Texas's Department of Public Safety (DPS) launched Phase II of the Texas Compassionate Use Program (TCUP) expansion on Wednesday, conditionally approving three additional medical cannabis businesses: GTI Texas, LLC dba RISE Dispensaries, Cresco Labs Texas, LLC—both affiliates of major multi-state operators—and Texas Medica Collective, LLC. Phase I, announced last year, selected nine businesses.
The conditional approvals require further due diligence covering disciplinary history, financial suitability, and litigation records before DPS grants final permission to cultivate, manufacture, distribute, or sell cannabis. License fees will not be invoiced until due diligence is complete, and conditional status does not guarantee final licensure.
The legislation, signed by Gov. Greg Abbott (R) in June, requires DPS to issue 12 new licenses in total. Should any Phase I or II selectee fail to become fully operational within 24 months of licensure, DPS also named 12 businesses for possible future review:
- Sawtooth Texas LLC
- Bluebonnet Technologies, LLC
- Village Farms, LP
- Lone Star Life, LLC
- Texas Health Systems, Inc
- MSC Lone Star, LLC
- Bayou City Medical Dispensary
- Sua Vaping Inc dba Vape City
- Texas CMP, LLC dba Texas Apothecary
- JG Texas LLC dba Justice Cannabis Co
- Sage and Stone Holistics, LLC
- TheraTrue Virginia, LLC dba TheraTrue
Texas currently has only three licensed medical cannabis dispensaries. Beyond expanding the dispensary count, the new law adds qualifying conditions—chronic pain, traumatic brain injury (TBI), Crohn's disease, and other inflammatory bowel diseases—and permits end-of-life patients in palliative or hospice care to use marijuana.
The TCUP expansion coincides with new hemp restrictions, including a ban on THCA smokable hemp flowers that took effect this week. Last month, Texas voters approved a marijuana legalization question on the Democratic primary ballot. A February poll found 40 percent of Texas voters disapprove of how officials have handled marijuana and THC policy, versus 29 percent who approve and 31 percent with no opinion; a separate poll found a plurality want marijuana laws made "less strict," and voters ranked hemp regulation among the least important items lawmakers addressed in recent special sessions. The lieutenant governor and House speaker announced this week that Texas will proceed with its own ibogaine research program after no drug companies submitted qualifying proposals to receive state funds for clinical trials under a recently enacted law.
