89R3209 LHC-F
	By: Menéndez	S.B. No. 170

	A BILL TO BE ENTITLED
	AN ACT
	relating to authorizing the possession, use, cultivation,
	distribution, delivery, sale, and research of medical cannabis for
	medical use by patients with certain medical conditions and the
	licensing of medical cannabis organizations; authorizing fees.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	ARTICLE 1. FINDINGS AND PURPOSE
	SECTION 1.01.  LEGISLATIVE FINDINGS; PURPOSE. The
	legislature finds that:
	(1)  scientific evidence suggests that medical
	cannabis is one potential therapy that may mitigate suffering,
	enhance quality of life, and offer potential treatment of certain
	medical conditions;
	(2)  Texas patients should have reasonable statewide
	access to medical cannabis subject to safeguards for public health
	and safety;
	(3)  a seriously ill patient who engages in medical use
	of cannabis on a treating practitioner's advice should not be
	arrested, incarcerated, or otherwise punished for violation of drug
	laws;
	(4)  where patients are suffering from certain medical
	conditions, they and their physicians should have a right to try
	medical cannabis as an alternative medicine through a safe and
	regulated program; and
	(5)  Texas has a wealth of esteemed research
	institutions from medical to agricultural that can greatly
	contribute to the advancement of research on the safe cultivation,
	manufacturing, and use of medical cannabis.
	ARTICLE 2. MEDICAL CANNABIS RESEARCH PROGRAM
	SECTION 2.01.  Subtitle A, Title 6, Health and Safety Code,
	is amended by adding Chapter 446 to read as follows:
	CHAPTER 446. MEDICAL CANNABIS RESEARCH PROGRAM
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 446.001.  SHORT TITLE. This chapter may be cited as the
	Medical Cannabis Research Act.
	Sec. 446.002.  DEFINITIONS. In this chapter:
	(1)  "Advisory board" means the medical cannabis
	research advisory board established under this chapter.
	(2)  "License" means a medical cannabis research
	license issued by the department under Subchapter C.
	(3)  "License holder" means a person who holds a
	medical cannabis research license.
	(4)  "Medical cannabis" has the meaning assigned by
	Section 169.001, Occupations Code.
	SUBCHAPTER B. MEDICAL CANNABIS RESEARCH ADVISORY BOARD
	Sec. 446.051.  ESTABLISHMENT OF ADVISORY BOARD. (a)  A
	medical cannabis research advisory board is established to perform
	functions and duties under this chapter.
	(b)  The executive commissioner shall assist the advisory
	board as provided by this chapter.
	Sec. 446.052.  MEMBERSHIP. (a) The advisory board members
	are appointed by the governor and serve staggered six-year terms,
	with the terms of one-third of the members, or as near to one-third
	as possible, expiring on August 31 of each odd-numbered year.
	(b)  The advisory board shall be composed of the following 11
	members:
	(1)  a licensed physician certified by the American
	Board of Internal Medicine and certified in the subspecialty of
	medical oncology;
	(2)  a licensed physician certified by the American
	Board of Surgery;
	(3)  a licensed physician certified by the American
	Board of Psychiatry and Neurology;
	(4)  a licensed physician certified by the American
	Board of Family Medicine;
	(5)  a licensed physician certified in neurology with a
	special qualification in child neurology;
	(6)  a licensed physician specializing in pain
	management certified by the American Board of Anesthesiology, the
	American Board of Psychiatry and Neurology, or the American Board
	of Physical Medicine and Rehabilitation;
	(7)  a licensed pharmacist;
	(8)  a licensed advanced practice registered nurse
	specializing in palliative care certified by the Hospice and
	Palliative Credentialing Center or a licensed physician
	specializing in palliative care certified by a member board of the
	American Board of Medical Specialties, the American Osteopathic
	Association, or the Hospice Medical Director Certification Board;
	(9)  a representative from a Texas medical specialty
	organization;
	(10)  a licensed attorney with experience in law
	pertaining to the practice of medicine and cannabis regulation; and
	(11)  a person who represents medical cannabis patient
	interests.
	(c)  At least two members of the advisory board must be
	affiliated with an institution of higher education or private or
	independent institution of higher education involved in relevant
	research, such as a medical and dental unit, general academic
	teaching institution, or other agency of higher education, as
	defined by Section 61.003, Education Code.
	(d)  The governor shall select a presiding officer from the
	membership of the advisory board.
	(e)  The advisory board shall meet at least quarterly at the
	call of the presiding officer.
	(f)  The advisory board may create and appoint one or more
	advisory committees composed of patients, law enforcement
	officers, researchers, other medical professionals, and other
	persons who are knowledgeable about the medical use of cannabis.
	(g)  Members serve without compensation but are entitled to
	reimbursement for actual and necessary expenses incurred in
	performing official duties.
	Sec. 446.053.  DUTIES OF ADVISORY BOARD; REPORT.  (a)  The
	advisory board shall assist the department in evaluating proposals
	submitted as part of a license application under Section 446.104.
	(b)  The advisory board shall conduct a continuing study of
	the laws relating to medical cannabis to facilitate statewide
	access to safe and effective medical cannabis.
	(c)  The advisory board shall prepare a report of the board's
	findings and recommendations under Subsection (b) and submit the
	report to the legislature not later than September 1 of each
	even-numbered year.
	(d)  The advisory board shall consult with the public safety
	director of the Department of Public Safety under Section
	487.0521(b) on rules monitoring the safety and efficacy of medical
	cannabis or medical cannabis products.
	(e)  Chapter 2110, Government Code, does not apply to the
	advisory board.
	SUBCHAPTER C. MEDICAL CANNABIS RESEARCH LICENSE
	Sec. 446.101.  ISSUANCE OF LICENSE. The department shall
	issue a medical cannabis research license to a person that
	authorizes the person to possess, manufacture, cultivate, or
	dispense medical cannabis for the limited research purposes
	described by Section 446.102.
	Sec. 446.102.  PURPOSE OF LICENSE. A medical cannabis
	research license may be issued for the following limited research
	purposes:
	(1)  conducting objective scientific research into the
	safety and efficacy of medical cannabis or other public health
	outcomes related to medical cannabis;
	(2)  developing medical guidelines for the appropriate
	administration of medical cannabis to assist physicians and
	patients in evaluating the risks and benefits of medical cannabis
	and to provide a scientific basis for future policies;
	(3)  developing quality control, purity, and labeling
	standards for medical cannabis;
	(4)  developing best practices for the safe and
	efficient cultivation of medical cannabis;
	(5)  analyzing genetic and healing properties of
	different varieties of cannabis;
	(6)  conducting genomic, horticultural, or
	agricultural research; and
	(7)  conducting research on cannabis-affiliated
	products or systems.
	Sec. 446.103.  APPLICATION FOR LICENSE. (a) As part of the
	application process for a license, an applicant shall submit to the
	department and the advisory board a description of the research
	that the applicant intends to conduct. The department shall grant
	the license if:
	(1)  the department determines that the application
	meets the criteria for the issuance of a license described by
	Section 446.102 and Subchapter C, Chapter 487; and
	(2)  the advisory board recommends the application for
	approval under Section 446.104(b).
