SB 734

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 a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1.  CHANGES TO TEXAS COMPASSIONATE USE PROGRAM
SECTION 1.01.  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 1.02.  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 1.03.  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 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, Subchapter G,
Chapter 481, of this code, Chapter 169, Occupations Code, or
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, 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, 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,
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, 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
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 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 1.04.  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 1.05.  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)  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
(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 1.06.  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 1.07.  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 1.08.  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 1.09.  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 1.10.  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 1.11.  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 1.12.  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 1.13.  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 1.14.  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 1.15.  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 1.16.  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 1.17.  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 1.18.  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 1.19.  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 1.20.  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 1.21.  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 1.22.  Subchapter F, Chapter 487, Health and Safety
ARTICLE 2. RECOMMENDATION OF MEDICAL CANNABIS BY PHYSICIAN
SECTION 2.01.  The heading to Chapter 169, Occupations Code,
CHAPTER 169.  AUTHORITY TO RECOMMEND MEDICAL [PRESCRIBE LOW-THC]
CANNABIS TO CERTAIN PATIENTS FOR COMPASSIONATE USE
SECTION 2.02.  Section 169.001, Occupations Code, is amended
Sec. 169.001.  DEFINITIONS.  In this chapter:
(1)  "Department" means the Department of Public
(2) [(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
[(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)  "Severe 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 2.03.  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 2.04.  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 2.05.  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 2.06.  The heading to Section 169.004, Occupations
Code, is amended to read as follows:
Sec. 169.004.  MEDICAL [LOW-THC] CANNABIS RECOMMENDATION
SECTION 2.07.  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
[(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 2.08.  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 2.09.  Section 169.0011, Occupations Code, is
ARTICLE 3.  CONFORMING AMENDMENTS
SECTION 3.01.  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 3.02.  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 3.03.  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 3.04.  Section 443.202(a), Health and Safety Code,
(a)  This section does not apply to medical [low-THC]
cannabis regulated under Chapter 487.
SECTION 3.05.  Section 443.2025(a), Health and Safety Code,
(a)  This section does not apply to medical [low-THC]
cannabis regulated under Chapter 487.
SECTION 3.06.  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 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
(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
(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
(A)  a Department of State Health Services
official, a medical school researcher, or a research program
participant possessing the substance as authorized under
(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, that possesses medical
SECTION 3.07.  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
(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
(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
[(2)]  "Medical [Low-THC] cannabis" has the meaning
assigned by Section 169.001, Occupations Code.
(2)  "Medical cannabis organization" has the meaning
SECTION 3.08.  Section 490.001(3), Health and Safety Code,
(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 3.09.  Section 551.004(a), Occupations Code, is
(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.
ARTICLE 4.  TRANSITIONS AND EFFECTIVE DATE
SECTION 4.01.  Not later than December 31, 2025, the public
safety director of the Department of Public Safety shall adopt
rules as required to implement, administer, and enforce this Act.
SECTION 4.02.  (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 4.03.  (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
(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
SECTION 4.04.  This Act takes effect September 1, 2025.