How to Open a Dispensary in Texas

Although recreational marijuana has not yet been legalized in Texas, Texas currently has a limited medical marijuana program established by the Texas Compassionate Use Act in 2015. The Texas Department of Safety (“DPS”) administers the Compassionate Use Program (“CUP”), including all licensing processes for dispensing organizations. In early 2023, DPS opened the full application process for dispensing organization licenses for the first time since licenses were initially awarded in 2017. The application window closed on April 28, 2023. Currently, only three dispensing organizations have been granted licenses by DPS to cultivate, process, and dispense low-THC cannabis to qualifying patients in Texas: Compassionate Cultivation, Fluent, and Surterra Texas. An announcement on the award of new licenses has not yet been made, and DPS has not confirmed how many licenses it expects to award. Pursuant to the Compassionate Use Act, DPS may only issue the number of licenses necessary to ensure reasonable statewide access to and availability of low-THC cannabis for patients registered in the compassionate-use registry.

Texas is a vertically integrated state, meaning that all dispensing organizations must cultivate, process, package, and dispense the medical marijuana from a single location. Currently, only low-THC cannabis is approved for dispensation under CUP, currently limited to 1% THC by dry weight. The program also has restrictions regarding qualifying conditions and does not include certain conditions, such as chronic pain. Applicants must also follow all other administrative and statutory rules of the Texas Administrative Code (“TAC”) Chapter 12, and Texas Health and Safety Code Chapter 487.

All applicants must pay a non-refundable application fee of $7,356.00 dollars. If approved, licensed dispensing organizations must pay a new licensing fee of $488,520.00 for a two (2) year period. A biennial renewal license costs $318,511.00. Dispensing organizations must also pay fees per employee to register them with DPS. Entry costs for Texas are very high compared to other states.

Limited Liability Partnership and Series LLC Explained

Limited liability partnerships and limited liability companies are two common ways to classify small businesses. While the two are similar in name, they are structurally different regarding management requirements, liability protections, tax benefits, and more. 

It is vital for small business owners to thoroughly comprehend the structural differences between LLPs, LLCs, and sub-LLCs to correctly establish their company from a legal, tax, and management perspective. Working with business litigation attorneys like Ritter Spencer Cheng can ensure business owners understand varying legal structures thoroughly. Read below to learn more about LLPs, LLCs, and sub-LLcs.

Everything You Need to Know About The Cannabis Regulators Association

As the cannabis industry continues to experience an influx of financial opportunities, scientific studies, and legislative changes, states are coming together to share institutional knowledge and regulatory best practices. In November 2020, cannabis regulators from various states formed the Cannabis Regulators Association to provide federal lawmakers and administrative agencies with the resources needed to regulate cannabis. Since then, the national organization has made strides in cannabis-based education nationwide. Read below to learn more about the Association and how it benefits the cannabis industry. 

When to Hire a Real Estate Attorney

Buying a home is a significant investment and involves a series of complex transactions between a buyer and seller. Both parties must survey and sign several contractual agreements to legally transfer property from one entity to another. However, it is common for buyers and sellers to need the help of an expert to navigate their closing documents. Real estate litigation attorneys work to review documents and contracts related to property sales, making the closing process easier for all parties involved. Read below to learn when to hire a real estate attorney and how Ritter Spencer Cheng can advise individuals and businesses through real estate litigation.

DSHS Moves to Ban White Labeling of Smokable Hemp Products in Texas

On June 24, 2022, the Texas Supreme Court upheld Health and Safety Code, Section 443.204 (4), which prohibits the processing and manufacturing of consumable hemp products for smoking in Texas. However, the Court upheld our challenge to the state’s retail and distribution rule, meaning that the retail sale and distribution of consumable hemp products for smoking remains legal in the state. Read on to learn more about the latest update on Texas’ Consumable Hemp Program from the Texas Department of State Health Services (“DSHS”) and how it will impact the Texas hemp industry.

Texas Compassionate Use Program: DPS Now Accepting Applications for Dispensing Organization Licenses

In 2015, the Texas Legislature enacted the Texas Compassionate Use Act, Senate Bill 339. Under TCUP’s regulatory regime, the Texas Department of Public Safety (“DPS”) would create a secure registry for licensed physicians to prescribe low tetrahydrocannabinol (“THC”) to patients suffering from a limited list of medical conditions, including ALS and intractable epilepsy.

Since establishing the Texas Compassionate Use Program (“TCUP”), DPS has issued licenses to only three dispensing organizations to dispense low-THC cannabis to registered TCUP patients. Currently, only two are operational in the state of Texas. Recently, DPS’  Regulatory Services Division announced that department officials are now accepting new applications for dispensing organization licenses. Read below to learn more about the TCUP and the licensing application process. 

Mixing Cryptocurrency and Bankruptcy

Cryptocurrency has evolved from an obscure virtual niche to a widespread consumer investment. And as more individuals and businesses collect crypto in their digital wallets, issues arise regarding how these virtual currencies are valued and categorized in bankruptcy cases.

Working with a trusted law firm like Ritter Spencer Cheng is the best way to build an understanding of how the bankruptcy process accommodates modern complexities like cryptocurrency. Read on to learn more about how the bankruptcy process addresses cryptocurrency.

The Difference Between CBD and CBG

As one of the most popular and recognizable cannabinoids, cannabidiol (“CBD”) products garner a lot of attention in the markets where they are sold. However, the growing normalization of CBD products has brought attention to a similar product: cannabigerol (“CBG”). One of the major reasons CBG has gained so much interest is because of its similarities to CBD and its potential therapeutic benefits. Both cannabinoids bind the same receptors in the brain and share many beneficial properties. Yet, they have some unique qualities that merit attention.

6 Key Considerations When Expanding into New Cannabis Markets

The cannabis industry has substantially grown in response to significant developments in legalization. As a result, multi-state operators (“MSOs”) and budding entrepreneurs nationwide are entering prospective state cannabis markets. Given the legal intricacies surrounding the cannabis industry, there is much to consider before jumping into starting a cannabis-related business.