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In 2015, Texas passed Senate Bill 339, The Compassionate Use Act, authorizing patients with intractable epilepsy to use oils derived from low THC strains of cannabis. Because of the specificity of this law, the size of the market is very small. Early in 2017, the Department of Public Safety accepted applications for vertically integrated medical marijuana businesses. Three dispensing organizations (able to cultivate, process, and dispense) received licenses to operate by the end of 2017.


Dispensing Organization License 

Texas is offering Dispensary Organizaion medical marijuana licenses under their Compassionate Use Program, applications will close on April 28th of 2023. This license is for the cultivation, processing, and dispensing low-THC cannabis to medical patients. 


Application and Licensing Fees

Under Exhibit D of this application you will be required to show proof that you have submitted a non-refundable initial application fee of $7,356 when submitting the application, and if approved you will be required to pay a licening fee of $488,520 for a two year period. All personnel must also pay a registration fee of $530 for renewal of registration. Applications and Fees will all be submitted electronically on the Texas Department of Public Safety's website.

Texas Department of Public Safety

Currently, Texas's Department of Public Safety regulates and licenses medical marijuana businesses. Currently there only being three permited to operate within the state. They maintain a strict policy and requirements from the low-THC businesses that operated within the state such as maintaining a drug free workplace and strict security. If they have determined that the licensee did not adhere to requirements they will suspend or revoke the license.


Medical Marijuana Qualifying Conditions

The current market is exceptionally small however, as of 2021 Gov. Greg Abbott signed HB1535  allowing patients with PTSD and all types of cancers eligible for the Compassionate Use ProgramIf the medical marijuana program changes to become similar to other states (authorizing additional qualifying conditions such as chronic pain), and allows a wider variety of medical marijuana strains and products, the program has the potential to become much larger. Texas DPS has a list of qualifying conditions, here are some examples:

Dispensing Organizations must be affiliated with Institutional review boards such as a medical school, or hospital. Which will allow physicians to be overseen by said review boards for patients treatment, and if the patient consents, to do medical research. This will also function as a way for the Department of Public Safety to certify physicians.

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how to start a marijuana business texas

If you are just starting your marijuana business, the next best step is to start a Business Plan to help educate your team and be ready to apply for a marijuana business license. If you are ready to apply for a Marijuana Business License in Texas, please Contact us or call our offices to set an appointment to get started. You can also select another State Opportunity, or fill out our Contact Form to discuss potential strategies such as Investment or Partnership Opportunities. 

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