Selling CBD in Texas Laws
What are the Texas CBD Regulations to Sell CBD
Under Texas State Law House Bill 1325, selling and buying CBD in Texas is legal as long as there is not more than 0.3% delta-9 THC in the CBD. The Texas Hemp Program and State Health Services regulate the growing, processing, selling, and buying of consumable hemp products under Texas law in Texas.
Can You Buy CBD Oil, Including Delta 8 in Texas?
Recently there has been some controversy regarding laws for the selling and buying delta 8 THC in Texas. The Texas Department of State Health Services recently classified delta-8 as an illegal Schedule 1 controlled substance under their consumable hemp program guidelines and laws. The new classification and law contradict the legal definition of hemp under State House Bill 1325, which says,
Sec.A121.001. In this chapter, “hemp” means the plant Cannabis sativa L. and any part of that plant, including the seeds of the plant and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.
Technically, Delta 8 is legal based on the state laws and federal definition of hemp and CBD being legalized under Texas CBD laws. As a result, a Texas based CBD business, Hometown Hero, that sell’s CBD in Texas, sued the Texas Department of Health Services and received a temporary injunction. The injunction allows delta 8 THC to remain legal while awaiting moderation comment legislation for the lawsuit through the Texas laws court systems.
The Department of Health in Texas is arguing that delta-8 falls under “tetrahydrocannabinol,” listed as number 31 in the list of illegal Schedule 1 controlled substances, while the comment is awaiting. The DSHS commissioner adds a substance to the Schedule 1 controlled substances list if it has:
- “a high potential for abuse” and
- “no accepted medical use” or “lacks accepted safety use in treatment.”
Which is currently designated in Section 481.035 of the Texas Health & Safety Code. However, under Federal Law, this designation directly contradicts the classification set forth by the Federal Drug Enforcement Agency (DEA). At the Federal level, hemp and CBD were removed from the list of controlled substances as long as it has less than 0.3% dry weight of Delta-9 tetrahydrocannabinol THC.
These changes were made in adherence with the Agriculture Improvement Act of 2018, commonly known as the 2018 Farm Bill. According to the Federal and State definition, delta 8 THC is legal in Texas, and we are confident the Department of Health will lose this lawsuit in Texas. Regardless, for the time being, delta 8 THC is for sale in Texas, and you could legally sell delta 8 THC and buy delta 8 THC in Texas.
How to Register with the Department of State Health Services
All CBD manufacturers, distributors, and retail sellers are legally required to acquire a DSHS Retail CBD Registration or a Consumable CBD Product License from the Texas Department of Health Services.
You are required to obtain a DSHS Retail CBD Registration License if you fit the following criteria:
- You are selling CBD for retail, and do not make any changes, including adding a company name to the CBD product and its packaging.
- You sell consumable CBD for online CBD retail. You do not make any changes, including adding a CBD company name to the CBD product and its packaging.
You are not required to undergo a Federal Bureau of Investigation fingerprint criminal background check.
A DSHS Consumable CBD Product License is required if you fit the following criteria:
- You manufacture consumable CBD. Manufacturing includes the following activities: preparing CBD, compounding CBD, processing CBD, packaging CBD, repackaging CBD, labeling CBD, and relabeling CBD.
- Suppose you are a CBD retailer using white-label or private-label CBD for your consumable CBD products. This is when a CBD business places its own CBD label (name and address) on a CBD product physically manufactured by another CBD business.
- If you are a packaging, labeling, or relabeling CBD company of consumable CBD products.
- If you are a wholesaler of CBD intended for consumption.
The Texas Department of Health Services defines consumable CBD products (CHP) as any product processed or manufactured for consumption that contains CBD, including food, a drug, a device, and a cosmetic. However, the definition does not include any product that contains hemp seed or a hemp-seed-derived ingredient used in a recognized safe manner by the U.S. Food and Drug Administration. CHPs cannot contain more than 0.3% dry weight of delta-9 THC.
Here are some examples of CHPs:
- Cannabidiol (CBD) Oil.
- CBD gummy bears.
- Food and drinks infused with CBD.
- Over-the-counter drugs which contain CBD.
- Topical lotions and cosmetics that contain CBD.
For more information, you can learn more at the Texas Administrative Code CHP Definitions webpage.
How to Get a License to Sell Consumable Hemp Products in Texas?
There are two similar but different processes for obtaining a CBD license in Texas. The two processes differ depending on the type of CBD license you need to acquire. There is a process for the DSHS Retail Hemp License and another for the DSHS CHP Product License.
DSHS Retail Hemp License Process:
Step 1. Go to the Texas Department of Health Services Business and Professional Licenses website. Be aware that if you have an existing account for another DSHS license, you cannot use the same account for the DSHS Retail Hemp License. You have to use another email address to register for a new account.
Step 2. Fill out every field and box using a red asterisk, then click next. The preview of your next screen registration will appear. You can edit or modify your details on this page and click save to proceed.
