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.