According to the Legislative Budget Board (LBB), SB 1505 is not expected to have a significant fiscal impact on the state budget. The bill primarily modifies existing regulations under the Texas Compassionate-Use Program (TCUP) by allowing licensed dispensing organizations to operate satellite storage locations for low-THC cannabis. The Department of Public Safety (DPS) will be responsible for overseeing and approving these additional locations. However, any associated costs with these regulatory changes are expected to be absorbed within existing agency resources, meaning no additional state funding is required.

Similarly, local governments are not expected to experience significant fiscal impacts due to this bill. The bill does not impose new unfunded mandates or create additional compliance costs for local agencies. The Texas Medical Board, Health and Human Services Commission, and Department of Information Resources—all agencies involved in the oversight of medical cannabis—are not projected to require additional funding to implement the bill's provisions.

Overall, while SB 1505 expands medical cannabis distribution infrastructure, it does so within the framework of existing regulatory and budgetary resources, preventing any material increase in state or local government spending.

SB 1505 presents a meaningful expansion of the Texas Compassionate-Use Program (TCUP) by increasing the number of dispensing organization licenses, allowing for satellite storage locations, and introducing new administration methods such as pulmonary inhalation. These provisions are a step forward in improving patient access to medical cannabis, particularly for those who struggle with limited availability under the current system.

However, the bill still maintains excessive regulatory control, particularly in the licensing process, where DPS retains full discretion over issuing additional licenses. To ensure true market expansion and accessibility, DPS should be required to issue (rather than merely be authorized to issue) the additional licenses, ensuring that at least six licenses are granted. This amendment is crucial to preventing regulatory bottlenecks that could stifle competition and patient access.

Additional amendments should focus on:

• Reducing barriers for new applicants by streamlining the approval process.
• Ensuring a broader range of medical conditions are covered under TCUP.
• Encouraging market competitiveness by allowing a more open licensing structure in the future.
• Mandating DPS to issue the additional licenses rather than leaving it at their discretion.

With these amendments, SB 1505 represents a significant improvement to the current medical cannabis framework in Texas. The bill aligns with individual liberty and private property rights, but it requires targeted modifications to prevent excessive regulatory control from undermining its potential benefits. Texas Policy Research recommends that lawmakers vote YES on SB 1505 but also strongly consider the amendments described above to strengthen the bill.

• HB 46 (Similar To)