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.
Cresco Labs, Green Thumb Industries and Texas Medica Collective 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.
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.
