SB 170

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
(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
(2)  Texas patients should have reasonable statewide
access to medical cannabis subject to safeguards for public health
(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
(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
(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
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
(1)  a licensed physician certified by the American
Board of Internal Medicine and certified in the subspecialty of
(2)  a licensed physician certified by the American
(3)  a licensed physician certified by the American
Board of Psychiatry and Neurology;
(4)  a licensed physician certified by the American
(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;
(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
(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
(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
(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
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
(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
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
Sec. 446.102.  PURPOSE OF LICENSE.  A medical cannabis
research license may be issued for the following limited research
(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
(7)  conducting research on cannabis-affiliated
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
(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
(1)  the quality, study design, value, and impact of
(2)  whether the research supports the purposes
(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
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
Sec. 446.108.  FEES.  The executive commissioner shall set
license and renewal fees in an amount sufficient to administer this
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
(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
ARTICLE 3.  CHANGES TO TEXAS COMPASSIONATE USE PROGRAM
SECTION 3.01.  Section 487.001, Health and Safety Code, is
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
(3) [(2)]  "Director" means the public safety director
[(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
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
(2)  obtained solely from a medical cannabis
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,
(2)  a medical cannabis organization;
(3)  a director, manager, or employee of a medical
cannabis organization who is registered with the department under
(4)  a medical cannabis research license holder under
(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
(1)  a patient for whom medical use is recommended
under Chapter 169, Occupations Code, or the parent, legal guardian,
(2)  a medical cannabis organization;
(3)  a director, manager, or employee of a medical
cannabis organization who is registered with the department under
(4)  a medical cannabis research license holder under
(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
Sec. 487.052.  RULES; FEES.  (a)  The director shall adopt
any rules necessary for the administration and enforcement of this
(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
(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
SECTION 3.05.  Subchapter B, Chapter 487, Health and Safety
Code, is amended by adding Sections 487.0521 and 487.0522 to read as
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
(2)  each medical cannabis product and medical cannabis
package is labeled with the required warnings as determined by the
(3)  the packaging and label of medical cannabis or a
(A)  do not contain any false or misleading
(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,
(1)  requiring accurate reporting to consumers
regarding the content of medical cannabis or medical cannabis
(2)  providing for random testing by the department or
the department's designee to ensure compliance with labeling and
(3)  providing for health and safety regulations and
standards for the manufacture and cultivation of medical cannabis
(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
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
(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
(5)  the date of the transaction;
(6)  the total spent in dollars; and
(7)  any additional information the department
(e)  The records in the medical cannabis inventory system
must include for each license holder:
(1)  the amount of any medical cannabis waste, in
(2)  all point-of-sale records; and
(3)  any additional information the department
(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
(h)  The director shall adopt rules necessary for the
implementation and enforcement of this section, including rules
(1)  the department has 24-hour access to the medical
(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
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,
(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
(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
(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
(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
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'
(B)  the patient's [and] date of birth;
(C)  the nature of the patient's eligible medical
(D)  [of the patient,] the dosage recommended;
(E)  [prescribed,] the means of administration
(F)  the total amount of medical [low-THC]
cannabis required to fill the patient's recommendation
(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
(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,
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
(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
(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
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]
SECTION 3.11.  Section 487.101, Health and Safety Code, is
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
(c)  Medical cannabis organization license types shall
(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
(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,
(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
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
(A)  the technical and technological ability
appropriate for that class of license [to cultivate and produce
(i)  the resources and personnel necessary
to operate as a medical cannabis [dispensing] organization; and
dispensing premises reasonably located to allow patients listed on
the compassionate-use registry access to the organization through
(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
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
SECTION 3.14.  Section 487.103(a), Health and Safety Code,
(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
SECTION 3.15.  Section 487.104(a), Health and Safety Code,
(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,
(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,
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
SECTION 3.17.  Section 487.106, Health and Safety Code, is
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
(b)  On request of the department, a license holder must
provide to the department a reasonably sized sample suitable for
SECTION 3.18.  Section 487.107, Health and Safety Code, is
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
(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
(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
(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
(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
SECTION 3.20.  Section 487.151(a), Health and Safety Code,
(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
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
SECTION 3.22.  Subchapter F, Chapter 487, Health and Safety
ARTICLE 4. RECOMMENDATION OF MEDICAL CANNABIS BY PHYSICIAN
SECTION 4.01.  The heading to Chapter 169, Occupations Code,
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
Sec. 169.001.  DEFINITIONS.  In this chapter:
(1)  "Department" means the Department of Public
[(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
(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
(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
(B)  results in an illness requiring
(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
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
(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
(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
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
(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
[(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
[(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
SECTION 4.05.  Section 169.003, Occupations Code, is amended
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
(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:
[(v)  amyotrophic lateral sclerosis;
[(viii)  an incurable neurodegenerative
[(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
(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
SECTION 4.07.  Section 169.004(a), Occupations Code, is
(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:
(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
(D) [(4)]  the means of administration ordered
(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
SECTION 4.08.  Section 169.005, Occupations Code, is amended
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
ARTICLE 5.  CONFORMING AMENDMENTS
SECTION 5.01.  Section 161.001(c), Family Code, is amended
(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
(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,
(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
SECTION 5.02.  Section 262.116(a), Family Code, is amended
(a)  The Department of Family and Protective Services may not
take possession of a child under this subchapter based on evidence
(2)  is economically disadvantaged;
(3)  has been charged with a nonviolent misdemeanor
(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
(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
(a)  The department may obtain as provided by Subsection
(a-1) criminal history record information that relates to a person
(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
(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
(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
SECTION 5.04.  Section 443.202(a), Health and Safety Code,
(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,
(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,
(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 ca