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A BILL TO BE ENTITLED
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AN ACT
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relating to the medical use of low-THC cannabis under and the |
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administration of the Texas Compassionate-Use Program; requiring |
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registration. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 487.001, Health and Safety Code, is |
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amended by adding Subdivision (5) to read as follows: |
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(5) "Owner" means any individual who, directly or |
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indirectly, owns, actually or beneficially, any interest of a |
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dispensing organization. |
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SECTION 2. Section 487.053(a), Health and Safety Code, is |
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amended to read as follows: |
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(a) The department shall: |
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(1) issue or renew a license to operate as a dispensing |
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organization to each applicant who satisfies the requirements |
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established under this chapter; and |
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(2) register directors, owners, managers, and |
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employees of each dispensing organization. |
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SECTION 3. Sections 487.101 and 487.102, Health and Safety |
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Code, are amended to read as follows: |
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Sec. 487.101. LICENSE REQUIRED. (a) A license issued by the |
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department under this chapter is required to operate a dispensing |
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organization. |
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(b) A dispensing organization licensed under this chapter |
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is not required to apply for an additional license for the use of a |
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satellite location for secure storage of low-THC cannabis if: |
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(1) the address of the satellite location was included |
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in the application; or |
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(2) the dispensing organization obtains approval from |
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the department under Section 487.1035. |
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Sec. 487.102. ELIGIBILITY FOR LICENSE. An applicant for a |
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license to operate as a dispensing organization is eligible for the |
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license if: |
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(1) as determined by the department, the applicant |
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possesses: |
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(A) the technical and technological ability to |
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cultivate and produce low-THC cannabis; |
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(B) the ability to secure: |
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(i) the resources and personnel necessary |
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to operate as a dispensing organization; and |
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(ii) premises reasonably located to allow |
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patients listed on the compassionate-use registry access to the |
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organization through existing infrastructure; |
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(C) the ability to maintain accountability for |
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the raw materials, the finished product, and any by-products used |
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or produced in the cultivation or production of low-THC cannabis to |
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prevent unlawful access to or unlawful diversion or possession of |
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those materials, products, or by-products; and |
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(D) the financial ability to maintain operations |
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for not less than two years from the date of application; |
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(2) each director, owner, manager, or employee of the |
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applicant is registered under Subchapter D; and |
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(3) the applicant satisfies any additional criteria |
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determined by the director to be necessary to safely implement this |
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chapter. |
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SECTION 4. Section 487.103(b), Health and Safety Code, is |
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amended to read as follows: |
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(b) The application must include: |
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(1) the name and address of the applicant; |
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(2)[,] the name and address of each of the applicant's |
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directors, owners, managers, and employees; |
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(3) the address of any satellite location that will be |
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used by the applicant for secure storage of low-THC cannabis under |
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Section 487.1035;[,] and |
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(4) any other information considered necessary by the |
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department to determine the applicant's eligibility for the |
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license. |
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SECTION 5. Subchapter C, Chapter 487, Health and Safety |
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Code, is amended by adding Section 487.1035 to read as follows: |
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Sec. 487.1035. SATELLITE LOCATIONS. (a) A dispensing |
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organization licensed under this chapter may operate one or more |
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satellite locations in addition to the organization's primary |
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location to securely store low-THC cannabis for distribution. |
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(b) A satellite location must be approved by the department |
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before a dispensing organization may operate the location. A |
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dispensing organization may apply for approval in the form and |
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manner prescribed by the department. |
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(c) The department must act on an application submitted |
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under Subsection (b) not later than the 90th day after the date the |
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application is submitted to the department. |
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(d) The director shall adopt rules regarding the design and |
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security requirements for satellite locations. |
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SECTION 6. Section 487.104, Health and Safety Code, is |
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amended by adding Subsections (d), (e), (f), and (g) to read as |
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follows: |
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(d) The department shall issue nine licenses under this |
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section to dispensing organizations in this state provided that the |
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department receives applications from a sufficient number of |
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applicants meeting the requirements for approval under this |
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subchapter. |
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(e) The department shall issue initial licenses to |
