Key Facts

Texas Compassionate Use Programme Licences

• Dispensing Organisation (DO) Licence — vertically integrated; must cultivate, process, AND dispense
  • Originally capped at 3 DOs statewide; expanded to allow more (currently ~6 licensed DOs)
  • Must be Texas-based; significant financial and operational requirements
  • Each DO may operate multiple dispensing locations statewide
  • Must cultivate, process, and dispense under one licence — no independent processor or retailer
• Cultivation (within DO) — indoor cultivation only; strict security requirements
  • No canopy limit stated but must meet demand of patient population
  • Video surveillance, alarm systems, and access control mandatory
• Processing / Manufacturing (within DO) — extraction and production of approved forms:
  • Approved forms: tinctures, capsules, topicals, lozenges, suppositories, and since 2021 — vaporisation forms and gummies
  • Smoking of any cannabis is NOT permitted under CUP — combustion prohibited
• Dispensing (within DO) — DOs may open dispensing locations statewide
  • Patients may order online or by phone for home delivery or in-store pickup
  • Home delivery available from licensed DOs
• Delivery — Home Delivery Permitted — DOs may deliver to patients' homes
  • Driver must verify patient identity and CUP registration
  • Significant for patients in rural areas of the large state
• Hemp Grower/Handler Licence — Texas Dept. of Agriculture
  • HB 1325 (2019) established Texas hemp programme aligned with federal Farm Bill
  • One of the largest hemp cultivation states by acreage

Implications

• Texas applies standard 6.25% state sales tax to all CUP cannabis purchases — no exemption for medical use
• Local jurisdictions (cities and counties) may add up to 2% additional sales tax — combined rate up to 8.25% in many areas
• No cannabis-specific excise tax enacted in Texas
• CUP licence fees are substantial — $488,520 application fee; $228,520 annual renewal — costs reflected in consumer prices
• IRS § 280E applies to Dispensing Organisations at the federal level
• Hemp/CBD products sold in Texas retail taxed at combined 6.25–8.25% rate

Texas DPS CUP Advertising Rules

• No advertising targeting minors — no content appealing to persons under 21
  • No cartoon characters, toy imagery, or candy-themed branding
  • No advertising within 1,000 ft of schools, daycares, or playgrounds
  • No TV, radio, or digital advertising where under-21 audience exceeds 30%
• Required disclaimers on all CUP advertising:
  • 'For use only by patients registered in the Texas Compassionate Use Programme.'
  • DO licence number must appear on all materials
  • 'Keep out of reach of children. May impair your ability to drive or operate machinery.'
  • THC content must be stated accurately on all product-level advertising
• Social media & digital platforms: Age-gating required; targeted to verified 21+ users only
  • No public-facing cannabis product posts without age verification gate
  • No sponsored ads targeting general Texas audiences
• No false health claims — DOs may not imply unapproved medical benefits; only research-supported statements permitted
• CUP advertising that references pricing, discounts, or promotional offers must comply with DPS rules

Employee Rights & Employer Obligations

• No employment protections for CUP patients under Texas law
  • Health & Safety Code § 487.203 explicitly states employers not required to accommodate CUP use
  • Employers may maintain zero-tolerance drug-free workplace policies
  • Positive cannabis test — valid grounds for termination regardless of CUP registration
• Texas Drug-Free Workplace Act: Employer certification programmes available; workers' comp premium discounts
  • Must implement written policy, employee notice, supervisor training, and EAP
  • Testing methodologies must follow SAMHSA guidelines
• Safety-sensitive industries: Texas is home to major oil/gas, aviation, construction, and transportation industries — all with strict zero-tolerance requirements
• Federal contractors: Drug-Free Workplace Act (41 U.S.C. § 8101) — cannabis prohibited at all times
• No pending Texas legislation to add employment protections for CUP patients

CUP Patient Possession

• Registered CUP patients may possess a 90-day supply of low-THC cannabis (≤1% THC) as recommended by their prescribing physician
• Must carry the Texas CUP patient registration and a government-issued photo ID when in possession
• Cannabis must be in original DO packaging with intact labels
• No home cultivation permitted under any circumstances
• Products must be from a licensed Texas Dispensing Organisation only

