- The business entity type they intend to establish (such as sole proprietorship, corporation, partnership, limited liability company, and limited liability partnership). They must also state if the company is publicly traded or privately held.
- The name of the corporation or full name of the sole proprietor and their assumed name (if any)
- The personal information (full name, date of birth, and email address) of the president, vice president, secretary, treasurer, and other partners of the business entity. For sole proprietorships, the form must state the personal information of the individual owner.
- The full name of the proposed establishment's manager
- The physical address and mailing address of the proposed facility
- The phone number, email address, and website of the proposed business
- Documents necessary to verify their identities (names, addresses, and birth dates)
- Criminal background disclosure, including any deferred adjudication and conviction
- State-issued identification numbers or driver's licenses
- Fingerprint scans \ Any license applicant who fails to meet these requirements will be issued a notification of deficiency. They will have 90 days from the notification date to respond to the deficiency and provide the essential information. However, on applicants' request, the Department can extend the period for addressing application deficiencies by an additional 90 days. The Department of Public Safety will terminate any application from applicants who fail to address deficiencies within the allowed period.
- Provide details of all the equipment that will be used for cultivating, processing, and dispensing medical marijuana in the proposed facility
- Describe the methods they intend to use in growing, extracting, manufacturing, and selling medical cannabis and cannabis products to qualified patients.
- Provide an organizational chart of the proposed facility, indicating its supervisory structure. The applicant must list all the existing and proposed staff of the establishment and state their responsibilities and positions.
- Describe the dispensing organization's policies and procedures for ensuring employee safety in line with federal OSHA (Occupational Safety and Health Administration) provisions for workplace safety
- Describe the dispensing organization's proposed testing laboratory, and its testing methods and protocols
- Acknowledgment by the business's managers, directors, and employees, indicating that they are conversant with the federal laws regulating cannabis and its transportation across state borders (Controlled Substance Act)
- Show proof that the premises of the proposed establishment's facility will allow access to medical cannabis patients
- Floor plan, indicating the names, functions, and layout of each section of the facility. It must also describe the locking options for all entrances and exits, alarm systems, storage safes and vaults, and video surveillance.
- Emergency management plan
- Procedures for preventing diversion of medical cannabis
- Inventory control plan in line with the system provided in Title 37§12.8 of the Texas Administrative Code
- System for tracking medical cannabis from cultivation to the point of dispensing to medical cannabis patients
- Security and electronic tracking systems for the company's vehicles
- Employee experience and qualification in product tracking
- Employee screening and monitoring plans
- Recordkeeping policies and procedures
- Product recall policies and procedures in case of any patient reaction, test result, or other factor suggesting the possibility of harmful drug reactions
- Waste disposal plan
- Access to expert security, tracking, and data collection services
- Show the business's financial budget for the first two years of operation.
- Describe the business's available financial assets
- List all the entities and individuals that control the applicant.
- Describe the corporate structure (if applicable) and business organization of the proposed facility
- List all the shareholders and owners of the proposed facility.
- Marijuana cultivation, analytical laboratory methods, microbiology, and analytic organic chemistry
- Handling patients' confidential information in line with HIPAA (Health Insurance Portability and Accountability Act of 1996) requirements and patient interaction and education
Applicants should submit completed forms, Exhibits, and attachments electronically to the Texas Department of Public Safety. The Department reviews applications and scores them based on the scoring criteria. Applicants can review the Department's application checklist to ensure their applications are complete.
If an application is approved, the applicant must pay a license fee to obtain the dispensing organization license. However, if an application is denied, the applicant can file for a hearing, as stipulated in Chapter 487, Section 104(b) of the Health and Safety Code. The Department of Public Safety /must issue the applicant a written notice stating the grounds of denial, at least thirty days before the hearing date.
According to Title 37 §12.14 of the Texas Administrative Code, the Department will regard any application as incomplete if the applicable fees are unpaid. If the application fee or license fee payment is reversed or dishonored before the prospective dispensing organization owner is issued a license, the Department will reject the application. However, if the payment is reversed or dishonored after the applicant is issued a license, the Department will initiate a revocation as stipulated in Title 37 §12.23 of the Texas Administrative Code. Nevertheless, if the applicant eventually pays their complete fees, the Department will dismiss the revocation proceeding.
How Much Do Marijuana Cultivation Licenses Cost in Texas?
As stipulated in Title 37 §12.14 of the Texas Administrative Code, the costs of obtaining and maintaining dispensing organization licenses in Texas are:
- $7,356 for dispensing organization license application
- $488,520 for dispensing organization license (for two years)
- $318,511 for renewing dispensing organization (renewed every two years)
- $530 registration fee for initial dispensing organization registration and biennial renewal
Can Licensed Marijuana Cultivators Hold Other Cannabis Licenses in Texas?
Texas issues only one type of license for medical marijuana businesses; the dispensing organization license. Holders of dispensing organization licenses are authorized to cultivate, produce, dispense, and test low-THC medical marijuana.