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dispensing organizations under this section based on a competitive |
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evaluation of applicant qualifications relative to other |
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applicants. |
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(f) The department shall issue and renew licenses under this |
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section in a manner that ensures adequate access to low-THC |
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cannabis for patients registered in the compassionate-use registry |
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in each public health region designated under Section 121.007. |
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(g) The director shall adopt rules to establish a timeline |
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for reviewing and taking action on an application submitted under |
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this section. |
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SECTION 7. Subchapter C, Chapter 487, Health and Safety |
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Code, is amended by adding Sections 487.1045 and 487.1046 to read as |
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follows: |
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Sec. 487.1045. REQUIREMENT OF LICENSE HOLDER TO BEGIN AND |
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MAINTAIN OPERATIONS. (a) An applicant issued a license to operate a |
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dispensing organization must begin dispensing low-THC cannabis not |
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later than 24 months after the date the license is issued and |
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continue dispensing low-THC cannabis during the term of a license |
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issued under this subchapter. |
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(b) The department shall adopt rules to: |
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(1) establish a minimum amount of dispensing activity |
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in which a dispensing organization must engage to maintain a |
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license under this chapter; |
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(2) monitor whether a dispensing organization is |
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actively using a license issued under this subchapter to dispense |
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low-THC cannabis and the amount of dispensing activity engaged in |
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by the organization; and |
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(3) revoke the license of a dispensing organization |
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that: |
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(A) does not dispense low-THC cannabis within the |
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time required by this section; or |
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(B) after the 24-month period following initial |
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licensure, discontinues dispensing low-THC cannabis or fails to |
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meet the minimum dispensing activity requirement under Subdivision |
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(1) during the term of a license. |
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Sec. 487.1046. LOCATION. (a) A license holder may not |
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operate as a dispensing organization or establish a satellite |
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location within 1,000 feet of the premises of a school that exists |
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on the date of the approval of the license holder's initial |
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application for licensure as a dispensing organization or approval |
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of a satellite location, as applicable. |
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(b) In this section, "school" and "premises" have the |
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meanings assigned by Section 481.134. |
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SECTION 8. Sections 487.105(a) and (b), Health and Safety |
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Code, are amended to read as follows: |
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(a) An applicant for the issuance or renewal of a license to |
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operate as a dispensing organization shall provide the department |
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with the applicant's name and the name of each of the applicant's |
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directors, owners, managers, and employees. |
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(b) Before a dispensing organization licensee hires a |
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manager or employee for the organization, the licensee must provide |
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the department with the name of the prospective manager or |
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employee. The licensee may not transfer the license to another |
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person before that prospective applicant and the applicant's |
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directors, owners, managers, and employees pass a criminal history |
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background check and are registered as required by Subchapter D. |
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SECTION 9. Section 487.107, Health and Safety Code, is |
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amended by adding Subsection (c) to read as follows: |
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(c) A dispensing organization may not dispense to a person |
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low-THC cannabis in a: |
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(1) package or container that contains more than a |
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total of one gram of tetrahydrocannabinols; or |
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(2) medical device for pulmonary inhalation that |
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contains more than one gram of tetrahydrocannabinols. |
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SECTION 10. Subchapter C, Chapter 487, Health and Safety |
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Code, is amended by adding Section 487.1071 to read as follows: |
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Sec. 487.1071. CANNABINOIDS ELIGIBLE FOR DISPENSING. (a) |
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In this section, "phytocannabinoid" means a chemical substance: |
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(1) created naturally by a plant of the species |
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Cannabis sativa L. that is separated from the plant by a mechanical |
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or chemical extraction process; |
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(2) created naturally by a plant of the species |
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Cannabis sativa L. that binds to or interacts with the cannabinoid |
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receptors of the endocannabinoid system; or |
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(3) produced by decarboxylation from a naturally |
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occurring cannabinoid acid without the use of a chemical catalyst. |
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(b) A dispensing organization may not dispense a low-THC |
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cannabis product that contains a cannabinoid that is not a |
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phytocannabinoid. |
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SECTION 11. Section 487.151(a), Health and Safety Code, is |
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amended to read as follows: |
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(a) An individual who is a director, owner, manager, or |
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employee of a dispensing organization must apply for and obtain a |
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registration under this section. |
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SECTION 12. Section 487.201, Health and Safety Code, is |
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amended to read as follows: |
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Sec. 487.201. COUNTIES AND MUNICIPALITIES MAY NOT PROHIBIT |
