Texas Medical Cannabis Update


For all those waiting on Texas medical cannabis: Texas may be another state on the road to open their medical cannabis industry.

We are discussing the new bills introduced on november 9th, 2020, and what they state on how to get a medical cannabis license in the Lone Star State.

Texas cannabis business people have been waiting for the market to open in their state, and even though it looks like the waiting is close to be over, the new regulations may not be as beneficial for regular local business folks as we expected.

Let’s go over what the bills say to see what to expect on the medical cannabis license application process:

TX SB 90 and TX HB 94

The bills authorize the possession, use, cultivation, distribution, transportation, and delivery of medical cannabis for medical use by qualifying patients with certain debilitating medical conditions. Also regulate the licensing of dispensing organizations and testing facilities.

Here is the full text of bill TX SB 90:

Here is the full text of bill TX HB 94:

Listen to our PodCast Cannabis Legalization News or Watch the YouTube titled Texas Medical Cannabis Update – Review of pending medical marijuana bills in TX legislature for related information.



Medical Cannabis Licenses in Texas

Medical cannabis licensing contemplation in the proposed bills is not the best. The reason is because the bills don’t present an opportunity for an open market in the state.

To explain the situation a little bit more, open markets like the Oklahoma cannabis market, give the opportunity to cannabis business people to enter the industry without limiting the number of licenses granted and without an excessive criteria for eligibility.

Some states regulations, like the state of California cannabis market are open while their municipalities restrict the number of licenses granted.

Other states, like the state of Arizona, established regulations for cannabis licenses mandatorily vertically integrated. Texas proposed bills suggest a similar system to Arizona’s, resulting in possibly a very closed market.

The problem with vertically integrated models, it does not provide much opportunity for the Texas business person to get into the medical cannabis industry as a more horizontal method. It is shaped to only support a handful of hugely capitalized vertically integrated operators.

Types of Medical Cannabis Licenses allowed in Texas

  • Cannabis Dispensing Organizations: Is an organization licensed by the department to cultivate, process and to dispense medical cannabis to a patient for whom medical use is recommended
  • Cannabis Testing Facility: An independent entity licensed by the department under this chapter analyze the safety and potency of medical cannabis

Eligibility for a Medical Cannabis License in Texas

An applicant for a License to operate as a dispensing organization is eligible for the license if the applicant possesses:

  • The technical and technological ability to cultivate and produce medical cannabis;
  • The ability to secure:
    • The resources and personnel necessary to operate  as a dispensing organization; and
    • premises reasonably located to allow  patients listed on the compassionate-use registry access to the organization through existing infrastructure;
  • The ability to maintain accountability of the raw materials, the finished product, and any by-products used or produced in the cultivation or production of medical cannabis to prevent unlawful access to or unlawful diversion or possession of those materials,products,orby-products;
  • The financial ability to maintain operations for not less than two years from the date of application

Fees for a Cannabis Medical License in Texas

Texas medical cannabis bills state a limit for the Director to set the annual license fee for the Medical Cannabis Program, it can not exceed $5,000. Application fee was also referred, it must not exceed $2,500

Don’t miss out on our Marijuana Legalization Map where you can browse the current status of laws in every state in the United States and see all our posts on each of them.

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Interested in coming on as a guest? Email our producer at lauryn@cannabislegalizationnews.com.

Thomas Howard

Thomas Howard

Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests.
Homegrown Cannabis Co's Cannabis Seeds
Thomas Howard

Thomas Howard

Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests.

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