Bill Text: TX HB2563 | 2019-2020 | 86th Legislature | Introduced

Bill Title: Relating to the establishment and duties of the Texas Medical Cannabis Council.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-11 - Referred to Public Health [HB2563 Detail]

Download: Texas-2019-HB2563-Introduced.html
  86R5967 JSC-D
  By: Lucio III H.B. No. 2563
  relating to the establishment and duties of the Texas Medical
  Cannabis Council.
         SECTION 1.  Chapter 411, Government Code, is amended by
  adding Subchapter Q to read as follows:
         Sec. 411.461.  DEFINITIONS. In this subchapter:
               (1)  "Advisory committee" means the Medical Cannabis
  Regulation Advisory Committee.
               (2)  "Council" means the Texas Medical Cannabis
               (3)  "Dispensing organization" and "low-THC cannabis"
  have the meanings assigned by Section 487.001, Health and Safety
               (4)  "Medical 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, that
  is used for medical purposes.
         Sec. 411.462.  RULES. The director shall adopt any rules
  necessary to implement this subchapter.
  The Texas Medical Cannabis Council is established to:
               (1)  create and expedite innovation in the area of
  cannabis research;
               (2)  enhance the potential for medical or scientific
  breakthroughs in cannabis medicine and the safe, secure cultivation
  of cannabis;
               (3)  attract, create, or expand research capabilities
  of public or private institutions of higher education and other
  public or private entities to promote a substantial increase in
  cannabis research and the creation of high-quality new jobs in this
               (4)  conduct a continuing study of the laws relating to
  cannabis and report the council's findings and recommendations on
  an annual basis; and
               (5)  facilitate statewide access to safe and effective
  medical cannabis for residents of this state.
         Sec. 411.464.  ADMINISTRATIVE ATTACHMENT.  (a)  The council
  is administratively attached to the department.
         (b)  The council shall work with the department to transition
  to a stand-alone council.
         Sec. 411.465.  COUNCIL MEMBERSHIP. The department, the
  Department of State Health Services, the comptroller of public
  accounts, the Department of Agriculture, the Texas Medical Board,
  the Texas Board of Nursing, the Texas State Board of Pharmacy, the
  State Board of Veterinary Medical Examiners, and the Texas
  Department of Licensing and Regulation shall each appoint a member
  to the council. 
         Sec. 411.466.  EXECUTIVE DIRECTOR. (a) The council shall
  hire an executive director. The executive director shall perform
  the duties required by this subchapter or designated by the
         (b)  The executive director must have a demonstrated ability
  to lead and develop academic, commercial, and governmental
  partnerships and coalitions.
         Sec. 411.467.  OFFICERS.  (a)  The executive director shall
  hire a chief science officer, a chief medical officer, and a chief
  compliance officer.
         (b)  The chief science officer and chief medical officer
  shall report directly to the executive director and assist the
  executive director in outreach to further cannabis research and
  safe, effective use of cannabis for medical purposes.
         (c)  The chief compliance officer shall monitor and report to
  the council, the legislature, and law enforcement regarding
  compliance with this subchapter and rules adopted under this
         Sec. 411.468.  FUNDING; GRANTS.  (a)  The council may accept
  donations for research under this subchapter.
         (b)  The council may provide grants for:
               (1)  research into the use of medical cannabis and
  health outcomes; and
               (2)  scientific public education and outreach to
  educate youth on the risks of using cannabis for nonmedical
  purposes and without the supervision of a health care provider.
  later than January 31 of each year, the council shall submit to the
  lieutenant governor, the speaker of the house of representatives,
  the governor, and the standing advisory committee of each house of
  the legislature with primary jurisdiction over council matters and
  post on the council's Internet website a report outlining the
  council's activities, research accomplishments, and future program
  directions. The report must include:
               (1)  the number, type, recipient, and location of
  licenses awarded for dispensing organizations for low-THC
               (2)  the amount of fees collected and the licenses on
  which the fees were assessed;
               (3)  the amount of low-THC cannabis provided in
  accordance with Chapter 487, Health and Safety Code, and the prices
  charged for that cannabis;
               (4)  the number and dollar amounts of any research and
  facilities grants provided by the council;
               (5)  an assessment of the availability of funding for
  cannabis research;
               (6)  a summary of findings of research funded by the
  council, including promising new research areas;
               (7)  the council's administrative expenses;
               (8)  the use of any other funding mechanism;
               (9)  any anticipated savings in drug costs to the
  state's health care costs that would result from the provision of
  medical cannabis;
               (10)  a statement of the council's compliance program
  activities, including any proposed legislation or other
  recommendations identified through the activities; and
               (11)  for the previous calendar year, a list of any
  conflicts of interest under this subchapter or rules adopted under
  this subchapter or any other ethical issue identified by the
  council or the chief compliance officer.
  COMPTROLLER. (a) The council shall annually commission an
  independent financial audit of the council's activities from a
  certified public accounting firm.
         (b)  The council shall provide the audit to the comptroller.
  The comptroller shall review and evaluate the audit and annually
  issue a public report of that review.
         (c)  The comptroller shall make recommendations concerning
  the council's financial practices and performance.
