HB46 - Relating to the medical use of low-THC cannabis under and the administration of the Texas Compassionate-Use Program; requiring registration.

      H.B. No. 46         AN ACT   relating to the medical use of low-THC cannabis under and the   administration of the Texas Compassionate-Use Program; requiring   registration.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 487.053(a), Health and Safety Code, is   amended to read as follows:          (a)  The department shall:                (1)  issue or renew a license to operate as a dispensing   organization to each applicant who satisfies the requirements   established under this chapter; and                (2)  register directors, owners, managers, members,   and employees of each dispensing organization.          SECTION 2.  Section 487.054, Health and Safety Code, is   amended by adding Subsections (c) and (d) to read as follows:           (c)     Information within the registry regarding patient   identification, including the fact that a person is listed as a   patient in the registry, is confidential and may only be accessed by   the department, registered physicians, and dispensing   organizations for the purposes of this chapter.   Confidential   information under this subsection may not be disclosed except as   authorized under this chapter and is not subject to disclosure   under Chapter 552, Government Code.           (d)     Notwithstanding Subsection (c), on request by a   patient, the department may release patient information contained   in the registry to the patient or a person designated by the   patient.          SECTION 3.  Section 487.101, Health and Safety Code, is   amended to read as follows:          Sec. 487.101.  LICENSE REQUIRED.   (a) A license issued by the   department under this chapter is required to operate a dispensing   organization.           (b)     A dispensing organization licensed under this chapter   is not required to apply for an additional license for the use of a   satellite location for secure storage of low-THC cannabis if:                 (1)     the address of the satellite location was included   in the application; or                 (2)     the dispensing organization obtains approval from   the department under Section 487.1035.          SECTION 4.  Section 487.102, Health and Safety Code, is   amended to read as follows:          Sec. 487.102.  ELIGIBILITY FOR LICENSE.  An applicant for a   license to operate as a 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 low-THC 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 compassionate-use registry access to the   organization through existing infrastructure;                      (C)  the ability to maintain accountability for   the raw materials, the finished product, and any by-products used   or produced in the cultivation or production of 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;                (2)  each director, owner,  manager, member,  or employee   of the applicant is registered under Subchapter D; and                (3)  the applicant satisfies any additional criteria   determined by the director to be necessary to safely implement this   chapter.          SECTION 5.  Section 487.103(b), Health and Safety Code, is   amended to read as follows:          (b)  The application must include :                 (1)   the name and address of the applicant ;                 (2) [ , ] the name and address of each of the applicant's   directors, owners,  managers, members,  and employees ;                 (3)     the address of any satellite location that will be   used by the applicant for secure storage of low-THC cannabis under   Section 487.1035; [ , ] and                 (4)   any other information considered necessary by the   department to determine the applicant's eligibility for the   license.          SECTION 6.  Subchapter C, Chapter 487, Health and Safety   Code, is amended by adding Section 487.1035 to read as follows:           Sec.   487.1035.     SATELLITE LOCATIONS. (a) A dispensing   organization licensed under this chapter may operate one or more   satellite locations in addition to the organization's primary   location to securely store low-THC cannabis for distribution.           (b)     A satellite location must be approved by the department   before a dispensing organization may operate the location. A   dispensing organization may apply for approval in the form and   manner prescribed by the department.           (c)     The department must act on an application submitted   under Subsection (b) not later than the 180th day after the date the   application is submitted to the department.           (d)     The director shall adopt rules regarding the design and   security requirements for satellite locations.           (e)     A dispensing organization may not operate more than one   satellite location in a public health region designated under   Section 121.007 until the dispensing organization operates one   satellite location in each public health region.           (f)     A location previously approved by the department as a   patient pickup location before September 1, 2025, is considered to   be approved as a satellite location under Subsection (b) for   purposes of this section and is permitted to:                 (1)  operate as a patient pickup location; and                 (2)  securely store low-THC cannabis for distribution.          SECTION 7.  Section 487.104, Health and Safety Code, is   amended by amending Subsection (b) and adding Subsections (b-1),   (d), (d-1), (e), and (f) to read as follows:          (b)   Except as provided by Subsection (b-1), if [ 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.           (b-1)     If the department denies the issuance of a license   under this section to an applicant that has never held a license   under this section, the applicant is not entitled to a hearing.           (d)     The department shall issue 15 licenses under this   section to dispensing organizations in this state provided that the   department receives applications from a sufficient number of   applicants meeting the requirements for eligibility under this   subchapter.           (d-1)     The department shall issue initial licenses to   dispensing organizations under this section based on a competitive   evaluation of applicant qualifications relative to other   applicants.           (e)     The department shall issue and renew licenses under this   section in a manner that ensures adequate access to low-THC   cannabis for patients registered in the compassionate-use registry   in each public health region designated under Section 121.007.           (f)     The director shall adopt rules to establish a timeline   for reviewing and taking action on an application submitted under   this section.          SECTION 8.  Subchapter C, Chapter 487, Health and Safety   Code, is amended by adding Section 487.1045 to read as follows:           Sec.   487.1045.     REQUIREMENT OF LICENSE HOLDER TO BEGIN AND   MAINTAIN OPERATIONS. (a) An applicant issued a license to operate a   dispensing organization must begin dispensing low-THC cannabis not   later than 24 months after the date the license is issued and   continue dispensing low-THC cannabis during the term of a license   issued under this subchapter.           (b)  The director shall adopt rules to:                 (1)     monitor whether a dispensing organization is using   a license issued under this subchapter to dispense low-THC   cannabis; and                 (2)     revoke the license of a dispensing organization   that does not dispense low-THC cannabis within the time required by   this section or that discontinues dispensing low-THC cannabis   during the term of a license.          SECTION 9.  Section 487.105, Health and Safety Code, is   amended by amending Subsections (a) and (b) and adding Subsection   (c-1) to read as follows:          (a)  An applicant for the issuance or renewal of a license 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, owners, managers, members,  and employees.          (b)  Before a dispensing organization licensee hires a   manager or employee for the organization, the licensee must provide   the department with the name of the prospective manager or   employee. The licensee may not transfer the license to another   person before that prospective applicant and the applicant's   directors, owners, managers, members, and employees pass a criminal   history background check and are registered as required by   Subchapter D.           (c-1)     This section does not apply to a director, owner,   manager, member, or employee who does not exercise direct control   over the daily operations of the dispensing organization.          SECTION 10.  Section 487.107, Health and Safety Code, is   amended by adding Subsection (c) to read as follows:           (c)     A dispensing organization may not dispense to a person   low-THC cannabis in a:                 (1)     package or container that contains more than a   total of one gram of tetrahydrocannabinols; or                 (2)     medical device for pulmonary inhalation that   contains more than one gram of tetrahydrocannabinols.          SECTION 11.  Subchapter C, Chapter 487, Health and Safety   Code, is amended by adding Section 487.1071 to read as follows:           Sec.   487.1071.     CANNABINOIDS ELIGIBLE FOR DISPENSING. (a)   In this section, "phytocannabinoid" means a chemical substance:      & [Text truncated for display. Full text available on Congress.gov.]