the imposition of fees; requiring occupational licenses; creating a criminal offense.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2023-02-15 - Referred to State Affairs [SB209 Detail]

Download: Texas-2023-SB209-Introduced.html

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88R865 JSC-F
By: Eckhardt S.B. No. 209

A BILL TO BE ENTITLED
AN ACT
relating to regulating the cultivation, manufacture, processing,
distribution, sale, testing, transportation, delivery, transfer,
possession, and use of cannabis and cannabis products; authorizing
the imposition of fees; requiring occupational licenses; creating a
criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 6, Health and Safety Code, is
amended by adding Chapter 491 to read as follows:
CHAPTER 491. REGULATION OF CANNABIS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 491.0001. 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-related drug paraphernalia" means
equipment, a product, or material that is used or intended for use
in:
(A) planting, propagating, cultivating, growing,
harvesting, manufacturing, compounding, converting, producing,
processing, preparing, testing, analyzing, packaging, repackaging,
storing, or containing cannabis or a cannabis product; or
(B) introducing cannabis or a cannabis product
into the human body.
(8) "Cannabis secure transporter" means an entity
licensed by the department under this chapter to transport cannabis
from a cannabis grower to a cannabis establishment.
(9) "Cannabis testing facility" means an entity
licensed by the department under this chapter to analyze the safety
and potency of cannabis and cannabis products.
(10) "Commission" means the Texas Commission of
Licensing and Regulation.
(11) "Cultivate" means to propagate, breed, grow,
harvest, dry, cure, or separate parts of the cannabis plant by
manual or mechanical means.
(12) "Department" means the Texas Department of
Licensing and Regulation.
(13) "Executive director" means the executive
director of the department.
(14) "Marihuana" has the meaning assigned by Section
481.002.
(15) "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. 491.0051. AUTHORIZED CONDUCT: PERSONAL USE OF
CANNABIS. 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 cannabis
plants cultivated on the premises, provided that:
(i) not more than 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 were not produced
from cannabis 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 commission rule 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. 491.0052. 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, transfers, or delivers 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 or tests cannabis, cannabis products, or
cannabis-related drug paraphernalia.
Sec. 491.0053. 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 491.0051
or 491.0052.
(b) The fact that a person engages in conduct authorized by
Section 491.0051 or 491.0052 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. 491.0054. 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. 491.0055. 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 the applicable 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) separating 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 COMMISSION AND DEPARTMENT
Sec. 491.0101. DUTIES OF DEPARTMENT. The department shall
administer this chapter.
Sec. 491.0102. 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) A fee collected under this chapter shall be deposited to
the credit of the cannabis regulation account established under
Section 491.0251.
(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. 491.0103. 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. 491.0104. 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. 491.0105. 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 who 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 commission rule.
Sec. 491.0106. 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 applications received for each class
of license under this chapter;
(2) the number of licenses issued for each class of
license under this chapter;
(3) demographic information pertaining to license
holders;
(4) a description of any fines imposed on a license
holder or disciplinary actions taken against a license holder by
the department; and
(5) a statement of revenues and expenses of the
department related to the implementation, administration, and
enforcement of this chapter.
SUBCHAPTER D. LICENSING
Sec. 491.0151. LICENSE REQUIRED. A person may not operate
as a cannabis grower, cannabis establishment, cannabis secure
transporter, or cannabis testing facility unless the person holds a
license issued by the department under this chapter.
Sec. 491.0152. 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. 491.0153. 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. 491.0154. 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 established under Section 491.0152 for the class of
license sought; 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
as determined by commission rule and the department in accordance
with Section 51.406, Occupations Code.
Sec. 491.0155. 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 491.0152.
Sec. 491.0156. LICENSE SUSPENSION OR REVOCATION. (a) The
department may at any time suspend or revoke a license issued under
this chapter if the department determines the license holder has
not maintained the qualifications established under Section
491.0152 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. 491.0157. CRIMINAL HISTORY BACKGROUND CHECK. (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) The commission by rule shall establish criteria for
determining whether a person passes the criminal history background
check for purposes of this section. The rules adopted under this
section may not disqualify a person for licensure solely for a
conviction of an offense that involves the possession of marihuana
or the delivery of marihuana to a person 18 years of age or older.
SUBCHAPTER E. DUTIES OF LICENSE HOLDERS
Sec. 491.0201. 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 491.0051.
Sec. 491.0202. 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,
cannabis products, or cannabis-related drug paraphernalia are
stored and to prevent theft of cannabis, cannabis products, and
cannabis-related drug paraphernalia.
Sec. 491.0203. 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. 491.0204. 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, the number and types of cannabis-related drug
paraphernalia sold, and the amount of money collected in sales by
the establishment during the preceding month.
SUBCHAPTER F. FUNDING FOR REGULATION
Sec. 491.0251. CANNABIS REGULATION ACCOUNT. (a) The
cannabis regulation account is an account in the general revenue
fund administered by the department.
(b) The account consists of fees deposited to the credit of
the account under Section 491.0102.
(c) Money in the account may be appropriated only to the
department for implementing and administering this chapter.
SUBCHAPTER G. LOCAL REGULATION
