Marijuana Startups

Across the country, laws regarding the possession, sale and use of marijuana are changing.  In Texas, the possession of marijuana is still illegal, but the use of cannabis oil for certain medical conditions is now permitted.  This presents an incredible business opportunity for Texans who wish to get involved in the medical marijuana business.

States that have legalized medical and recreational marijuana, such as Colorado, have seen huge revenue. The cannabis industry is projected to be a multi-billion dollar business in the United States as more states take steps to legalize its use.  While Texas entrepreneurs are limited in the type of cannabis business that they can start, there is still a huge potential for a marijuana start-up business in Texas.  

Texas Marijuana Law

in 2015, Texas passed a compassionate use law that allows the production and sale of a specific strain of cannabis oil that does not produce a high and has no street value.   The law permits patients with intractable epilepsy to use a specific type of cannabis oil that has 10% or more of cannabidiol (CBD) and not more than .5% of tetrahydrocannabinol (“THC”).  The law will allow regulated businesses, called dispensing organizations, to cultivate, produce and distribute this CBD oil to patients with a prescription from qualified prescriptions.  The use of this oil will be tightly-regulated, as doctors will be required to join a registry and input specific information about each patient’s dose, method of administration and amount of CBD oil needed.

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Requirements in Texas 

The Texas Department of Public Safety will be responsible for licensing and regulating CBD oil, and plans to issue the first permits to sell the oil in June 2017.  Dispensing organizations must meet the following requirements:

  • Submission of an application and an application fee of $6,000
  • Payment of a two-year licensing fee of $6,000
  • Proof of minimum security measures
  • Organizations must maintain records and operational standards
  • CBD oil must be tracked through an inventory control system
  • CBD oil must be tested and packaged according to state standards
In addition, CBD oil can only be sold to Texas patients whose qualified physicians have prescribed the oil in accordance with the law.


Marijuana Startup Resources

Advocacy Organizations:

ASA (Americans for Safe Access): A member-based organization working to ensure safe and legal access to cannabis for therapeutic uses and research. - http://www.safeaccessnow.org/

DPA (The Drug Policy Alliance): The nation's leading organization promoting drug policies that are grounded in science, compassion, health and human rights. -  http://www.drugpolicy.org/

MPP (Marijuana Policy Project): The largest organization in the U.S. that’s focused solely on ending marijuana prohibition. - https://www.mpp.org/

NCIA (National Cannabis Industry Association): This organization seeks to promote the growth of a responsible and legitimate cannabis industry and work for a favorable social, economic, and legal environment for that industry in the United States. -  http://thecannabisindustry.org/


Educational Organizations:

Project CBD: A Patient Dosing Guide. Simple dosage recommendations for patients to use when trying medical cannabis.- https://www.projectcbd.org/cannabis-dosing

ASA (Americans for Safe Access): Patient Guide to Using Medical Cannabis.  In-depth patient tool for safe consumption of medical cannabis. - http://www.safeaccessnow.org/using_medical_cannabis


Texas Medical Cannabis Program Information:

Texas Compassionate Use Act (Senate Bill 339): http://www.capitol.state.tx.us/tlodocs/84R/billtext/pdf/SB00339F.pdf#navpanes=

TX Department of Public Safety – Compassionate Use Program: This is an overview of the bill and links to a breakdown and explanations of the bill. -  http://www.dps.texas.gov/rsd/CUP/  


Cannabis Professional Directory


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Marijuana Start-Up Attorneys in Dallas, Texas

When an area of business is newly legal, companies will need experienced legal counsel that can explain how to get started in the industry and how to comply with all existing laws and regulations. The marijuana business has a huge potential for growth in Texas, particularly as attitudes about the use of marijuana for medical and recreational purposes continue to relax. At the Law Office of Chad West, our attorneys are long-time proponents for sensible marijuana laws, including the legalization of medical and non-medical marijuana.