(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 § 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) 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.

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(c) A license issued or renewed under this section expires as determined by the department in accordance with § 411.511, Government Code.