Adult-Use Possession — STRICT PENALTIES

• 2 oz or less: Class B Misdemeanour — up to 180 days, $2,000 fine
• 2–4 oz: Class A Misdemeanour — up to 1 year, $4,000 fine
• 4 oz – 5 lbs: State Jail Felony — 180 days–2 years
• 5–50 lbs: Third-degree Felony — 2–10 years
• 50–2,000 lbs: Second-degree Felony — 2–20 years
• 2,000 lbs or more: First-degree Felony — 5–99 years or life
• Texas has among the most severe cannabis penalties in the US — life imprisonment possible for large amounts

Transaction Rules

• CUP patients: 21+ (or 18+ if prescribed for epilepsy or terminal condition); CUP registration + photo ID required
• Purchase only from licensed Texas Dispensing Organisations — in-store or home delivery
• No adult-use retail transactions — any adult-use sale is a criminal offence
• No out-of-state medical cannabis recognition — only Texas CUP accepted

Texas DPS CUP Testing Requirements

• THC compliance testing mandatory — all CUP products must confirm ≤1% THC before dispensing to patients
  • Texas uses a different THC limit (1%) from the federal hemp standard (0.3%) — products specifically calibrated for the programme
  • High-CBD products are the focus — often 10:1 or 20:1 CBD:THC ratios
• Potency testing: Total THC, CBD, CBDA, THCA and other major cannabinoids per serving and per package
• Contaminant testing: Pesticides (full panel), heavy metals, microbials, mycotoxins, residual solvents (for extracts)
• Approved laboratories: Must be accredited by DPS; ISO/IEC 17025 required; no financial relationship with DOs
  • Texas DPS conducts compliance audits of both DOs and laboratories
  • Failed batches quarantined; DOs must report failures to DPS immediately
• Certificate of Analysis: Required for every batch; publicly available on DO website recommended
• Seed-to-sale tracking: Texas uses a state-mandated system; all products tracked from cultivation to patient

Qualifying Conditions — Health & Safety Code § 487.065

• Epilepsy — the original qualifying condition (2015)
• Seizure disorders
• Multiple sclerosis (MS)
• Spasticity
• Amyotrophic Lateral Sclerosis (ALS)
• Autism spectrum disorder (ASD) — added 2019
• Terminal cancer — added 2019
• Post-Traumatic Stress Disorder (PTSD) — added 2021
• Incurable neurodegenerative diseases — added 2021
• Note: Texas's CUP qualifying list remains among the most restrictive in the nation — general chronic pain, anxiety, and depression do NOT qualify

Programme Rules & Renewal

• Prescribing physician must be Texas-licensed and registered in the Compassionate Use Registry of Texas (CURT)
• Physician must determine that benefits outweigh risks for the patient's specific condition
• CUP registration managed through CURT system — issued by Texas DPS
• No annual patient fee — registration is part of physician's CURT entry
• Physician must re-prescribe (update CURT) for each refill authorisation — no static annual renewal like most states
• Patients aged under 18: parent or legal guardian must consent; physician must determine appropriateness
• Home delivery: DOs deliver statewide — important in Texas's large rural areas
• Out-of-state recognition: Texas does NOT recognise out-of-state medical cannabis cards
• No home cultivation under any circumstances

Comparison: CUP vs Adult-Use

• CUP restricted to ≤1% THC products for qualifying conditions; adult-use is any amount criminal
• No purchase limit for adult-use — but any purchase without CUP registration is illegal
• CUP patients may only buy from licensed DOs; no adult-use retail exists
• Home cultivation: illegal for everyone — patients and non-patients alike

Local Ordinances

• Several Texas cities have enacted local ordinances reducing enforcement priority or civil fine for small possession:
  • Austin, Dallas, San Antonio, Houston: Local ordinances allow civil citations ($0–$500) for ≤4 oz possession as alternative to arrest
  • These do not decriminalise possession — state criminal law still applies
  • County attorney/DA discretion determines actual prosecution
• No Texas city has enacted full decriminalisation — state law preempts
• Legislative outlook: Texas Legislature has expanded CUP incrementally; full adult-use legalisation considered politically unlikely in the near term