  COMMITTEE; MEMBERSHIP.  (a)  The Cannabis Medical Regulation
  Advisory Committee consists of the following members:
               (1)  two members of the senate from different political
  parties, appointed by the lieutenant governor;
               (2)  two members of the house of representatives from
  different political parties, appointed by the speaker of the house;
               (3)  the following members, appointed by the council:
                     (A)  two members of the public who support the use
  of cannabis for medical purposes and who are or were patients or the
  parent of a patient who found relief from the use of medical
  cannabis, at least one of whom represents the interests of persons
  with disabilities;
                     (B)  an expert in drug addiction and public health
                     (C)  three physicians licensed in this state,
  including one family practitioner and one specialist in a condition
  for which low-THC cannabis may be prescribed under Chapter 487,
  Health and Safety Code;
                     (D)  a nurse licensed in this state who has
  experience in hospice care, nominated by a state research
  institution or trade association;
                     (E)  a pharmacist licensed in this state,
  nominated by a state research institution or trade association;
                     (F)  a scientist who has experience in the science
  of cannabis, nominated by a state research institution;
                     (G)  a district attorney or county attorney with
  criminal jurisdiction;
                     (H)  a representative of municipal law
                     (I)  a sheriff;
                     (J)  an attorney who is knowledgeable about
  medical cannabis laws in the United States;
                     (K)  an individual with experience in
  horticulture, recommended by the Department of Agriculture;
                     (L)  an expert in laboratory sciences and
  toxicology; and
                     (M)  a member of the public with demonstrated
  expertise and credentials in public health policy.
         (b)  The advisory committee shall appoint from its members a
  presiding officer.
         Sec. 411.472.  DUTIES OF ADVISORY COMMITTEE.  The advisory
  committee shall:
               (1)  consider any matter submitted to the advisory
  committee by the council; 
               (2)  on its own initiative, recommend to the council
  guidelines and rules and any changes to guidelines and rules that
  the advisory committee considers important or necessary for the
  council's review and consideration; and 
               (3)  advise the council on legislation and proposed
         Sec. 411.473.  SUBCOMMITTEES. The presiding officer of the
  advisory committee may appoint subcommittees to expedite the work
  of the council.  The presiding officer shall appoint: 
               (1)  a subcommittee on public health to develop
  recommendations on:
                     (A)  products;
                     (B)  labeling;
                     (C)  marketing and advertising;
                     (D)  related public health issues;
                     (E)  potency, which may include a recommended
  maximum limit for individual doses of medical cannabis products;
                     (F)  packaging, which may include the development
  and implementation of a public health warning to appear on medical
  cannabis products; 
               (2)  a subcommittee on public safety and community
  mitigation to develop recommendations on law enforcement,
  property, business, and consumer issues; and 
               (3)  a subcommittee on the cannabis industry to develop
  recommendations on cultivation, processing, manufacturing,
  transportation, distribution, seed-to-sale tracking, and market
         Sec. 411.474.  COUNCIL STUDIES AND RESEARCH.  The council,
  in consultation with the advisory committee, shall conduct studies
  and shall:
               (1)  collect data on the reported health care outcomes
  and any adverse events in the use of medical cannabis; 
               (2)  develop educational components for health care
  provider education on the use of medical cannabis;
               (3)  develop agricultural best practices for the safe
  cultivation of cannabis and innovations for a variety of strains of
               (4)  create testing protocols and objective
  measurements for safety;
               (5)  develop standard packaging and labeling for
  medical cannabis and medical cannabis products, ensuring
  accessibility for users with disabilities;
               (6)  create medical cannabis warning labels based on
  the latest scientific research; and
               (7)  create recommendations for safety and
  identification measures to ensure that unauthorized persons do not
  access medical cannabis.
         Sec. 411.475.  MEETINGS; QUORUM. (a)  The advisory
  committee meets at the call of the presiding officer.
         (b)  To take action at a meeting, a majority of the members of
  the advisory committee present and voting shall constitute a
         Sec. 411.476.  REIMBURSEMENT. Members of the advisory
  committee serve without compensation but are entitled to
  reimbursement for travel expenses and other actual and necessary
  expenses incurred in the performance of official duties, as
  provided by the General Appropriations Act.
         Sec. 411.477.  COUNCIL CONFLICT OF INTEREST. A person is
  ineligible to serve on the council if the person:
               (1)  has a direct or indirect financial, ownership, or
  management interest, including ownership of any stocks, bonds, or
  other similar financial instruments, in any state licensed medical
  cannabis business;
               (2)  is related within the second degree by
  consanguinity or affinity, as determined under Chapter 573, to an
  individual who holds a medical cannabis license in this state or in
  another state;
               (3)  is an elected official of a state or local
               (4)  receives or shares in, directly or indirectly, the
  receipts or proceeds of a medical cannabis grower, processor, or
  dispensing organization licensed in any state; or
               (5)  has a beneficial interest in any contract for the
  manufacture or sale of medical cannabis or the provision of any
  independent consulting services in connection with any medical
  cannabis license issued by this state or another state.
  DISCLOSURE. A member of the advisory committee may have an interest
  in a cannabis business but must disclose that interest on any
  application and to the council's chief compliance officer.
         SECTION 2.  As soon as practicable after the effective date
  of this Act:
               (1)  the director of the Department of Public Safety
  shall adopt rules as necessary to implement Subchapter Q, Chapter
  411, Government Code, as added by this Act; and
               (2)  the applicable state agencies shall appoint
  members to the Texas Medical Cannabis Council under Section
  411.465, Government Code, as added by this Act.
         SECTION 3.  This Act takes effect September 1, 2019.