	(b)  The department may not grant a license if the advisory
	board does not recommend the application for approval.
	Sec. 446.104.  REVIEW BY ADVISORY BOARD. (a)  The advisory
	board shall review each applicant's research project to assess the
	following:
	(1)  the quality, study design, value, and impact of
	the project;
	(2)  whether the research supports the purposes
	described by Section 446.102;
	(3)  whether the applicant has the appropriate
	personnel, expertise, facilities, infrastructure, funding, and
	approvals in place to successfully conduct the project; and
	(4)  whether the amount of cannabis to be grown by the
	applicant is consistent with the scope and goals of the project.
	(b)  If the advisory board determines that the research
	project meets the requirements of this subchapter and the applicant
	satisfies the criteria described by Subsection (a), the advisory
	board may recommend that a license be granted to the applicant for
	the project.
	Sec. 446.105.  CONTRACTS. A license holder may contract to
	perform research in conjunction with another license holder, a
	medical school, as defined by Section 61.501, Education Code, a
	hospital licensed under Chapter 241, or an institution of higher
	education or private or independent institution of higher education
	involved in relevant research, such as a general academic teaching
	institution, medical and dental unit, or other agency of higher
	education, as defined by Section 61.003, Education Code.
	Sec. 446.106.  TRANSFER OF CANNABIS TO OTHER LICENSE HOLDER.
	Unless otherwise authorized by the department, a license holder may
	only transfer, by sale or donation, cannabis grown or processed
	within the license holder's operation to another license holder or
	program participant as authorized by department rule.
	Sec. 446.107.  LIMITATION OF LIABILITY. The growing,
	cultivating, possessing, or transferring, by sale or donation, of
	cannabis in accordance with this subchapter and the rules adopted
	under this subchapter, by a license holder may not be the basis of
	criminal or civil liability.
	Sec. 446.108.  FEES. The executive commissioner shall set
	license and renewal fees in an amount sufficient to administer this
	chapter.
	Sec. 446.109.  RULES. The executive commissioner shall, in
	consultation with the advisory board and the Public Safety
	Commission of the Department of Public Safety, adopt rules to
	implement this chapter, including:
	(1)  license application requirements;
	(2)  license renewal requirements, including the
	consideration or addition of additional research projects by a
	license holder;
	(3)  grounds for license revocation;
	(4)  security measures to ensure cannabis is not
	diverted to purposes other than research;
	(5)  license holder reporting requirements;
	(6)  conditions under which cannabis grown by licensed
	cannabis cultivators and other product types from licensed cannabis
	processors may be donated to license holders; and
	(7)  additional rules the executive commissioner
	considers necessary.
	ARTICLE 3. CHANGES TO TEXAS COMPASSIONATE USE PROGRAM
	SECTION 3.01.  Section 487.001, Health and Safety Code, is
	amended to read as follows:
	Sec. 487.001.  DEFINITIONS. In this chapter:
	(1)  "Caregiver" means a person who has a significant
	responsibility for managing the well-being of a registered patient.
	A caregiver may be either an individual or an organization or other
	entity, including a long-term care facility, other health care
	organization, or public institution.
	(2)  "Department" means the Department of Public
	Safety.
	(3) [(2)]  "Director" means the public safety director
	of the department.
	[(3)  "Dispensing organization" means an organization
	licensed by the department to cultivate, process, and dispense
	low-THC cannabis to a patient for whom low-THC cannabis is
	prescribed under Chapter 169, Occupations Code.]
	(4)  "Medical [Low-THC] cannabis" has the meaning
	assigned by Section 169.001, Occupations Code.
	(5)  "Medical cannabis organization" means any
	organization that cultivates, processes, manufactures,
	distributes, researches, tests, dispenses, or conducts other
	business regarding medical cannabis as authorized by a license
	issued by the department under this chapter.
	(6)  "Medical cannabis product" means a product, other
	than cannabis itself, which contains or is derived from cannabis.
	The term does not include a product derived from hemp, as defined by
	Section 121.001, Agriculture Code, or a consumable hemp product, as
	defined by Section 443.001 of this code.
	(7)  "Medical use" has the meaning assigned by Section
	169.001, Occupations Code.
	SECTION 3.02.  Subchapter A, Chapter 487, Health and Safety
	Code, is amended by adding Section 487.002 to read as follows:
	Sec. 487.002.  ALLOWABLE AMOUNT OF MEDICAL CANNABIS. The
	allowable amount of medical cannabis for a person for whom medical
	use is recommended under Chapter 169, Occupations Code, is an
	amount of cannabis in any form approved by the physician possessed
	by a qualified patient or collectively possessed by a qualified
	patient and the qualified patient's caregiver that is:
	(1)  not more than reasonably necessary to ensure the
	uninterrupted availability of cannabis for a period of three months
	based on the individual patient's recommended amount of medical
	cannabis; and
	(2)  obtained solely from a medical cannabis
	organization.
	SECTION 3.03.  Chapter 487, Health and Safety Code, is
	amended by adding Subchapter A-1 to read as follows:
	SUBCHAPTER A-1. PROTECTIONS RELATED TO MEDICAL USE OF CANNABIS
	Sec. 487.021.  PROTECTION FROM LEGAL ACTION. (a)  This
	section applies to a person who is:
	(1)  a patient for whom medical use is recommended
	under Chapter 169, Occupations Code, or the parent, legal guardian,
	or caregiver of a patient;
	(2)  a medical cannabis organization;
	(3)  a director, manager, or employee of a medical
	cannabis organization who is registered with the department under
	Section 487.053;
	(4)  a medical cannabis research license holder under
	Chapter 446; or
	(5)  a person participating as a researcher or patient
	in an approved research program under Subchapter G, Chapter 481.
	(b)  Notwithstanding any other law, a person described by
	Subsection (a) is not subject to arrest, prosecution, or penalty in
	any manner, or denial of any right or privilege, including any civil
	penalty or disciplinary action by a court or occupational or
	professional licensing board or bureau, for conduct involving
	medical use that is authorized under this chapter, Chapter 446 of
	this code, Subchapter G, Chapter 481, of this code, Chapter 169,
	Occupations Code, or department rule.
	Sec. 487.022.  NO PRESUMPTION OF CHILD ABUSE, NEGLECT, OR
	ENDANGERMENT.  A person described by Section 487.021(a) may not be
	presumed to have engaged in conduct constituting child abuse,
	neglect, or endangerment solely because the person engaged in
	conduct involving medical use that is authorized under this
	chapter, Chapter 446 of this code, Subchapter G, Chapter 481, of
	this code, Chapter 169, Occupations Code, or department rule.
