AUSTIN – The Texas Department of Public Safety (DPS) today announced a correction to the tabulation methodology for awarding conditional licenses under the Texas Compassionate Use Program (TCUP) expansion process. This correction affects some businesses that were previously awarded conditional TCUP licenses or spots on the TCUP license eligibility list during Phase I and Phase II of the expansion selection process.
Using the corrected tabulation methodology, the following organizations will be conditionally awarded TCUP licenses, subject to additional due diligence, including review of disciplinary history, financial suitability, litigation history and any other information required by the department:
Name | Region |
| Verano Texas, LLC | Public Health Region 10 |
| GTI Texas, LLC dba RISE Dispensaries | Public Health Region 9 |
| Trulieve, TX, Inc | Public Health Region 1 |
| Lone Star Bioscience, Inc | Public Health Region 8 |
| Lonestar Compassionate Care Group, LLC | Public Health Region 3 |
| Texas Patient Access, LLC | Public Health Region 3 |
| Bluebonnet Technologies, LLC | Public Health Region 6 |
| Sawtooth Texas LLC | Public Health Region 4 |
| Bayou City Medical Dispensary | Public Health Region 5 |
| Dilatso, LLC | Public Health Region 2 |
| Texa OP, dba TexaRx | Public Health Region 11 |
| PC TX OPCO LLC dba PharmaCann | Public Health Region 6 |
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 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 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.
The following organizations have been placed on a TCUP license eligibility list, following the corrected tabulation methodology:
Name |
| Story of Texas, LLC |
| Cresco Labs Texas, LLC |
| Lone Star Life, LLC |
| MSC Lone Star, LLC |
| Texas Medica Collective, LLC |
| Village Farms, LP |
| Sua Vaping Inc dba VI Vape City |
| Yes TX, LLC |
| JG Texas LLC dba Justice Cannabis Co |
| Crown Grove Investments, LLC dba Smoke and Vape |
| Texas Health Systems, Inc |
| GB Farms Texas Investments, LLC |
About the Corrected Tabulation Methodology
As part of the Texas Compassionate Use Program, the department was responsible for issuing a predetermined number of conditional licenses to companies seeking to participate in this program. In August 2025, the department published a document on its website identifying four scoring categories within the exhibits section and indicating that each category would carry an equal weight of 25% of the total score.
While the published document communicated this weighting structure, the department did not communicate externally that the internal scoring methodology was still under development. Internally, discussions were ongoing regarding alternative approaches to scoring, including methods that would weigh individual line items rather than applying equal weight to each of the four categories.
Following the April 1, 2026, announcement of successful applicants and the subsequent public posting of score sheets, a tabulation error was identified. The methodology used to tabulate the final scores did not apply the 25% equal weighting to each of the four scoring categories as reflected in the published document.
After careful review, the department determined that the most appropriate and equitable course of action was to re-tabulate the scores using the 25% equal category weighting methodology reflected in the document published in August 2025, which applicants and the public reasonably relied upon. This corrective action does not constitute a re-scoring of applications. The scores assigned by the individual scoring committee members remain entirely unchanged; only the tabulation methodology was corrected.
As a result of the corrected tabulation, three companies that were not included among the originally announced successful applicants now qualify for conditional license awards. Correspondingly, the conditional licenses previously awarded to three companies have been rescinded, and those companies have been placed on the eligibility list. All companies affected by this change are being notified directly.
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.
More information about TCUP is available online, here.
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(HQ 2026-046)