Following the passage of the 2018 Farm Bill, which effectively removed hemp and hemp seeds from the Controlled Substances Act and allowed for the commercial production and sale of hemp at the federal level, Texas Governor Greg Abbot signed into law, Texas House Bill 1325, authorizing the production, manufacturing, retail sale, and inspection of hemp and hemp-derived products in the state of Texas. 

Bailey Law Firm has extensive experience with federal, state, and local hemp laws and regulatory programs. We understand the sensitivity and complexity of this new agricultural commodity and offer a full suite of transactional and compliance services. 

Both new and existing business owners in cannabis, hemp and CBD-related industries need counsel with extensive knowledge and experience to navigate the unique challenges and incredible opportunities of this exciting industry. 

Bailey Law Firm uses a cross-disciplinary approach. We strategically leverage our extensive business network in ways that make sense for everyone involved and for the industry collectively. 

Who we represent

  • Companies that directly touch the plant from cultivation, harvesting, processing, and manufacturing,
  • Retail sales of marijuana, industrial hemp and cannabidiol (CBD) products,
  • Those who are considering entering the Cannabis/Hemp industry
  • Those that provide ancillary support to the Cannabis/Hemp industry

What is a cannabis lawyer? 

A cannabis lawyer is an excellent resource for their client in helping them navigate the rapidly evolving Cannabis and Hemp legal framework. The cannabis lawyer’s legal expertise is essential in providing guidance throughout the complex start-up process – particularly with helping to secure all necessary licensing and initial compliance work. Their guidance remains essential as the client’s needs expand and change to fit the changing legal framework because the lawyer is steadily working to stay abreast of the latest developments in the industry. They can assist their client by evaluating their current position to ensure compliance. 

More than likely, the cannabis lawyer started out practicing in a different area of law such as business, intellectual property, etc., and brings that experience with him/her into the Cannabis/Hemp space. That can allow the lawyer to hone in on a particular niche in the vast space that is Cannabis/Hemp law. Some attorneys have expanded their practice to larger regions across several states but focus on a particular niche while other lawyers may stick to one state but have a broader practice in the Cannabis/Hemp space.  

In any event, having an experienced attorney in the Cannabis/Hemp space is a great advantage as they are proactive in staying educated and informed as the industry continues to flourish.   

What is the Difference Between Hemp, CBD and THC?

While marijuana and hemp both come from the same plant, Cannabis sativa L, the 2018 Farm Bill legally defined hemp as any cannabis plant, or derivative thereof, that contains not more than 0.3 percent delta-9 tetrahydrocannabinol (THC) on a dry-weight basis. 

Tetrahydrocannabinol (THC) is the primary psychoactive component found in cannabis. It is the compound that causes the consumer to experience the “high” effect. 

Cannabidiol (CBD) is the second most prevalent compound found in cannabis and is derived directly from hemp (or manufactured in a laboratory). While it does not produce the “high” effect, consuming CBD has been effective in treating anxiety, chronic pain, epilepsy and insomnia, among many others. 

While hemp and CBD are legal in the state of Texas currently, the legal landscape is rapidly changing making this an exciting time for this industry. 

How We Can Help

From startup through growth and succession, we offer support for every aspect of your business and ensure compliance every step of the way. 

  • Regulatory
    • Licenses to grow, process or dispense medical marijuana and hemp 
    • Assessment of business and individual risks under federal, state and local cannabis-related laws, regulations and compliance
    • Administrative matters pertaining to licensure 
  • Corporate
    • Corporate formation and structure, addressing complexities resulting from state-specific statutes and the conflict between federal and state law 
    • Public companies and filings with Securities and Exchange Commission (SEC) and other agencies 
    • Capital formation activities, including public and private securities offerings and lending transactions 
    • Mergers and acquisitions  
    • Partnership and operating agreements 
    • Domestic and cross-border financing and merger and acquisition transactions and merger and acquisition transactions 
  • Real Estate and Finance
    • Zoning, water rights and land use 
    • Loans
    • Joint Ownership
  • Health Law
    • University research centers and licensing 
    • Hospital compliance 
  • Labor and Employment
    • Workplace training 
    • Non-compete and trade secrets 
    • Executive employment agreements and severance agreements 
    • National Labor Relations Act (NLRA) 
  • Environmental Considerations

Medical Marijuana

In 2015, the Texas Compassionate Use Program was established, directing the Texas Department of Public Safety to create a registry whereby qualified physicians could register to treat patients suffering from a limited number of medical conditions with low-THC cannabis. In 2019 and 2021, the Program was amended to its current language.  

As it stands, a patient may qualify to be treated with low-THC cannabis if they’ve been diagnosed with: 

  • Epilepsy 
  • A seizure disorder 
  • Multiple sclerosis 
  • Spasticity 
  • Amyotrophic lateral sclerosis 
  • Autism 
  • Cancer 
  • An incurable neurodegenerative disease 
  • Post-traumatic stress disorder; or 
  • A medical condition that is approved for a research program under Subchapter F, Chapter 487, Health and Safety Code, and for which the patient is receiving treatment under that program. 

Low-THC cannabis has been defined as “the plant Cannabis sativa L., and any part of that plant or any compound, manufacture, salt, derivative, mixture, preparation, resin, or oil of that plan that contains not more than one percent by weight of tetrahydrocannabinols. 

*Note that this definition varies from the definition of Hemp under the Texas Agriculture Code 

The Texas Compassionate Use Act has set Texas up to be a vertically integrated state in that dispensing organizations licensed in the State are responsible for handling the marijuana at every stage – from cultivation to manufacturing and processing to final distribution of the low-THC cannabis to the patient. In order to obtain a license to operate as a dispensing organization, an applicant must demonstrate that they have the technical and technological ability to cultivate and produce low-THC cannabis, the ability to secure the resources and personnel necessary to operate as a dispensing organization as well as premises reasonably located to allow patients listed on the registry access to the dispensary through existing infrastructure. They must have the ability to maintain accountability for the raw materials, the finished product, and any by-product used or produced in the cultivation or production of low-THC cannabis, and lastly, they must have the financial ability to maintain operations for a minimum of two years from the date of application. 

Thus far, the State of Texas has only granted three companies licenses to dispense medical marijuana.  

To date, only 3 companies in the state of Texas are authorized medical marijuana dispensaries.  Also known as “Dispensing Organizations”. 

Texas State Law Resources

CBD & Industrial Hemp – Cannabis and the Law – Guides at Texas State Law Library 

Texas Industrial Hemp Program (texasagriculture.gov) 

General Information – Cannabis and the Law – Guides at Texas State Law Library 

Hemp-related Information (texas.gov) 

Compassionate Use Program