	Sec. 487.023.  NO DENIAL OF PARENTAL RIGHTS. The fact that a
	person described by Section 487.021(a) engages in conduct
	authorized under this chapter, Chapter 446 of this code, Subchapter
	G, Chapter 481, of this code, Chapter 169, Occupations Code, or
	department rule, does not in itself constitute grounds for denying,
	limiting, or restricting conservatorship or possession of or access
	to a child under Title 5, Family Code.
	Sec. 487.024.  NO SEIZURE OR FORFEITURE. Property used in
	the cultivation, research, testing, processing, distribution,
	transportation, and delivery of medical cannabis for medical use
	that is authorized under this chapter, Chapter 446 of this code,
	Subchapter G, Chapter 481, of this code, Chapter 169, Occupations
	Code, or department rule, is not contraband for purposes of Chapter
	59, Code of Criminal Procedure, and is not subject to seizure or
	forfeiture under that chapter or other law solely for the use of the
	property in those authorized activities.
	Sec. 487.025.  NO PROSECUTION FOR PROVISION OF
	PARAPHERNALIA. A person is not subject to arrest, prosecution, or
	the imposition of any sentence or penalty for the delivery,
	possession with intent to deliver, or manufacture of any item that
	meets the definition of drug paraphernalia, as defined by Section
	481.002, if that item is delivered, possessed with intent to
	deliver, or manufactured for the sole purpose of providing that
	item to:
	(1)  a patient for whom medical use is recommended
	under Chapter 169, Occupations Code, or the parent, legal guardian,
	or caregiver of a patient;
	(2)  a medical cannabis organization;
	(3)  a director, manager, or employee of a medical
	cannabis organization who is registered with the department under
	Section 487.053;
	(4)  a medical cannabis research license holder under
	Chapter 446; or
	(5)  a person participating as a researcher or patient
	in an approved research program under Subchapter G, Chapter 481.
	Sec. 487.026.  NO PUNISHMENT FOR STUDENT PATIENTS AND THEIR
	CAREGIVERS. Notwithstanding any other law:
	(1)  a student enrolled in any school, junior college,
	college, university, or other educational institution for whom
	medical cannabis was recommended under Chapter 169, Occupations
	Code, may not be subject to suspension, expulsion, placement in a
	disciplinary alternative education program, or any other form of
	discipline solely because the student possessed, used, or received
	a valid recommendation for medical cannabis; and
	(2)  a health care professional providing services at
	any school, junior college, college, university, or other
	educational institution may not be subject to any discipline solely
	for assisting a student in the administration of medical cannabis.
	SECTION 3.04.  Section 487.052, Health and Safety Code, is
	amended to read as follows:
	Sec. 487.052.  RULES; FEES. (a)  The director shall adopt
	any rules necessary for the administration and enforcement of this
	chapter.
	(b)  The director shall adopt [, including] rules imposing
	reasonable fees under this chapter in amounts sufficient to cover
	the cost of administering this chapter.  The department shall also
	use revenue from fees to establish a cannabis testing and quality
	control fund for the purpose of assisting law enforcement,
	including accredited crime laboratories, to purchase instruments,
	establish methods, and obtain resources needed to conduct forensic
	analysis necessary to enforce this subtitle and to protect the
	health and safety of medical cannabis patients and the public.
	(c)  The fees adopted under Subsection (b) may not exceed:
	(1)  $5,000 for application fees;
	(2)  $100 for registration fees under Subchapter D; and
	(3)  reasonable amounts for the issuance or renewal of
	each class of license.
	(d)  The director may not adopt rules establishing a total
	limit on the number of medical cannabis organization licenses by
	class that may be granted nor set the price of or production
	quantity of medical cannabis.
	SECTION 3.05.  Subchapter B, Chapter 487, Health and Safety
	Code, is amended by adding Sections 487.0521 and 487.0522 to read as
	follows:
	Sec. 487.0521.  SAFETY. (a)  The director by rule shall
	adopt packaging and labeling requirements for medical cannabis to
	ensure patients are informed and protected.  In adopting packaging
	and labeling requirements, the director shall ensure that:
	(1)  each medical cannabis package is labeled with the
	cannabinoid potency and terpenes profile of medical cannabis or
	medical cannabis product as determined by an independent testing
	laboratory;
	(2)  each medical cannabis product and medical cannabis
	package is labeled with the required warnings as determined by the
	department; and
	(3)  the packaging and label of medical cannabis or a
	medical cannabis product:
	(A)  do not contain any false or misleading
	statements; and
	(B)  are not designed to appeal to children.
	(b)  In consultation with the medical cannabis research
	advisory board under Chapter 446, the director shall adopt
	necessary rules to allow the department to monitor the safety and
	efficacy of medical cannabis or medical cannabis products,
	including rules:
	(1)  requiring accurate reporting to consumers
	regarding the content of medical cannabis or medical cannabis
	products;
	(2)  providing for random testing by the department or
	the department's designee to ensure compliance with labeling and
	reporting requirements; and
	(3)  providing for health and safety regulations and
	standards for the manufacture and cultivation of medical cannabis
	and medical cannabis products.
	(c)  The director may collect data from medical cannabis
	organizations and health care providers as necessary to enable the
	department to monitor the safety and efficacy of medical cannabis.
	The director may adopt rules for the data collection under this
	subsection.
	Sec. 487.0522.  MEDICAL CANNABIS INVENTORY SYSTEM. (a)  The
	department shall establish and maintain a medical cannabis
	inventory system that oversees the tracking, tracing, testing, and
	quality control and quality assurance certification of medical
	cannabis and medical cannabis products.
	(b)  The department may contract with other entities to
	establish and maintain all or part of the medical cannabis
	inventory system on behalf of the department.
	(c)  A medical cannabis organization shall use the medical
	cannabis inventory system approved by the department to keep
	records throughout the cannabis supply chain, including for every
	transaction between license holders and between license holders and
	patients. A medical cannabis organization may additionally use its
	own system for keeping records under this chapter provided the
	organization's system can integrate with the department's medical
	cannabis inventory system as required under this chapter and rules
	adopted under this chapter.
	(d)  The records in the medical cannabis inventory system
	must include for each transaction:
	(1)  the name, license number, and assigned
	identification number of the license holder that cultivated,
	manufactured, tested, or sold the product;
	(2)  the address and phone number of the license holder
	that cultivated, manufactured, tested, or sold the product;
	(3)  the type and weight of medical cannabis or medical
	cannabis product transferred or received during the transaction;
	(4)  the batch number of the medical cannabis or
	medical cannabis product used;
	(5)  the date of the transaction;
	(6)  the total spent in dollars; and
	(7)  any additional information the department
	requires.
	(e)  The records in the medical cannabis inventory system
	must include for each license holder:
	(1)  the amount of any medical cannabis waste, in
	pounds;
	(2)  all point-of-sale records; and
	(3)  any additional information the department
	requires.
	(f)  Notwithstanding Subsection (c), before the department
	establishes the medical cannabis inventory system described by that
	subsection, each license holder shall use its own inventory system
	that meets the requirements of this section.
