Phase I of Texas Compassionate Use Program Expansion Selection Process for Medical Cannabis Licenses Is Underway

In a recent press release, the Texas Department of Public Safety (DPS) has begun Phase I of the Texas Compassionate Use Program (TCUP) expansion selection process. Nine new businesses have been selected to move forward for an additional due diligence evaluation (1).

The identified nine businesses will be subject to due diligence evaluations that include financial stability, litigation history, disciplinary actions, and any other information that is required by the department that follows Phase I of the selection process. The Texas Department of Public Safety selected these nine businesses for additional due diligence evaluation (1):

• Verano Texas, LLC
  • Public Health Region 10
• Trulieve TX, Inc
  • Public Health Region 1
• Texas Patient Access, LLC
  • Public Health Region 3
• Lonestar Compassionate Care Group, LLC
  • Public Health Region 3
• Lone Star Bioscience, Inc
  • Public Health Region 8
• PC TX OPCO LLC dba PharmaCann
  • Public Health Region 6
• Texa OP, dba TexaRx
  • Public Health Region 11
• Story of Texas, LLC
  • Public Health Region 6
• Dilatso, LLC
  • Public Health Region 2

The press release mentioned that (1), “Conditional licenses do not grant the applicant permission to cultivate, manufacture, distribute or sell cannabis products until final approval by the department. As a holder of a conditional license, the licensee is subject to the department’s ongoing due diligence evaluation. Each conditional licensee is expected to fully comply with all statutory and regulatory requirements applicable to the medicinal license issued under TCUP.”

Additional information will be requested by the Texas Department of Public Safety from the businesses that were selected and “will not be invoicing any dispensing organization license fees until the additional due diligence evaluations are completed and passed.” It is also important to note that the press release explained that the selected businesses are not guaranteed that they will be issued final TCUP licenses so that they can operate as cannabis dispensing organizations

In HB 46, the Texas Department of Public Safety needs to issue 12 new licenses through a two-phased selection period (1,2). Phase I consists of nine conditional licensees and three conditional licensees will be issued during Phase II by April 1, 2026.

Texas Becomes 40^th State to Legalize Medical Cannabis

On June 21, 2025, Texas Governor Greg Abbott signed HB 46 into law which established the Lone Star State as the 40th state to legalize medical cannabis. The medical cannabis expansion bill contains additions to the Texas Compassionate Use Program (TCUP). The earlier version of TCUP was “an extremely limited, restrictive, low-THC medical cannabis program that didn’t meet the Marijuana Policy Project’s standard to be considered a medical cannabis state,” (2).

“For too long, the existing Texas Compassionate Use Program has been severely limited, leaving countless Texans without the relief they desperately need. Texans have spoken, and their voices have been heard. HB 46 will expand access to medical cannabis, a relatively safe and effective treatment option that has long been sought by patients suffering from pain and several other serious medical conditions,” commented Kevin Caldwell, Southeast Legislative Manager at the Marijuana Policy Project (2).

The additions to TCUP will include adding new qualifying conditions such as Crohn’s disease, traumatic brain injury, and chronic pain. There will also be some new methods of delivery which will include inhalers, vaporizers, lotions, suppositories, patches. and pulmonary inhalation with approved nebulizers (2). Additionally, the new legislation will update “the current limit of 1% THC by weight with up to 10 milligrams per dose and a package not to exceed 1 gram of THC,” (2).

"Following in the footsteps of 39 other states, Texas has embraced a commonsense policy that will ensure that Texans facing serious medical conditions have access to a medicine that's already successfully improving lives nationwide. This new law is a direct result of overwhelming public support, acknowledging medical cannabis as a valuable, scientifically-supported option for managing chronic pain and debilitating illnesses," said Lauren Daly, Interim Executive Director at the Marijuana Policy Project (2).

References

1. DPS update: Phase I of texas compassionate use program expansion selection process https://www.dps.texas.gov/news/dps-update-phase-i-texas-compassionate-use-program-expansion-selection-process (accessed Dec 4, 2025).
2. Colli, M. Texas legalizes medical cannabis: Becoming the 40th state to do so https://www.cannabissciencetech.com/view/texas-legalizes-medical-cannabis-becoming-the-40th-state-to-do-so (accessed Dec 4, 2025).