Texas Expands Medical Marijuana, Eyes Adult-Use Legalization

Texas Expands Medical Marijuana, Eyes Adult-Use Legalization

Sabrina
AUGUST 1ST, 2025

Texas is seeing its most significant cannabis reform efforts to date. In June 2025, Governor Greg Abbott signed HB 46 into law, expanding the state’s limited medical marijuana program. Then, on July 24, 2025, Democratic state Rep. Jessica González introduced House Bill 195, a new bill that would legalize adult-use cannabis during a special legislative session.

These developments signal a major shift in Texas’s long-restrictive approach to marijuana policy and open the door to both medical and recreational cannabis business opportunities.

 

From Compassionate Use to Adult Access: Texas’ Bold New Cannabis Blueprint

Texas first legalized low-THC, high-CBD medical cannabis in 2015 via Senate Bill 339, creating the Compassionate Use Program. The system is built around Dispensing Organizations—vertically integrated businesses that cultivate, process, and dispense to patients.

Although the program started slowly, HB 46 passed in June 2025 to broaden access and improve business participation. Meanwhile, HB 195 now proposes to legalize adult-use cannabis for adults 21 and older, putting Texas in line with a growing number of U.S. states.

 

What HB 46 and HB 195 Would Do

HB 46 – Medical Program Expansion (Signed into Law):

  • Adds chronic pain and other conditions to the qualifying list
  • Permits new product forms
  • Increases the number of Dispensing Organization licenses (from 3 to 15)
  • Allows satellite dispensing sites across health regions
  • Rulemaking deadline: October 1, 2025

 

HB 195 – Adult-Use Legalization (Pending):

  • Legalizes possession of:
    • Up to 2.5 ounces of cannabis
    • Up to 15 grams of concentrates
  • Establishes licensing for growers, processors, labs, and retailers
  • Oversight by Texas Department of Licensing and Regulation (TDLR)
  • Sales allowed only in jurisdictions that opt in
  • Local governments may set limits on hours, locations, and number of businesses
  • Requires TDLR to adopt rules by November 1, 2026

 

Want to Start a Cannabis Business in Texas? Start Preparing Today: Schedule a Consultation

 

License Types + Availability

Under HB 46 (Medical):

  • Dispensing Organization License (vertically integrated)
  • 12 new licenses to be issued:
    • 9 licenses by December 1, 2025 (2023 applicants)
    • 3 licenses by April 1, 2026 (open to new and previous applicants)
  • Satellite locations allowed (one per public health region)

 

Under HB 195 (Adult-Use):
If passed, licenses would include:

  • Cultivators
  • Processors
  • Testing labs
  • Retail dispensaries

 

Eligibility or Application Details

Medical (HB 46): Applicants must meet state-defined security, financial, and operational criteria, and once a full statewide presence is established, satellite site expansion is allowed.

Adult-Use (HB 195): Application requirements will be set through TDLR rulemaking, with local governments playing a key role in zoning and business caps. If the bill passes, the rules are expected by November 1, 2026.

 

Next Steps for Texas Cannabis Reform

September 1, 2025 – HB 46 medical expansion takes effect

October 1, 2025 – DPS & DSHS finalize medical program rules

December 1, 2025 – 9 new medical licenses awarded

April 1, 2026 – 3 additional licenses issued

November 1, 2026 – Deadline for TDLR to issue adult-use rules (if HB 195 passes)

HB 195 will require legislative approval during the 2025 special session to move forward

 

Texas appears to be at a cannabis crossroads, with its existing medical program expanding under HB 46 and broader adult-use reform now on the table. Stakeholders, businesses, and advocates should monitor the special session closely and prepare for new opportunities on both fronts.

 

Interested in applying for a cannabis license in Texas? Call 602-290-9424 or email info@thecannabisbusinessadvisors.com to secure your spot!

 

The Cannabis Business Advisors have more than thirty years of combined industry experience, spanning across the U.S. and around the globe. C.B. Advisors offers a comprehensive suite of services, including application and licensing preparation, operational analysis, merger and acquisition support, policy and procedures, exit strategy guidance, and business development planning. Stay up to date on the latest cannabis news with The CB Advisors!

 

Contact Info@thecannabisbusinessadvisors.com for more information on how to apply for a cannabis business license.

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