	(g)  Each medical cannabis organization has a continuing
	responsibility to maintain records on site that are readily
	available to the department regardless of the functionality of the
	medical cannabis inventory system, including the criteria
	established by this section and any requirements established by
	rule.
	(h)  The director shall adopt rules necessary for the
	implementation and enforcement of this section, including rules
	ensuring:
	(1)  the department has 24-hour access to the medical
	cannabis inventory system; and
	(2)  all inventory records containing patient
	information comply with Chapter 181 and the Health Insurance
	Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d
	et seq.).
	SECTION 3.06.  The heading to Section 487.053, Health and
	Safety Code, is amended to read as follows:
	Sec. 487.053.  LICENSING OF MEDICAL CANNABIS [DISPENSING]
	ORGANIZATIONS AND REGISTRATION OF CERTAIN ASSOCIATED INDIVIDUALS.
	SECTION 3.07.  Section 487.053(a), Health and Safety Code,
	is amended to read as follows:
	(a)  The department shall:
	(1)  issue or renew a license under Subchapter C to
	operate as a medical cannabis [dispensing] organization to each
	applicant who satisfies the requirements established under this
	chapter for licensure under that class of medical cannabis
	organization; [and]
	(2)  register directors, managers, and employees under
	Subchapter D of each medical cannabis [dispensing] organization;
	(3)  issue a permit for an additional location to a
	dispensing cannabis organization license holder on application if
	the license holder is in compliance with all eligibility
	requirements and the proposed location complies with any local
	zoning requirements and will assist with ensuring reasonable
	statewide access;
	(4)  to ensure reasonable statewide access, issue not
	fewer than the following number of licenses or permits, as
	applicable, for each type of medical cannabis organization provided
	the department receives an adequate number of qualified
	applications:
	(A)  dispensing cannabis organization licenses or
	permits for an additional location for a dispensing cannabis
	organization license holder, as applicable, based on population
	within each of the 11 public health regions established by the
	Health and Human Services Commission, as follows:
	(i)  9 in public health region 1;
	(ii)  6 in public health region 2;
	(iii)  82 in public health region 3;
	(iv)  12 in public health region 4;
	(v)  8 in public health region 5;
	(vi)  75 in public health region 6;
	(vii)  37 in public health region 7;
	(viii)  31 in public health region 8;
	(ix)  7 in public health region 9;
	(x)  9 in public health region 10; and
	(xi)  24 in public health region 11;
	(B)  one cultivation cannabis organization
	license for every four dispensing cannabis organization licenses;
	(C)  one processing cannabis organization license
	for every three dispensing cannabis organization licenses; and
	(D)  the number of independent testing cannabis
	organization licenses necessary to meet demand;
	(5)  when the number of registered medical cannabis
	patients reaches 100,000, issue not fewer than 24 additional
	dispensing cannabis organization licenses or location permits, as
	applicable, and the appropriate number of other medical cannabis
	organization license types as prescribed by Subdivision (4); and
	(6)  for each additional 100,000 registered medical
	cannabis patients beyond the first 100,000 patients described by
	Subdivision (5), issue not fewer than 24 additional dispensing
	cannabis organization licenses or location permits, as applicable,
	and the appropriate number of other medical cannabis organization
	license types as prescribed by Subdivision (4).
	SECTION 3.08.  Section 487.054, Health and Safety Code, is
	amended to read as follows:
	Sec. 487.054.  COMPASSIONATE-USE REGISTRY.  (a)  The
	department shall establish and maintain a secure online
	compassionate-use registry that contains:
	(1)  the name of each physician who registers as a
	physician recommending medical cannabis and for each patient for
	whom the physician has registered:
	(A)  [the prescriber for a patient under Section
	169.004, Occupations Code,] the patient's name, and any caregivers'
	names, if applicable;
	(B)  the patient's [and] date of birth;
	(C)  the nature of the patient's eligible medical
	condition;
	(D)  [of the patient,] the dosage recommended;
	(E)  [prescribed,] the means of administration
	ordered; [,] and
	(F)  the total amount of medical [low-THC]
	cannabis required to fill the patient's recommendation
	[prescription]; and
	(2)  a record of each amount of medical [low-THC]
	cannabis dispensed by a medical cannabis [dispensing] organization
	to a patient under a recommendation [prescription].
	(b)  The department shall ensure the registry:
	(1)  is designed to prevent more than one qualified
	physician from registering as the recommending physician
	[prescriber] for a single patient;
	(2)  is accessible to law enforcement agencies and
	medical cannabis [dispensing] organizations licensed to dispense
	medical cannabis for the purpose of verifying whether a patient is
	one for whom medical [low-THC] cannabis is recommended [prescribed]
	and whether the patient's recommendations [prescriptions] have
	been filled; [and]
	(3)  allows a physician [qualified to prescribe low-THC
	cannabis under Section 169.002, Occupations Code,] to input safety
	and efficacy data derived from the treatment of patients for whom
	medical [low-THC] cannabis is recommended [prescribed] under
	Chapter 169, Occupations Code, including any severe adverse effects
	due to the medical use of medical cannabis; and
	(4)  ensures that all application records and
	information are sealed to protect the privacy of patients.
	(c)  The handling of any records maintained in the registry
	must comply with all relevant state and federal privacy laws,
	including Chapter 181.
	SECTION 3.09.  Subchapter B, Chapter 487, Health and Safety
	Code, is amended by adding Section 487.055 to read as follows:
	Sec. 487.055.  DESIGNATION OF CAREGIVER. (a)  A patient
	listed in the compassionate-use registry may designate a caregiver.
	A caregiver designated under this subsection may be either an
	individual or an organization or other entity, including a
	long-term care facility, other health care organization, or public
	institution.
	(b)  The department shall develop a form for a patient listed
	in the registry to designate a caregiver under Subsection (a). The
	form must require the patient to provide the full name, home
	address, and date of birth of the patient's caregiver or, in the
	case of a caregiver that is an entity, the entity's name and
	address.
	(c)  A caregiver may possess medical cannabis and medical
	cannabis products up to the sum of the possession limits for all
	patients under the caregiver's care.
	(d)  The director shall adopt rules necessary to implement
	this section, including rules to provide identification cards for
	designated caregivers.
	SECTION 3.10.  The heading to Subchapter C, Chapter 487,
	Health and Safety Code, is amended to read as follows:
	SUBCHAPTER C. LICENSE TO OPERATE AS MEDICAL CANNABIS [DISPENSING]
	ORGANIZATION
	SECTION 3.11.  Section 487.101, Health and Safety Code, is
	amended to read as follows:
	Sec. 487.101.  LICENSE REQUIRED.  (a)  A license issued by
	the department under this chapter is required to operate a medical
	cannabis [dispensing] organization.
	(b)  The director by rule shall adopt application and
	licensing requirements and privileges of each medical cannabis
	organization license type.
