Texas has taken a significant step forward in medical marijuana access by officially adopting new rules that implement House Bill 46. This dramatically expands the state’s Compassionate-Use Program. The Texas Department of Public Safety has finalized regulations. These regulations will increase the number of licensed medical marijuana dispensaries from three to 15 statewide. This marks the most substantial expansion of medical cannabis access in the state’s history.
House Bill 46, passed during the 89th Legislature’s regular session in 2025, represents a fundamental shift in Texas’s approach to medical marijuana. The legislation not only increases dispensary licenses but also broadens qualifying conditions. It removes dosage restrictions and establishes new operational frameworks for cannabis businesses. The newly adopted rules provide the regulatory foundation needed to transform these legislative changes into reality for Texas patients.
The expansion addresses longstanding concerns about limited access to medical marijuana in Texas. Only three dispensing organizations have served the entire state since the program’s inception. With the largest population of any U.S. state, Texas’s medical cannabis program has been notably restrictive compared to other states with similar programs.
Dispensary License Expansion Timeline
House Bill 46 mandates a structured approach to issuing the additional 12 dispensing organization licenses. The Department of Public Safety has established a two-phase timeline designed to ensure orderly market expansion while maintaining regulatory oversight.
The first phase requires the department to license nine new dispensing organizations no later than December 1, 2025. These licenses will be awarded to applicants from a pool of 139 applications submitted before July 1, 2025. The competitive selection process will prioritize geographic distribution across Texas’s public health regions to optimize patient access throughout the state.
A second licensing round will award three additional dispensing organization licenses by April 1, 2026. This round will be open to both unsuccessful applicants from the first phase and new prospective licensees. They can submit applications at any time. This staggered approach allows the department to assess the initial expansion’s impact before completing the full build-out to 15 licensed dispensaries.
The legislation also requires the department director to establish ongoing timelines for reviewing and acting on dispensing organization license applications. These rules will apply when any of the 15 dispensing organization licenses issued under House Bill 46 becomes available due to revocation or other circumstances.
New Security Requirements for Satellite Locations
House Bill 46 introduces the concept of satellite locations for dispensing organizations. This significantly expands the potential reach of medical marijuana access across Texas. The newly adopted rules establish comprehensive security requirements for these satellite facilities, which function as storage and distribution points separate from main dispensary locations.
Satellite locations must maintain enclosed, locked areas specifically designated for low-THC cannabis product storage. These secure areas must provide adequate protection against theft and diversion of cannabis products. The rules also mandate that dispensing organizations designate specific individuals with responsibility and authority to control access to these secure storage areas.
The satellite location provision addresses geographic access challenges in Texas. Vast distances between cities can make it difficult for patients to reach dispensaries. By allowing approved satellite locations, dispensing organizations can extend their service areas. They must maintain strict security protocols required under state law.
Enhanced Accountability and Operational Standards
The adopted rules implement new accountability measures designed to ensure dispensing organizations operate effectively. They must serve patients consistently. House Bill 46 authorizes license revocation for organizations that fail to begin dispensing low-THC cannabis within 24 months of license issuance. This addresses concerns about license holders who obtain permits but never actually serve patients.
Additional revocation grounds include failing to continue dispensing low-THC cannabis during the license term. Not promptly and accurately filling prescriptions and failing to continuously produce cannabis consistent with demand levels are also grounds. These provisions ensure that licensed organizations maintain active operations and meet patient needs. They must rather than simply hold licenses without providing services.
The rules establish that dispensing organizations must demonstrate ongoing operational capacity and commitment to serving Texas patients. This approach prevents speculation in licensing while ensuring that the expanded program translates into actual patient access improvements.
More Medical Cannabis Access Under House Bill 46
Beyond dispensary expansion, House Bill 46 significantly broadened the Texas Compassionate-Use Program’s scope. The legislation added new qualifying conditions including chronic pain, traumatic brain injury, Crohn’s disease, and other inflammatory bowel diseases. End-of-life patients receiving palliative or hospice care also gained access to medical marijuana under the expanded program.
The bill removed previous dosage caps that limited the amount of low-THC cannabis patients could obtain. This allows physicians to tailor recommendations based on individual patient needs. Additionally, House Bill 46 authorized the inhalation of medical cannabis through aerosols or vapors. Smoking remains prohibited.
These expanded access provisions took effect automatically on September 1, 2025, without requiring additional rulemaking. The changes represent a significant philosophical shift toward treating medical marijuana more like other prescription medications. Physician discretion plays a larger role in patient care decisions.
The expansion under House Bill 46 comes at a complex time for cannabis regulation in Texas. While medical marijuana access broadens, other legislation has simultaneously restricted hemp-derived THC products. These products were ones that many consumers previously used for similar purposes. This regulatory environment creates both challenges and opportunities for the expanding medical marijuana program.
For patients, the expansion promises improved access to legal medical marijuana. Though qualifying for the program still requires meeting specific medical conditions and obtaining physician recommendations. The removal of dosage caps and addition of new qualifying conditions should make the program more accessible to patients who previously couldn’t participate.
A New Chapter for Texas Medical Marijuana
House Bill 46 and its implementing rules is an important moment for medical marijuana policy in Texas. The five-fold increase in licensed dispensaries, combined with expanded qualifying conditions and operational flexibility, transforms the Compassionate-Use Program. It changes it from a limited pilot program into a comprehensive medical marijuana system.
The structured implementation timeline ensures that expansion occurs systematically. It maintains the regulatory oversight that Texas officials have emphasized throughout the program’s development. As the first new dispensing organizations begin operations in late 2025, Texas patients will gain unprecedented access to legal medical marijuana. This occurs within a robust regulatory framework designed to prioritize safety and efficacy.
For now, House Bill 46 represents the most significant advancement in Texas cannabis policy since the Compassionate-Use Program’s original creation.
