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Tag: Texas TCUP

BREAKING: Gov. Abbott Signs TCUP Expansion as Clock Ticks on THC Ban Decision

June 21, 2025 — In a headline-grabbing move that belies the deeper political drama beneath it, Governor Greg Abbott today signed House Bill 46 into law, enacting the most significant expansion of the Texas Compassionate Use Program (TCUP) since its inception. The new law allows physicians to recommend low-THC cannabis for chronic pain, expands access for veterans with PTSD, and marginally increases the allowable THC cap.

But the bill is far from a clean win for medical cannabis advocates—and for many in the broader cannabis community, it may feel like a Trojan Horse.

 

The Political Trade-Off

 

Lt. Governor Dan Patrick leveraged HB 46 as a political bargaining chip to strong-arm reluctant House members into voting for Senate Bill 3, the sweeping ban on hemp-derived cannabinoids that passed in the waning days of the session. Patrick made it clear: if lawmakers wanted HB 46, they had to swallow the poison pill of SB 3.

Capitol sources confirm that House lawmakers who had long fought for TCUP expansion were told, bluntly: support the ban, or your patients get nothing.

Now, with HB 46 signed and codified, Patrick has delivered on his part of the deal. But Governor Abbott’s final decision on SB 3 looms large. He has until midnight, Sunday June 22, to sign it, veto it, or let it quietly pass into law without his signature.

 

HB 46: Expansion, Yes—But Also a Trap

 

While the expansion of medical access will help a subset of patients, HB 46 also introduces a highly restrictive and monopolistic licensing structure that critics say will entrench the existing TCUP oligopoly and lock out the broader cannabis industry—including hemp operators and legacy entrepreneurs.

Key concerns include:

 

  • No pathway for current hemp licensees or manufacturers to participate in the expanded TCUP system, even if they meet quality and safety standards.
  • Arbitrary license caps and undefined “moral character” criteria that will allow the Department of Public Safety to deny applications without meaningful oversight or appeal.
  • closed-loop supply chain that forces vertical integration—limiting the market to those with millions in capital and existing political relationships.
  • Out-of-state control of licenses and a strong whiff of insider favoritism. At least one TCUP license is backed by national investors with lobbying ties to both Patrick and powerful Senate committee chairs.

 

Critics argue that while the bill appears to expand access, its actual effect is to reinforce a cartel structure—one that Patrick and his allies can control through regulatory choke points. The expansion is not broad legalization; it’s restricted commercialization.

“HB 46 is a gilded cage,” said a former legislator who asked not to be named. “It gives the illusion of progress while institutionalizing exclusion.”

The Bigger Battle: SB 3

 

All of this unfolds in the shadow of SB 3—the bill that would ban all hemp-derived THC products including Delta-8, Delta-9, Delta-10, and THCa, currently sold in legal retail markets across Texas. The legislation threatens to wipe out a multi-billion-dollar industry, shutter hundreds of small businesses, and criminalize the very products that many consumers, including veterans and patients not covered by TCUP, depend on for relief.

A newly filed lawsuit by Texas retailers and manufacturers in Travis County seeks injunctive and declaratory reliefagainst SB 3, arguing it violates federal preemption, the Takings Clause, and due process protections. That case may delay enforcement, but it doesn’t undo the political damage.

 

Abbott’s Decision Will Be Defining

 

Governor Abbott has historically taken a moderate stance on cannabis, expanding TCUP in previous sessions and signaling openness to low-THC therapies. With three recent polls—including one from the Texas Politics Project—showing majority Republican opposition to a ban, pressure is mounting for a veto of SB 3.

If Abbott signs it, prohibition returns under a new name. If he vetoes it, the fight for regulatory reform can begin in earnest. If he does nothing, the bill becomes law by default—and with it, the state’s most draconian anti-cannabis law in a decade.

In that case, HB 46 may go down not as a win for patients—but as the velvet glove hiding the iron fist of prohibition.