	(c)  Medical cannabis organization license types shall
	include the following:
	(1)  a cultivating cannabis organization that
	cultivates medical cannabis for sale and distribution to other
	medical cannabis organizations and may process and package medical
	cannabis for individual sale so long as the cannabis is not
	subjected to any chemical alteration;
	(2)  a processing cannabis organization that extracts
	medical cannabis and manufactures, prepares, and packages medical
	cannabis products for sale and distribution to other medical
	cannabis organizations;
	(3)  a dispensing cannabis organization that sells
	medical cannabis and medical cannabis products to patients;
	(4)  an independent testing cannabis organization that
	tests medical cannabis and medical cannabis products for potency,
	safety, and efficacy; and
	(5)  any other class of medical cannabis organization
	that the department finds warranted to safely and securely ensure
	reasonable statewide access of medical cannabis for medical use.
	SECTION 3.12.  Section 487.102, Health and Safety Code, is
	amended to read as follows:
	Sec. 487.102.  ELIGIBILITY FOR LICENSE.  An applicant for a
	license to operate as a medical cannabis [dispensing] organization
	is eligible for the license if:
	(1)  as determined by the department, the applicant
	possesses:
	(A)  the technical and technological ability
	appropriate for that class of license [to cultivate and produce
	low-THC cannabis];
	(B)  the ability to secure:
	(i)  the resources and personnel necessary
	to operate as a medical cannabis [dispensing] organization; and
	(ii)  for distribution or
	dispensing premises reasonably located to allow patients listed on
	the compassionate-use registry access to the organization through
	existing infrastructure;
	(C)  the ability to maintain accountability for
	the raw materials, the finished product, and any by-products used
	or produced in the cultivation or production of medical [low-THC]
	cannabis to prevent unlawful access to or unlawful diversion or
	possession of those materials, products, or by-products; [and]
	(D)  the financial ability to maintain operations
	for not less than two years from the date of application; and
	(E)  any specific qualifications for licensure
	for each class of license the department requires by rule under this
	chapter that are demonstrably related to the operations authorized
	and duties imposed under that class of license to safely and
	securely provide medical cannabis for medical use to patients;
	(2)  each director, manager, or employee of the
	applicant is registered under Subchapter D; and
	(3)  the applicant satisfies any additional criteria
	determined by the director to be necessary to safely implement this
	chapter.
	SECTION 3.13.  Subchapter C, Chapter 487, Health and Safety
	Code, is amended by adding Section 487.1021 to read as follows:
	Sec. 487.1021.  ELIGIBILITY FOR LICENSE TO OPERATE AS AN
	INDEPENDENT CANNABIS TESTING ORGANIZATION. In addition to the
	criteria described by Section 487.102, an applicant for a license
	to operate as an independent cannabis testing organization is
	eligible for the license if the applicant:
	(1)  submits proof of accreditation by an independent
	accreditation body in accordance with the International
	Organization for Standardization ISO/IEC 17025 or a comparable or
	successor standard designated by department rule;
	(2)  submits proof that it does not share ownership
	interest or joint management with any medical cannabis organization
	whose product the applicant may test except for less than 10 percent
	ownership in a publicly traded company; and
	(3)  satisfies any additional criteria determined by
	the department to be necessary for the operation of a cannabis
	testing facility.
	SECTION 3.14.  Section 487.103(a), Health and Safety Code,
	is amended to read as follows:
	(a)  A person may apply for an initial or renewal license to
	operate as a medical cannabis [dispensing] organization by
	submitting a form prescribed by the department along with the
	application fee in an amount set by the director for that class of
	license.
	SECTION 3.15.  Section 487.104(a), Health and Safety Code,
	is amended to read as follows:
	(a)  The department shall issue or renew a license to operate
	as a medical cannabis [dispensing] organization [only] if:
	(1)  the department determines the applicant meets the
	eligibility requirements described by Section 487.102 or 487.1021,
	as applicable; and
	(2)  issuance or renewal of the license would assist
	[is necessary to ensure] reasonable statewide access to, and the
	availability of, medical [low-THC] cannabis for patients
	registered in the compassionate-use registry and for whom medical
	[low-THC] cannabis is recommended [prescribed] under Chapter 169,
	Occupations Code.
	SECTION 3.16.  Sections 487.105(a) and (b), Health and
	Safety Code, are amended to read as follows:
	(a)  An applicant for the issuance or renewal of a license
	under this subchapter [to operate as a dispensing organization]
	shall provide the department with the applicant's name and the name
	of each of the applicant's directors, managers, and employees.
	(b)  Before a medical cannabis [dispensing] organization
	license holder [licensee] hires a manager or employee for the
	organization, the license holder [licensee] must provide the
	department with the name of the prospective manager or employee.
	The license holder [licensee] may not transfer the license to
	another person before that prospective applicant and the
	applicant's directors, managers, and employees pass a criminal
	history background check and any other requirements established by
	the director by rule, and are registered as required by Subchapter
	D.
	SECTION 3.17.  Section 487.106, Health and Safety Code, is
	amended to read as follows:
	Sec. 487.106.  DUTY TO MAINTAIN ELIGIBILITY. (a) Each
	license holder under this subchapter [A dispensing organization]
	must maintain compliance at all times with the eligibility
	requirements described by Section 487.102 or 487.1021, as
	applicable.
	(b)  On request of the department, a license holder must
	provide to the department a reasonably sized sample suitable for
	testing of medical cannabis.
	SECTION 3.18.  Section 487.107, Health and Safety Code, is
	amended to read as follows:
	Sec. 487.107.  DUTIES RELATING TO DISPENSING MEDICAL
	CANNABIS [PRESCRIPTION]. (a) Before dispensing medical [low-THC]
	cannabis to a person for whom the medical [low-THC] cannabis is
	recommended [prescribed] under Chapter 169, Occupations Code, the
	medical cannabis [dispensing] organization must verify that the
	recommendation [prescription] presented:
	(1)  is for a person listed as a patient in the
	compassionate-use registry;
	(2)  matches the entry in the compassionate-use
	registry with respect to the total amount of medical [low-THC]
	cannabis required to fill the recommendation [prescription]; and
	(3)  has not previously been filled by a medical
	cannabis [dispensing] organization as indicated by an entry in the
	compassionate-use registry.
	(b)  After dispensing medical [low-THC] cannabis to a
	patient for whom the medical [low-THC] cannabis is recommended
	[prescribed] under Chapter 169, Occupations Code, the medical
	cannabis [dispensing] organization shall record in the
	compassionate-use registry the form and quantity of medical
	[low-THC] cannabis dispensed and the date and time of dispensation.
	SECTION 3.19.  Sections 487.108(a), (b), and (c), Health and
	Safety Code, are amended to read as follows:
	(a)  The department may at any time suspend or revoke a
	license issued under this subchapter [chapter] if the department
	determines that the license holder [licensee] has not maintained
	the eligibility requirements described by Section 487.102 or
	487.1021, as applicable, or has failed to comply with a duty imposed
	under this chapter.
	(b)  The director shall give written notice to the license
	holder [dispensing organization] of a license suspension or
	revocation under this section and the grounds for the suspension or
	revocation.  The notice must be sent by certified mail, return
	receipt requested.
