Introduction:
The Texas Department of Public Safety is about to open the application process to hopefully add more medical cannabis dispensaries. This is earth-shattering news for Texas cannabis entrepreneurs as only 3 dispensaries have been licensed in the past 3 years. To open an MCD in Texas, applicants must meet all requirements and apply with DPS in person or by mail. The application process under the new compassionate use program will end on April 28th, 2023.
What do I need to know?
At this time it is unclear how many licenses may be approved and legislature could still come later this year that could alter the number of medical cannabis dispensaries in Texas. The past law in 2015 was very restrictive for the use of cannabis-related substances for medical purposes in terms of the conditions it could treat and how much THC was allowed. The current three dispensaries are all located in Central Texas located 100 miles from San Antonio with not nearly enough supply to meet the growing demand.
Wayne Mueller, the chief of DPS’ regulatory services division, said at a December DPS Commission meeting that the agency would open the application process this month. But he said a decision on the timing for adding licenses would not be made until June or July. “This will help us gauge what the actual interest is,” Mueller said.
Is this move by the DPS Premature?
Nico Richardson, the acting CEO of Compassionate Cultivation, one of the three companies licensed in Texas believes that the move by DPS is premature.
Richardson said Florida and New York have a higher number of patients than Texas in a similar program. He also said that adding new licenses wouldn’t be helpful because licensed producers can only store the product in the facility where it is manufactured.
“So if I want to serve a patient in El Paso, and my facility is in Austin, I have to send a driver to El Paso to deliver the product or give it to a patient at a pickup location in El Paso,” Richardson said. “And whatever is not picked up has to be driven back… as soon as humanly possible.”
Interest in Medical Cannabis is spiking in Texas:
Since the program started in 2015, interest has grown. At first, physicians could only prescribe to patients who suffered from uncontrollable epileptic seizures. But by the end of 2018 over 600 patients and 50 doctors were enrolled per DPS data. The law passed in 2019 allowed thousands more people to benefit from the program who suffer from terminal cancer, autism, and multiple sclerosis to.
According to the National Organization for the Reform of Marijuana Laws, 37 states and the District of Columbia, have laws permitting marijuana for medical use. And last summer, Texas Agriculture Commissioner Sid Miller announced he was in favor of legalizing the drug for medicinal purposes.
Miller, who won re-election in November over Democratic challenger Susan Hays, is the highest-ranking Texas Republican to endorse fully legalizing medical marijuana.
Why are there so few medical cannabis licenses in Texas?
One of the reasons why there are a smaller number of patients in Texas is because there is a limit on the number of conditions eligible for the Compassionate Use Program. Unfortunately, the support around this expansion is still unclear.
“We should leave the decision of cannabis therapies up to medical professionals and their patients. We don’t regulate how doctors can dispense pain medication or opioids or narcotics,” Menéndez said. “It should be dispensaries that people can access, safely, legally, and affordably. I don’t see the reason why you would limit the number of dispensaries any more than you would limit pharmacies.”
Texas Dispensary Application Process:
The Texas Department of Public Safety (DPS) opened the application process for medical cannabis dispensaries on Tuesday, May 28. DPS will review the applications and issue permits to qualified applicants. The DPS will also issue a license to each dispensary that meets the requirements.
The Texas Medical Cannabis Program requires a minimum of $6 million in surety bonds along with other financial requirements that must be met before they can receive their permit or license from DPS.
Prerequisites for Cannabis Dispensary Applicants in Texas:
The Texas Medical Cannabis Dispensary Permit Application Process
The following steps are required to obtain a cannabis dispensary license:
- Complete and submit your application by the deadline date (May 31, 2019).
- Pay all necessary fees by check or money order made out to the Texas Department of Public Safety (DPS). Please note that DPS does not accept cash payments for this application process; however, there are multiple ways to pay online through DPS’ website. You can also mail your payment along with supporting documents (if applicable) directly to DPS at P.O. Box 4087 Austin TX 78765-4087
- Submit all required supporting documents by 5 pm on May 31st, 2019 via email or U.S. Postal Service only – no drop-offs allowed at any location! You must include:
- Proof of Ownership/Control – A copy of the current deed or lease agreement showing ownership interest in real property where the applicant intends to operate their business; OR if leased space then provides proof from the landlord showing permission given for use as well as contact information such as name phone number address email etc… * Proof of Financial Responsibility – Proof must be provided showing available assets totaling USD 300000 per dispensary location including all partners involved in each project regardless of whether they’re listed on the original application form submitted earlier this year during October 1st, 2018 thru December 31st, 2018 period prior starting today’s deadline date April 1st, 2019 which ends June 30th, 2020…
Steps to Register as an Applicant
- Register as an applicant
- Complete the application
- Pay the application fee
- Apply by clicking on the “Submit Application” button at the bottom of this page or emailing it to [email protected]
You will receive a receipt of payment from DPS via email within 2 business days after submitting your complete application. You will also receive confirmation that we have received your complete application, including all required documents (if applicable).
How we can help?
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Contact us today to discover how we can license and legalize your cannabis business to meet federal or provincial regulations.
