Austin Cannabis Business Law Attorneys
Last updated on April 7, 2025
The rapidly changing legal landscape has given rise to new opportunities regarding cannabis. Businesses looking to enter the Texas market face obstacles that must be overcome to be successful. From our Austin offices, the law firm of Wright & Greenhill, P.C., has the experience to counsel new and existing entities in cannabis business law. Our lawyers are on the cutting edge of business law. We have the experience and skill to help any business.
Sound Legal Counsel Is A Necessity
Hemp-based products of all types were illegal under Texas and federal law until fairly recently. Changes in the law have opened markets for some cannabinoid products. Hemp and cannabis products with very low concentrations of THC are no longer defined as marijuana in the Controlled Substances Act. A business looking to market or produce legal products must have an excellent understanding of the regulatory framework to avoid potential criminal liability.
A Business Like Any Other
Like any business, those working with cannabis benefit from careful planning. Entity formation, commercial contracts, business disputes and other legal concerns should be handled properly from the outset to maximize the chances of success. Our firm knows Texas business law. We represent businesses of all sizes throughout Texas.
Regulatory Compliance For New And Existing Cannabis Businesses
Navigating the complex regulatory landscape of cannabis law in Texas requires specialized knowledge and careful attention to compliance details. Understanding the Compassionate Use Program Act is essential for businesses seeking to operate legally in this space. This limited medical marijuana program allows qualified patients access to low-THC cannabis, defined as containing no more than 0.5 percent THC by weight and at least 10 percent cannabidiol (CBD).
For businesses interested in becoming authorized dispensing organizations, the licensing process runs through the Texas Department of Public Safety. Applications require a substantial investment, with initial application fees of $6,000 and an additional $6,000 for a two-year license. The state has committed to issuing at least three licenses to dispensing organizations, though there is no upper limit on the number of licenses that may be granted.
Licensed dispensing organizations may perform any or all regulated functions, including cultivation, processing and distribution of low-THC cannabis. These organizations face rigorous operational requirements, including implementing minimum security measures, maintaining detailed records and adhering to strict operational standards. All cannabis products must be tracked through an inventory control system subject to state inspection, and products must undergo testing and packaging according to state standards.
The list of qualifying medical conditions has expanded since the program’s inception. Current qualifying conditions include all forms of epilepsy, seizure disorders, multiple sclerosis, spasticity, amyotrophic lateral sclerosis (ALS), terminal cancer, autism and incurable neurodegenerative diseases. This expansion creates additional business opportunities but also necessitates careful attention to patient qualification requirements.
For businesses entering this market, understanding the distinction between hemp, which contains less than 0.3 percent THC, and marijuana remains crucial. Hemp-derived products occupy a different legal category under both state and federal law. This distinction affects everything from banking relationships to interstate commerce possibilities.
Our attorneys guide cannabis businesses through these complex regulatory hurdles, helping clients develop compliance programs. With regulations continuing to evolve, maintaining an ongoing relationship with knowledgeable legal counsel helps ensure your cannabis business remains compliant while positioning for growth as the market develops.
Contact Us For Cannabis Business Law Guidance
Call us at 512-961-4389 or 800-787-9579 to schedule a consultation regarding your business needs. You can also fill out the email contact form to request a return phone call.