	(c)  After suspending or revoking a license issued under this
	subchapter [chapter], the director may seize or place under seal
	all medical [low-THC] cannabis and drug paraphernalia owned or
	possessed by the license holder [dispensing organization].  If the
	director orders the revocation of the license, a disposition may
	not be made of the seized or sealed medical [low-THC] cannabis or
	drug paraphernalia until the time for administrative appeal of the
	order has elapsed or until all appeals have been concluded.  When a
	revocation order becomes final, all medical [low-THC] cannabis and
	drug paraphernalia may be forfeited to the state as provided under
	Subchapter E, Chapter 481.
	SECTION 3.20.  Section 487.151(a), Health and Safety Code,
	is amended to read as follows:
	(a)  An individual who is a director, manager, or employee of
	a license holder under Subchapter C [dispensing organization] must
	apply for and obtain a registration under this section.
	SECTION 3.21.  Section 487.201, Health and Safety Code, is
	amended to read as follows:
	Sec. 487.201.  COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT
	MEDICAL [LOW-THC] CANNABIS.  A municipality, county, or other
	political subdivision may not enact, adopt, or enforce a rule,
	ordinance, order, resolution, or other regulation that prohibits
	the cultivation, production, dispensing, researching, testing, or
	possession of medical [low-THC] cannabis, as authorized by this
	chapter.
	SECTION 3.22.  Subchapter F, Chapter 487, Health and Safety
	Code, is repealed.
	ARTICLE 4. RECOMMENDATION OF MEDICAL CANNABIS BY PHYSICIAN
	SECTION 4.01.  The heading to Chapter 169, Occupations Code,
	is amended to read as follows:
	CHAPTER 169. AUTHORITY TO RECOMMEND MEDICAL [PRESCRIBE LOW-THC]
	CANNABIS TO CERTAIN PATIENTS FOR COMPASSIONATE USE
	SECTION 4.02.  Section 169.001, Occupations Code, is amended
	to read as follows:
	Sec. 169.001.  DEFINITIONS.  In this chapter:
	(1)  "Department" means the Department of Public
	Safety.
	[(1-a)  "Incurable neurodegenerative disease" means a
	disease designated as an incurable neurodegenerative disease by
	rule of the executive commissioner of the Health and Human Services
	Commission, adopted in consultation with the National Institutes of
	Health.]
	(2) [(3)]  "Medical [Low-THC] cannabis" means the
	plant Cannabis sativa L., and any part of that plant or any
	compound, manufacture, salt, derivative, mixture, preparation,
	resin, or oil of that plant. The term does not include hemp, as
	defined by Section 121.001, Agriculture Code, or a consumable hemp
	product, as defined by Section 443.001, Health and Safety Code
	[that contains not more than one percent by weight of
	tetrahydrocannabinols].
	(3) [(4)]  "Medical use" means the administration of
	medical cannabis to a registered patient for treatment of an
	eligible medical condition or symptoms as recommended by a
	physician [ingestion by a means of administration other than by
	smoking of a prescribed amount of low-THC cannabis by a person for
	whom low-THC cannabis is prescribed] under this chapter.
	(4)  "Serious adverse event" means an adverse event
	that:
	(A)  results in death;
	(B)  results in an illness requiring
	hospitalization;
	(C)  is considered life-threatening; or
	(D)  results in a persistent or significant
	disability, incapacity, or medically important condition.
	[(5)  "Smoking" means burning or igniting a substance
	and inhaling the smoke.]
	SECTION 4.03.  Chapter 169, Occupations Code, is amended by
	adding Section 169.0012 to read as follows:
	Sec. 169.0012.  BONA FIDE PHYSICIAN-PATIENT RELATIONSHIP.
	For purposes of this chapter, a bona fide physician-patient
	relationship exists when there is a treatment or counseling
	relationship between a physician and patient in which all of the
	following are present:
	(1)  the physician has reviewed the patient's relevant
	medical records and completed a full assessment of the patient's
	medical history and current medical condition, including a relevant
	medical evaluation of the patient;
	(2)  the physician has created and continues to
	maintain records of the patient's condition in accordance with
	medically accepted standards;
	(3)  the physician has a reasonable expectation that
	the physician will provide follow-up care to the patient to monitor
	the efficacy of the use of medical cannabis as a treatment of the
	patient's medical condition; and
	(4)  if the patient has given permission, the physician
	has notified the patient's primary care physician of the patient's
	medical condition and certification for the medical use of medical
	cannabis to treat that condition.
	SECTION 4.04.  Section 169.002, Occupations Code, is amended
	to read as follows:
	Sec. 169.002.  PHYSICIAN QUALIFIED TO RECOMMEND MEDICAL
	[PRESCRIBE LOW-THC] CANNABIS [TO PATIENTS WITH CERTAIN MEDICAL
	CONDITIONS]. (a) Only a physician qualified with respect to a
	patient's particular medical condition [as provided by this
	section] may recommend medical [prescribe low-THC] cannabis in
	accordance with this chapter to treat the applicable medical
	condition.
	(b)  A physician is qualified to recommend medical
	[prescribe low-THC] cannabis with respect to a patient's particular
	medical condition if the physician:
	(1)  is licensed under this subtitle;
	(2)  has a bona fide physician-patient relationship
	with the patient [is board certified in a medical specialty
	relevant to the treatment of the patient's particular medical
	condition by a specialty board approved by the American Board of
	Medical Specialties or the Bureau of Osteopathic Specialists]; and
	(3)  dedicates a significant portion of clinical
	practice to the evaluation and treatment of the patient's
	particular medical condition.
	[(c)  A physician is qualified to prescribe low-THC cannabis
	for the treatment of a patient with a medical condition approved by
	rule of the executive commissioner of the Health and Human Services
	Commission for treatment in an approved research program conducted
	under Subchapter F, Chapter 487, Health and Safety Code, if the
	physician is:
	[(1)  licensed under this subtitle; and
	[(2)  certified by a compassionate-use institutional
	review board created under Section 487.253, Health and Safety Code,
	that oversees patient treatment undertaken as part of that approved
	research program.]
	SECTION 4.05.  Section 169.003, Occupations Code, is amended
	to read as follows:
	Sec. 169.003.  RECOMMENDATION [PRESCRIPTION] OF MEDICAL
	[LOW-THC] CANNABIS.  A physician described by Section 169.002 may
	recommend medical [prescribe low-THC] cannabis to a patient if:
	(1)  the patient is a permanent resident of the state;
	(2)  the physician complies with the registration
	requirements of Section 169.004; and
	(3)  the physician certifies to the department that:
	(A)  there is a bona fide physician-patient
	relationship;
	(B)  the patient has a diagnosis or symptoms such
	that, in the physician's professional judgment and review of past
	treatments, the patient is likely to receive therapeutic or
	palliative benefit from medical cannabis [is diagnosed with:
	[(i)  epilepsy;
	[(ii)  a seizure disorder;
	[(iii)  multiple sclerosis;
	[(iv)  spasticity;
	[(v)  amyotrophic lateral sclerosis;
	[(vi)  autism;
	[(vii)  cancer;
	[(viii)  an incurable neurodegenerative
	disease;
	[(ix)  post-traumatic stress disorder; or
	[(x)  a medical condition that is approved
	for a research program under Subchapter F, Chapter 487, Health and
	Safety Code, and for which the patient is receiving treatment under
	that program]; and
	(C) [(B)]  the physician determines the risk of
	the medical use of medical [low-THC] cannabis by the patient is
	reasonable in light of the potential benefit for the patient.
