Texas is on the brink of expanding its medical cannabis program in a significant way. House Bill 46 (HB 46) passed both chambers of the Texas Legislature and now awaits action by Gov. Greg Abbott. He has until June 22 to sign it, veto it, or let it become law without his signature.

If enacted, the law will require the Texas Department of Public Safety (DPS) to issue 12 new dispensing organization licenses in two stages:

• First round: 9 licenses by December 1, 2025
  Eligibility is limited to applicants who submitted materials before July 1, 2025. That likely means those from the 2023 cycle or earlier. No new application window is expected before that deadline.
• Second round: 3 licenses by April 1, 2026
  This later phase may prompt DPS to open a new application period after the law takes effect on September 1, 2025.

Notably, HB 46 also mandates a minimum numbers of licenses DPS must issue:

• “The department shall issue not fewer than nine dispensing organization licenses … no later than December 1, 2025.”
• “The department shall issue an additional three dispensing organization licenses … no later than April 1, 2026.”

The bill calls for DPS to adopt rules “as necessary to implement this subchapter” by March 1, 2026.

DPS has not yet released any guidance on application procedures or rulemaking, but updates are expected in the coming months.

Next Steps for Applicants

• Already applied?
  You may be eligible for one of the first nine licenses. Watch for DPS updates.
• Planning to apply?
  Begin preparing now. If a new application window opens, it may be narrow and fast-moving.

Contact a member of the Fox Rothschild Cannabis Law team to discuss HB 46 and how to prepare for Texas’s expanding cannabis licensing landscape. We’re tracking developments and can assist with assessing eligibility, preparing applications and responding to DPS guidance as it’s issued.

This information is intended to inform firm clients and friends about legal developments, including the decisions of courts and administrative bodies. Nothing in this alert should be construed as legal advice or a legal opinion. Readers should not act upon the information contained in this alert without seeking the advice of legal counsel. Views expressed are those of the author(s) and not necessarily this law firm or its clients. Prior results do not guarantee a similar outcome.