Texas Marijuana Business Licenses
Status: In Texas, only medically qualified individuals may possess or use CBD oil. State licensed businesses are allowed to dispense, cultivate and process low THC marijuana.
| CBD Program | Medical Program | Recreational Program | Are Applications Open? |
| Legal | Not legal | Not legal | Postponed |
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Number of Texas Marijuana Business Licenses Licenses Available
| Dispensaries | Cultivation | Manufacturing/Processing | Transportation |
| TBD | 0 | 0 | 0 |
You can read the full text of the Texas Marijuana Business Licenses law at: capitol.state.tx.us
Texas Medical Marijuana Dispensary Application License Guidelines
In Texas, a Dispensing Organization license authorizes an organization to cultivate, process and dispense low-THC cannabis to prescribed patients.
There are no limitations stated in the Texas Compassionate Use Act regarding the number of Dispensing Organization licenses to be awarded. The Act allows for a market-based system, where the number of licenses and location of dispensing organizations are based on market factors such as patient population. As the program grows, new licensing opportunities may become available.
The Department accepted applications for Dispensing Organization licenses from March 1, 2017, through March 31, 2017. The department received 43 applications and awarded licenses to the top 3 scoring applicants in December 2017.
The Department will be accepting applications for Dispensing Organization licenses again from October 1, 2019 through November 1, 2019. The Department has not yet specified the number of licenses to be issued. Begin preparing with our Texas Dispensary Application Guide.
Application Fee: $7,356 (required upon application submission)
License Fee: $488,520 for a two-year period (required upon approval of license)
Biennial Renewal Fee: $318,511 (required every other year to renew license validity)
RECOMMENDED TEXAS MARIJUANA BUSINESS PLANS FOR DISPENSARY APPLICATION:
- Texas Marijuana Business Plan Package
- Business & Operations Plan Template
- Cultivation Plan Template
- Manufacturing/Processing Plan Template
- Environmental Plan Template
- Financial Plan Template
- Fire Safety Plan Template
- Inventory Control Plan Template
- Patient Education Plan Template
- Patient Recordkeeping Plan Template
- Product Safety Plan Template
- Security Plan Template
- Staffing Plan Template
- Suitability of Proposed Plan Template
- Transportation Plan Template
The History of Texas Marijuana Business Licenses Marijuana
On June 1, 2015, Governor Greg Abbot signed Senate Bill 339, a limited medical marijuana bill, into law. Known as the Texas Compassionate Use Act, it is intended to allow some qualifying patients to access “low-THC cannabis,” marijuana that contains 10% or more cannabidiol (CBD) and not more than 0.5% tetrahydrocannabinol (THC). Intractable epilepsy was originally the only medical condition that could qualify patients to participate in the program.
The Texas Department of Public Safety was tasked to develop the administrative rules for the program which includes the requirements for state-regulated businesses known as “Dispensing Organizations” to cultivate, process, and distribute low-THC cannabis. In December 2017, the first licenses to dispense, cultivate, or process marijuana to fulfill the 2015 Compassionate Care Law were granted.
On July 14, 2019, House Bill 3703 was signed into law to expand the state’s Compassionate Use Program. House Bill 3703 will help the existing medical marijuana program grow by allowing more qualifying patients to join the program and by making the process to become a registered patient easier. The bill expands the list of qualifying medical conditions and requires the approval of one physician instead of two to become a registered patient. The new law will add all seizure disorders, multiple sclerosis, spasticity, ALS, autism, terminal cancer, and an incurable neurodegenerative disease as qualifying medical conditions.
As a result of the passage of House Bill 3703, the state is anticipating an increased patient demand and has determined it is necessary to license additional Dispensing Organizations. The Texas Department of Public Safety’s Compassionate Use Program began accepting applications for Dispensing Organization licenses on October 1, 2019, with intent to accept applications through November 1, 2019. However, on October 9, 2019, the Department rescinded the application forms and information with no explanation or indication if/when applications will resume.
Qualifying Medical Conditions: Intractable Epilepsy, All Seizure Disorders, Multiple Sclerosis, Spasticity, ALS, Autism, Terminal Cancer, and an Incurable Neurodegenerative Disease
Program Timeline:
June 1, 2015 – Senate Bill 339 was signed into law
September 18, 2015 – Compassionate Use Program Proposed Administrative Rules published
January 10, 2016 – Administrative Rules take effect
March 1, 2017 – Department began accepting applications for Dispensing Organizations
March 31, 2017 – Application submission deadline for Dispensing Organizations
By December 15, 2017 – Department awarded Dispensing Organization licenses to top 3 scoring applicants
July 14, 2019 – House Bill 3703 signed into law
October 1, 2019 – Department to open applications for additional Dispensing Organization licenses
October 9, 2019 – Department unexpectedly closed applications for additional Dispensing Organization licenses
TBD – Department to possibly re-open applications