DPS Update: Phase II of Texas Compassionate Use Program Expansion Selection Process

AUSTIN – The Texas Department of Public Safety (DPS) has initiated Phase II of the Texas Compassionate Use Program (TCUP) expansion process. Three new businesses have been selected to move forward for further due diligence, adding to the nine announced in Phase I in December 2025. Furthermore, 12 other businesses are now on the TCUP license eligibility list for possible future review. 

The following organizations will be conditionally awarded TCUP licenses, subject to additional due diligence, such as disciplinary actions, financial suitability, litigation history and any other information as required by the department following Phase II of the selection process:

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.

DPS will request additional information from these businesses and will not invoice any dispensing organization license fees until the additional due diligence evaluations are completed and passed. The announcement of these three businesses today does not guarantee that these businesses will be issued final TCUP licenses to operate as dispensing organizations. 

As outlined in House Bill 46, DPS will issue a total of 12 new licenses over a two-phased selection period. Nine conditional licensees in Phase I, and these three conditional licensees in Phase II. You can learn more about the application and selection process here. TCUP expansion applicant scores are available here.

House Bill 46 also requires that businesses issued TCUP licenses must become fully operational within 24 months of licensure.  If a business that is issued a TCUP license fails to meet this requirement, the department will refer to the TCUP license eligibility list for a replacement.

The following organizations have been placed on a TCUP license eligibility list, following Phase II of the selection process:

About TCUP

Passed and signed into law in 2015, Senate Bill 339 charged DPS with creating and administering TCUP in Texas, under the authority of the Texas Health and Safety Code, Chapter 487. Through the program, DPS operates the Compassionate Use Registry of Texas (CURT) – a secure online registry of qualified physicians who can prescribe low tetrahydrocannabinol (THC) to patients with specific medical conditions. 

Additionally, TCUP dispensing organizations are licensed by DPS and undergo regular physical inspections to ensure their compliance with state statute and administrative rules. HB 46, signed into law last year, expanded TCUP – authorizing the department to issue 12 new TCUP dispensing organization licenses. 

More information about TCUP is available online, here.

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(HQ 2026-031)