	SECTION 4.06.  The heading to Section 169.004, Occupations
	Code, is amended to read as follows:
	Sec. 169.004.  MEDICAL [LOW-THC] CANNABIS RECOMMENDATION
	[PRESCRIBER] REGISTRATION.
	SECTION 4.07.  Section 169.004(a), Occupations Code, is
	amended to read as follows:
	(a)  Before a physician [qualified to prescribe low-THC
	cannabis under Section 169.002] may recommend [prescribe] or renew
	a recommendation [prescription] for medical [low-THC] cannabis for
	a patient under this chapter, the physician must register [as the
	prescriber for that patient] in the compassionate-use registry
	maintained by the department under Section 487.054, Health and
	Safety Code.  The physician's registration must indicate:
	(1)  the physician's name; and
	(2)  for each patient:
	(A)  the patient's name and date of birth;
	(B)  the nature of the patient's diagnosis or
	symptom being treated by medical cannabis;
	(C) [(3)]  the dosage recommended for [prescribed
	to] the patient;
	(D) [(4)]  the means of administration ordered
	for the patient; [and]
	(E) [(5)]  the total amount of medical [low-THC]
	cannabis required to fill the patient's recommendation; and
	(F)  any severe adverse events the patient may
	experience due to the medical use of medical cannabis
	[prescription].
	SECTION 4.08.  Section 169.005, Occupations Code, is amended
	to read as follows:
	Sec. 169.005.  PATIENT TREATMENT PLAN. A physician
	described by Section 169.002 who recommends medical [prescribes
	low-THC] cannabis for a patient's medical use under this chapter
	must maintain a patient treatment plan that indicates:
	(1)  the dosage, means of administration, and planned
	duration of treatment for the medical [low-THC] cannabis;
	(2)  a plan for monitoring the patient's symptoms; and
	(3)  a plan for monitoring indicators of tolerance or
	reaction to medical [low-THC] cannabis.
	SECTION 4.09.  Section 169.0011, Occupations Code, is
	repealed.
	ARTICLE 5. CONFORMING AMENDMENTS
	SECTION 5.01.  Section 161.001(c), Family Code, is amended
	to read as follows:
	(c)  Evidence of one or more of the following does not
	constitute clear and convincing evidence sufficient for a court to
	make a finding under Subsection (b) and order termination of the
	parent-child relationship:
	(1)  the parent homeschooled the child;
	(2)  the parent is economically disadvantaged;
	(3)  the parent has been charged with a nonviolent
	misdemeanor offense other than:
	(A)  an offense under Title 5, Penal Code;
	(B)  an offense under Title 6, Penal Code; or
	(C)  an offense that involves family violence, as
	defined by Section 71.004 of this code;
	(4)  the parent provided or administered medical
	[low-THC] cannabis to a child for whom the medical [low-THC]
	cannabis was recommended [prescribed] under Chapter 169,
	Occupations Code;
	(5)  the parent declined immunization for the child for
	reasons of conscience, including a religious belief;
	(6)   the parent sought an opinion from more than one
	medical provider relating to the child's medical care, transferred
	the child's medical care to a new medical provider, or transferred
	the child to another health care facility; or
	(7)  the parent allowed the child to engage in
	independent activities that are appropriate and typical for the
	child's level of maturity, physical condition, developmental
	abilities, or culture.
	SECTION 5.02.  Section 262.116(a), Family Code, is amended
	to read as follows:
	(a)  The Department of Family and Protective Services may not
	take possession of a child under this subchapter based on evidence
	that the parent:
	(1)  homeschooled the child;
	(2)  is economically disadvantaged;
	(3)  has been charged with a nonviolent misdemeanor
	offense other than:
	(A)  an offense under Title 5, Penal Code;
	(B)  an offense under Title 6, Penal Code; or
	(C)  an offense that involves family violence, as
	defined by Section 71.004 of this code;
	(4)  provided or administered medical [low-THC]
	cannabis to a child for whom the medical [low-THC] cannabis was
	recommended [prescribed] under Chapter 169, Occupations Code;
	(5)  declined immunization for the child for reasons of
	conscience, including a religious belief;
	(6)  sought an opinion from more than one medical
	provider relating to the child's medical care, transferred the
	child's medical care to a new medical provider, or transferred the
	child to another health care facility;
	(7)  allowed the child to engage in independent
	activities that are appropriate and typical for the child's level
	of maturity, physical condition, developmental abilities, or
	culture; or
	(8)  tested positive for marihuana, unless the
	department has evidence that the parent's use of marihuana has
	caused significant impairment to the child's physical or mental
	health or emotional development.
	SECTION 5.03.  Section 411.0891(a), Government Code, is
	amended to read as follows:
	(a)  The department may obtain as provided by Subsection
	(a-1) criminal history record information that relates to a person
	who:
	(1)  is an applicant for or holds a registration issued
	by the director under Subchapter C, Chapter 481, Health and Safety
	Code, that authorizes the person to manufacture, distribute,
	analyze, or conduct research with a controlled substance;
	(2)  is an applicant for or holds a registration issued
	by the department under Chapter 487, Health and Safety Code, to be a
	director, manager, or employee of a medical cannabis [dispensing]
	organization, as defined by Section 487.001, Health and Safety
	Code;
	(3)  is an applicant for or holds an authorization
	issued by the department under Section 521.2476, Transportation
	Code, to do business in this state as a vendor of ignition interlock
	devices;
	(4)  is an applicant for or holds certification by the
	department as an inspection station or an inspector under
	Subchapter G, Chapter 548, Transportation Code, holds an inspection
	station or inspector certificate issued under that subchapter, or
	is the owner of an inspection station operating under that chapter;
	(5)  is an applicant for or holds a certificate of
	registration issued by the department under Chapter 1956,
	Occupations Code, to act as a metal recycling entity;
	(6)  is an applicant for or holds a license to carry a
	handgun issued by the department under Subchapter H, or is an
	applicant for or holds a certification as an instructor issued by
	the department under this chapter;
	(7)  is an applicant for or holds a Capitol access pass
	issued by the department under Section 411.0625; or
	(8)  is an applicant for or holds a license or
	commission issued by the department under Chapter 1702, Occupations
	Code.
	SECTION 5.04.  Section 443.202(a), Health and Safety Code,
	is amended to read as follows:
	(a)  This section does not apply to medical [low-THC]
	cannabis regulated under Chapter 487.
