SB259 - Relating to the possession, use, cultivation, distribution, transportation, and delivery of medical cannabis for use by patients as the best available medical treatment, the licensing of medical cannabis dispensing organizations, and the registration of certain individuals; authorizing fees.

  89R2239 LHC-D     By: Alvarado S.B. No. 259       A BILL TO BE ENTITLED   AN ACT   relating to the possession, use, cultivation, distribution,   transportation, and delivery of medical cannabis for use by   patients as the best available medical treatment, the licensing of   medical cannabis dispensing organizations, and the registration of   certain individuals; authorizing fees.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle C, Title 6, Health and Safety Code, is   amended by adding Chapter 487A to read as follows:   CHAPTER 487A. USE OF CANNABIS FOR MEDICAL PURPOSES   SUBCHAPTER A. GENERAL PROVISIONS           Sec. 487A.001.  DEFINITIONS. In this chapter:                 (1)     "Department" means the Department of Public   Safety.                 (2)     "Director" means the public safety director of the   department.                 (3)     "Dispensing organization" means an organization   licensed by the department to cultivate, process, and dispense   medical cannabis to a patient for whom medical use is recommended   under Chapter 169A, Occupations Code.                 (4)     "Medical cannabis" and "medical use" have the   meanings assigned by Section 169A.001, Occupations Code.   SUBCHAPTER B. DUTIES OF DEPARTMENT           Sec.   487A.051.     DUTIES OF DEPARTMENT. The department shall   administer this chapter.           Sec.   487A.052.     RULES. (a)   The director shall adopt any   rules necessary for the administration and enforcement of this   chapter.           (b)     The director shall adopt rules imposing fees under this   chapter in amounts sufficient to cover the cost of administering   this chapter.           Sec.   487A.053.     LICENSING OF DISPENSING ORGANIZATIONS AND   REGISTRATION OF CERTAIN ASSOCIATED INDIVIDUALS. (a)   The   department shall:                 (1)     issue or renew a license under Subchapter C to   operate as a dispensing organization to each applicant who   satisfies the requirements established under this chapter for   licensure as a dispensing organization; and                 (2)     register directors, managers, and employees under   Subchapter D of each dispensing organization.           (b)     Subject to Section 411.503, Government Code, the   department shall enforce compliance of license holders and   registrants and shall adopt procedures for renewing a license or   registration issued under this chapter and for suspending or   revoking a license or registration issued under this chapter.           Sec.   487A.054.     MEDICAL USE REGISTRY. (a)   The department   shall establish and maintain a secure online medical use registry   that contains:                 (1)     the name of each physician who registers as the   physician recommending medical use for a patient under Section   169A.003, Occupations Code, and the name and date of birth of the   patient; and                 (2)     the amount of medical cannabis dispensed to each   patient.           (b)  The department shall ensure the registry:                 (1)     is designed to prevent more than one physician   from registering as the physician recommending medical use for a   single patient;                 (2)     is accessible to law enforcement agencies and   dispensing organizations for the purpose of verifying whether an   individual is a patient for whom medical use is recommended under   Chapter 169A, Occupations Code; and                 (3)     allows a physician recommending medical use under   Chapter 169A, Occupations Code, to input safety and efficacy data   derived from the treatment of patients for whom medical use is   recommended.   SUBCHAPTER C. LICENSING TO OPERATE AS DISPENSING ORGANIZATION           Sec.   487A.101.     LICENSE REQUIRED. A person may not operate a   dispensing organization unless the person holds a license issued by   the department under this subchapter.           Sec.   487A.102.     ELIGIBILITY FOR LICENSE. An applicant for a   license to operate a dispensing organization is eligible for the   license if:                 (1)     as determined by the department, the applicant   possesses:                       (A)     the technical and technological ability to   cultivate and produce medical cannabis;                       (B)  the ability to secure:                             (i)     the resources and personnel necessary   to operate as a dispensing organization; and                             (ii)     premises reasonably located to allow   patients listed on the medical use registry access to the   organization through existing infrastructure;                       (C)     the ability to maintain accountability for   the raw materials, the finished product, and any by-products used   or produced in the cultivation or production of medical 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   until at least the second anniversary of the application date;                 (2)     each director, manager, or employee of the   applicant is registered under Subchapter D; and                 (3)     the applicant satisfies any additional criteria   the director determines necessary to safely implement this chapter.           