 


 

Jay Maguire is Political Editor of the Texas Hemp Reporter, Executive Director of the Texas Hemp Federation, and co-founder of CRAFT: the Cannabis Retailers Alliance for Texas. Reach him at maguire@texashempfederation.org or 512-954-8054.

If Texas Legalized Adult Use Cannabis Tomorrow, Who Would Get a License?

Coming off of an exciting Texas Hemp Summit, I can’t help but be a voice of reason in the room. It was awesome to see so much support and interest in the burgeoning hemp industry here in the lone star state. We got to hear from Texas AG Commissioner Sid Miller and had leaders in hemp fly in from across the United States to weigh in on the future of hemp, and really cannabis, in Texas.

As a CBD retail operator since 2018 myself, I am no stranger to the ever-moving landscape here. From newly discovered cannabinoids hitting the market like CBC and THCV, to the emerging market of chemically derived cannabinoids like hemp-derived delta 9 THC. We’ve faced lawsuits as a state, most recently losing the manufacturing and processing of smokable hemp products in Texas. And we’ve seen the state slowly introduce a medical marijuana program, which to me, is the domino that needs to fall before we see any type of adult use market here in Texas.

Which is exactly where I want to dive in. If Texas legalized adult-use cannabis tomorrow, who would get a license? How many licenses would they issue? What would a license cost? And if full plant access was granted, what would that do to the thousands of CBD retailers operating in Texas alone?

These are questions not meant to intimidate you, but rather to prepare you.

I spend a lot of time studying this market, as I mentioned I have skin in the game and want to ensure I’m doing my due diligence to take the best next step forward. But I also, through my podcast To Be Blunt, have ongoing conversations with industry leaders across the United States and even globally, deciphering their failures and successes in hopes of gathering enough intel to speculate what and when Texas might make her move.

I think a good indication is to look at where medical marijuana is currently at in Texas. For those who may be unaware, there are three licenses in circulation under the Texas Compassionate Use Program (TCUP), with only two in operation. The application to even apply for a dispensing organization license is $7,356 and the license fee is $488,520 for a two-year period. That is just to get your license to operate, not counting all the operational costs, etc. On top of that, the TCUP license requires vertical integration meaning you have to grow, extract, process, manufacture, distribute, and sell. 

So I ask you, who has the funds and assets to qualify for a TCUP license? And out of the thousands of operators currently selling CBD and hemp-derived cannabinoid products, who is going to qualify for one of the limited available licenses under the current program and rules?

Look, I am hopeful like the rest of you, but I also live in reality, and to ignore these facts is to willingly walk into a wall.

I recently saw the Texas DPS announce they were considering opening up TCUP licenses, which would be a step in the direction towards adult use recreation because I believe we need a more advanced Medical Marijuana/ TCUP program before you see adult use/ recreation legalized in Texas.

TCUP is currently limited to a 1% THC cap, and the broadest qualifying condition is PTSD as expanded during the 87th Texas Legislative session. Our 88th legislative session kicks off in January 2022 and I anticipate whatever movement we get will be an indication of how much that program will advance, leading us to infer the progression of the legalization of cannabis in the state.

On top of all of this, hemp is currently capped at .3% Delta 9 THC on a dry weight basis, the language of “dry weight basis” has made a massive loophole not just for Texas hemp brands but really nationally we’re now seeing a wave of hemp derived delta 9 THC hit the market.

A rolled marijuana joint half burnt, isolated on white.

So from my perspective, on one hand, we already have legalization of THC in Texas to some extent, and on the other hand, how in the hell does this all get regulated, and who will it affect?

Some speculate Delta 8 and hemp-derived Delta 9 will be taken away, others argue how can they “put the cat back in the bag” so to speak. And personally, I’m not really sure what this legislative session will hold, but I can tell you I’m gonna roll up my sleeves and advocate and influence policy however I can.

But don’t say I didn’t warn you! 

New episodes of To Be Blunt air every Monday at tobebluntpod.com