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LOW-THC CANNABIS. A municipality, county, or other political |
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subdivision may not enact, adopt, or enforce a rule, ordinance, |
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order, resolution, or other regulation that prohibits the |
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cultivation, production, storage, dispensing, or possession of |
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low-THC cannabis, as authorized by this chapter. |
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SECTION 13. Sections 169.001(3), (4), and (5), Occupations |
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Code, are amended to read as follows: |
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(3) "Low-THC cannabis" means the plant Cannabis sativa |
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L., and any part of that plant or any compound, manufacture, salt, |
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derivative, mixture, preparation, resin, or oil of that plant that |
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contains not more than 10 milligrams [one percent by weight] of |
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tetrahydrocannabinols in each dosage unit. |
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(4) "Medical use" means the ingestion, absorption, or |
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insertion by a means of administration other than by smoking of a |
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prescribed amount of low-THC cannabis by a person for whom low-THC |
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cannabis is prescribed under this chapter. |
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(5) "Smoking" means burning or igniting a substance |
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and inhaling the smoke. The term does not include inhaling a |
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medication or other substance that is otherwise aerosolized or |
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vaporized for administration by pulmonary inhalation. |
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SECTION 14. Section 169.003, Occupations Code, is amended |
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to read as follows: |
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Sec. 169.003. PRESCRIPTION OF LOW-THC CANNABIS. (a) A |
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physician described by Section 169.002 may prescribe low-THC |
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cannabis to a patient if: |
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(1) the patient is a permanent resident of the state; |
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(2) the physician complies with the registration |
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requirements of Section 169.004; and |
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(3) the physician certifies to the department that: |
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(A) the patient is diagnosed with: |
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(i) epilepsy; |
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(ii) a seizure disorder; |
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(iii) multiple sclerosis; |
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(iv) spasticity; |
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(v) amyotrophic lateral sclerosis; |
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(vi) autism; |
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(vii) cancer; |
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(viii) an incurable neurodegenerative |
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disease; |
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(ix) post-traumatic stress disorder; [or] |
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(x) a terminal illness or a condition for |
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which a patient is receiving hospice care; or |
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(xi) a medical condition that is approved |
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for a research program under Subchapter F, Chapter 487, Health and |
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Safety Code, and for which the patient is receiving treatment under |
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that program; and |
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(B) the physician determines the risk of the |
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medical use of low-THC cannabis by the patient is reasonable in |
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light of the potential benefit for the patient. |
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(b) Each prescription issued by a physician to a patient for |
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low-THC cannabis: |
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(1) may only provide for a 90-day supply of low-THC |
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cannabis based on the dosage prescribed to the patient; and |
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(2) may provide up to four refills of a 90-day supply |
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of low-THC cannabis. |
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SECTION 15. Chapter 169, Occupations Code, is amended by |
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adding Section 169.006 to read as follows: |
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Sec. 169.006. ADMINISTRATION OF LOW-THC CANNABIS BY |
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PULMONARY INHALATION. (a) A physician may prescribe pulmonary |
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inhalation of an aerosol or vapor as a means of administration of |
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low-THC cannabis if the physician determines that based on the |
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patient's condition there is a medical necessity for that means of |
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administration. |
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(b) The executive commissioner of the Health and Human |
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Services Commission shall adopt rules related to medical devices |
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for pulmonary inhalation of low-THC cannabis. |
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SECTION 16. Notwithstanding Section 487.1046, Health and |
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Safety Code, as added by this Act, a licensed dispensing |
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organization that, on the effective date of this Act, is operating |
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in a location that is within 1,000 feet of the premises of a school |
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may continue to operate in that location. |
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SECTION 17. Not later than April 1, 2026, the Department of |
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Public Safety shall license at least nine dispensing organizations |
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in accordance with Section 487.104, Health and Safety Code, as |
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amended by this Act, including those already licensed and actively |
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operating as of the effective date of this Act, provided at least |
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nine applicants for a license to operate as a dispensing |
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organization have met the requirements for approval provided by |
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Subchapter C, Chapter 487, Health and Safety Code, as amended by |
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this Act. |
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SECTION 18. Not later than October 1, 2025: |
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(1) the Department of Public Safety shall adopt the |
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rules necessary to implement Sections 487.1035 and 487.1045, Health |
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and Safety Code, as added by this Act; and |
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(2) the executive commissioner of the Health and Human |
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Services Commission shall adopt the rules necessary to implement |
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Section 169.006, Occupations Code, as added by this Act. |
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SECTION 19. This Act takes effect September 1, 2025. |
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