	SECTION 5.05.  Section 443.2025(a), Health and Safety Code,
	is amended to read as follows:
	(a)  This section does not apply to medical [low-THC]
	cannabis regulated under Chapter 487.
	SECTION 5.06.  Section 481.062(a), Health and Safety Code,
	is amended to read as follows:
	(a)  The following persons may possess a controlled
	substance under this chapter without registering with the Federal
	Drug Enforcement Administration:
	(1)  an agent or employee of a manufacturer,
	distributor, analyzer, or dispenser of the controlled substance who
	is registered with the Federal Drug Enforcement Administration and
	acting in the usual course of business or employment;
	(2)  a common or contract carrier, a warehouseman, or
	an employee of a carrier or warehouseman whose possession of the
	controlled substance is in the usual course of business or
	employment;
	(3)  an ultimate user or a person in possession of the
	controlled substance under a lawful order of a practitioner or in
	lawful possession of the controlled substance if it is listed in
	Schedule V;
	(4)  an officer or employee of this state, another
	state, a political subdivision of this state or another state, or
	the United States who is lawfully engaged in the enforcement of a
	law relating to a controlled substance or drug or to a customs law
	and authorized to possess the controlled substance in the discharge
	of the person's official duties;
	(5)  if the substance is tetrahydrocannabinol or one of
	its derivatives:
	(A)  a Department of State Health Services
	official, a medical school researcher, or a research program
	participant possessing the substance as authorized under
	Subchapter G; or
	(B)  a practitioner or an ultimate user possessing
	the substance as a participant in a federally approved therapeutic
	research program that the commissioner has reviewed and found, in
	writing, to contain a medically responsible research protocol; or
	(6)  a medical cannabis [dispensing] organization
	licensed under Subchapter C, Chapter 487, or a medical cannabis
	research license holder under Chapter 446, that possesses medical
	[low-THC] cannabis.
	SECTION 5.07.  Sections 481.111(e) and (f), Health and
	Safety Code, are amended to read as follows:
	(e)  Sections 481.120, 481.121, 481.122, and 481.125 do not
	apply to a person who engages in the acquisition, possession,
	production, cultivation, delivery, or disposal of a raw material
	used in or by-product created by the production or cultivation of
	medical [low-THC] cannabis if the person:
	(1)  for an offense involving possession only of
	marihuana or drug paraphernalia:
	(A)  [,] is a patient for whom medical [low-THC]
	cannabis is recommended [prescribed] under Chapter 169,
	Occupations Code, or the patient's parent, legal guardian, or
	caregiver;[,] and
	(B)  [the person] possesses medical [low-THC]
	cannabis obtained under a valid recommendation [prescription] from
	a medical cannabis [dispensing] organization; or
	(2)  is a director, manager, or employee of a medical
	cannabis [dispensing] organization and the person, solely in
	performing the person's regular duties at the organization,
	acquires, possesses, produces, cultivates, dispenses, or disposes
	of:
	(A)  in reasonable quantities, any medical
	[low-THC] cannabis or raw materials used in or by-products created
	by the production or cultivation of medical [low-THC] cannabis; or
	(B)  any drug paraphernalia used in the
	acquisition, possession, production, cultivation, delivery, or
	disposal of medical [low-THC] cannabis.
	(f)  For purposes of Subsection (e):
	(1)  ["Dispensing organization" has the meaning
	assigned by Section 487.001.
	[(2)]  "Medical [Low-THC] cannabis" has the meaning
	assigned by Section 169.001, Occupations Code.
	(2)  "Medical cannabis organization" has the meaning
	assigned by Section 487.001.
	SECTION 5.08.  Section 490.001(3), Health and Safety Code,
	is amended to read as follows:
	(3)  "Investigational drug, biological product, or
	device" means a drug, biological product, or device that has
	successfully completed phase one of a clinical trial but the United
	States Food and Drug Administration or its international equivalent
	has not yet approved for general use and that remains under
	investigation in the clinical trial.  The term does not include
	medical [low-THC] cannabis, as defined by Section 169.001,
	Occupations Code, or a product containing marihuana, as defined by
	Section 481.002, regardless of whether the cannabis or product
	successfully completed phase one of a clinical trial.
	SECTION 5.09.  Section 551.004(a), Occupations Code, is
	amended to read as follows:
	(a)  This subtitle does not apply to:
	(1)  a practitioner licensed by the appropriate state
	board who supplies a patient of the practitioner with a drug in a
	manner authorized by state or federal law and who does not operate a
	pharmacy for the retailing of prescription drugs;
	(2)  a member of the faculty of a college of pharmacy
	recognized by the board who is a pharmacist and who performs the
	pharmacist's services only for the benefit of the college;
	(3)  a person who procures prescription drugs for
	lawful research, teaching, or testing and not for resale;
	(4)  a home and community support services agency that
	possesses a dangerous drug as authorized by Section 142.0061,
	142.0062, or 142.0063, Health and Safety Code; [or]
	(5)  a medical cannabis [dispensing] organization, as
	defined by Section 487.001, Health and Safety Code, that
	cultivates, processes, tests, and dispenses medical [low-THC]
	cannabis, as authorized by a license issued under Subchapter C,
	Chapter 487, Health and Safety Code, to a patient listed in the
	compassionate-use registry established under that chapter; or
	(6)  a medical cannabis research license holder under
	Chapter 446, Health and Safety Code, that cultivates, possesses,
	researches, tests, and dispenses medical cannabis as authorized by
	the license.
	ARTICLE 6. TRANSITIONS AND EFFECTIVE DATE
	SECTION 6.01.  Not later than December 31, 2025, the public
	safety director of the Department of Public Safety and the
	executive commissioner of the Health and Human Services Commission
	shall adopt rules as required to implement, administer, and enforce
	this Act.
	SECTION 6.02.  (a) A license to operate as a dispensing
	organization issued under Chapter 487, Health and Safety Code,
	before the effective date of this Act continues to be valid after
	the effective date of this Act until that license expires.
	(b)  The registration of a director, manager, or employee of
	a dispensing organization under Subchapter D, Chapter 487, Health
	and Safety Code, continues to be valid after the effective date of
	this Act until that registration expires.
	SECTION 6.03.  (a) Not later than April 1, 2026, the
	Department of Public Safety shall license cannabis cultivation
	organizations in accordance with Subchapter C, Chapter 487, Health
	and Safety Code, as amended by this Act, provided that the
	applicants for a license have met all requirements for approval
	under that subchapter.
	(b)  Not later than June 1, 2026, the Department of Public
	Safety shall license other classes of medical cannabis
	organizations in accordance with Subchapter C, Chapter 487, Health
	and Safety Code, as amended by this Act, provided that the
	applicants for a license have met all requirements for approval
	under that subchapter.
	(c)  The governor shall appoint members to the medical
	cannabis research advisory board as required under Chapter 446,
	Health and Safety Code, as added by this Act, as soon as practicable
	and not later than September 1, 2025.
	SECTION 6.04.  This Act takes effect September 1, 2025.