Sec. 491.0301. LOCAL AUTHORIZATION REQUIRED. A license
holder under this chapter may not operate in a county without the
authorization of an election held under this subchapter.
Sec. 491.0302. ELECTION. (a) The commissioners court of a
county may order an election to approve the operation of cannabis
growers, cannabis establishments, or cannabis testing facilities
in the county.
(b) A commissioners court of a county shall hold the
election on the first authorized uniform election date prescribed
by Chapter 41, Election Code, that allows sufficient time for
compliance with any requirements established by law.
(c) The ballot in the election shall be printed to provide
for voting for or against the proposition: "Authorizing (cannabis
growers, cannabis establishments, or cannabis testing facilities,
as applicable) to operate in (name of county)."
Sec. 491.0303. LOCAL REGULATION. A county that authorizes
the operation of cannabis growers, cannabis establishments, or
cannabis testing facilities in the county 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. PROHIBITED SALE OR DISTRIBUTION OF CANNABIS OR
CANNABIS PRODUCT TO MINORS
Sec. 491.0351. DEFINITION. In this subchapter, "minor"
means a person younger than 21 years of age.
Sec. 491.0352. PROHIBITED SALE OR DISTRIBUTION OF CANNABIS
OR CANNABIS PRODUCT TO MINORS; 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 122.103(c), Agriculture Code, is amended
to read as follows:
(c) A qualified applicant who along with the application
submits proof to the department that the applicant holds a license
under Chapter 487 or 491, Health and Safety Code, is not required to
pay an application fee, and the department shall issue the license
to the applicant within the time prescribed by Subsection (b).
SECTION 3. Section 411.0891(a), Government Code, is amended
to read as follows:
(a) Subject to Section 411.087, the department is
authorized to obtain and use criminal history record information
maintained by the Federal Bureau of Investigation or the department
that relates to a person who:
(1) is an applicant for or holds a registration issued
by the director under Subchapter C, Chapter 481, Health and Safety
Code, that authorizes the person to manufacture, distribute,
analyze, or conduct research with a controlled substance;
(2) is an applicant for or holds a registration issued
by the department under Chapter 487, Health and Safety Code, to be a
director, manager, or employee of a dispensing organization, as
defined by Section 487.001, Health and Safety Code;
(2-a) is an applicant for or holds a license issued by
the department under Chapter 491, Health and Safety Code, to be a
cannabis grower, cannabis establishment, cannabis secure
transporter, or cannabis testing facility, as those terms are
defined by Section 491.0001, Health and Safety Code;
(3) is an applicant for or holds an authorization
issued by the department under Section 521.2476, Transportation
Code, to do business in this state as a vendor of ignition interlock
devices;
(4) is an applicant for or holds certification by the
department as an inspection station or an inspector under
Subchapter G, Chapter 548, Transportation Code, holds an inspection
station or inspector certificate issued under that subchapter, or
is the owner of an inspection station operating under that chapter;
or
(5) is an applicant for or holds a certificate of
registration issued by the department under Chapter 1956,
Occupations Code, to act as a metal recycling entity.
SECTION 4. Section 411.502, Government Code, is amended to
read as follows:
Sec. 411.502. APPLICABILITY. This subchapter applies to a
program, and persons regulated under the program, administered by
the department under the following laws, including rules adopted
under those laws:
(1) Section 411.0625;
(2) Chapter 487, Health and Safety Code;
(2-a) Chapter 491, Health and Safety Code;
(3) Chapter 1702, Occupations Code;
(4) Chapter 1956, Occupations Code;
(5) Section 521.2476, Transportation Code; and
(6) Subchapter G, Chapter 548, Transportation Code.
SECTION 5. Section 443.202(a), Health and Safety Code, is
amended to read as follows:
(a) This section does not apply to low-THC cannabis
regulated under Chapter 487 or cannabis regulated under Chapter
491.
SECTION 6. Section 443.2025(a), Health and Safety Code, is
amended to read as follows:
(a) This section does not apply to low-THC cannabis
regulated under Chapter 487 or cannabis regulated under Chapter
491.
SECTION 7. 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 491.0001.
SECTION 8. Section 481.111, Health and Safety Code, is
amended by adding Subsections (g) and (h) to read as follows:
(g) Sections 481.113, 481.116, 481.120, 481.121, and
481.125 do not apply to a person who engages in the acquisition,
possession, production, processing, cultivation, delivery,
transportation, disposal, transfer, or use 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 491.0001.
SECTION 9. Section 551.004, Occupations Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) This subtitle does not apply to:
(1) a practitioner licensed by the appropriate state
board who supplies a patient of the practitioner with a drug in a
manner authorized by state or federal law and who does not operate a
pharmacy for the retailing of prescription drugs;
(2) a member of the faculty of a college of pharmacy
recognized by the board who is a pharmacist and who performs the
pharmacist's services only for the benefit of the college;
(3) a person who procures prescription drugs for
lawful research, teaching, or testing and not for resale;
(4) a home and community support services agency that
possesses a dangerous drug as authorized by Section 142.0061,
142.0062, or 142.0063, Health and Safety Code; [or]
(5) a dispensing organization[, as defined by Section
487.001, Health and Safety Code,] that cultivates, processes, and
dispenses low-THC cannabis, as authorized by Chapter 487, Health
and Safety Code, to a patient listed in the compassionate-use
registry established under that chapter;
(6) a cannabis grower, cannabis establishment,
cannabis secure transporter, or cannabis testing facility licensed
under Chapter 491, Health and Safety Code, that cultivates,
manufactures, processes, distributes, delivers sells, tests,
transports, or dispenses cannabis or a cannabis product as
authorized by that chapter; or
(7) a person who transfers cannabis without
remuneration as authorized by Section 491.0051, Health and Safety
Code.
(a-1) For purposes of this section:
(1) "Cannabis," "cannabis establishment," "cannabis
grower," "cannabis product," "cannabis secure transporter," and
"cannabis testing facility" have the meanings assigned by Section
491.0001, Health and Safety Code.
(2) "Dispensing organization" and "low-THC cannabis"
have the meanings assigned by Section 487.001, Health and Safety
Code.
SECTION 10. (a) Not later than July 1, 2024, 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, 2024, 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 11. This Act takes effect September 1, 2023.