How to Start CBD Business in Texas

Cannabis is a piece of big news and big business. People are now more interested in its legal status within the US and the business opportunities it may bring for them. When talking about cannabis and its benefits then comes THC which is a cannabidiol content of cannabis and got much attention. As per cannabis business insiders and increasing consumers consider the beneficial CBD as an opportunity to form the mainstream of the CBD market. 

US legal hemp market has shown ascending growth from $688 million to $1.8 billion from the year 2016 to 2020. The hemp-derived CBD products have shown an annual growth rate of about 53%. These statistics show that there is a golden opportunity for people to enter the CBD market and make many profits for the business.

In this article let’s have a look at the essential information which you must know when planning to start a CBD business in Texas.

CBD Regulations and Laws in Texas

Cannabis is removed from the Schedule I controlled substance list by the department of state health Texas in the year 2019 after the implementation of the federal Farming bill in the year 2018 which has also removed CBD from the control substance list. In June 2019 house bill 1325 was passed which has set regulations of hemp production, testing, and cultivation. This bill was adopted to match the rules of Federal law regarding CBD products. 

Texas now has its own cannabis law making CBD legal in the state. Now products can be grown, possessed, and sold but with a condition of having THC content less than 0.3%. This is a good opportunity for individuals to start a CBD business in Texas without the fear of penalties. This freedom has paved many opportunities in the cannabis industry.

CBD Products Available in Texas

For CBD business you must be aware of what products you can manufacture or sell legally in the Texas market. These can be

  • CBD oil

  • CBD edibles

  • CBD beverages

  • CBD concentrates

  • CBD creams

  • CBD ointment

  • And many others

Medicinal products containing THC up to 0.5% are also available in the market however they are restricted under state laws.

Regulations of CBD by State Health Services

The Texas Department of state health services Texas has the responsibility of controlling the manufacturers, resellers, and distributors of food, cosmetics, and medical manufactures of CBD derived from hemp. To start a CBD business in Texas you must know that local jurisdiction also regulates the sale of CBD products but does not prohibit the sale of these products. 

The Department of State Health Services Texas also does not regulate the private possession and use of food, dietary supplement, and cosmetic product. House bill 1325 has also designated some roles under its bill like

  • For consumable CBD products manufacturing licensing program initiation.

  • For retailers selling CBD products, it has a role in creating a registration program

  • Working for the testing of CBD products that are available for selling.

Business Licensing

Department of state health Services provides an online platform for the registration and license application for the retailers and distributors for CBD products. These applications are submitted in the business and professional license category. When you apply for licenses then there is a set of documents that are needed to submit with the application.

Applying for Permit or Hemp Licenses 

The hemp permit or license allows the business entity or individual to start a CBD business in Texas with the authority to handle the hemp or its related products.

  • In the initial licensing application submission the applicant has to submit the details of the hemp facility where hemp is produced and handled.

  • A lot of permit licenses allow the applicant to any one area of Texas for growing hemp one variety.

  • Fees for the licenses are different in terms of the type of licenses, facility, and lot permit.

  • You can plant more than one variety in a single facility and also one variety in more than one facility.

  • Each facility of hemp production has a separate registration and each lot permit for hemp lot is also different.

Getting successful in any industry is challenging work and depends on various factors. CBD business involves various planning and regulatory stuff to begin from ground level to full product form. There are risks involves in this business as with other businesses. Your CBD business cannot only make money for you but it should be beneficial in a way to produces a well-informed CBD population of consumers and growth in the market.

Author - Noah Nicholls

Noah Nicholls is a full-time Writer, Traveler, and Marketing Expert who is Currently Working for CBD-Boxes. Noah Nicholls writing relates to a range of subjects such as CBD and health.


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