Texas Opens New Cannabis Licensing Under HB 46

12 New Texas Cannabis Business Opportunities Have Arrived

The Texas Compassionate Use Program (TCUP) is about to see its most significant expansion to date. With the passage of House Bill 46 (HB 46), the Texas medical cannabis program will be issuing 12 new business licenses to vertically integrated cannabis applicants, a staggering jump from the current 3 business licensees. The aggressive rollout schedule, complex requirements, and a merit-based selection process will mean only the best and most prepared applicants will be awarded a license.

This expansion offers unprecedented opportunity for both prior applicants and new business entrepreneurs—but with tight timelines and heightened competition, preparation is critical.

 

 

Two-Phase Cannabis License Distribution

The Texas Department of Public Safety’s Regulatory Services Division (RSD), led by Chief Wayne Mueller, has outlined an Expansion Implementation Plan that complies with HB 46 and was approved via formal motion. The plan splits the issuance of the 12 new cannabis licenses into two phases, but regardless of which phase you are applying in, the window to apply will be open from August 15 – September 15, 2025.

 

Phase I – 9 Licenses Available For 2023 Texas Cannabis Applicants

The 139 applicants from the 2023 Texas cannabis licensing round who did not receive a license at that time have now received a letter from DPS on July 15, 2025 notifying them of their eligibility to win one of 9 (of the 12) licenses based on their previous application.

New Supplemental Business Detail Requirements

Those wishing to withdraw their existing cannabis application must do so by August 15, 2025. Though applicants will not be permitted to rewrite their license application, supplemental material is required to keep their existing application in the running:

 

1) Cannabis Business Plan

A business development strategy plan is required and should include timelines, deliverables, milestones, and a projected date for filling prescriptions. The plan must also identify how the applicant would provide statewide coverage for patients.

 

2) Extensive Financial Information

Updates on your current financial status, financial model and strategy, and costs.

2023 Re-Applicant Winner Announcements

The winners of these licenses are expected to be announced by December 2025.

 

Phase II – 3 Licenses Available For New Texas Cannabis Applicants

Phase II opens the door for first-time Texas cannabis applicants to compete for the remaining three licenses under Texas’s Compassionate Use Program. These applicants will need to submit a full license application, including but not limited to:

• Ownership Documentation
• Security Plan
• Recordkeeping and Inventory Plan
• Cultivation, Processing, and/or Retail Dispensing Plans

2025 Scoring and New Applicant Winner Announcements

The scoring for these three new license opportunities will be merit-based, with only the best 3 applicants receiving a Texas cannabis license. Therefore, it’s important to begin working on your plans as soon as possible. The winners of these licenses are expected to be announced by April 2026.

 

 

The Importance of Regional Cannabis Patient Coverage

One of the most significant changes under HB 46 is the emphasis on regional distribution of cannabis licenses throughout all of Texas. The Texas Health and Human Services Commission (HHSC) has divided the state into Public Health Regions, and each cannabis license holder will be assigned to serve patients within a specific region.

Regional Preferences Required But Not Guaranteed

When submitting an application—whether in Phase I or Phase II—applicants must rank their preferences for these state health regions. DPS will take these preferences into account during the licensing process, but final assignments will be based on overall program needs to ensure statewide cannabis patient access.

 

 

Get Started on Your Texas Cannabis Application Today

In this fast-moving licensing round, HB 46 presents a rare and challenging opportunity for both seasoned license applicants and business newcomers to enter the Texas medical cannabis market. With a tight timeline, heightened merit-based scrutiny, and the added complexity of regional patient assignments, success will hinge on preparation, precision, and a clear demonstration of business operational strength.

Canna Advisors: Experience To Get You The License

With decades of cannabis consulting expertise, Canna Advisors has guided clients to licensing success in competitive markets across the country, combining deep regulatory knowledge with proven business development strategies that help applications rise to the top. Our team understands how to position your cannabis application for high scoring, total compliance with Texas’s unique business requirements, and a strong foundation that will lead to long-term success after cannabis licensure.

Contact Canna Advisors today or book an hourly consultation to put our expertise to work for your Texas cannabis application.