States to Watch: Southern State Cannabis Bills

Texas Cannabis Legislation

Texas Senate Bill 734 was filed at the beginning of January 2025. The bill would authorize the possession, use, cultivation, distribution, delivery, sale, and research of medical cannabis for medical use and the licensing of medical cannabis organizations. Under the bill a limited number of cultivation, processing, dispensing, and testing licenses would be awarded. The act would take effect September 1, 2025 if passed. Regulations would need to be adopted by December 31, 2025. The licensing process would likely take place in early 2026, as Cultivation licenses will need to be awarded by April 1, 2026. All other license types must be awarded by June 1, 2026.

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In 2015, Texas legalized low-THC, high-CBD medical cannabis through Senate Bill 339, a legislative measure that established a legal framework for qualifying patients in the state to access and use low-THC, high-CBD medical cannabis as a treatment for their ailments. Access to medical cannabis is provided by state-licensed businesses permitted to grow, manufacture, and sell low-THC, high-CBD medical cannabis. Texas Medical Cannabis Dispensing Organizations hold a vertically integrated license, allowing licensees to grow medical cannabis plants; extract, process, and produce low-THC, high-CBD medical cannabis products; and dispense them to registered patients. While there are no statewide limits on the number of dispensing organization licenses available, the state has halted the acceptance of new applications for business licenses.

Virginia Cannabis Legislation

A Virginia Senate committee greenlit a proposal to legalize and regulate adult-use marijuana sales. The bills (SB 970 and HB 2485) that have been reintroduced would give the Virginia Cannabis Control Authority the ability to oversee licensing and regulation. Under these proposals, existing medical cannabis businesses in Virginia could open up to five additional retail establishments.

The bills also establish a microbusiness program focused on social equity. To qualify, applicants would need to meet specific criteria, such as having past cannabis convictions, family members with previous convictions, veteran status, living in disproportionately impacted areas, attending schools where at least 30% of students are eligible for Pell grants, or having received a Pell grant themselves. If passed, retail cannabis sales in Virginia could begin on May 1, 2026.

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On April 7, 2021, Virginia legalized adult-use marijuana through House Bill 2312, also known as Senate Bill 1406. Virginia is now the 16th state in the U.S. to legalize adult-use marijuana, permitting the possession of up to one ounce and consumption by individuals 21 years and older. Access to marijuana will be provided through state-licensed marijuana businesses. The Virginia Cannabis Control Authority will oversee the regulation of the adult-use marijuana program.

The types of licenses are as follows:

Marijuana Cultivation License – This license allows for the cultivation, labeling, and packaging of retail marijuana. It permits the purchase or possession of marijuana plants and seeds from other cultivation facilities. With this license, you can sell retail marijuana, immature marijuana plants, and marijuana seeds to wholesalers and retail stores. You can also transfer possession of and sell retail marijuana, plants, and seeds to other cultivation facilities as well as manufacturing facilities. Additionally, you may sell immature marijuana plants and seeds to consumers for their personal home cultivation of marijuana.

There will be two types of cultivation licenses: Class A, which limits the number of marijuana plants and the square footage of the area as determined by the board, and Class B, which permits the cultivation of marijuana plants with no more than 1% THC.

Marijuana Manufacturing License – This license allows the holder to manufacture, label, and package retail marijuana and retail marijuana products. It also permits the licensee to purchase or take possession of retail marijuana from a marijuana cultivation facility or another marijuana manufacturing facility. Furthermore, the license facilitates the transfer of possession and the sale of retail marijuana and retail marijuana products to marijuana wholesalers, retail marijuana stores, or other marijuana manufacturing facilities.

Marijuana Testing Facility License – Allows a licensee to develop, research, or test marijuana, marijuana products, and other substances.

Marijuana Wholesaler License – This license permits the purchase and possession of retail marijuana, retail marijuana products, immature marijuana plants, and marijuana seeds from marijuana cultivation facilities, marijuana manufacturing facilities, or other marijuana wholesalers. It also allows for the transfer of possession and the sale or resale of retail marijuana, retail marijuana products, immature marijuana plants, and marijuana seeds to marijuana cultivation facilities, marijuana manufacturing facilities, retail marijuana stores, or other marijuana wholesalers.

Marijuana Retail License – A retailer may acquire or possess retail marijuana, retail marijuana products, immature marijuana plants, or marijuana seeds from a marijuana cultivation facility, a marijuana manufacturing facility, or a marijuana wholesaler, and sell these items to consumers.

The Virginia Cannabis Control Authority will establish criteria to evaluate new licensees based on the density of retail marijuana stores in the community and metrics that have similarly indicated an association with negative community-level health outcomes or health disparities.

Types of Licenses and License Limitations:

Retailer            400

Wholesaler      25

Manufacturer  60

Cultivation       450

Start preparing early! Call 602-290-9424 or email info@thecannabisbusinessadvisors.com today to learn more about cannabis business licensing opportunities in Indiana and Wisconsin. Don’t miss your chance to enter these emerging markets!

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