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.
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.
Possession of Cannabis in Texas
As the legalization of cannabis evolves across the United States, it can be hard to keep track of the varying state laws regarding cannabis. While some states continue to foreclose efforts to legalize cannabis, progress continues to be made in state-level legalization.
Starting a Side Hustle as a Sole Proprietorship in Texas
A sole proprietorship is an entrepreneur’s simplest business structure in Texas. While there are benefits to consider in the strengthened protection of a limited liability company or a corporation, people starting “side-hustles” often begin with a sole proprietorship. This simple method allows the new business owner to dip their feet into the pool. Some–through inertia or strategy–may simply continue the structure as the business grows.
The sole proprietorship initiation process lacks the layers of legal requirements standard in other business structures, but it does involve several steps that business owners should follow. A local law firm, like Ritter Spencer, can help new entrepreneurs successfully start a sole proprietorship in Texas. Read below to learn how to take the first step in your sole proprietorship.
The Differences Between Marijuana Legalization and Marijuana Decriminalization
As marijuana laws change nationwide, buzzwords such as “legalization” and “decriminalization” arise in the national discourse. State and local governments debate legalization and decriminalization, which may lead to confusion in distinguishing the two terms. In the context of manufacturing and selling cannabis products, decriminalization and legalization have vastly different implications. Since states have different standards for the legality of marijuana, it is important to know the difference between decriminalization and legalization to avoid conflict and confusion when examining your state’s marijuana laws.
Southern Hostility: Southern States’ Stances on Marijuana
Northern and western regions of the U.S. have propelled the national marijuana reform movement in recent years. From the passing of the Rhode Island Cannabis Act to new developments by The New York Cannabis Control Board, northern states continue to lead recent charges in marijuana legalization. But for a few exceptions, the Southern states continue to lag woefully behind.
Southern states have displayed greater resistance to marijuana reform than their northern counterparts. But as the demand for cannabis legalization grows nationally, southern state legislators are taking small steps toward alleviating marijuana restrictions. Read on to explore the South’s stance on the legalization of marijuana state by state.
Texas Supreme Court Maintains Ban on Smokable Hemp Processing and Manufacturing
On Friday, July 1st, 2022, the Texas Supreme Court unanimously reinstated the statutory ban on the processing and manufacturing of smokable hemp products. The Texas Supreme Court found that the hemp companies involved in the challenge had no constitutionally protected right of economic liberty in their chosen profession of smokable hemp processing and manufacturing. Previously, the trial court found the statutory ban to be unconstitutional and entered a permanent injunction against state enforcement of the ban after a lower court rejected the ban in 2019. Read below to learn more about this continued prohibition on smokable hemp and its history.
Rep. King Files Hemp Production and Regulation Bill: HB 3948
We anticipate a substitute filing by Representative King that will substantially change some of the language discussed in this blog.
On March 11, 2021, Rep. Tracy King (D) filed HB 3948 that focuses on the regulation and production of hemp and consumable hemp products in Texas. This bill provides administrative penalties, imposes and authorizes fees, and creates criminal offenses. Additionally, the bill covers higher institutions, permissible THC content, additives, synthetics, and more. Below, we’ve summarized this bill to keep you in-the-know with Texas hemp legislation. The Senate version of this bill is SB 1776.
How to Open a Dispensary in Texas
Although Texas has a medical marijuana program, as established by the Texas Compassionate Use Act in 2015, only three “Dispensing Organizations” have been granted licenses by the Texas Department of Safety (“DPS”) to cultivate, process, and dispense low-THC cannabis (up to a 0.5 percent THC limit as of the date of this blog) in Texas to prescribed patients. See 37 Tex. Admin. Code § 12.1. Texas is a vertically integrated state, meaning that the Dispensing Organization must cultivate, process, package, and dispense the medical marijuana.