Step 3. Once you complete the form, an email with a temporary password will be sent to you. You will be asked to return to the license homepage, where you enter your User ID and temporary password from your email as a Returning User to sign in. Follow the guidelines and then create a new permanent password.
Step 4. On the screen, click ”no” and then click next to proceed.
Step 5. From the ”Choose Board’Board’ drop down, click the Consumable Hemp Production Program. For the ”Choose Application’Application’ drop-down, click Retail Hemp Reg Initial Application. Then click on select to the right of ”Retail Hemp Reg Initial Application”.
Step 6. Read all of the introductory information, then click next to proceed.
Step 7. Carefully read the questions and answer accurately, then click next to proceed.
Step 8. If you are a sole proprietor/owner, enter your first and last name for ”Organization Name”. If you have a partnership, enter the partnership’s name or your partner’s name. You will have an opportunity to enter a Doing Business As (DBA) later in the application.
Enter your social security number or Federal Employer Identification Number for ”Tax Number”. You will need to enter this number twice.
Under ”Entity Type,” click the type that applies to you. Lastly, click next to proceed.
Step 9. Fill out the fields for the Main Address on the Contact Information screen. Fill in your home address if your business headquarters is at your home.
Step 10. You can choose the Main Address from the drop-down menu and click Copy to populate the fields with the mail address entries for the Mailing Address Field.
This is where you give the email address that you would like the DSHS to email you information and renewal notices.
Step 11. For Contact, Type chooses ”Business Loc – Retail Hemp Registration and click add.
Step 12. Fill in the fields for your store location. Fill in the business name you want your customers to see for Organization Name.
Step 13. You can edit Organization Detail and General Addresses on the Application Summary Screen by clicking the Edit buttons. Before moving on, review all the information and make sure it is correct. Then click next to proceed.
Step 14. Read over the Attestation. If you agree, then select ”Yes” and click Next. If you do not agree, you will not be able to submit your application.
Step 15. When you reach the Fee and Summary Report screen, you can pay now or later. When you select ”Pay Later, you will have to log back into the system and select Pay for Online Application from the Quick Start Menu.
Step 16. To get a copy that you can save and print, click on the ”View PDF Summary Report button to get a copy.
DSHS CHP Product License Process:
The process is the same as when registering for a DSHS CBD Product License, except there are a couple of extra requirements. Use the DSHS Consumable Hemp Product License Checklist to account for all extra items that are required when completing the application process.
What are the CBD Advertising Laws and Regulations in Texas?
According to the Texas Department of Public Safety 37 Tex. Admin. Code 1, Chapt. 12 the following are the CBD advertising laws in Texas:
(l) All CBD advertisements whether on Google or somewhere else for functions regulated under the Act must contain the dispensing organization license number in font the same size as the primary text of the advertisement in Texas.
(m) CBD licensees must comply with all applicable local, state, and federal regulations and permitting requirements relating to air and environmental quality, advertising, business and occupancy, building, plumbing, electrical, fire safety, noise, and odor or other nuisances. This subsection does not require compliance with a regulation that conflicts with the Act or this chapter.
As well as the federal advertising guidelines set forth by the FDA and FTC, which are:
The FDA states that businesses and individuals cannot make unproven claims that CBD could treat serious or life-threatening diseases. CBD companies cannot mislead to forgo effective treatment or therapy for serious or life-threatening diseases. This means a CBD business cannot state their CBD can cure, mitigate, treat, or prevent disease. CBD cannot be marketed as a dietary supplement or drug.
The FTC regulates CBD as well as the FDA and states the following:
1.) No deceptive CBD advertising is allowed in Texas. An advertisement is deceptive if it contains “a misrepresentation or omission likely to mislead consumers acting reasonably under the circumstances to their detriment.”
2.) All “objective” claims require substantiation in Texas. “The level of substantiation required depends on several factors, including the type of claim being made.” This means that if a CBD company claims that their product can prevent, treat, or cure disease, competent and reliable scientific evidence must be used to substantiate these claims in Texas.
3.) Do not guarantee results in Texas.
4.) Do not link to articles that contain dubious medical claims related to CBD on your website or in your advertisements for your audience in Texas.
Read more here in our article on the CBD advertising laws by state.
Frequently Asked Questions About CBD Law in Texas
Is CBD Legal in Texas 2022?
The answer to the question, “Is CBD Legal?” is the following:
Yes, you can buy CBD oil and all other hemp-derived derivatives like delta 8 in Texas as long as it contains 0.3% or less dry weight of delta-9 THC.
What is the Law on CBD in Texas?
House Bill 1325 says,
Sec.A121.001. In this chapter, “hemp” means the plant Cannabis sativa L. and any part of that plant, including the seeds of the plant and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.”
Can You Get in Trouble for CBD in Texas?
No, you cannot get in trouble for using or possessing hemp-derived cannabinoids, legal CBD in Texas.
How Much Does it Cost to Get a License to Sell CBD in Texas?
A license to manufacture, process, and distribute hemp products for consumption costs $258 per facility.
There is a $155 per location fee for registering each retail location where the hemp products will be sold.