Texas Marijuana License to Grow

Do I Need a License to Grow Marijuana in Texas?

Growing marijuana in Texas for commercial or personal purposes is illegal. The state only issues one cannabis license - the Dispensary Organization license. This license authorizes cannabis establishments to cultivate, process, and dispense low-THC cannabis to medical marijuana patients registered in the state pursuant to the Texas Compassionate Use Act. Although the main aim of the dispensary organization license is to authorize eligible cannabis establishments to dispense low-THC cannabis to registered patients, the license also allows them to grow and cultivate the required cannabis necessary to process and dispense their own marijuana products.

Texas has strict penalty statutes for persons caught illegally growing marijuana in the state. Any business or individual caught growing marijuana in the state will be charged with criminal possession of marijuana. While the punishment for such an act varies from misdemeanors to felonies depending on the amount or weight of plants found in possession of the offender, penalties include fines of up to $50,000 and jail terms of up to 99 years.

Do I Need a Federal Business License to Grow Marijuana?

No, Texas does not require marijuana growers to get federal business licenses to operate in the state. Marijuana is a federally prohibited drug under the Controlled Substances Act (CSA). As a result, its cultivation is banned. However, you may be authorized to grow marijuana for research purposes provided you have obtained a DEA-approved Schedule I Registration, and the study will be conducted in accordance with all relevant Schedule I research laws and regulations.

What Kind of License Do I Need to Grow Marijuana in Texas?

Texas does not issue a dedicated grower or cultivator license. No permissions or licenses are also issued to citizens to authorize the home growing of marijuana. To cultivate marijuana in the state, a business must be registered as a medical marijuana dispensary and obtain a dispensary organization license issued by the state's Department of Public Safety.

How Do I Obtain the License Needed to Grow Marijuana in Texas?

You cannot currently obtain a dedicated marijuana grower or cultivator license in Texas. To obtain a dispensary organization license which permits the licensee to grow marijuana to be processed and packaged for dispensing to medical marijuana patients, an applicant must complete and submit the following:

• Completed Dispensary Organization Application Form
• Proof of ownership documentation. This documentation includes a Certificate of Authority from the Texas Secretary of State or Certificate of Existence and a Certificate of Good Standing obtained from the state Comptroller of Public Accounts
• Completed Form RSD-303 for each manager, director, and employee
• Proof of required liability insurance. This demonstrates that the applicant is covered by general liability for property damage, personal injury, and product liability with policy limits of $1,000,000 for each occurrence; $1,000,000 product liability; and $2,000,000 general aggregate limit
• Proof of payment of the applicable fee. Texas requires a $7,356 application fee and a $488,520 license fee for a 2-year period
• Cover letter as stated on Form RSD-302. The letter must not be longer than 500 words and must include descriptions on:
• The cannabis establishment's understanding of its responsibility in the development of the state's Compassionate Use Program
• The applicant's business approach and philosophy in producing low-THC cannabis
• The applicant's approach to providing low-THC to registered patients of the Texas Compassionate Use Registry
• How the approval of the dispensary organization license will facilitate reasonable statewide access to and availability of low-THC cannabis to registered patients

In addition, all managers, directors, and workers are required to submit fingerprints as approved by the Department of Public Safety. Directors, managers, and employees must each pay an initial $530 registration cost. Finally, after submitting the application to the DPS for approval, the proposed dispensing organization must pass an on-site inspection before final approval of licensure.

Note that the application window for the dispensary organization license in Texas is currently not open. The application guidelines above are the requirements and steps used in the last open application window in 2017. Although Texas briefly accepted applications for the dispensary organization license in late 2019, the application process was abruptly closed with no licenses issued. To keep abreast of the latest information on cannabis license applications in Texas, check thelicensing and registration page of the Department of Public Safety website.