Dispensing Organizations

September 21, 2020

1. How many dispensing organizations will be licensed in Texas?

Texas Health and Safety Code Ch 487 requires the department license at least three dispensing organizations, provided at least three applicants have met the statutory requirements.

2. Why did DPS approve only three licenses? Will the number of licenses be increased in the future?

This was based on an analysis of other states' compassionate use programs, the number of patients in Texas with intractable epilepsy, and statutory requirements. Texas Health and Safety Code Chapter 487 requires that the department issue at least three licenses but no more than the number of licenses necessary to ensure reasonable statewide access to, and availability for patients prescribed low-THC cannabis under Chapter 169, Occupations Code.

3. What is the contact information for the three licensed dispensing organizations?

Fluent (formerly Cansortium Texas): Kristopher Kem


Compassionate Cultivation


Goodblend (Surterra Texas LLC, d/b/a goodblend)

4. How will the dispensing organizations ensure statewide access for patients?

The dispensing organizations' employees will be delivering prescriptions, as well as potentially filling prescriptions over the counter.

  • You may wish to contact the licensed dispensing organizations to determine their specific delivery approach.

5. Will testing laboratories be licensed or approved by the state?

Texas Health and Safety Code Ch.487 regulates the cultivation, processing, and dispensing of low-THC cannabis and does not specifically address the licensing of low-THC cannabis testing laboratories.

  • Only licensed dispensing organizations may test low-THC products.

6. Will I need a registration to work at a dispensing organization?

Yes. Texas Health & Safety Code §487.151 provides the requirements for employees to obtain a registration to work at a dispensing organization. Additional information can be found in the Administrative Rules, Section 12.12.

7. Are there restrictions on dispensing organization proximity to schools or daycares?

Yes. Administrative Rule 12.7(n) states:

All regulated premises shall be located at least 1000 feet from any private or public school or day care center that existed prior to the date of initial license application, measured from the closest points on the respective property lines.

8. Can local governments prohibit the operations of a licensed dispensing organization?

No. Texas Health and Safety Code Sec. 487.201 states:

A municipality, county, or other political subdivision may not enact, adopt, or enforce a rule, ordinance, order, resolution, or other regulation that prohibits the cultivation, production, dispensing, or possession of low-THC cannabis, as authorized by this chapter.