Sec. 487.104. ISSUANCE, RENEWAL, OR DENIAL OF LICENSE. (a) The department shall issue or renew a license to operate as a dispensing organization only if: (1) the department determines the applicant meets the eligibility requirements described by Section 487.102 ; and (2) issuance or renewal of the license is necessary to ensure reasonable statewide access to, and the availability of, low-THC cannabis for patients registered in the compassionate-use registry and for whom low-THC cannabis is prescribed under Chapter 169 , Occupations Code. (b) Except as provided by Subsection (b-1), 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. (c) A license issued or renewed under this section expires as determined by the department in accordance with Section 411.511 , Government Code. (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.
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