Sec.   487A.103.     APPLICATION. (a)   A person may apply for an   initial or renewal license under this subchapter by submitting a   form prescribed by the department along with the application fee in   an amount set by the director.           (b)     The application must include the name and address of the   applicant, the name and address of each of the applicant's   directors, managers, and employees, and any other information the   department considers necessary to determine the applicant's   eligibility for the license.           Sec.   487A.104.     ISSUANCE, RENEWAL, OR DENIAL OF LICENSE.     (a)   The department shall issue or renew a license under this   subchapter only if:                 (1)     the department determines the applicant meets the   eligibility requirements described by Section 487A.102; and                 (2)     issuance or renewal of the license is necessary to   ensure reasonable statewide access to, and the availability of,   medical cannabis for patients registered in the medical use   registry for whom medical cannabis is recommended under Chapter   169A, Occupations Code.           (b)     If the department denies the issuance or renewal of a   license under Subsection (a), the applicant is entitled to a   hearing. Chapter 2001, Government Code, applies to a proceeding   under this section.           (c)     A license issued or renewed under this subchapter   expires as determined by the department in accordance with Section   411.511, Government Code.           Sec.   487A.105.     CRIMINAL HISTORY RECORD CHECK. (a)   An   applicant for the issuance or renewal of a license under this   subchapter 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 dispensing organization under this subchapter   hires a manager or employee for the organization, the license   holder must provide the department with the name of the prospective   manager or employee. The license holder may not transfer the   license to another person before that prospective applicant and the   applicant's directors, managers, and employees are eligible based   on a criminal history record check and are registered as required by   Subchapter D.           (c)     The department shall conduct a criminal history record   check on each individual whose name is provided to the department   under Subsection (a) or (b). The director by rule shall:                 (1)     require the individual to submit a complete set of   fingerprints to the department on a form prescribed by the   department for purposes of a criminal history record check under   this section; and                 (2)     establish criteria for determining whether an   individual is eligible based on the criminal history record check   for the purposes of this section.           (d)     After conducting a criminal history record check under   this section, the department shall notify the relevant applicant or   organization and the individual who is the subject of the criminal   history record check as to whether the individual is eligible based   on the criminal history record check.           Sec.   487A.106.     DUTY TO MAINTAIN ELIGIBILITY. Each license   holder under this subchapter must maintain compliance at all times   with the eligibility requirements described by Section 487A.102.           Sec.   487A.107.     DUTIES RELATING TO DISPENSING MEDICAL   CANNABIS. (a)   Before dispensing medical cannabis to an individual   for whom medical use is recommended under Chapter 169A, Occupations   Code, the dispensing organization must verify the individual is   listed as a patient in the medical use registry.           (b)     After dispensing medical cannabis to a patient for whom   medical use is recommended under Chapter 169A, Occupations Code,   the dispensing organization shall record in the medical use   registry the form and quantity of the medical cannabis dispensed   and the date and time of dispensation.           Sec.   487A.108.     LICENSE SUSPENSION OR REVOCATION. (a)   The   department may at any time suspend or revoke a license issued under   this subchapter if the department determines the license holder has   not maintained the eligibility requirements described by Section   487A.102 or has failed to comply with a duty imposed under this   chapter.           (b)     The director shall give written notice to the license   holder of a license suspension or revocation under this section and   the grounds for the suspension or revocation. The notice must be   sent by certified mail, return receipt requested.           (c)     After suspending or revoking a license issued under this   subchapter, the director may seize or place under seal all medical   cannabis and drug paraphernalia owned or possessed by the   dispensing organization. If the director orders the revocation of   the license, a disposition may not be made of the seized or sealed   medical 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 cannabis and drug paraphernalia may be forfeited to the   state as provided under Subchap [Text truncated for display. Full text available on LegiScan.]